‘Responsible plan for a growing province’: Alberta reveals balanced budget, boosting health care and education funding

“It also means putting money into savings when we can, and ensuring the next generation is not burdened with more inherited debt.”

The government had to borrow $2.4 billion to reach a small accounting surplus.

The 2024 budget does not set aside any further cash for the Alberta Heritage Savings Trust Fund despite Premier Danielle Smith announcing a reinvigoration of the fund in a paid address to Albertans earlier this month.

The 1970s-era heritage fund is only gaining $2 billion from the 2023 budget and will not be topped up for the next three years, officials said.

“Budget 2024 is a responsible plan for a growing province,” Horner said.

“It’s founded on our duty to make decisions that strike the right balance. That means spending on the important programs and services and infrastructure that Albertans deserve and expect.”

The 2024 budget includes major investments in health care, education and teases a new tax bracket for the first $60,000 of income to fully rollout by 2027.

The budget includes over $26 billion for health care, the largest-ever healthcare budget in Alberta’s history.

It will help with the government’s goal of wanting every Albertan to have access to a doctor.

To accomplish that, it’s investing $475 million to strengthen primary care and injecting millions into a rural physician program, among other items.

There is money set aside for the restructuring of the health care system announced by Smith last year but officials said the efficiencies found in the revamp will make up for the cost.

The province has also set aside $1.9 billion in total funding to support special education and vulnerable students to help with growing classroom sizes across Alberta.

Despite a 4.4 per cent increase to public education and 13.5 per cent funding boost for the private system, Alberta Teachers’ Association president Jason Schilling said the budget did not go far enough to meet the needs of students.

Schilling in a statement said the new spending does not fully fund enrolment growth while failing to fund inflation.

“The budget will still see our students funded the least in all of Canada,” he added.

Together, health care and education make up 61 per cent of the 2024-2025 budget, officials said in a briefing to reporters.

“To build on Alberta’s already strong personal tax advantage, government intends to introduce a new personal tax bracket of eight per cent on the first $60,000 of income,” Horner said.

That new tax bracket will be implemented over the course of two years and is expected to be fully in place by 2027.

Meanwhile, the Opposition New Democrats said the budget is full of broken promises in a response Thursday.

Tackling drought

The Alberta government has set aside major investments into drought mitigation efforts in its 2024-25 fiscal budget.

The United Conservatives are setting aside $1.3 billion in capital funding over the next three years for water management and drought preparedness supports.

Drought impacted southern Alberta last year and 2024 is projected to potentially be worse due partly due to a lack of precipitation and hard snow pack.

The budget earmarked $251 million to tackle floods and droughts, paired with a similar amount for for irrigation projects.

Another $539 million over the same time period will go to municipal water supply and wastewater infrastructure.

The fresh cash from the province is indicative of growing alarm over fears of significant drought coming this year.

Some municipalities — such as the City of Medicine Hat — have not ruled out mandatory water restrictions coming into force.

Budget breaks key promises, says Notley

NDP Leader Rachel Notley said the provincial budget breaks key promises and fails to address the needs of people in the province.

Notley calls the budget a litany of broken promises, as it fails to help Albertans with the high cost of living, leaves schools and health care underfunded, and reneges on a pledge to cut taxes for lower-income residents for another couple years.

The Canadian Federation of Independent Business is applauding the budget for its commitment to reducing debt, but says it’s disappointed there wasn’t a reduction in the small business tax rate and insurance taxes.

Alberta Municipalities said it’s discouraged by the amount of funding the government has allocated to tackle the municipal infrastructure deficit.

The group said the $722 million falls far short of what is needed.

But it does praise the United Conservative government for taking the threats of widespread drought and wildfires seriously, by increasing funding for related initiatives.

— with files from the Canadian Press

by Eli J. Ridder | @EliRidder

‘Responsible plan for a growing province’: Alberta reveals balanced budget, boosting health care and education funding

Tackling drought

Budget breaks key promises, says Notley

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