INNISFAIL – Alberta’s big spending budget last week included several smaller items that could benefit some Innisfailians but the municipality’s longstanding worries over provincial funding for infrastructure improvements remain.
Following the release of the Alberta’s government whopping $68.3-billion budget for 2023-24, Town of Innisfail Mayor Jean Barclay joined a provincewide elected officials town hall meeting with provincial Minister of Municipal Affairs Rebecca Schulz.
Barclay was keen to sort out what was important for the town, most notably future direct funding that would most impact Innisfailians.
She already knew the MSI (Municipal Sustainability Initiative) program will be transitioning over to the new Local Government Fiscal Framework (LGFF) in the 2024/25 budget.
The already announced MSI funding for this year and next is not changing from pre-budget reports.
Barclay noted the Alberta government has set a $772 million province-wide MSI base for the last three years.
Out of that, the mayor said the Town of Innisfail will be getting its $847,106 MSI capital funding share this year and next.
However, there was good news on the operating funding side of MSI, which has been fixed at $30 million annually province-wide since the 2014-15 fiscal year.
It is doubling to $60 million.
For Innisfail that means the town’s share moves from about $65,000 to $130,080. The two sides of the MSI funding brings Innisfail’s total grant this year and next to $977,186.
“Innisfail has not seen any increase in MSI for three years, and we won't this year or next year,” she said. “It creates some challenges. We get our $847,106 in capital funding and that is maybe enough to do two blocks of full infrastructure replacement.”
However, everything will change in the 2024-2025 fiscal year when the MSI program ends its 17-year run and the new LGFF program is rolled out.
Barclay pointed out LGFF capital will start in 2024 with base funding of $722 million.
In its preliminary analysis of the provincial government’s 2023 budget, Alberta Municipalities (AM) noted the LGFF start-up funding is a 33 per cent reduction from the average of MSI capital and BMTG (Basic Municipal Transportation Grant) funding over the past 12 years.
The province is forecasting a LGFF capital bump to $813 million for 2025; an increase, noted AM, that is based on LGFF’s design where overall funding will either increase or decrease annually based on changes in the province’s actual revenues from three previous years.
“I'm hopeful as we move forward into the LGFF that we'll see some improvements and see some more funding coming,” said Barclay.
In the meantime, Barclay did see some potential immediate positives from the provincial budget that could directly impact Innisfail.
The province has allocated $30 million in 2023–24 for the Red Deer Regional Airport, a crucial investment for the final phase of the facility’s three-phase expansion plan that is aimed to bring new services and increase cargo, trade volumes and passenger service.
“I think anytime we see that kind of investment into a regional airport that has to be positive for all the communities that are in the area. I am looking forward to hearing more about it,” said Barclay.
She also noted the provincial budget calls for a $15 million increase in Family and Community Support Services (FCSS) funding.
Barclay added funding under the Community Facility Enhancement Program (CFEP) is also increasing to $50 million per year, a hike of more than $11 million.
“Service clubs in our community have not been successful with CFEP grants, without question, and that's been disappointing,” said Barclay. “So there's a 30 per cent increase to that program, so hopefully that's an opportunity for non-profits in our community to make an application.”
Public libraries across the province, which have seen annual funding frozen at $30.5 million since 2016, are also getting more money. The budget for 2023-24 is $33.4 million for public library operating grants, an increase of $2.9 million.
The provincial budget also announced more support for municipal food banks, an initiative that will see $20 million over two years to agencies serving vulnerable citizens.
