Budget receives mixed reviews

The 2018-19 provincial budget released last week has been receiving mixed reviews from stakeholder groups and various elected officials.

Mountain View County reeve Bruce Beattie says he is pleased with some aspects of the budget and concerned with others.

The advance of $800 million of municipal sustainability initiative (MSI) funding in the budget is certainly good news, he said.

“I think that is welcome and we can certainly put that to good use,” said Beattie. “It’s something we rely on. It is something based on population and not based on competing for these funds, so that’s positive.

“Certainly the continued funding for the agricultural service boards and the agricultural societies is also welcome from a rural perspective.”

One concern with the budget is its reliance on pipeline projects still to be completed, he said.

“We are obviously still concerned on the reliance on oil and gas and I think that is going to be a long-term thing,” he said.

“The reliance on the success of getting the Trans Mountain pipeline (expansion) built, which still appears to have lots of opposition, is a concern.

“I’m hoping the federal government will do their part and make sure this is done.”

It is also a concern that the provincial debt has increased under the budget, he said.

“Yes, the debt is growing and it is a concern, but relative to other provinces we are still in pretty good shape,” he said. “I guess we will continue to rely on those resource revenues and hope that we can gradually move away from them but I think it’s going to be a long-term effort.”

The Rural Municipalities of Alberta (RMA) represents 69 rural municipalities, including Mountain View and Red Deer counties.

Organization president Al Kemmere, who is also an MVC councillor, said the advance of $800 million of MSI funding in the budget will give municipalities the opportunity to move forward on priority projects while more confidently making multi-year capital investments.

“The government’s announcement of forthcoming legislation for municipal funding represents an unprecedented level of support and collaboration between the province and municipalities,” said Kemmere.

“The RMA and its members look forward to working with the government of Alberta on developing a program that shares a consistent portion of the province’s revenues with municipalities to the benefit of all Albertans.

While the association is pleased with the budget as it relates to municipal infrastructure funding, “decisions made on other programs will cause challenges for rural municipalities,” he said.

Specifically, the reduction of the strategic transportation infrastructure program is a concern, he said.

“Many bridges across rural Alberta are nearing the end of their lifespan, and without adequate funding the only choice for rural municipalities will be to close or weight restrict these crossings,” he said.

“This lack of funding will results in infrastructure deficits and will have detrimental impacts across rural Alberta for years to come.”

The RMA welcomes the freeze on education property tax revenues announced in the budget, which will save property owners about $114 million.

“The RMA is also pleased that the government will maintain funding for Family and Community Support Services at similar levels as last year,” he said.

The Alberta Urban Municipalities Association (AUMA) represents cities, towns and villages across the province, including Didsbury, Carstairs and Cremona.

Association president Barry Morishita says he was pleased the budget doesn’t cut MSI funding.

“It is great news for us and our members to hear there will be no impact to MSI over the next three years, as this provides some stability for municipalities in developing capital plans,” said Morishita.

“We appreciate the government’s restraint in cuts to funding for municipalities, as our local governments are key in providing essential services to Albertans.”

The AUMA is calling on the government to review the provincial capital grant programs to better assist smaller municipalities, he said.

“The AUMA would like to see the government consider the needs of our smaller communities, who have often been disadvantaged by the current competitive grant programs,” he said.

The association plans to work closely with the RMA and the government over the coming months, he said.

Nathan Cooper, the United Conservative Party (UCP) MLA for Olds-Didsbury-Three Hills calls the budget bad news for the region and province.

He called the budget’s $8.8-billion deficit very bad planning on the government’s part.

“At a time when families are making tough decisions to live within their means, the NDP spend-a-palooza continues, increasing another 5.4 per cent to a record $56 billion,” said Cooper. “This includes borrowing $1.9 billion just to service the Notley administration’s previous debts.

“The NDP admits it currently plans to run Alberta’s total debt up to $96 billion by 2024, effectively handing the bill for all this spending to today’s schoolchildren. There is nothing fair or compassionate about that.”

Cooper also voiced concerns about what he calls the government’s lack of a “realistic plan to balance budgets.”

“This plan is not credible. Rather, it doubles- and triples-down on the idea that government can tax its way to prosperity,” he said. “That sort of defunct fiscal planning belongs back in the 1970s with bell-bottom pants and groovy T-shirts.

“Is it any wonder that every major credit ratings agency has repeatedly downgraded Alberta over the past three years?”

“Our province has never spent more on health care, but the end result is longer ambulance response times, longer wait times for patients, and hundreds of thousands of people who can’t find a family doctor. It would be hilarious if it weren’t so depressing.”

UCP Leader Jason Kenney echoed Cooper’s comments, calling the budget bad news.

“This so-called ‘balanced budget’ plan is based on unrealistic revenue growth of 38 per cent,” said Kenney. “While the minister (of finance) appears lost in his own virtual reality, the fact is that the NDP is hurling our province over the fiscal cliff.”

For his part, Minister of Finance Joe Ceci says the budget will promote economic growth and job creation.

“The budget is working to diversify the economy,” said Ceci. “It increases access to capital for entrepreneurs, strengthens our technology sector, attracts investment to the petrochemical industry and adds more low-cost renewable energy in our communities.

“It will accomplish all of this and more while protecting vulnerable Albertans, supporting the services folks rely on and putting us on a path to balanced budgets without extreme service cuts.”

He says highlights of the budget include the creation of 3,000 new post-secondary technology spaces over the next five years, and the creation of 4,500 additional child-care spaces through the Early Learning and Child Care Centre Program.