After much lead-up to the provincial budget being released last week, there remains some disappointment across the province and locally, but also some hope and positivity.
On Oct. 27, the NDP government released its first budget since being elected. After previously stating it would run a balanced budget sooner, the government is now saying it will aim for 2020.
“This government is working towards a vision of a province that is more prosperous - and whose prosperity is much more widely and fairly shared,” said President of Treasury Board, Minister of Finance, Joe Ceci, as he delivered his speech.
He added that the values of Albertan’s came through “loud and clear” during the province’s consultations.
“We are a hopeful and optimistic people. We are entrepreneurial and enterprising. We are community-minded. We care about our neighbours. What we desire for ourselves, we wish for all . . . And those are the values that drive this budget,” said Ceci.
Three priorities were noted in the budget. The first is to stabilize public services; the second is to set out a plan to balance the budget; and the third is to act on jobs and diversification.
Ceci added that Albertans have said they want their health care and education protected, “while ensuring that every public dollar is well-spent, and that the rate of growth in budgets is brought under control.”
And maybe the most talked about portion of the budget – the deficit – was addressed in Ceci’s speech.
“Albertans told us they want to see a plan to return to balanced budgets. Albertans know that lower oil prices mean deficits for the Government of Alberta, since we are currently so dependent on oil revenues to pay for public services,” he said, adding, “The citizens of this province want to see a plan to balance the budget within a reasonable amount of time – without reckless cutbacks that will only have to be repaired later.”
Lac La Biche-St. Paul-Two Hills MLA Dave Hanson wasn’t impressed with the NDPs first budget.
He said he was “disappointed that there was no solution offered to correct the current economic crisis. No attempt to find efficiencies and ways to save on costs of government. We run the most expensive government in Canada, there must be some areas where we could save.”
As of late last year, Hanson hadn’t hear any specific concerns from constituents, but given that the budget had just been announced, he hadn’t had time to speak with locals to judge public reaction.
The NDP government is projecting a $6.1 billion deficit for 2015/16, a $5.4 billion deficit for 2016/17, a $4.4 billion deficit in 2017/18, and a $2/1 billion deficit in 2018/19. A balanced budget is projected for 2019/20.
Hanson says he isn’t impressed with the projected deficits.
“By 2019, debt will be $47.4 billion. We will be paying $1.3 billion in interest alone. I do not believe this government will be able to balance the budget in 2020 or any other year,” said the MLA.
“We intend to stabilize the health budget, and the bend the curve of its growth in steps over the years,” said Ceci in his speech.
Another step the NDP government is taking is a salary freeze for political staff.
“Our government will propose that Members of this House agree to freeze the salaries of members of Cabinet, MLAs and political staff positions for the entire term of this Legislature – in other words, until after the next election in four years.”
Further, a review of Alberta’s Agencies, Boards and Commissions will take place.
“This budget will affect the lifestyle of all Albertans for years to come,” said Hanson.
But, not all reaction was negative. Bob Bezpalko, the executive director with Northeastern Alberta Information HUB, said he was happy to see $299 million and a newly created Ministry of Economic Development and Trade to help build “a more diversified and strong economy, and this is one of the goals of Alberta HUB.”
Alberta HUB is very “optimistic” with the approach being taken.
St. Paul Education Regional Division Chair Heather Starosielski also pointed out some strong points in the budget.
“The commitment to fund enrolment growth for the next three years will assist St. Paul Education in planning by providing some assurance in funding predictability,” she said, adding, “There was funding announced for creating opportunities and improving educational outcomes for Aboriginal students. First Nation students make up approximately 25 per cent of our enrolment.”
The budget also alluded to a school nutrition program in 2016/17, and since SPERD has been providing breakfast programs in all of its schools for several years, this would also be a welcome relief.
The current programs run largely on donations from the public, and are offered to all students.
“Regardless of income, families today live busy lives that can make it difficult to sit down long enough in the morning to eat a nutritious breakfast,” she said, adding, some student have long bus rides and often get to school hungry.
The budget also committed to lowering fees that parents pay, but not until 2016/17.
“The rest of the budget announcement follows through with commitments made earlier this year in regards to the capital projects at Ashmont and Two Hills, and the commitment to cover the costs of the final year of the Teachers' Framework Agreement,” says Starosielski.
Alberta Urban Municipalities Association (AUMA) spoke on the budget in a media release, shortly after the budget was announced. AUMA says the budget offers “significant provincial funding commitments for municipal infrastructure,” which will have a “substantial impact on the well being of Albertans.”
Significant increases to municipal water and wastewater systems will begin in 2016. Municipalities also welcome the announcement of increased funding for transportation and public transit.
The government announced a $5 per carton increase on tobacco sales, and a five per cent increase on the alcohol mark-up. These measures are expected to create an additional $122 million in revenue.
And although many people may cringe at the sounds of increased taxes, there are some Albertans who feel a strong stance is needed in collecting taxes.
“The government promised to stabilize revenues, to make our province less vulnerable to sudden changes in the price of oil. This can only be accomplished with a broad source of revenue, like a sales tax,” says local resident Randy Brandt, via the Journal Facebook page.
