Alberta Budget 2014 came down and Penhold Mayor Dennis Cooper was pleased with what he saw and heard during a breakfast meeting with other mayors and government officials.
However, Kerry Towle, Innisfail/Sylvan Lake Wildrose MLA, was not so generous with her praise, expressing concern over any perceived funding increases funded by long-term debt.
“The 2014 budget was something we had inklings of throughout the year,” said Cooper. “On budget day, mayors, and government officials including the premier had a breakfast meeting. Premier Redford was very positive about the government's plan to help communities and to build Alberta.”
He said there was a sense of listening to and a desire to cooperate with municipalities in order to get important projects completed.
“I think this is a good news budget from our perspective,” added Cooper.
But Towle had a different take on the budget, and it was not good.
“The government tried to create a ‘good news' budget, but failed,” said Kerry Towle, Innisfail/Sylvan Lake Wildrose MLA. “They stated a $1.1 billion consolidated surplus yet are borrowing $4.9B to fund capital projects. If it were not the fact that the province received two federal transfers worth $4 billion this year, there would still be a cash deficit. We may yet pay for this budget strategy a couple of years down the line.”
She pointed out the extra funds for Municipal Sustainability Initiative (MSI) grants would be welcomed by Penhold and other municipalities but was cautious adding there might still be a claw back of some of those funds at some point in a future budget.
“Penhold will see an increase in funds due to the fact that grants are based on roads and population and our population is increasing,” said Cooper. “It is good the MSI grants have not been cut, but restored to regular levels which will help us with projects in place like our intersections and capital purchases.”
On increased public debt, Cooper noted he agreed with the provincial government's strategy of borrowing money now to fund budget items at two per cent interest instead of pulling money from savings at 11 per cent.
“Even if the province borrows now to fund capital requests, there are
no new taxes, no tax increases, and no sales tax,” said Cooper. “It makes good business sense.”
He said there are few items that were not addressed in the budget he was looking for answers on, including the Water for Life program and the status of FCSS grants for community programs, both of which impact Penhold and area. He was still awaiting information from government officials for specific answers.
“There is still the issue of municipal projects and where they fit on the list of funding priorities,” said Towle. “Something like this should not be a mystery and open to the public. In the case of Penhold, Innisfail, and area, Autumn Glen Lodge is high on our list of wants. Where is that on the government's list or alternately, what do we have to do to put it there if it is not?”
Penhold officials will be in close contact with the Alberta government until more information is forthcoming on how the 2014 budget will affect provincial funding and how those effects will impact federal grants.
“We still don't have all the details,” said Cooper. “When we do, we will see exactly what we are up against for funding. From what I see, we will be in good shape.”
