Provincial spending top of mind for finance minister during Medicine Hat visit

The MacKinnon Report stated Alberta’s financial situation demanded immediate action and if the provincial government wants to balance the books by 2022-23, operational spending must be cut by $600 million and major cuts would be needed for capital spending as well.

“We absolutely have to deliver services to Albertans in the most cost-effective way possible,” said Toews. “I think every delivery methodology needs to be on the table at this point in time.”

Reporting Alberta’s spending per capita is the highest in the province, the study claimed Alberta’s debt would be lowered by $10.4 billion if per capita spending matched other large provinces like British Columbia, Ontario, and Quebec.

Toews said the UCP government has promised not to raise taxes and needs to find alternatives to help bring down the provincial debt.

“Before any of us, any level of government raises taxes, we need to be absolutely sure that we’re delivering in the most cost-effective manner possibly,” said Toews.

Toews would not confirm which departments could see spending cuts, saying that all departments are being reviewed.

However, near the end of his presentation he did state that there are no plans to reduce current spending in either education or health care.

Toews made an allusion to shuffling the deck chairs on the Titanic, stating transformative policy changes will be needed in a variety of departments.

“Our delivery metrics, our wellness metrics are no better than the other provinces,” said Toews. “So, basically with the example the comparative provinces set, we’re convinced that we can find methodologies to deliver high quality services more efficiently.”

Capital projects in Alberta could see some major changes, as Toews said they have to be a lot more selective down the road.

He added that includes prioritizing which future capital projects are necessary for the public and which can be put on the back burner.

“That would mean, realistically, a down-turn trend,” he said. “If in fact that’s the route we’re going to go, stay tuned for the budget, it would involve being much more intentional in terms of prioritizing the projects that are essential to go forward with.”

The twinning of Highway 3 between Medicine Hat and Lethbridge was brought up in the question and answer period, though Toews was non-committal on the future of the project.

According to Toews, the biggest focus the province will be putting on major projects will be their ability to attract investment and financial backing.

“Those kinds of projects that have the likelihood of accomplishing that will get a higher priority,” said Toews. “At this point in time we’re looking at our whole capital plan not only for this year, but in the out years.”

Toews also called on municipalities across Alberta to do their part to by spending within their own means over the coming years.

Though, he hasn’t yet had the chance to relay this to either Mayor Ted Clugston or City of Medicine Hat officials.

“I’ve not had the conversation with the City of Medicine Hat,” said Toews. “Obviously, our municipal affairs minister will be the key point of contact. But, we really believe it’s incumbent on all levels of government to work together to look at delivering services in a more efficient and effective manner.”

The province has not yet released a date for the unveiling of their fall budget.

by Scott Roblin

Provincial spending top of mind for finance minister during Medicine Hat visit

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