Opinion: Listen to the money talk

By Medicine Hat News Opinion on January 23, 2020.

cgallant@medicinehatnews.com@CollinGallant

The financial situation facing local governments will be outlined today in Edmonton as the head of Alberta’s municipalities association meets with Municipal Affairs.

Brooks Mayor Barry Morishita and Municipal Affairs Minister Kaycee Madu are likely to play nice at the event, but there’s growing discord between Alberta cities and the province.

There’s much unsaid in the current diplomacy, but an obvious series of skirmishes between various cabinet ministers and the mayors of the province’s two biggest cities. In the case of Calgary, it’s been an all-out war with chief magistrate Naheed Nenshi.

The fall budget was laced with obvious and not so obvious clamp-downs on municipal autonomy.

They haven’t said as much, but the move is in line with the general vibe of the government that restraint is needed across the board in the province.

Translated, that means fewer bells and whistles projects, needs not wants, hardline budgets balanced through cost and program reductions, and not – repeat not – higher local taxes.

They argue that Alberta’s spending is out of line, and local government won’t escape the general belt tightening.

Whether cities and counties like it might not rate.

Political critics argue the government that drones on about local decision-making power is, in fact, centralizing power to further an agenda.

Mayors and reeves are likely being more diplomatic, perhaps for diplomatic reasons.

While the province does in fact have some absolute authority over the rules and procedures of how cities and counties operate, it’s clear this government is set on rewriting the practical relationship.

What’s also clear is that the United Conservatives have been emptying out the suggestion box of groups and citizens who are not exactly pleased with how municipalities use tax dollars.

Local governments – which typically field the lion’s share of complaints about government – have argued for decades that while they are responsible for meeting many of the basic, day-to-day needs of citizens, they receive a disproportionate amount of tax revenue.

That’s mostly collected through a property tax system which a large strain of conservative thinkers believe is antiquated and patently unfair.

A technical tax review is ongoing for oil and gas infrastructure, which could result in millions less for rural governments that depend on the revenue.

The stated goal is tax fairness for energy companies, but it’s sure to be a balancing act with other taxpayers in rural Alberta. It’s also a potential Pandora’s Box of tax challenges that municipalities will be left to deal with.

The Alberta Capital Finance Authority – which arranges lending to cities, counties, health authorities, universities, airports and irrigation districts – will be dissolved this summer, with duties moving to the treasury board.

In direct grants, the decade-old Municipal Sustainability Initiative currently allows great latitude for local councils to use the money for a variety of local projects. Will the same spending options be available when a new infrastructure program – titled the Local Government Fiscal Framework – is launched in 2022?

In a not so grand but telling sign the province will also no longer accept municipal census data to determine per capita grant payments.

Cities often hold new counts when they believe the numbers may have grown, but the province will now do their own estimates.

The implication is that the numbers are fudged.

The reality is that the vast majority of rural Alberta’s elected officials are lukewarm at worst to what the UCP sees as the role of government and the need for spending control.

If the problem is big spending mayors in big cities, or Ottawa, why are they being made out as the bad guy?

Regardless of the answer, another budget is due in March and local officials will have to deal with the potential fallout.

(Collin Gallant is a News reporter. You can contact him by email at cgallant@medicinehatnews.com)

Note: This editorial has been updated to remove the word “Restraint” from the title of the government program to be launched in 2022.

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