Albertans got a taste of what it must feel like to live in other
provinces after the March 19 budget’s tax increases and deep spending
cuts.
Money from oil and gas revenues, a large source of Alberta’s income, is
expected to be $3.7 billion compared to last year’s record $10.5
billion.
Along with the lower revenues came reduced spending.
“We cannot shield Albertans from the combined impact of higher costs
and lower revenues,” said finance minister Pat Nelson.
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Albertans will end up paying $722 million more this year in higher fees
and taxes.
As well, the agriculture budget was hit hard.
Of the 298 full-time positions cut in the province’s workforce, 186
were from the agriculture ministry. The cuts will come from the
restructuring of the industry development sector, a reduction of 34
full-time jobs in the Agriculture Financial Services Corp. and seven
jobs cut in the move from a government-run dairy board to a
producer-elected one.
The ministry will be left with 1,606 full-time equivalent positions.
The agriculture budget was also cut to $671 million from $1.2 billion
last year through the elimination of ad hoc payments to farmers to help
weather last year’s drought. Next year’s ministry spending is expected
to be $550 million. The 30 percent crop insurance premium reduction in
place for the last two years has been discontinued.
Rod Scarlett, executive director of Wild Rose Agricultural Producers
said, “agriculture really got hammered in the budget.”
Rural Albertans will feel the loss from the closing of rural
agriculture offices and staff layoffs expected within the month. He
hopes the government’s reversal in transportation and education means
the budget is not set in stone.
“You have to look at this budget skeptically and hope our minister can
step up to the plate when money is needed if there is a drought,” said
Scarlett.
Official government documents said the need for special drought or
agriculture assistance will be assessed in the context of the
province’s overall fiscal position.
Transportation was affected with the elimination over three years of 70
percent of the funds for transportation grants. This is money most
municipalities rely on to build roads, sewers and water filtration
systems. There was such an outcry from municipalities two days after
the budget that the government came up with $155 million – money that
was to be eliminated the first year.
Jack Hayden, president of the Alberta Association of Municipal
Districts and Counties, said the $155 million cut would have been a big
hit for municipalities struggling to rebuild roads after years of
cutbacks.
“Last year the municipalities were finally able to get back improving
our road infrastructure,” said Hayden.
Alberta’s rising population and grain elevator closures have increased
pressure on rural road repairs.
“It’s common sense. If there’s more people, there’s more pressure on
infrastructure. You have to have safe roads and you have to have safe
water,” he said.
Government looks at infrastructure projects like roads as less
desirable spending areas, Hayden said.
“Education and health care are real cuddly, roads aren’t. Even though
we’re the ugly pup in the litter, we still need to be fed.”
About $25 million was returned to education after the government
changed its funding formula for senior high school classes shortly
after the budget was announced.
Extra taxes in the budget include:
- Cigarettes rising $2.25 a pack to $9.
- Liquor up in a range from 10 cents to $1 a litre.
- Traffic fines up 20 percent.
- Vehicle registration up to $61 from $48.
- Higher court fees.
Also increasing are health care premiums to $44 from $34 a month for
single Albertans, and $88 from $68 a month for families.
Health was one of the few areas where spending increased in the
government’s $19.2 billion budget. Alberta Health will receive $468
million more to bring it up to $6.84 billion, which represents 35.7
percent of the total government budget.
One of the most unpopular cuts was the elimination of the $51 million
Community Lottery Board Program, established when the province
increased the number of video lottery terminals in the province.
The program was established when non-profit organizations said the
gambling machines were making it harder for organizations to raise
money. Non-profit groups could apply for money to buy uniforms or build
playground equipment.
