INNISFAIL - While the ongoing provincial deficit and ballooning debt will continue to be a worrisome concern for many Innisfailians, elected community leaders do see some positives coming out of the NDP government's 2018 budget.
Small communities, such as Innisfail, will not face provincial cuts for at least the next two years on critically important Municipal Sustainability Initiative (MSI) funds that are always needed for infrastructure improvements. However, the NDP government has warned the current MSI funding formula, which is set to expire in the 2021-22 fiscal year, will be reviewed along with other forms of provincial granting.
“As we dial back our capital spending to reduce our debt burden and reduce our borrowing costs, the government will make changes to the Municipal Sustainability Initiative and small reductions will be made to other municipal grants,” said Joe Ceci, the government's finance minister during the March 22 provincial budget announcement , which forecasted an $8.8-billion deficit in the coming year and an escalating debt from $54 billion in 2018 to $96 billion by 2023.
Heather Wymark, the town's director of corporate services, said provincial officials confirmed last week that Innisfail will receive $1,805,170 in MSI funding for 2018, and tentatively the same in 2019. Innisfail received $1,826,480 in MSI funding in 2017.
Coun. Glen Carritt, who is also the deputy mayor until June, said it's "good news" the government is holding the line on MSI funding for smaller communities, especially when there will be significant reductions for the next two years for Calgary and Edmonton. Carritt added he's also pleased the province is going to look at making a better funding plan to replace the current MSI formula, one he hopes will be more sustainable and allow communities to know ahead of time what they are getting from the province.
"It is supposed to take away the guesswork," said Carritt, noting the Alberta Urban Municipalities Association has been working "diligently" with the province on replacing MSI with a predictable funding structure. "If the process goes through we can budget for infrastructure, recreation and facilities."
In the meantime, the budget also brought other positive news for the town, said Coun. Jean Barclay.
Seniors and Housing Minister Lori Sigurdson said last week an additional $21.7 million would go towards the construction of 400 affordable housing units in eight Alberta cities and towns. Housing, including affordable units, was a big issue for Innisfail during last year's municipal election campaign and the town has committed itself to make more housing options available for citizens.
"It's difficult to say what is available for us out of that $21.7 million at this point in time," said Barclay, adding she's not disappointed affordable and seniors' housing wasn't a higher priority in the budget. "There is only so much money to go around and Innisfail, in my opinion, requires all types of housing and not just one type of housing."
Barclay said the health-care part of the budget will be important for Innisfail as the provincial government announced a $112 million, or 19.5 per cent, increase to home care spending.
"I think there is a priority to keep people in their homes longer, which is great for our community, considering the demographics," said Barclay.
She said while there is a big gap in the budget between revenues and expenditures, there were good things in the budget for Innisfailians, including the continued freeze on post-secondary school tuition.
"It is excellent for rural students who want to go to universities since they have added costs with room and board," said Barclay. "The health-care part is also good for the community."
