Alberta
Province provides over $68 Million for extra staff in continuing care, addiction and mental health treatment facilities
From the Province of Alberta
Increasing protection for vulnerable Albertans
Alberta’s government is providing $68.5 million to protect vulnerable Albertans and staff in continuing care and residential addiction and mental health treatment facilities, as well as home care clients, from COVID-19.
This one-time funding will support operators of non-contracted licensed supportive living and both contracted and non-contracted home care, hospices and residential addiction and mental health treatment centres.
It will help operators pay for increased staffing, additional cleaning supplies and personal protective equipment.
“We must do everything possible to protect vulnerable Albertans and the workers supporting them from COVID-19. Today’s $68.5 million in support for continuing care homes is on top of $260 million that Alberta’s government has already provided to help caregivers support vulnerable seniors throughout the pandemic.”
“I am pleased to announce steps to help protect this sector. We know how important these services are to Albertans who live in these facilities and their families, as well as for those who are cared for at home. Alberta’s government will continue to support services that are essential to the health and well-being of Albertans throughout this pandemic.”
“I have heard loud and clear from the continuing care sector that remaining in compliance with public health orders can be costly. This funding will help operators further protect those most at risk of severe outcomes.”
“I am pleased that the Government of Alberta has taken this positive step to recognize the actions taken by operators who have stepped up and taken responsibility for the care of older Albertans throughout the pandemic. This funding recognizes the importance of this ongoing work.”
Funding to support operators providing essential services varies by sector and will be calculated based on the number of spaces in each facility or on an hourly basis for home care:
- $48 million for non-contracted licensed supportive living
- $9.9 million for residential addiction and mental health treatment facilities
- $9.6 million for home care
- $1 million for residential community hospice
Organizations operating during the period of March 15, 2020 to March 31, 2021 will be eligible.
Alberta’s government is responding to the COVID-19 pandemic by protecting lives and livelihoods with precise measures to bend the curve, sustain small businesses and protect Alberta’s health-care system.
Quick facts
- Information on how to apply for funding will be posted on alberta.ca in the coming weeks.
- Alberta has provided more than $260 million in funding to protect staff and residents in long-term care, designated supportive living facilities and seniors lodges from COVID-19.
- This includes more than $87.6 million that has been provided to operators to top-up the wages of health-care aides and health care aide staffing levels and provide paid practicums for students to fast-track them through certification.
Alberta
Alberta government should eliminate corporate welfare to generate benefits for Albertans
From the Fraser Institute
By Spencer Gudewill and Tegan Hill
Last November, Premier Danielle Smith announced that her government will give up to $1.8 billion in subsidies to Dow Chemicals, which plans to expand a petrochemical project northeast of Edmonton. In other words, $1.8 billion in corporate welfare.
And this is just one example of corporate welfare paid for by Albertans.
According to a recent study published by the Fraser Institute, from 2007 to 2021, the latest year of available data, the Alberta government spent $31.0 billion (inflation-adjusted) on subsidies (a.k.a. corporate welfare) to select firms and businesses, purportedly to help Albertans. And this number excludes other forms of government handouts such as loan guarantees, direct investment and regulatory or tax privileges for particular firms and industries. So the total cost of corporate welfare in Alberta is likely much higher.
Why should Albertans care?
First off, there’s little evidence that corporate welfare generates widespread economic growth or jobs. In fact, evidence suggests the contrary—that subsidies result in a net loss to the economy by shifting resources to less productive sectors or locations (what economists call the “substitution effect”) and/or by keeping businesses alive that are otherwise economically unviable (i.e. “zombie companies”). This misallocation of resources leads to a less efficient, less productive and less prosperous Alberta.
And there are other costs to corporate welfare.
For example, between 2007 and 2019 (the latest year of pre-COVID data), every year on average the Alberta government spent 35 cents (out of every dollar of business income tax revenue it collected) on corporate welfare. Given that workers bear the burden of more than half of any business income tax indirectly through lower wages, if the government reduced business income taxes rather than spend money on corporate welfare, workers could benefit.
Moreover, Premier Smith failed in last month’s provincial budget to provide promised personal income tax relief and create a lower tax bracket for incomes below $60,000 to provide $760 in annual savings for Albertans (on average). But in 2019, after adjusting for inflation, the Alberta government spent $2.4 billion on corporate welfare—equivalent to $1,034 per tax filer. Clearly, instead of subsidizing select businesses, the Smith government could have kept its promise to lower personal income taxes.
Finally, there’s the Heritage Fund, which the Alberta government created almost 50 years ago to save a share of the province’s resource wealth for the future.
In her 2024 budget, Premier Smith earmarked $2.0 billion for the Heritage Fund this fiscal year—almost the exact amount spent on corporate welfare each year (on average) between 2007 and 2019. Put another way, the Alberta government could save twice as much in the Heritage Fund in 2024/25 if it ended corporate welfare, which would help Premier Smith keep her promise to build up the Heritage Fund to between $250 billion and $400 billion by 2050.
By eliminating corporate welfare, the Smith government can create fiscal room to reduce personal and business income taxes, or save more in the Heritage Fund. Any of these options will benefit Albertans far more than wasteful billion-dollar subsidies to favoured firms.
Authors:
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