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Commentary: Premier Smith makes her choice in Alberta's budget

Danielle Smith tries to balance her government’s vision, aims with growing and pressing needs across Alberta
opinion

The newly-released provincial budget has been receiving mix reviews as Premier Danielle Smith tries to balance her government’s vision and aims with growing and pressing needs across Alberta, including in this district.

And while every budget is an attempt to strike a compromise between requirements and resources, with the 2024 budget the premier has chosen to move forward with her saving plans despite her critics calling for even more support for infrastructure, health care, education and the public service sector. 

For her part, the premier and her UCP colleagues say they have a mandate from Alberta voters to focus on building up the province’s savings.

“Budget 2024 invests today and saves for tomorrow so we can continue to be the nation’s economic engine,” said Nate Horner, minister of Alberta Finance.

For its part, Alberta Municipalities (ABmunis) says the government decision not to markedly increase support for municipalities through the new Local Government Funding Framework (LGFF) program is very problematic.

Specifically, the association says the $722 million allocated through LGFF for infrastructure needs in 2024 falls well short of many requirements.

“By not increasing LGFF capital funding and increasing provincial education property taxes by $230 million, an increase of 9.1 per cent, the provincial government continues double-downloading the tax burden onto municipal governments and property owners,” the ABmunis says.

While it is unlikely that the government will increase LGFF funding in budget 2024, the premier could make another choice, this one involving millions of dollars owed to those same municipalities. 

According to Rural Municipalities of Alberta (RMA), oil and gas companies currently owe more than $250 million to municipalities. 

“I’ll be blunt, rural municipalities and all other companies and individuals paying property taxes are being used,” said RMA president Paul McLaughlin. “While all other property owners in the province face strict penalties for non-payment of property taxes, oil and gas companies continue to exploit legislative loopholes.”

Perhaps Premier Smith could do more to get municipalities the money they are rightly owed?

Dan Singleton is an editor with the Albertan.


Dan Singleton

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