NDP Rolls Out The 2015/2016 Alberta Budget

On October 27th, the new Minister of Finance, Joe Ceci, took to the business of announcing the 2015-2016 budget. It had been a long awaited speech for Albertans who have been wondering where this new NDP government planned on spending money and their plan for ‘diversifying Alberta’s economy’ as that was a buzz phrase through most of their election campaigning.
“The budget will outline a plan for jobs and economic growth while stabilizing public services and putting us on a path to balance”, began Ceci.
Strategically placed, the first topic address was that of wages and salaries of political staff and elected officials. “Our government will propose that Members of this House agree to freeze the salaries of members of Cabinet, MLAs and political staff positions for the entire term of this Legislature – in other words, until after the next election in four years”.
So, here’s all it all shook down. With news right off the bat of the exponential deficit this year being around the $6.1 billion this year – there really was nowhere else to go with his speech but up. In 2016-2017 a $5.4 billion deficit is predicted with no hope in balancing the budget until 2019-2020.
Here are the highlights that came out of Ministers Ceci’s speech:
• Implementing a 12% corporate tax rate, in the mid-range of rates across Canada.
• Abolishing this flat income tax model and replacing flat taxes with a normal, fair, progressive income tax system.
• Invest $101 million in FCSS this year – a $25 million increase.
• Invest $15 million in new, annual funding to support women’s shelters.
• In 2016-2017, we plan to manage the health budget within a 4% increase, in 2017-2018, within a 3% increase and aim to hold the health budget to 2% growth following that
• increase provincial taxes on tobacco by $5 per carton
• increase the alcohol mark-up by 5%
• there will be a 2 year tuition freeze at post-secondary institutions
• introduces a new Fiscal Planning and Transparency Act that will limit Alberta government borrowing to 15% of GDP
• invest $50 million over the next two years into the Alberta Enterprise Corporation
• Invest $178 million to introduce a new job creation incentive that will reward eligible job creators with grants of up to $5,000 for each new job created.
• Increase capital investment by $500 million in the current fiscal year, by $1.3 billion in 2016-2017, by $1.7 billion in 2017-2018, by $600 million in 2018-2019, and $400 million in 2019-2020.
One of the projects listed in that capital investment is the long awaited cancer treatment centre in Calgary…but it’s not coming any time soon. This summer, the NDP government committed to building a single new centre at the same location of the Foothills Hospital and very over utilized Tom Baker Cancer Centre and had hoped to have building start 2015-2016 and to be completed in 2020. That is now not the case as since the budget was released, it is now being reported that the new cancer centre will not be opened until 2024, if it does come to fruition. However, members of 5C have hope that this announcement will actually get this new centre built.
“The planning for some type of new facility in Calgary has gone on for years, but focused campaigning for the past six years has landed today’s outcome,” said John Osler, Co Leader of the Concerned Citizens for a Calgary Cancer Centre (C5). “This has always been a crusade to secure the best facilities and care for cancer patients and their families in Southern Alberta and now we can take comfort by our success.”
“Cancer patients deal with considerable stress fighting their disease and if we can remove one source of despair, then we should,” said Heather Culbert, Co-Leader of C5. “This new facility will ease the road for treatment and make the cancer journey a better one.”
Other projects in the capital plan include a flood control solution in Calgary; improvements to health facilities in Edmonton; investments in public transit in both Calgary and Edmonton; expanding Red Deer obstetrics; replacing the High River government building damaged in the 2013 flood; expanding the Lethbridge College Trades and Technology Renewal and Innovation Project; and a major increase in water and road projects in communities across Alberta.
It has also been announced that a new Alberta Child Benefit and changes to the Alberta Family Employment Tax Credit mean families with incomes of $0 to $41,220 a year will be eligible for financial benefits for each child, to a maximum of $2,750 per year starting July 1, 2016.
Chestermere-Rockyview MLA, Leela Aheer, commented that this new budget seem to touch on all the hot button topics like health care and education but the budget revealed no specifics as to how they are going to clean up this debt. “They continue to say that they are going to balance the budget but I have no idea how they are going to do that with this deficit. They also keep using the word ‘diversification’ that sounds wonderful, but means nothing. You can’t force diversification”.
Aheer also spoke to the new job creation incentive and how it is interesting that the NDP government did not mention that they would create jobs, just that they would reward those that did.
Aheer continued, “In terms of winners or losers of this budget, it’s so hard to say because with a deficit this big, our great grandchildren are going to be paying this off and for these decisions”.
Minster Ceci stated that more project announcements and projects will be coming over the next couple of months.