INNISFAIL - Mayor Jean does not see anything in last week’s 2025 provincial budget that is “outstanding”, adding it’s an “uninspiring” document except for the personal tax cut for residents first promised by the Alberta government in the 2023 election.
“That’s always good news but eventually you have to make up for that, especially when you're running deficits,” Barclay told the Albertan last week following the budget’s release on Feb. 27. “The tax cut obviously will impact everybody as long as you're paying taxes.
“Other than that, I don't see a lot of anything new.”
But Barclay did add that having the personal tax cut was “interesting “when noting the province is also looking at a $5.2 billion deficit for this year.
“We have gone from a surplus of over $5 billion last year to an estimated deficit of 5.2 (billion) this year,” said Barclay. “That in excess of a ten-billion-dollar swing. That is huge.”
However, she conceded the province is dealing with American tariffs “hanging over our heads” and the UCP government “never quite sure what the price of oil is going to be."
The 2025/25 provincial budget, released by Alberta Finance Minister Nate Horner called for a new eight per cent personal tax bracket for income up to $60,000, which the province says will save Albertans about $750 on their first $60,000 of income.
However, the mayor noted the increased education property taxes that were announced and agreed it could cancel out the benefit of the personal tax cut for residents.
“I do, and of course education taxes are on the municipal property tax bill, so people don't necessarily separate those two, but approximately on third of someone's property tax bill - the education portion - is being sent directly to the province,” said Barclay.
“Municipalities sometimes take the brunt of that because people don't see that separation.”
Education property taxes were frozen in the 2024-25 budget year at 28.5 per cent but will be increased to 31.6 per cent for the 2025-26 year, with another hike to 33 per cent the following fiscal year.
Barclay also noted provincial money for library and FCSS funding will stay “flat” for the fiscal year.
“When you're in an inflationary environment that's the same as a decrease,” said Barclay. “When those things aren't being funded, at least to the rate of inflation, it's up to the municipalities to typically have to step in and fund more.
“For our community I don’t see anything that is really outstanding."
However, Barclay did emphasize the current “difficult time” for Horner to set a budget in the “unstable environment” the province is in.
“We've got our budget set and no projects that are underway, and we will carry on,” concluded Barclay.
