Provincial budget has municipalities tightening purse strings

By Deirdre Mitchell-MacLean Times Contributor

There were some surprises in the government’s first provincial budget tabled on Oct. 25, but local officials say they were prepared.
Municipalities receive funds from the province to assist with capital funding for projects as well as operational costs. In last week’s budget, Finance Minister Travis Toews announced municipalities would receive less.
Strathmore Mayor Pat Fule says the reduction in capital funding, delivered through the Municipal Sustainability Initiative, was expected.
“We have been discussing the need to lower expectations regarding this provincial funding and that we’d need to find other revenue streams as well as seriously look at ways to reduce spending,” he said.
Wheatland County Reeve Amber Link noted the county had also begun to prepare in advance of the announcement.
“Council and senior administration have started reviewing our draft operating and capital budgets (and) we are currently exploring options to reduce our overall budget while maintaining services to our ratepayers,” she noted.
Fule addressed similar concerns with services.
“We don’t want to see reductions in services to Strathmore residents so we are looking at ways to bring in more revenue to Strathmore,” he said. He added that there are projects currently underway, such as the Solar Krafte Solar Farm, which is expected to reduce electricity costs and allow money to go to other areas.
The Town of Strathmore will be heading into budget meetings in November, Fule said, but also noted that this is not only something Strathmore and area will be dealing with; all municipalities across the province will be receiving less from the Alberta government for capital investment.
Link added that “Wheatland County recognizes the financial realities Alberta is facing and we are ready to do our part to contribute to a strong, economically viable municipality and province.”

Budget details
The budget stated the Alberta Investor Credit, Community Economic Development Corporation Tax Credit, Capital Investment Tax Credit, Interactive Digital Media Tax Credit, and Scientific Research and Experimental Development Tax Credit will be eliminated.
“Going forward, companies that received these credits will now instead benefit from the broad-based low tax environment,” Toews stated in his budget speech, referring to the corporate tax cut from 12 to eight per cent.
Funding for post-secondary institutions will decrease by five per cent this year to 12 per cent over three years. Interest rates on student loans will increase and the tuition cap has been removed to allow Alberta universities, colleges and technical Institutes to increase tuition a maximum of seven per cent each year for the next three years.
There are also spending promises: Health will receive $200 million over four years, alternative and private education will receive $400 million, and there will be more money for apprenticeships. Over $11 million is earmarked for schools to work with CAREERS: The Next Generation; $10 million will go to Women Building Futures to encourage women to enter the trades; and $2 million over four years goes to Skills Canada Alberta to hep young Albertans build their technology skills and make connections on the national and world stage.
Community and Social Services will see an increase in funding to address human trafficking and sexual exploitation, and the government promises to maintain the low-income transit support pilot program. And Seniors and Housing will receive an increase of $8 million to maintain overall senior’s benefits.
The public service will see around 7.7 per cent of their staffing cut over the next year, or around 1,600 positions.
A one-time fee of $1.5 billion will be spent this coming year to cancel the oil-by-rail contract signed by the previous government to transport oil to the coast.
The final tally will be $58.7 billion for 2019-20, up four per cent from last year, and includes borrowing $8.7 billion.