LAKELAND – When it comes to how the United Conservative Party’s (UCP) 2022 Budget will impact northeastern Alberta, it remains unclear.
The Alberta government has tabled a budget that sits in the black, with a modest $500 million surplus forecasted for the 2022 fiscal year.
“If we continue to make responsible fiscal decisions, we don't need to be passing on irresponsible decision making onto the next generation, which I think is critically important,” said Minister of Finance Travis Toews during a teleconference geared toward rural municipalities, last Monday.
However, none of the province’s major 2022 capital plan projects directly support infrastructure in the northeast region, except perhaps for $320 million to be doled out over the next three years for the province’s Broadband Strategy to help increase internet access and high-speed internet for Albertans.
Large-scale infrastructure projects to be funded in the next one to three years are concentrated in southern and central Alberta. A point aptly noted by Edmonton’s mayor, Amarjeet Sohi, during interviews on the 2022 provincial budget.
When it comes to seeking provincial funding for infrastructure projects in the Lakeland, municipalities will have to compete with other jurisdictions in the province for funding.
The 2022 Budget includes $5.8 billion for municipal infrastructure, $3.2 billion for capital maintenance and renewal, $2.2 billion for health facilities, $1.8 billion for roads and bridges, $1.5 billion for schools, $3.8 billion for other capital plan envelopes, and $1.9 billion in School, University, College and Alberta Health Services (SUCH) sectors for self-financed capital spending.
Overall, Toews says the budget reflects a number of positives taking place across the province.
“It's certainly a budget that reflects higher energy prices. And we know that's important for the province as a whole, as well as for many regions within this province in terms of economic growth and opportunities,” the finance minister said.
“We are projecting, I would suggest, very modest prices relative to what we see today, and we're projecting that those prices will come down over the term.”
Energy sector royalties that the province is using are projections from West Texas Intermediate that predict Alberta energy prices with stay within the $70 range for 2022, $69 for 2023 and $66.50 for 2024.
“What's positive about this budget is even as energy prices are expected to trend down, we are projecting revenues to increase year over year throughout the fiscal plan,” he said, adding, that is a result of broad economic growth and diversification.
Toews attributes this, in part, to the UCP government’s reduction of Alberta’s business tax rate from 12 per cent to eight per cent and their focus on red tape reduction and “regulatory modernization.”
“We have pushed forward with those initiatives and others. We're seeing investment pour into this province. And again, across sectors and regions,” he stated, pointing to significant strengthening in agri-food manufacturing investments and the petrochemical manufacturing sector, including the hydrogen economy. As well as growth in film, television, aviation and aerospace.
He says Alberta’s diversified economic growth is reflected in increased revenues for the province now and in years to come.
Benefits for rural communities
An ongoing issue in Alberta has been a general shortage of veterinarians, said Toews.
“We have a shortage of large animal veterinarians and a shortage of small animal veterinarians as well. And so, we are making a $59 million investment into the (Veterinary Medicine) faculty at the University of Calgary. This will result over time in doubling the enrollment capacity of that Veterinary College.”
With an increasing number of graduating veterinarians, some while likely decide to move into rural communities and specialize in areas needed within those communities, he says. “Many will be a small animal specialist, and others will work in food animal agriculture production.”
Moving on to medicine impacting people, Toews acknowledged the ongoing and long-term difficulty in attracting medical professionals in rural communities and stated that the latest budget focuses on increasing healthcare capacity broadly.
“We're adding $600 million to health space budget in the upcoming fiscal year, $1.8 billion over the three years of the fiscal plan. So, it does include a very significant investment province-wide but included in the budget are some key programs that I believe will reduce some of the challenges for rural areas to attract nurses and doctors,” he said.
The minister was referring to the RESIDE (Rural Education Supplement and Integrated Doctor Experience) program.
“This is a program that will ultimately incentivize 60 physicians to move out into some of the most underserved regions of the province and practice,” Toews outlined.
To receive the incentives, physicians will have to make a three-year commitment to work in those communities. The budget also includes $22.5 million dollars for nurse recruitment, attraction and retention.
Other designated funding that could be felt in the region is $45 million specifically slated for revitalization of healthcare facilities across rural Alberta and an additional $64 million more for Emergency Medical Services (EMS) to address capacity needs and other pressures within this system.
“We've had a lot of pressure on our EMS services over the course of the last year and a half. And so, this budget responds to that pressure and I would suggest lack of capacity,” emphasized Toews.
Shrinking Municipal Sustainability Initiative
Toews also addressed the reduction in funding for the Municipal Sustainability Initiative (MSI) fund and the possible impact to rural infrastructure.
Speaking to the province’s reasons to “front-load” the program in 2021 bumping the allotted funding to $1.2 billion, he said combating the effects of the pandemic was part of implementing the “counter-cyclical” funding.
“During those two years, we basically pulled funding ahead so municipalities would have additional funding to invest in their communities. Again, at a time when they could get work done more cost effectively and at a time when many Albertans needed a job opportunity,” he explained.
For the next two years, MSI funding will stay at $485 million, before switching to a new funding framework, the Local Government Fiscal Framework, in 2024-25.
“We signaled this already a year ago, so municipalities could plan... accordingly with the projects that they were going to take on and they knew that we would be turning this funding down in the back end,” he added.
Funding rural law enforcement
The 2022 budget for the Ministry of Justice and Solicitor General, which oversees the provincial justice system, is forecasted to increase to $1.48 billion, an increase of $99 million from Budget 2021.
The rise in funds are predominately related to RCMP collective agreement costs and increased costs for Alberta Sheriffs, Correctional Services, and Court and Justice Services due to costs from new labour agreements, according to the minister.
Another reason for the budget increase is “to ensure that there is adequate enforcement in Alberta and even more importantly, that we have enough capacity in our justice system to deal with the cases that come forward in a timely way – that's been an issue over the last number of years.”
The Alberta Crown Prosecution Services will also receive $1 million in planning funds to support increased staffing levels in rural locations with a focus on addressing security concerns.
“I hear from rural Albertans that their perception is that there is a revolving door with criminals, and we need a justice system that can hear these cases on a timely basis. Our plan is to add 50 additional crown prosecutors across the province and we're well on our way to getting there,” Toews said.
And while the budget indicates no additional money has been earmarked for funding Alberta Crown Prosecution Services itself, Toews told Lakeland This Week, “That has been an area that has been somewhat underutilized.”
He continued, “The department has struggled to fill those positions and so there has been some adjustments in remuneration levels just in the in the last couple of months – and we believe those adjustments will assist the ministry in filling those positions.”
When addressing rural crime, Toews also indicated the province has included funding for the Rural Alberta Provincial Integrated Defense (RAPID) Response program, which enhances the scope of responsibility government authorities, such as Fish and Wildlife officers and Sheriffs, can respond to in rural Alberta.
“Very often in rural Alberta the RCMP resources are stretched thin,” Toews said. “That's one reason why we brought in what we call the RAPID response program and that will ensure that we can get the authorities out to respond to real crime in rural communities.”
Addressing a shortage of workers
Across Alberta, high unemployment rates coupled with high vacancy rates for numerous jobs are becoming a growing concern.
“There is a structural labour shortage across regions, and in many cases across sectors,” expressed the minister.
"In rural Alberta, there's no doubt that there is a shortage of qualified experienced truck drivers. That that is, again, I think, right across the province. And budget 2022 includes an additional $30 million in Driving Back To Work (DBTW) grants to get more Albertans with a class one license in the MELT training that they require.”
He added that the province will also be making targeted, specific and intentional reinvestment over $170 million in the next three years to purchase additional capacity at post-secondary institutions.
“There is a labour crunch, I think across a number of sectors. There are some key occupations that are acutely short, and we have targeted additional physicians and educational capacity at our post-secondary institutions to deal with those shortages,” he said.
The province has also developed two new immigration streams designed attract new Canadians to rural communities across Alberta – rural renewal stream and rural entrepreneur stream.
RELATED STORY: Province unveils initiative to attract immigrants to rural communities
In the end Toews stated that “the viability of rural Alberta is in my view, very important.”
He continued, “there needs to be opportunity in those communities for individuals and families to put down roots and pursue a career, maybe start a business and be successful. There needs to be adequate infrastructure in those communities in terms of roads and transportation infrastructure, but more than that, there needs to be adequate health care, infrastructure and education, infrastructure.”
With revenues for the province looking up in the years ahead, Toews says increased investment ultimately means opportunities for those living in rural Alberta.
“Budget 2022 really is, I believe, a turning point for the province. It reflects the strength of our economy broadly, certainly the strength of the energy industry as well in the province, but it also reflects the strength of a more diversified economy from quarter to quarter,” he concluded.
