The first budget tabled by the new Liberal government zeroes in on infrastructure spending and new benefits for families but does so thanks to big deficits – approximately $29.4 billion this year and $29 billion next year, for a grand total of more than $100 billion over the next five years.
The plan is to revitalize a stalled economy with injections to specific industries, with infrastructure spending reaching more than $120 billion in the next 10 years, according to a press release. Over the next five years, “shovel ready” projects could dip into a $12 billion fund.
“We’re only going to see $12 (billion) over the next five years. I guess from my perspective, that’s a little disappointing,” Mayor Peter Brown said. “It’s great that they’re providing funding for infrastructure. If you look at the math, we have some opportunities with transit, with our library storage and maintenance facilities, possibly affordable housing.
“I don’t know how they’re doling the cash out yet. I’m still waiting to see if it will be federal to the municipalities, or federal to the provincial government with (federal) matching funds.”
Of funding available over the next five years, $3.4 billion will fund public transit projects while $1.4 billion will benefit affordable housing.
Jennipher Moritsugu, media relations with Canada Infrastructure, said Airdrie could be eligible for increased transit funds.
“These investments will be allocated based on transit agencies ridership plus a base allocation, so the city of Airdrie will be able to use this funding to improve their current transit infrastructure,” she said in an email to the Airdrie City View.
“With $3 billion dedicated to transit, I’m certain (Calgary Mayor Naheed Nenshi) could use every nickel of that,” Brown said. “Any more (funding) is appreciated. From an Airdrie perspective, water and sewer are extremely expensive to maintain. It will be interesting to see how all of it is (dispersed).
“We don’t know what strings are attached. We’ll wait and see.”
Banff-Airdrie Conservative MP Blake Richards said running up deficits to pay for infrastructure and social projects was a “huge concern.”
“I see a lot of programs that are going to be structural in nature and carry an ongoing deficit and ongoing debt. Not much will (support) the goals to stimulate the economy,” he said. “Without question, that’s a huge concern for all Canadians. For our future children and grandchildren, the magnitude of the new debts – $100 billion – that’s a significant burden for our children and grandchildren.”
Tax benefits for families with young children will also see changes under the new budget, replacing the Universal Child Care Benefit introduced by the previous government.
The new Canada Child Benefit (CCB) will see approximately nine out of 10 Canadian families receive higher benefits, according to a press release – though families earning more than $150,000 will receive less than before.
“I believe all parents need to have access to (childcare), no matter what you make,” said Janet Saliba, owner of Airdrie-based daycare centre Jump’n Jellybeans. “Parents are considering not having another child (so) childcare fees are a little less. Having two children in daycare, it’s costly, even if you’re making $100,000 or more and you do have two or three children.”
Under the CCB, families will receive up to $6,400 per child under six and up to $5,400 for children aged six to 17.
An overhaul to Employment Insurance (EI) benefits is also included in the budget, which could help Albertans affected by a stalled economy.
The EI waiting period will be reduced from two weeks to one week effective Jan. 1, 2017, while benefits will also be temporarily extended, with up to 70 weeks of coverage granted to regions hit hard by falling commodity prices.
“That’s the one thing I think is really good for the residents hit with the economic downturn,” Brown said. “That’s very good. I know people who are struggling right now, and that’s very valuable.”
Other highlights of Budget 2016 include a $1 billion investment into the development of clean energy, $8.4 billion over five years to support Indigenous Peoples and an increase to Canada student grants.
