As the legislature scrutinizes last week's provincial budget more closely, Olds-Didsbury-Three Hills MLA Nathan Cooper says he'll learn more details about how precisely it will affect residents here.
But the Wildrose Party's house leader says at first glance, it'll be bad for Olds and area residents and businesses.
The NDP government's finance minister, Joe Ceci, announced that total revenue this year is projected to be $41.4 billion, total expenses $51.1 billion, resulting in a $10.4 billion deficit this year as the province tries to spend its way out of the economic downturn, largely created by the cratering of oil prices over the past couple of years.
They've fallen from a high of more than $100 a barrel a couple of summers ago to about $42 a barrel a few days ago.
Next year's deficit is projected to be $10.1 billion. An $8 billion deficit is anticipated the following year.
For the first time since 1994, the provincial government will borrow money.
It plans to borrow $5.4 billion this year and $8.4 billion next year to undertake its spending.
The $6.5-billion contingency fund has now been depleted.
The government stuck to its promises not to cut spending on health and education and to try to spur the economy by improving infrastructure in the province.
It also outlined details of its $3-billion carbon tax to pave the way to a greener environment.
Gasoline will cost an extra 4.5 cents a litre and diesel costs will go up another 5.35 cent. The cost of natural gas will increase by more than $1 per gigajoule.
That's the wrong way to go, Cooper said.
“This NDP budget, no question, is making things worse. It's punishing families and businesses with their risky ideological policies,” he said during an interview with the Albertan.
Cooper said the carbon tax will hurt everyone in the riding.
“Not only is the cost going up directly in fuel, the price of natural gas (is) increasing. These are real increases that will have an impact around the kitchen table for the people of Olds-Didsbury-Three Hills,” he said.
He said as a result of all the debt, the provincial government will have to pay $2 billion a year in interest.
“The real impact that people will (feel) down the road is as we're spending $2 billion on interest, it prevents us from being able to fund front-line services,” Cooper said.
He defined front-line services as positions like nurses, doctors and teachers.
But at the same time, Cooper said, the province is spending more money on about 250 non-front-line people.
When interviewed, Cooper did not have any information on what those positions are. He speculated they might be managerial positions but that could not be confirmed.
“We need to make sure that we keep our spending under control so we can ensure that we can fund front-line services,” he said.
The budget cuts the small business tax from three per cent to two per cent.
Cooper likes that idea.
“This is something we have been seeking for a long time,” he said. “I was pleased to see it included.”
However, he says it likely will have little effect overall.
“It is unfortunate that the implementation of the carbon tax will likely undermine any positive impact it would have had,” Cooper said.
"This NDP budget, no question, is making things worse. It's punishing families and businesses with their risky ideological policies."NATHAN COOPEROLDS-DIDSBURY-THREE HILLS MLA
