The Saskatchewan government says school boards may have to freeze the salaries of teachers and staff as the province grapples with a billion-dollar deficit.

In a recent letter to school division board chairs, the government says it’s “experiencing a very challenging fiscal situation.”

“All public sector employers are expected to ensure that there are no increases to the total cost of employee compensation as a result of any ongoing negotiations, or negotiations for contracts yet to expire,” the letter reads.

“There shall also be no increase in total costs resulting from any adjustment to out-of-scope compensation.”

The government says total compensation costs for the 2017-18 fiscal year will be no greater than 2016-17.

“Negotiations need to commence immediately in order to achieve these goals for in scope employees prior to April 1, 2017,” the letter reads.

“There may be a need to consider such things as freezing in range increments, general wage increases and performance/bonus pay, for both in and out of scope employees in order to meet the requirement to contain and control the total cost of public sector compensation.”

The government is asking employers and unions to consider options that could reduce compensation costs, both in the immediate and long term, “in order to lessen the need for actions that would reduce the size of government.”