Alberta premier Ed Stelmach’s first budget increased spending by 10.7 percent to $29.7 billion with an eye on addressing the province’s increasing growth, said treasury board president Lloyd Snelgrove.
“I think this budget reflects a very practical approach to what we’re facing in Alberta today. It reflects the growth. It reflects the growth pressure areas and the priorities the premier has established from his leadership,” Snelgrove said during a news conference with rural reporters.
Revenues are estimated to be $35 billion, which will leave the province with a $2.2 billion surplus.
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Finance minister Lyle Oberg said spending was at record levels because Alberta is experiencing record levels of growth from a boom in the oil and gas industry that has created echoing booms across the province. More than 100,000 people arrive in Alberta each year to work, but this migration creates its own problems.
The government allocated money for capital spending projects for schools, hospitals, housing, water waste management and roads. Health care is the biggest single government expense, accounting for about 37 percent of the budget, the largest health budget of any province.
Alberta Liberal leader Kevin Taft said the budget was “completely unfocused,” throwing money everywhere without a clear direction in priority.
“It felt like a fire alarm budget,” he said.
Alberta New Democratic Party leader Brian Mason said the budget contained almost nothing for the environment.
“The environment seems to be a major blind spot of this government.”
The budget also contained little about agriculture.
“It was glaring by its absence,” said Don Johnson, president of the Alberta Association of Municipal Districts and Counties.
“I didn’t hear diddly about agriculture,” added Rod Scarlett, executive director of Wild Rose Agricultural Producers.
Scarlett hoped there would be a continuation of the fertilizer and fuel rebate program through the Canadian Agricultural Income Stabilization program to help offset the rising cost of farm inputs. Fertilizer prices have doubled since last year, but the budget didn’t address that.
Snelgrove said the government would continue to support agriculture through CAIS. Along with increasing fuel and fertilizer prices is a corresponding increase in commodity prices.
“I think we will monitor the costs in relationship to the commodity price increase. If we have to make adjustments further, that will happen at that time,” he said.
“Agriculture remains one of the major priorities for us.”
Johnson said he’s also disappointed in the lack of money directed to rural roads, where he estimates an annual $430 million deficit. About 85 percent of the province’s roads are in rural areas and were allocated 17 percent of the funding.
“That doesn’t cut it anymore,” Johnson said.
The provincial government committed $1.4 billion to Alberta municipalities over four years, up from $400 million, but there is no indication how that money will be divided between urban and rural municipalities, Johnson said.
Snelgrove said the government is aware of the high growth needs in urban and rural areas and assured rural areas they won’t be left out.
“I can assure you the rural areas of Alberta will be treated as fairly as the urban areas,” he said.
“Just by simply looking at the makeup of the government … the rural issues will be addressed by this government.”
