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Alberta budget – plenty of red with promises of hospital and schools

Mar 16, 2017 | 3:41 PM

EDMONTON –  Alberta’s NDP Government is banking on bad times getting better in a budget that drips red ink, but promises a new hospital, new schools and renewed front-line spending.

Finance Minister Joe Ceci is forecasting a $10.3-billion deficit in 2017-18 on total spending of $45 billion.

Alberta is on track to hit $71 billion in debt with more than $2 billion in interest payments a year by the end of the decade.

The province is counting on oil prices continuing to slowly rebound to whittle away at the deficit.

There are no new taxes, tax increases or program cuts in the fiscal plan.

The government is promising a new hospital for Edmonton, 10 new schools across the province, more beds for seniors care, more Crown prosecutors and a new courthouse in Red Deer.

 Budget Highlights include the following:

Tax revenue is forecast at $21.8 billion, up almost 6 per cent from year prior.

Bitumen royalties are estimated at $2.5 billion while conventional oil royalties are pegged at $476 million.

Operational spending is growing by 2.2 per cent.

There is $4.5 billion earmarked over the next four years for infrastructure, including $100 million in new money to help First Nations get access to clean water.

A new hospital in Edmonton at a cost of $400 million.

A new continuing care centre in Calgary at a cost of $131 million.

Red Deer is getting a new court house at a cost of $97 million.

There is $14.5 million in the budget to hire more Crown prosecutors and support staff.

Education funding hits $8.2 billion with money for 10 new schools and 16 more replacements and modernizations

There is $566 million over the next three years for a variety of programs to help lower energy bills, such as low-energy light bulbs.

There are no new taxes, tax increases or program cuts in the 2017-18 fiscal plan.

The budget sets aside 4.5 billion dollars over the next four years for infrastructure, including 100 million in new money to help First Nations on reserves get reliable access to clean drinking water.  

For 2017-18, municipalities are being allocated nearly $2.39 billion, an increase of 43% over Budget 2016 when municipalities were allocated just over $1.7 billon.

Municipal Sustainability Initiative (MSI)

Subject to budget approval, this year municipalities will receive just over $1.2 billion under the Municipal Sustainability Initiative with $21,161,354 going to the city of Lethbridge.

Schools

$2 million to the design of a new school in south Lethbridge.

25 per cent reduction in school fees and a reuction in fees charged to students who ride the bus more than 2.4 kilometres to their designated schools.

Affordable Housing

$3.5 million over four years to the London Road Gateway Regeneration to build affordable housing units.

Municipal and Irrigation District Infrastructure Support

$7 million to facilitate the Cavendish Farms expansion.

Libraries

Budget 2017 demonstrates the government’s commitment to improving access to public library resources and services.

Funding includes operation grants, SuperNet services, and access to a growing number of e-books and resources through the provincial library network.

As introduced last year, the government continues to provide $700 thousand in funding to support public library access for Indigenous communities.

Post Secondary

Tuition will be frozen for the third year in a row.

Lethbridge College

 $10.4 million allocated in the budget for the Trades and Technology Renewal and Innovations project, which will provide space for approximately 880 new students.

University of Lethbridge

 $65 million for the Destination Project, which will replace the overcrowded science building on campus and help the U of L offer world-class research opportunities in biochemistry, chemistry, kinesiology, geography and physics.

Alberta Community Transit Fund

$305 million for the new Alberta Community Transit Fund, which will be announced later this year.

GreenTRIP

 $848 million over 4 years.

ALERT funding

$29.1 million for ALERT (Alberta Law Enforcement Response Team) so it can continue to fight organized crime across Alberta.

Legal Aid 

Budget to budget there is an almost $13 million dollar increase for legal aid, to support low-income and vulnerable Albertans.  The government has increased legal aid by more than 25% since taking office