The Government of Alberta officially unveiled its 2014 budget in Edmonton last Thursday, with provincial Finance Minister Doug Horner announcing a balanced budget for the first time since 2008, with a consolidated surplus of $1.1 billion and a running operational surplus of $2.6 billion.
A year on from the much-criticized 2013 budget, the province has worked to improve spending and investing in Albertans, with an expanded Building Alberta plan calling for $19.2 billion in capital infrastructure spending over the next three years – an increase of almost $4.2 billion.
That investment will see 155 school projects, seven post-secondary projects, 24 health facility projects, 258 kilometres of new/twinned highways and 2,500 kilometres of rehabilitated highways completed over the next three years.
On top of that, the province's operational expense grew by 3.7 per cent to $40.4 billion, and includes a $1 billion increase in spending in health, post-secondary education and support for vulnerable Albertans. Operational revenue hit a record-high $44.4 billion, which includes $9.2 billion in non-renewable resource revenue and $21.1 billion in total tax revenue.
The provincial balance sheet highlights the $2.6 billion operational surplus, but also includes a net asset improvement of $1.1 billion – a figure the province is using for its consolidated surplus. According to Horner, zero dollars will be borrowed to pay for programs and services in the coming year.
“Due to strong leadership, a growing economy and prudent spending decisions, we are now well positioned to weather our challenges as we continue to implement our Building Alberta Plan,” Horner said. “Alberta has the strongest balance sheet in the country – and we are going to keep it this way.”
Although the province posted a surplus on the operating side, Alberta's actual debt will climb to $14.5 billion, as the province looks set to take out $5.1 billion in loans this year to fund the capital budget. That figure is expected to rise to $21 billion by 2016.
Premier Alison Redford spoke positively about the budget following its release last week, saying it was of the utmost importance to invest in a province growing by over 100,000 people every year.
“Alberta is the fastest growing province in the country and we can't afford to stop building,” Redford said. “Under our Building Alberta Plan, we are meeting the challenge of enormous growth head on, while focusing every day on making Albertans' quality of life even better.”
She added, “By being conservative in our budget planning and living within our means, we have delivered Alberta's first balanced budget in six years.”
Wildrose Party and official opposition leader Danielle Smith criticized the budget, saying the PC government is doing nothing more than “doubling down on debt.”
“Albertans simply can no longer afford this PC government,” Smith said, making note of the $2.7 billion cash deficit that will run this year and the $21 billion debt they are expected to carry by 2016. “After promising during the last election to balance the budget and stay out of debt, the PC's short-sighted and reckless spending will have lasting impacts on future generations and no doubt cause long-term pain as we deal with the debt we are taking on today.”
According to the Wildrose, at the new and increased rate of borrowing, Alberta will be borrowing $14 million a day, $585,000 an hour, $10,000 a minute and $160 a second.
Alberta Party Leader Greg Clark claimed the province was trying to cover up the facts with this latest budget.
“Once again the Tories are trying to pull the wool over our eyes – with talk of a surplus and increased spending on the things that matter to Albertans,” Clark said. “But in reality, the government's spending is not even keeping up with the population growth plus inflation.”
He added, “The government needs to put planning ahead of politics. This budget doesn't translate into quick access to health-care services for the sick and vulnerable, more long-term care spaces for the elderly and reasonable class sizes. How is this budget going to help post-secondary institutions catch up after the blow they were dealt by the government last year?”
MLA for Bonnyville – Cold Lake Genia Leskiw reiterated her party's beliefs that this is a “positive” budget, one that allows the province to continue moving in a “positive direction.”
“A lot of people are talking about and emphasizing the (dollars spent/borrowed) for infrastructure (spending), but everywhere we turn we have people on our case about when they are going to get a new school, when they are going to see road improvements and when they are going to see a new seniors complex,” Leskiw said. “At the end of the day, that's all capital spending, so we (need to borrow) in order to complete (particular projects.)”
In the Bonnyville and Cold Lake region, Leskiw pointed towards the recently announced modernization of Notre Dame High School and the new elementary school announced for Cold Lake as benefits of this years' budget. She also said both the Northern Lights School Division and Lakeland Catholic School District would see an increase in provincial funding, while local municipalities will see a bump in their MSI payments.
She also said she plans to “hammer home” the three priorities the region identified to Minister of Transportation Wayne Drysdale for road improvements when he was in town last month, as well as continuing to be a voice for the seniors' community as this region hopes to see plans for Phase 2 of the Bonnylodge project and a brand new seniors facility constructed in Cold Lake move ahead in 2014.
“Things are moving in the right direction, we have a savings plan, we have a payback debt plan, so that is all in there,” Leskiw said. “Overall, I think it's a good budget, and I'm very happy with it. We needed to invest because we need our schools today and we need our roads fixed today. We need things done today.”