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By Tiffany Goodwein

Alberta Budget 2021: Mayor reacts to cuts to municipal funding program

Feb 25, 2021 | 6:03 PM

MEDICINE HAT, AB- Funding for a provincial program aimed at supporting municipalities with capital expenditures such as roads, and sewer upgrades, will see significant reductions in the coming years, the province said Thursday while presenting the 2021 budget.

“Over the next three years (2021 to 2023), municipalities will receive about 25 per cent less in Municipal Sustainable Initiative (MSI) funding as we live within our means,” confirms Jill WheelerBryks director of communications for Alberta Infrastructure.

Mayor Ted Clugston said the cut announced by the province is something he is not overly surprised about given their current financial situation. Alberta’s deficit is forecasted at $18.2 billion. Their total debt is 115.8 billion and it is projected to balloon to $132.5 billion by 2023 to 2024.

“We’ve been expecting this. I know that the other municipalities and the mayors are going to come out really, really hard against the province on this one. But I’m not. I understand it they are running massive deficits and they need to cut costs wherever they can and MSI is just part of that,” Mayor Clugston said.

The City of Medicine Hat receives about $10 to $12 million a year in MSI funding, and a 25 per cent cut would result in a $2.5 to $3 million reduction, according to Clugston.

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Over the years, MSI funding has been used to fund capital projects at the Veiner Centre, road construction, storm sewer pipes, and some berm construction.

While the city is expected to lose some MSI funding from the province, Mayor Clugston said the city is also expected to receive $15 to $20 million to support the municipal stimulus projects. He said he is pleased with the amount allocated for the initiatives which are expected to break ground this spring.

“In some ways, it kind of balances it out. I understand. But we’ve been predicting this (MSI reduction) and we are prepared for it,” he said.