Staff
The provincial government released its budget for 2010 last week and by all indications, the news is not going over well with groups representing labour, education, small business, low-income wage earners and the environment.
While the budget promises a $1.7 billion increase for ongoing health programs, $20.1 billion in infrastructure projects over the next three years and a $250 million increase for school boards, the budget will also see a deficit of $4.7 billion for 2010-11 and a further $1.1 billion for 2011-12.
“Our highest priority heading into this budget was meaningful spending restraint and the government failed to deliver in stunning fashion,” said Richard Truscott, Alberta director of the Canadian Federation of Independent Business. “It’s outrageous this government still does not believe it needs to live within its means. The budget projects a 6.3-per-cent increase in operating spending over last year’s budget, well beyond their estimates of expected inflation and population growth.”
Truscott said the government will be forced to draw from the Sustainability Fund by almost 32 per cent over last year to cover the increase in spending at a time when other provinces are heading in the other direction.
“While we recognize the time isn’t right for major tax cuts, the government could have announced a new long-term plan to preserve tax competitiveness for small business,” Truscott said. “While Manitoba and British Columbia have both announced plans to reduce their small business tax rate to zero, Alberta is losing its tax leadership and that’s obviously disappointing news for small business.”
Joining the chorus of disappointment in the budget was Dennis Mol, president of the Alberta chapter of the Canadian Union of Public Employees, who said that while the increase in spending for health care is welcomed, he fears it will be offset with cuts to education.
"The funding increase for health care is welcome, but it comes at a cost to our schools. An increase of less than one per cent won't cover inflation, wage increases, and increased enrollment,” said Mol who represents 30,000 unionized workers including 7,000 working in the field of education. "Teachers just got a wage increase that the government won't pay for, and we expect arbitration awards to give our members a similar increase. This is going to result in a lot of cut backs in public schools and parents should be ready. We never caught up from the cuts in the 1990s, five schools in Edmonton are facing closure, and the Conservatives are making it worse with their continued under-funding of education."
As for the environment, the budget will see cuts amounting to tens of millions of dollars while Alberta finds itself under a microscope in light of allegations of the serious environmental damages caused by activities in the oil patch.
"The environment took a $40-million hit at a time when Alberta faces more environmental threats than ever before, and when the world is watching the government’s inaction on the tar sands,” said Mike Hudema of Greenpeace Canada. "Stelmach’s budget also leaves Alberta with 23 per cent less staff in the department of the environmental than were there in 1990. Alberta can’t be a clean energy super power when Premier Stelmach decides to spend more money exacerbating the problems and next to nothing on a solution to this environmental crisis."
Hudema accused Premier Stelmach of preaching to the world that Alberta is a responsible steward of the environment, while simultaneously committing twice as much spending on horse racing last year than it will on environmental enforcement and monitoring in 2010.
Those on the lowest end of the pay scale won’t see any increase in their paycheques at all throughout 2010 as just prior to the release of the budget, the government announced that the minimum wage would remain at $8.80 per hour.
“This decision reflects what government feels will both protect jobs during these uncertain economic times and support the economy,” said Thomas Lukaszuk, minister of employment and immigration. “In addition to freezing the minimum wage, I will also request an all-party committee review of our current policy, ensuring that our approach is what’s best for Albertans.”
Currently, Alberta’s minimum wage ranks as the sixth highest of the provinces with Ontario leading the way at $9.50 and British Columbia at the bottom at $8 per hour.
In defending the budget, the government said it simply comes down to priorities, especially at a time when global economies are not recovering from the recent financial crisis nearly as quickly as was anticipated.
“Some will say we’re spending too much; others will say we’re not spending enough,” said Ted Morton, minister of finance and enterprise. “Budget 2010 strikes the right balance between fiscal discipline and protecting core programs. It enhances our competitiveness by keeping taxes low and investing in infrastructure for the future, and positions us to be back in the black within three years.”