In its second provincial budget, the United Conservative government stuck to its plan to reduce spending and create jobs, while stressing its case to the federal government for a “Fair Deal for Alberta.”
Budget 2020 cuts operating expenses by about 2.5 per cent over three years. Alberta is left with an overall debt of just under $88 billion by 2022.
Here’s a look at how some of the changes (and previously announced budget decisions) affect Red Deer:
Red Deer Regional Hospital Centre
The province is not allocating any money in this fiscal year to the Red Deer Regional Hospital Centre renewal project. However, it will spend $5 million and $20 million in 2021-22 and 2022-23, respectively.
Red Deer Integrated Emergency Shelter
The government’s latest budget includes new funding for the Red Deer Integrated Emergency Shelter. It earmarks $7 million to expand the existing facility and add 160 new shelter spaces.
Red Deer Justice Centre
The law courts in Red Deer will receive significant investment. Budget 2020 includes $157 million in spending over three years.
Prosecutors
The government previously made a commitment to hire 50 new prosecutors. We now know those new hires are not imminent, but will be made over four years. However, the budget shows spending on the Alberta Crown Prosecution Service will be cut by $3 million between this year and next. From 2019-2020 to 2020-2021, the amount allocated for prosecutors falls from $105 million to $102 million.
Victims of Crime
The justice ministry will expand the Victims of Crime Fund to include “public safety priorities” with an additional $17 million this year. A ministry spokesperson said details are still being worked out on this initiative and stakeholders will be consulted but that it would focus on preventing people from being victimized by crime. It will include crime-prevention and enforcement projects. The budget says the fund’s financial benefits program will be replaced with a service-based program, but provides no specifics.
School boards’ reserve funds
Budget 2020 ups education spending by $100 million this school year, but the increase comes from school boards’ “own-source/reserve” funding. The government said that could include school fees, facility rentals, other sources and savings.
“School jurisdictions use their own-source revenue and reserves as the government transitions to a new K-12 Funding and Assurance Model to better manage system growth, ensure funds are directed to the classroom, and provide all jurisdictions with sustainable and predictable funding.”
No details were provided on the new model.
Post-secondary education
As expected, government funding for post-secondary education is going down. Advanced Education’s budget is $5.1 billion in 2020-21, a six-per cent cut from the forecast in the last budget. Budget 2020 implements the first phase of a new funding model that includes base funding from the province but is also based on a school’s performance.
Over three years, the UCP will trim Advanced Education spending by 10 per cent to “encourage post-secondary institutions to find efficiencies,” the budget document said.
The province also lists post-secondary schools’ “own-source/reserves” as funding sources.
Vaping tax
Do you vape or buy devices or cartridges in Alberta? More details about a vape tax that was announced in Budget 2019 were revealed in Budget 2020.
A 20-per-cent tax will soon be applied on sales of all vaping devices and liquids. The government says the tax is to “discourage youth from buying these products.” It is also expected to generate $8 million a year in revenue.
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