Alberta won’t open wallet, says treasurer

By 
Reading Time: 2 minutes

Published: November 21, 1996

EDMONTON – If the government decides to spend any of its surplus money, rural municipalities deserve to be near the front of the receiving line, rural politicians told their provincial counterparts last week.

But the Alberta Association of Municipal Districts and Counties received conflicting messages from the government’s two top money men at the association’s annual meeting.

Premier Ralph Klein spoke to delegates about the government’s plan to provide “reinvestment” money to areas that need cash because of heavy provincial grant cuts.

Association president Roelof Heinen said he was encouraged by Klein’s recent talk about putting some money back into rural roads. Because of a mini-boom in the oil industry and other parts of the economy, the provincial government has a surplus of about $1.7 billion, three times higher than expected.

Read Also

Robert Andjelic, who owns 248,000 acres of cropland in Canada, stands in a massive field of canola south of Whitewood, Sask. Andjelic doesn't believe that technical analysis is a useful tool for predicting farmland values | Robert Arnason photo

Land crash warning rejected

A technical analyst believes that Saskatchewan land values could be due for a correction, but land owners and FCC say supply/demand fundamentals drive land prices – not mathematical models

Since Klein came to power municipal districts and counties have had much funding cut. Many road projects that were totally funded by the provincial government now have to be cost-shared with the municipality.

“He was very positive about reinvesting in Alberta,” Heinen said in an interview during the convention.

But later that day provincial treasurer Jim Dinning dampened delegate calls for more provincial funding.

He told them the government’s first priority is to pay off the provincial debt. A provincial law makes the government apply all surpluses to the debt.

“Opening the purse strings is what got us into the problems we are in,” Dinning said.

Heinen said municipal districts and counties need money not just because of recent grant cuts, but also because of economic good times.

The same boom that has poured more than $1 billion in unexpected taxes into the provincial coffers has sent thousands of oilfield and forestry trucks onto country roads, Heinen said.

A serious matter

Because of this, rural municipalities should be treated as seriously as health and education systems if the government decides to increase any spending, he said.

But while some delegates criticized the provincial government’s grant cuts, Heinen was generally conciliatory.

“We certainly supported (deficit control), but we now feel that due to the fact that there are some savings … that that money should be invested in core services.”

He said he hoped the repeated worries about the rural road system would prompt the government to help out. But he said the municipal association does not intend to create a political battle.

“We as an association are committed to working with the government in power,” Heinen said.

About the author

Ed White

Ed White

explore

Stories from our other publications