Alberta will run four consecutive deficits – including a $6.1 billion deficit in 2015/16 – in order to “stabilize frontline public services” like health care and education in an attempt to jumpstart a plummeting economy hit hard by continued low oil prices.
The new budget, announced by Alberta Finance Minister Joe Ceci on Oct. 27, will include a $34 billion investment in infrastructure in the next five years and yearly increases to health spending. The government plans on returning to balanced budgets by 2020.
Beiseker Mayor Ray Courtman said he hoped an increase to Municipal Sustainability Initiative (MSI) funds – which are set to go up by $100 million over the next five years – would benefit small municipalities in the province.
“That will be good as long as it applies to small municipalities. I know the big municipalities like to line up. They’ve got big projects, like (light rail transit),” he said. “We need money too. Small municipalities need funding.”
Courtman said Beiseker is in desperate need of road upgrades, but only have a limited amount of money to do so. As part of the budget, an investment of $4.7 billion will go towards roads and bridges in the next five years.
“We have three priorities in the Village as far as projects are concerned – roads, streets and roads,” Courtman said, adding Beiseker council often hears complaints about roads in disrepair. “Unfortunately, (the budget) is putting the Province in a debt situation that we have never seen. If they’re going to do that, we might as well (benefit).
“I’m hoping to see that we get a fair share – even slightly larger than a fair share.”
The previous budget, released by the former Progressive Conservative government on March 26, did not see education spending match student enrolment growth in the province.
Education spending in the new budget sees funding for approximately 380 more teachers and 150 additional support staff added to the system.
“We knew in advance that the government was going to fund enrolment and reverse the cuts that happened last year,” Rocky View Schools Trustee and Alberta School Boards Association president Helen Clease said. “We’re grateful that the budget reflects that.”
Clease said she hoped school boards in the province would soon be able to sit down with the government to suggest improvements to the funding model.
Spending for yearly health care will increase to $19.7 billion in 2015/16, reaching $20.9 billion by 2017/18. That funding includes $120 million over two years for new long-term spaces, and $90 million over two years in order to expand public home care. Infrastructure investments include a $2.2 billion allocation to health facilities and equipment.
During a press conference held Oct. 27, Ceci said a plan to run deficits before returning to a balanced budget in 2020 was done to ensure stable funding for public services while planning for a future stable economy.
“We’ll (fix our challenges) the Alberta way – by encouraging a vigorous and successful private sector; by building on our strengths and gifts; and by making better decisions about our future together,” he said.
Chestermere-Rocky View MLA Leela Aheer said nothing in the budget suggested fiscal restraint.
“It’s all about spending. We’re looking at $50 billion of debt by 2019/20. They’ll have to be able to run for a second term (to do that). What will that mean for our children?” she said. “How is it possible that we can’t find inefficiencies (instead), (or) finding ways to pull things back?
“I’m absolutely gobsmacked.”headed in the wrong direction by a government more concerned with ideologies than being functional.”
