A less than stunning close to the spring session
COALDALE – The Alberta Legislature recessed on the early morning of June 6th this year. Eighteen Bills were passed this sitting.
For me, the Provincial Budget was the largest disappointment of this sitting. It laid out small increases in spending to both the Education and Health Ministries. At the end of the day though, the government has chosen to borrow billions of dollars for schools, roads, hospitals and other infrastructure. We are to be left with a $10.3 Billion deficit this year.
No argument that Alberta is in need of some Infrastructure updates. However, because there was absolutely no sign of government getting somewhere near a balanced budget anytime in the foreseeable future…or any plan for paying down the debt…we have received another credit downgrade. Our fifth since this government took office. S&P stated that “continuing budgetary performance deterioration and growing debt” were behind the move to downgrade the credit rating again.
Alberta is forecast to be $71.1 billion in debt by 2019-20. The Finance Minister says that he won’t cut services Albertans need in a bid to balance the books. Those are noble words…but it clearly doesn’t instill confidence on the budgeting and reining in of the debt that credit agencies watch for. Balancing what is spent on infrastructure, so that we are upgrading at a pace that is more in line with our fiscal situation seems to be what the agencies are looking for. As well as holding costs on services to the same extent.