OLDS — Olds-Didsbury-Three Hills MLA Nathan Cooper says there are things people will like about Alberta's 2025-26 budget released Feb. 27, and things they’ll be concerned about.
But overall, during an interview with the Albertan, Cooper said the budget strikes a balance between fiscal pressures like looming U.S. tariffs and unpredictable oil prices on one hand, and pressures from Albertans for more spending on health care and education.
For example, the tax rate on the first $60,000 of income will be cut this year from 10 per cent to eight per cent.
Finance Minister Nate Horner said as a result, taxpayers will save about $750 a year on the first $60,000 they earn.
“I’ve heard from lots of constituents that are excited about the tax cut,” Cooper said.
“If you apply that to the dining room table of everyday Albertans, it’s close to a whole month worth of groceries in terms of the tax relief that they’re going to see.
“That’s meaningful tax relief, and Albertans have been keen to get that tax relief.”
The budget includes nearly $10 billion for kindergarten to Grade 12 education operating costs, up 4.5 per cent from last year's budget.
It also includes $2.6 billion in funding over three years for new kindergarten to Grade 12 schools, plus $389 million over three years for school maintenance and renewal projects.
In addition, the budget calls for the hiring of more than 4,000 new education workers, including teachers and educational assistants.
The budget also calls for roughly $28 billion to be spent on health care, an increase of 5.4 per cent or $1.4 billion.
Cooper described those commitments as “the single largest expenditure on both health and education.”
“We’re seeing more money invested into health and education and that is what constituents have been talking to me about; the need for new schools, improved access to health care and otherwise,” he said.
Cooper admitted that the threat of U.S. tariffs and unpredictable oil prices provides a “challenge” for the province.
“Even the threat of tariffs saw a massive decrease in the revenue projections and so while there are a number of big positives in the budget, there are certainly challenges with the fact that we’re running a $5.2 billion deficit,” he said.
In fact, the budget projects that deficit could balloon to $8.7 billion in a worst-case scenario.
“People want to see investments in education and that’s exactly what we’re delivering,” he said. “But I’ll also accept that it’s possible – particularly with respect to revenue and our economy – that the deficit could grow.”
The budget forecasts provincial revenue to total $74.1 billion, down $6.6 billion. Expenditures are anticipated to be about $75.3 billion, including a $4 billion contingency fund earmarked for unanticipated disasters or collective agreements with workers.
Cooper said if all goes well, the province could dip into that contingency fund to cut the deficit.
Municipalities including Olds receive Local Government Fiscal Framework (LGFF) funding from the province to help finance capital projects they want to undertake.
However, those grants are tied to provincial revenue. So when the price of oil falls and thus oil royalties fall, so does the LGFF funding.
The Town of Olds is counting on that money to help it tackle issues like water inflow and infiltration into its sewer systems as well as fixing roads.
Cooper said for a long time, municipalities pressed for government funds they receive to be tied to provincial revenues so they could receive more money when revenues were higher.
“Now that there’s a decrease, I’m sure that many of them are concerned about that. But we all have to share in the benefit and the pain together,” Cooper said.
