EDMONTON – Alberta voters will decide if they want to continue on the road to deficit reduction or get a tax break, said the province’s treasurer.
“I intuitively believe in Albertans and that they will make the right choice,” Jim Dinning told reporters during a budget news conference Feb. 22.
Under the proposal in the 1996-97 budget, Albertans will keep $71 million in planned tax cuts.
But the tax break will only happen if Albertans want it, said premier Ralph Klein.
“My opinion is we should let the public consultation take place,” he said.
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federal government proposed several months ago to increase the compensation rate from 80 to 90 per cent and double the maximum payment from $3 million to $6 million
The day after the budget, Albertans were mailed a proposal asking if they wanted money saved from deficit reduction to be paid back into deficit reduction, or if they wanted to keep the money for themselves in a tax break.
Albertans can reinvest money saved from deficit reduction four ways:
- Put it in high priority areas like health and education.
- Use it to reduce taxes.
- Use it to pay down the debt.
- Invest it in a combination of the three options.
Albertans now pay about $300 million each year on the $28 billion gross debt.
Not only will the government balance its books, it also forecasts a $23 million surplus for next year. Dinning said the surplus could reach higher than $568 million if oil and gas prices stay high.
Conversely, if prices drop, Albertans face deep cuts because a new provincial law prohibits deficit budgets.
More jobs eliminated
The savings will not come without some pain. In addition to drastic cuts already made in recent years, more than 3,100 full-time equivalent positions, affecting about 2,200 people, will be eliminated under this budget. A big chunk of those will come through the privatization of some departments and contracting out of services in other departments.
“Most of those jobs will be taken up in the private sector,” said Klein.
“Hopefully we can minimize layoffs.”
The government plans to put an additional $69 million over the proposed $3.6 billion budget into health, social services and advanced education. Of that $37 million will go to health, $16 million to advanced education and $26 million to family and social services.
Liberal opposition leader Grant Mitchell said there is nothing in the budget for ordinary Albertans except promises.
“There’s promises for the future for the people,” said Mitchell, who added the government is warming the people up for an election.
NDP leader Ross Harvey said the province is generating money “hand over fist” yet it is letting the civil society in the province erode.
He said the government should have eliminated health care premiums of $34 a month for individuals and $68 a month for families.
