CALGARY – Alberta will be paying down its long- term debt sooner than anticipated and returning more money to taxpayers.
During the August sitting of the legislature a special bill will be passed to reduce the province’s 25 year-mortgage to 13 years.
Alberta has undergone tough budget cutting measures in the last three years to get rid of its deficit and mounting debt. On Monday, provincial treasurer Jim Dinning announced a surplus of $1.1 billion for the year ending March 31. Most of that money will pay down the province’s debt of $6.6 billion. Another $335 million goes to support programs in health, education, seniors’ programs, child tax credits and municipal road improvements.
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The money came from reduced interest payments on a lower debt load and reduced administration costs in government, Dinning said.
Higher than expected resource royalties also contributed to the treasury. However, Dinning said the government will continue to conservatively estimate oil revenues basing its predictions on oil being worth $16.65 a barrel.
“We’re cautious about a so-called boom,” he said.
Money will go toward the following areas:
- Fuel tax reductions for aviation and railways will be introduced to keep Alberta competitive with other provinces and the United States.
- Seniors’ programs will get a boost of $22 million of which $5 million will be used to provide housing allowances for seniors who don’t already receive support.
- A family tax credit for low and middle income families will be implemented for 1997-98, lowering a family’s tax bill to a maximum of $1,000.
- Regional health authorities will receive an additional $235 million. Authorities will learn in November how much their region will receive for 1997-98, following a new funding formula that takes into account population, age and distances to health care. All regions will receive an increase over current budgets.
- Education will get an additional $62 million, of which a portion will be used for basic construction costs. About $34 million will be available for schools to hire special needs teachers’ aides, buy equipment and devise programs for disabled students. Additional lottery money of $5 million will be provided to buy more computers and internet access for students.
- Over the next three years $69 million will be directed at local road improvements and maintenance.
