A $10.4-billion deficit geared towards funding infrastructure projects, income support and social spending highlight Alberta’s 2016 budget – and the provincial government is banking it will jumpstart a stalled economy hit hard by continued low oil prices.
“Today, our province faces a choice. The first option is to slash and burn vital programs and services that Alberta families count on,” Finance Minister Joe Ceci said during a press conference April 14. “This means laying off nurses and teachers. It’s the wrong path. It moves us backwards.
“Instead, we will carefully manage spending, insuring we are spending every tax dollar wisely, while helping Albertans as they manage this downturn.”
The budget includes plans to invest $34.8 billion in infrastructure over the next five years, including $6.1 billion into Municipal Sustainability Initiative (MSI) funding. Airdrie utilizes MSI funding for a variety of local infrastructure projects.
“Most municipalities received the same that they received or a little bit more. I think we got a little more. That’s a good thing,” Mayor Peter Brown said. “There was an upgrade for the Yankee Valley Boulevard off-ramp, $2 million, which is a temporary solution to the traffic problems down there.
“We’re still not clear on the Balzac interchange. We understood it was part of the upgrade, which could positively impact traffic movements. We’re still waiting to confirm.”
In order to offset anticipated spending, the government will introduce a carbon tax in the price of transportation and heating fuels. Pricing will be based on the level of greenhouse gases emitted, with a $20 per tonne price introduced in 2017. The tax is estimated to raise $274 million in 2016/17.
“In Airdrie, it’s not a significant amount,” Brown said. “But it’s still not good news when we have to spend more money from our ratepayers to support the province.”
Brown said Airdrie residents would also be hit with a 17 per cent education tax.
“That will be significant. Everyone knows the municipality is charged with collecting that tax,” he said.
Rebates for carbon tax pricing will reach six of 10 households, according to the Province. Rebates for lower and middle-income Albertans will reach up to $200 for single adults, $300 for couples and $30 per child under 18. Fuel used by farmers while in farming operations will be exempt, as will purchases of fuel on-reserve by First Nations.
Programs geared towards social support include the Alberta Child Benefit, expensed at $147 million in 2016/17 and $196 per year starting in 2017/18. Families who make less than a combined income of $41,220 per year are eligible for the benefit, and combined with a new tax credit, the government will dole out $340 million annually.
Budget 2016 also keeps spending stable for public services. No cuts will be made to health care, social services such as women’s shelters and education. Enrolment growth funding will also continue.
Education funding in 2016 is expected to reach $7.9 billion in 2016/17, with enrolment growth projected at 1.3 per cent.
“We are pleased to see the government has made a commitment to fund student enrolment growth in Alberta,” Alberta School Boards Association President and RVS Trustee Helen Clease said in an email to the Airdrie City View. “This funding will provide some stability during uncertain economic times.”
This year’s deficit was previously anticipated to hit $5.4 billion. That number ballooned after oil prices failed to recover as anticipated, according to Ceci.
Airdrie Wildrose MLA Angela Pitt called the budget an “absolute disappointment.”
“We absolutely have one of the most bloated systems in the entire country,” she said. “We’ve got to get serious here. There’s a point where this government has to get serious and think about what’s best for Albertans.
“This is not a government that takes care of people. This is a budget that will absolutely hurt so many families across the province.”
