Not much in budget for SE Alberta
By COLLIN GALLANT on February 25, 2022.
cgallant@medicinehatnews.com@CollinGallant The Alberta budget will balance this coming year, Finance Minister Travis Toews told the legislature on Thursday, crediting “hard but necessary choices” and an improving economic picture, but critics called the plan lacking in crucial support and programming after a tumultuous two years. The budget shows no new major capital projects in the region other than $1-million grant to the Medicine Hat Stampede for grandstand redevelopment. Toews said the budget carried through on three key promises to contain expenses, drive growth and to balance the budget. The government could post a $500-million surplus this year if projections hold, including a $750-million contingency for the effect of the pandemic. Expenses of $62.1 billion next year are counted against expected revenue of $61.6 billion. That comes after shortfalls in the range of $10 billion following the 2016 energy collapse and a foundational plank in the UCP 2019 campaign to erase the deficit. “We have been relentlessly focused on not just economic recovery but laying the foundation for long-term exemplary growth,” he said in the budget address. But opposition leaders said stagnating funding for social programs and higher costs for provincial services, insurance and utilities were paid for by corporate tax cuts on the hopes spurring the economy. Opposition leader Rachel Notley said the plan was disingenuous, pointing to a telegraphed move to rebate Albertans during prices of high natural gas. The plan will only begin next winter and would kick in when price hits $6.50 per gigajoule – about double the current rate in the Medicine Hat. The potential of a rebate was discussed briefly in the city’s corporate services committee meeting on Thursday morning, before the budget was released. “There were overtures that there would be some support for Albertans for high utility bills, especially on the natural gas front,” said managing director Dennis Egert. “We’ll be paying attention to what that is and what our part might be. “Overall, the province has a surge in oil prices, but their view is still to balance the budget overall, so it will be a cautious approach.” City officials were still studying the document Thursday night. The capital plan released alongside the budget noted $1 million for Medicine Hat Stampede event centre and grandstand redevelopment. The only other standout item for the southeast is $47 million this year as a continuation of a $110-million three-year project to twin Highway 3 from Taber to Burdett The Municipal Sustainability Initiative – paid Medicine Hat $11 million for construction projects last year – will fall in half to $485 million this year, as planned, as in 2023-24 before provincial support for municipal infrastructure is redeveloped in 2024. The province will also maintain a new well and pipeline tax holiday that was brought in partly to ease tensions between oil patch and rural municipalities battling over linear tax assessment. Several economic development items are of relevance to Medicine Hat, which is now pursuing hydrogen investments and seeking to create a regional carbon sequestration hub. The province will spend: – $40 million to fund a new “Clean hydrogen Centre of Excellence”; – $58 million per year for the next there years toward carbon capture hubs that are central to the province’s economic and environmental goals; – The province will continue a petrochemical attraction program. though with no money this year, then with $136 million in both 2023 and 2024. The province will dedicate $150 million this year and $320 million over three years for a broadband strategy that is concern for rural leaders, and also $2 million for research into plant fibre use and $37 million for the reduced “results-driven” agricultural research projects. Alberta Party released an “alternative budget” overview calling for debt repayment culled with new deposits in the Heritage Trust Fund, along with wide ranging changes to the tax system. “We are witnessing an increase in oil prices that has improved the finances of the government, but this is just another round of Alberta’s boom and bust cycle,” said Leader Barry Moroshita, who has said he will run in the Brooks-Medicine Hat riding during next years election. He called for “community-model” of service delivery rather than centralizing services in the name of cost-savings. The party suggests bringing in a harmonized sales tax in several years, developing a provincial carbon levy to avoid using the federal government program, and reducing personal income tax levels. 28-27
