Democracy is never cheap, but it could be cheaper—at least when it comes to by-elections and MLA severance. Thanks to a change in NDP leadership, Saskatchewan is seeing its second and third by-elections since the Sask Party took power less than two years ago. The only sure thing is that taxpayers will pay dearly for it, both through election costs and severance pay for departing MLAs. However, the Canadian Taxpayers Federation (CTF) has a suggestion as to how taxpayers could minimize by-election costs: eliminate severance pay for MLAs who resign between elections.
This suggestion was inspired by the departure of Cumberland MLA Joan Beatty in early 2008. Just two months after being re-elected, she abandoned her seat to run for the Liberals in a federal by-election. Voters expressed disapproval by denying Beatty a federal seat. Too bad taxpayers were still stuck with the bill.
Costs for the 2008 Cumberland by-election still aren’t known. However, they should be close to the $238,615.91 spent by Elections Saskatchewan for the March 2007 Martensville by-election. This represented a staggering $23.34 per eligible voter and $51.72 per vote. As for Beatty, her severance was $34,212.*
Is it too much to ask that Beatty’s severance revoked to help offset the by-election cost? In the private sector, if you voluntarily quit your job you don’t get any severance whatsoever.
Revoking severance pay is a good place to start because MLAs already receive this stipend with more riches and frequency than private sector employees. Unless a departing MLA immediately joins the civil service, they receive a “transition allowance” equivalent to one month of salary for every year served, to a maximum of twelve.
Following the 2007 election, severance pay for 17 former MLAs cost taxpayers $914,563. Yet, 12 of these MLAs had chosen not to run again and had plenty of time to “transition” into private life. The other five lost their seats because of voter dissatisfaction. It’s arguable that none of them should get any severance, considering retirees and those fired with cause in the private sector get none.
A 2008 poll of CTF supporters saw an almost universal demand for change. 89 per cent want MLA severance pay limited to two weeks per year served, as is typical for private sector employees who are fired without cause. And 93 per cent would support a law that eliminated severance pay for MLAs who leave for a non-medical reason.
Despite CTF appeals, the province has not made this move, and the cost to taxpayers will be substantial. Lorne Calvert, already given severance in 1999 for 13 years as a Moose Jaw MLA, will receive another $65,396 following another eight-and-a-half years in the legislature. Sixty-two year old MLA Harry Van Mulligen will get the maximum severance of $87,195, having left his Regina seat to allow new NDP leader Dwain Lingenfelter to run.
The last study on MLA pay was done in 2006 and recommended that it be examined more fully in 2011. Perhaps by then the province will decide to change the circumstances where severance pay is granted or even minimize its amounts. At the very least, a move to revoke severance for MLAs who quit mid-term would be a good start.
*Pension figures estimated by CTF
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