SUNDRE – What the provincial government has been attempting to present as a good news budget ahead of the spring election, is considered by Sundre’s mayor to be a largely “status quo” document that leaves plenty of room for improvement.
“The overall feeling I got of reading through the documents, is pretty close to status quo; a lot of the budget was the same as before,” Richard Warnock told the Albertan on March 3 during a phone interview.
“I don’t see anything fantastic, but I don’t see any disaster in this budget either,” said Warnock.
Overall spending for 2023-24 is projected to hit $68.3 billion – $1.8 billion more than the previous NDP government had planned to spend in the same year.
Even before the NDP came into power in 2014-15, the international price of oil had already begun to collapse to historic lows and during their brief time in power plunged even further.
By the time the UCP was elected in 2019, the price of oil had begun to stabilize and despite unexpectedly suffering initial COVID-19 shocks eventually ended up soaring again in large part due to the conflict in Ukraine, and the province was almost overnight in a surplus situation.
Flush with unexpected funds, the UCP’s pre-election budget calls to increase health operating expense by $965 million – or 4.1 per cent – from the 2022-23 forecast, to a total of $24.5 billion.
The provincial government, which in its first three years pushed austerity measures on public services, says more money than ever is being invested in health care without contextualizing that inflation and Alberta’s growing population inevitably result in the need to spend record amounts merely to maintain current service levels as costs increase and more people call this province home.
Year-over-year inflation in Alberta from 2021 to 2022 was according to the Statistics Canada Consumer Price Index (CPI) five per cent. That was the lowest rate in the country, which had an average of 5.9 per cent. The highest rate of inflation in Canada was in PEI with seven per cent, while Manitoba and Nova Scotia were close runners-up with 6.9 per cent.
Responding first to a question about what he saw in the budget that might benefit the town, the mayor said, “We know that the funding that we get as a municipality stayed pretty well the same as from previous years; the number is pretty well identical to what we got last year.”
That certainly came as a relief, he said.
“There was no big windfalls, but there was no big losses either,” he said. “For Sundre, it doesn’t change anything. What we see, is we’re happy that we’re not getting cut more in our provincial funding.”
Municipal Sustainability Initiative funding, which had previously been substantially reduced by about 25 per cent, is forecast to go back up to $835 million throughout the province in 2024, he said.
“So, there will be more money for us a year or two out,” he said. “But for now, (at least) we don’t have to cut any of our budget that we (already) approved.”
According to a press statement issued by Alberta Municipalities, Sundre’s mayor is likely not alone is his assessment of the situation.
“Where this budget falls short is in the allocation of funding to address Alberta’s growing infrastructure deficit,” the release reads in part. “Alberta communities face a $30 billion infrastructure deficit. Put simply, Alberta’s municipalities own 60 per cent of the infrastructure, but they received just one per cent of this provincial budget.”
Since 2011, per capita provincial funding to municipalities as dropped by 61 per cent, the statement adds.
With regards to funding announced for the municipality’s technological upgrade to the wastewater treatment facility, a roughly $11-million project that will both improve quality of treated effluent and expand overall capacity, Warnock said, “It’s just confirmation for payment when it’s necessary. There’s no additional funding; they agreed to $7.5 million, and that’s still the number.”
And while the provincial government plans to complete the Highway 27-Main Avenue overlay project, the municipality is responsible for the cost of upgrading underground infrastructure, which is expected to run up a tab of about $1.8 million, he said.
Although there are available some unspent MSI funds from last year, that amount alone won’t cover the cost and council will at some point have to decide whether to draw from reserves or debenture borrow, he said.
“I’m kind of hoping that our council will be very conservative for the next couple of years,” he said, expressing a preference toward allocating reserves rather than borrowing.
Health care of course is another top concern for a small town like Sundre with an ageing hospital and elder population, and although Warnock noted the budget calls for more spending, added specific details seem scant and expressed a level of skepticism.
“They’re talking about most of that money being spent for staffing; I don’t know if those staff are out there,” he said, adding graduates sometimes “go to other provinces because there’s more attractive jobs there.”
And while he “was happy” to see EMS set to receive $15 million over three years to improve ambulance response times, he said, “I don’t know if that’s enough money.”
With such a substantial provincial surplus, he suggested more could have been allocated toward acquiring new ambulances and retrofitting existing units to address the province-wide shortage.
“We don’t get to see that side of how they plan this,” he conceded. “So, they may have a plan that will substantiate; (but) I still think that we are going to have a lack of EMS services. And as (the mayor of) a small town like Sundre, that does concern me.”
The mayor was also left wondering if Alberta’s larger urban centres will benefit more than small communities.
“I’m hoping that there’s some indication in what the ministers put forward – their breakdown of the budget – that there might be a few dollars put out for rural hospitals,” he said. “Because I’m a little nervous that all this money will go to Calgary, Red Deer (and) Edmonton and none will trickle down to the small municipalities.”
And as good as some of the numbers might look, Warnock also thought substance was lacking.
“I would love to have seen more ways that they would explain how they’re spending the money for health care,” he said. “I would like to know what they’re doing about facilities. Because when they say they’re investing in rural health-care facilities $105 million, what does that mean? I guess we’ll get those reports from the ministers when they’re ready.”
After all, even as Sundre strives to make plans for a new hospital, the municipality must in the meantime ensure the existing facility is adequately maintained, he said.
But he did notice in his review of the budget’s documents a couple of noteworthy items.
“There is more money for libraries and more money for FCSS,” he said, referring to Family and Community Support Services. “And both of those areas need funds.”
When those services require more funding than the province provides, they come looking to the local municipal government, he said.
“So, I’m happy that there’s some extra funds there,” he said.
For the most part, Warnock said he will be keen to see the provincial’s financial outlook next year.
“My interest will really peak when the budget in 2024 comes out,” he said. “Because I think that this is just a status quo budget, and I’m not exactly sure where it’ll go in the future.”
“I don’t have anything bad (to say) about the budget; I was concerned they were going to take some money away and they did not,” he said. “I really wanted them to give more money to FCSS. They’re struggling because (the provincial government) took away a bunch of funding from them three or four years ago. And now they’re just slowly trickling back in.”
Previously speaking against rushing forward with the proposed provincial police force without ensuring the plan won’t result in a money pit, he said, “I kind of thought they might’ve called a referendum during the election for the provincial police force; (but) that’s gone dead silent. So, I don’t know what they have in mind, other than it scares me that we’re going to do that without having done our homework.”
However, Warnock also expressed a belief that there perhaps could in the future be a reasonable case for provincial police forces to be adopted throughout the country.
“I just don’t think we’re there yet. I don’t know where they’re going to find the officers, I don’t know where they’re going to find money, I don’t know how they’re going to set up the detachments,” he said.
“I think to set up a provincial police force is a 10-year program; not a one- or two-year program,” he said. “My feeling is, let’s leave it until after the election, and then let’s spend four years to do it right.”
Asked how much of what the government is portraying as a good news budget he felt was the result of wise fiscal management as opposed to rolling the dice in the ongoing commodity roller coaster of boom and bust cycles, Warnock said, “I think (Minister of Finance) Travis Toews is a pretty smart guy. I think he – if anybody – is probably the best finance minister that we’ve had. I don’t think he’s rolling the dice on this.”
The minister of finance is “looking at riding the high end of the cycle for the next two three years,” said Warnock, pointing to forecast surpluses that government says will help pay down the debt.
“But as we all know, that can be a gamble no matter who’s in power,” he said.
As for the Premier’s Office expenses jumping a whopping 23 per cent, or $3 million, far eclipsing the rate of inflation, while small governing councils like Sundre must work within much tighter margins, Warnock said, “I guess they’re going to ride the high while there is excess funds.”
However, the mayor said he was pleased to see the document calls for balanced budgets, just as municipalities are expected to do.
Offering a parting thought, Warnock said he was also pleased that Rebecca Schulz, minister Municipal Affairs, reaffirmed the role of the province’s municipalities as partners on the path to economic prosperity and delivering crucial public services and infrastructure that Albertans need and deserve.
“I’m glad she publicly said that. We’re always pushing Municipal Affairs, whoever’s in power, that we are partners,” he said. “Don’t forget the little guy.”
