Alberta legislature. (Lethbridge News Now)

By David Opinko/LethbridgeNewsNOW

Letter to Alberta mayors: provincial funding likely to be cut

Nov 3, 2020 | 2:54 PM

EDMONTON, AB – Municipalities across the province have been told to expect less money from the Government of Alberta in the coming fiscal year.

A letter from Municipal Affairs Minister Tracy Allard has been sent to local governments, addressed to the “Chief Elected Official.” Lethbridge Mayor Chris Spearman mentioned in an unrelated press conference last week that he had received the letter.

Allard stated that the province is facing “very challenging economic circumstances” with revenues lower than they were in the 1970s yet expenses are higher than expected due to the need to respond to the COVID-19 pandemic.

She says this will cause financial challenges that will be felt for many years.

“In light of these economic circumstances, Alberta may not be able to sustain our current levels of infrastructure and operating spending. We are already planning for Budget 2021; there will be some difficult choices the province must make to ensure Alberta’s finances are sustainable over the long-term.”

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The minister wrote that she understands that many communities are also facing significant challenges and that she will ensure their views are represented in budgetary plans.

“In the meantime, I strongly encourage you to make certain all of your capital spending is used to support critical infrastructure that will benefit future generations of Albertans and position your community to participate in our economic recovery.”

A spokesperson from the Ministry of Municipal Affairs told LNN that no funding decisions have been made at this time for the 2021 provincial budget.

“Our focus continues to be ensuring our municipalities are strong and fiscally responsible…We’re focused on living within our means and making sure the programs Albertans rely on last for future generations.”

The government’s budget consultation website states that Alberta “now faces a debt burden of $99.6 billion, or $22,400 per Albertan.”

Budget consultations are currently open until December 4, 2020. You can take the online survey here.