Alberta Budget 2021 Highlights

From Alberta.ca/budget-highlights

Maintaining responsible spending

A careful approach to spending

Budget 2021’s responsible approach to spending will mean more investment in priority areas like health care, education and job creation.

Sound fiscal anchors

Budget 2021 is built on 3 fiscal anchors:

Keep net debt below 30% of GDP to help protect future generations from rising debt servicing costs.
Deliver services more cost effectively by bringing spending in line with other comparator provinces.
Re-establish a plan to balance the budget post-pandemic when a more stable level of predictability returns to the budgeting process.
Getting back on track
Operating expense
- In 2021–22, operating expense is $1 billion higher than 2020–21 forecast and begins to normalize, remaining relatively flat over the next 2 years.
Deficit
- $18.2 billion deficit is targeted for 2021–22, $2 billion less than the 2020–21 forecast.
- $11 billion and $8 billion deficits are targeted for 2022–23 and 2023–24 respectively.
Declining deficit can be attributed to decreasing expense as:
- the costs of the pandemic subside
- the government works to streamline and modernize service delivery
- revenue increases as the economy recovers
  Budget 2021 funding highlights
  
  Budget 2021 provides funding of:
  
  $23 billion for health services
  
  $8.2 billion operating expense for kindergarten to grade 12 (K to 12) education services
  
  $6.3 to $6.4 billion operating expense for social services ministries
  
  $136 million over 3 years for the Alberta Jobs Now program
  
  $166 million over 3 years for the Innovation Employment Grant
  
  $500 million in 2021–22 for additional investments in economic recovery

Investing in health care

Budget 2021 invests record funding in health care

Alberta’s government is increasing Health’s budget by over $900 million (or 4%) to $23 billion, and that’s excluding the impact of COVID-19.

$5.4 billion for physician compensation and development (including academic medicine)
$3.5 billion for community care, continuing care and home care programs, including $20 million over 4 years for palliative and end of life care
$1.9 billion for drugs and supplemental health benefits.
$34 million for children’s health supports to expand mental health and rehabilitation services for children and youth
$140 million over 4 years for mental health and addiction services
Continuing the fight against COVID-19
Budget 2021 invests in continued supports to protect Albertans as we enter the second year of the pandemic.
- $1.25 billion COVID-19 Contingency to address health-care costs for responding to the pandemic, including surgical wait times and backlogs
- This is in addition to $2.1 billion spend in 2020-21
  Getting health care back on track
  
  Budget 2021 invests $16 billion for Alberta Health Services operations. Includes:
  
  Alberta Surgical Initiative
  
  Continuing Care Capacity Plan
  
  CT and MRI Access Initiative
  
  Investing in health care capital
  
  Budget 2021 commits $3.4 billion over 3 years for health related capital projects and programs, providing:
  
  $2.2 billion for health facilities, with $143 million for 5 new projects
  
  $766 million for Alberta Health Services self-financed capital, for parkades, equipment and other capital requirements
  
  $343 million for capital maintenance and renewal of existing facilities
  
  $90 million for health department IT projects

Preparing for recovery

Paving the way for jobs and investment

Alberta’s Recovery Plan is a bold strategy to create jobs that get people back to work, build infrastructure and diversify our economy. This includes the acceleration of the Job Creation Tax Cut, which creates employment opportunities by making Alberta one of the most attractive jurisdictions in North America for new business investment. Budget 2021 will spend an additional $3.1 billion in 2021–22 to continue supporting recovery plan strategies.

Building infrastructure to create 90,000 new jobs

Budget 2021 invests $1.7 billion more in capital funding in 2021–22 than what was planned in Budget 2020.

The 3-year Capital Plan now totals $20.7 billion and will support more than 50,000 direct and 40,000 indirect jobs through to 2024.

Diversifying the economy

In 2021–24, $1.5 billion invested in Alberta’s Recovery Plan.

Budget 2021 invests in established and emerging sectors that hold the greatest potential for growth and job creation, and are fundamental to our economic recovery including: energy; agriculture and forestry; tourism; finance and fintech; aviation, aerospace and logistics; and technology and innovation.

Economic recovery spending highlights

- Innovation Employment Grant supports small and medium-sized businesses that invest in research and development
- Developing framework to protect intellectual property in Alberta
- Investment and Growth Strategy supports emerging sectors while building on our existing strengths
- Invest Alberta provides supports and services to drive up investment and showcase Alberta as the best place in the world to do business

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Alberta

Province to stop municipalities overcharging on utility bills

Published on April 22, 2024

Government of Alberta

Making utility bills more affordable

Alberta’s government is taking action to protect Alberta’s ratepayers by introducing legislation to lower and stabilize local access fees.

Affordability is a top priority for Alberta’s government, with the cost of utilities being a large focus. By introducing legislation to help reduce the cost of utility bills, the government is continuing to follow through on its commitment to make life more affordable for Albertans. This is in addition to the new short-term measures to prevent spikes in electricity prices and will help ensure long-term affordability for Albertans’ basic household expenses.

“Albertans need relief from high electricity costs and we can provide that relief by bringing in fairness on local access fees. We will not allow municipalities – including the city of Calgary – to profit off of unpredictable spikes in electricity costs while families struggle to make ends meet. We will protect Alberta families from the extreme swings of electricity costs by standardizing the calculations of local access fees across the province.”

Danielle Smith, Premier

Local access fees are functioning as a regressive municipal tax that consumers pay on their utility bills. It is unacceptable for municipalities to be raking in hundreds of millions in surplus revenue off the backs of Alberta’s ratepayers and cause their utility bills to be unpredictable costs by tying their fees to a variable rate. Calgarians paid $240 in local access fees on average in 2023, compared to the $75 on average in Edmonton, thanks to Calgary’s formula relying on a variable rate. This led to $186 million more in fees being collected by the City of Calgary than expected.

“Albertans deserve to have fair and predictable utility bills. Our government is listening to Albertans and taking action to address unaffordable fees on power bills. By introducing this legislation, we are taking yet another step towards ensuring our electricity grid is affordable, reliable, and sustainable for generations to come.”

Nathan Neudorf, Minister of Affordability and Utilities

To protect Alberta’s ratepayers, the Government of Alberta is introducing the Utilities Affordability Statutes Amendment Act, 2024. If passed, this legislation would promote long-term affordability and predictability for utility bills by prohibiting the use of variable rates when calculating municipalities’ local access fees.

Variable rates are highly volatile, which results in wildly fluctuating electricity bills. When municipalities use this rate to calculate their local access fees, it results in higher bills for Albertans and less certainty in families’ budgets. These proposed changes would standardize how municipal fees are calculated across the province, and align with most municipalities’ current formulas.

“Over the last couple of years many consumers have been frustrated with volatile Regulated Rate Option (RRO) prices which dramatically impacted their utility bills. In some cases, these impacts were further amplified by local access fees that relied upon calculations that included those same volatile RRO prices. These proposed changes provide more clarity and stability for consumers, protecting them from volatility in electricity markets.”

Chris Hunt, Utilities Consumer Advocate

If passed, the Utilities Affordability Statutes Amendment Act, 2024 would prevent municipalities from attempting to take advantage of Alberta’s ratepayers in the future. It would amend sections of the Electric Utilities Act and Gas Utilities Act to ensure that the Alberta Utilities Commission has stronger regulatory oversight on how these municipal fees are calculated and applied, ensuring Alberta ratepayer’s best interests are protected.

“Addressing high, unpredictable fees on utility bills is an important step in making life more affordable for Albertans. This legislation will protect Alberta’s ratepayers from spikes in electricity prices and ensures fairness in local access fees.”

Chantelle de Jonge, Parliamentary Secretary for Affordability and Utilities

If passed, this legislation would also amend sections of the Alberta Utilities Commission Act, the Electric Utilities Act, Government Organizations Act and the Regulated Rate Option Stability Act to replace the terms “Regulated Rate Option”, “RRO”, and “Regulated Rate Provider” with “Rate of Last Resort” and “Rate of Last Resort Provider” as applicable.

Quick facts

Local access fees are essentially taxes that are charged to electricity distributors by municipalities. These fees are then passed on to all of the distributor’s customers in the municipality, and appear as a line item on their utility bills.
- The Municipal Government Act grants municipalities the authority to charge, amend, or cap franchise and local access fees.

Linear taxes and franchise fees are usually combined together on consumers’ power bills in one line item as the local access fee.
- The linear tax is charged to the utility for the right to use the municipality’s property for the construction, operation, and extension of the utility.
- The franchise fee is the charge paid by the utility to the municipality for the exclusive right to provide service in the municipality.

Local access fees are usually calculated in one of two ways:
- (1) A percentage of transmission and distribution (delivery) costs, typically 10-15 per cent.
- (2) A fixed, cents per kilowatt-hour of consumed power charge (City of Edmonton).

Calgary is the only municipality that employs a two-part fee calculation formula:
- 11.11 per cent of transmission and distribution charges plus 11.11 per cent of the Regulated Rate Option multiplied by the consumed megawatt hours.

Related information

Making utility bills more affordable

Alberta

Alberta moves to protect Edmonton park from Trudeau government’s ‘diversity’ plan

Published on April 22, 2024

Todayville

From LifeSiteNews

By Clare Marie Merkowsky

If Trudeau’s National Urban Park Initiative is implemented, Alberta could see its parks, including Edmonton’s River Valley, hijacked by the federal government in the name of ‘sustainability, conservation, equity, diversity, inclusion, and reconciliation.’

Edmonton is working to protect its River Valley from the Trudeau government’s “diversity” park plan.

On April 15, Alberta Legislature passed MLA Brandon Lunty’s private members’ Bill 204 to protect the Edmonton River Valley from Prime Minister Justin Trudeau’s National Urban Park Initiative which would give the federal government power over provincial parks to enforce a variety of quotas related to the “climate” and “diversity.”

“Albertans elected our United Conservative government with a majority mandate to, among other things, protect families and communities from federal overreach and intrusion. That’s exactly what this bill accomplishes,” Lunty said in a press release.

Bill 204, titled the Municipal Government (National Urban Parks) Amendment Act, is a response to the National Urban Park Initiative which would give the Trudeau government jurisdiction over Alberta’s provincial parks.

The Trudeau government’s plan promises to “provide long-lasting benefits to the urban area” by using “sustainability, conservation, equity, diversity, inclusion, and reconciliation.”

If the program is approved, the Edmonton River Valley could be “fully owned by the Federal Government,” which will use the space to advance their values, including addressing the impacts of “climate change” and creating spaces where “diversity is welcomed.”

The plan also promises that equity will be “intentionally advanced” while “respecting indigenous rights” through “reconciliation.” 

However, many Edmonton citizens were concerned with the Urban Park Initiative and met with their MLAs to discuss the issue.

Edmonton citizen Sheila Phimester worked with MLA Jackie Lovely to create a petition to prevent the River Valley from becoming federally owned. The petition has received over 5,000 signatures.

“Oh, and because it’s the federal government, their ‘priorities’ for these parks are ‘healthier communities’, ‘climate resilience’, ‘reconciliation’, ‘equity’, ‘diversity’, and ‘inclusion,’” it continued.

Already, Trudeau has attempted to assert power over Alberta’s industry by placing “climate” restrictions on their oil and gas production in an attempt to force net-zero regulations on all Canadian provinces, including on electricity generation, by as early as 2035.

However, Alberta Premier Danielle Smith has repeatedly vowed to protect the province from Trudeau’s radical “net zero” push.

In December, Alberta Premier Danielle Smith blasted Trudeau’s Environment Minister Steven Guilbeault’s plan to slash oil and gas emissions by 35 percent to 38 percent below 2019 levels as “unrealistic” and “unconstitutional.”

Trudeau’s current environmental goals are in lockstep with the United Nations’ “2030 Agenda for Sustainable Development” and include phasing out coal-fired power plants, reducing fertilizer usage, and curbing natural gas use over the coming decades.

The reduction and eventual elimination of the use of so-called “fossil fuels” and a transition to unreliable “green” energy has also been pushed by the World Economic Forum (WEF) – the globalist group behind the socialist “Great Reset” agenda – an organization in which Trudeau and some of his cabinet are involved.

In November, after announcing she had “enough” of Trudeau’s extreme environmental rules, Smith said her province had no choice but to assert control over its electricity grid to combat federal overreach by enacting its Sovereignty Act. The Sovereignty Act serves to shield Albertans from future power blackouts due to federal government overreach.

Unlike most provinces in Canada, Alberta’s electricity industry is nearly fully deregulated. However, the government still has the ability to take control of it at a moment’s notice.