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Alberta

Alberta Budget 2025: Health and education

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9 minute read

Budget 2025 makes another record health care investment of $28 billion for a refocused health care system that ensures every Albertan has access to high-quality, reliable services close to home. The budget supports the government’s plan to provide targeted, specialized care in the four areas of acute care, primary care, mental health care and continuing care.

With the highest-ever operating budget of $9.9 billion for education from kindergarten to Grade 12, Budget 2025 will help hire thousands more teachers and support staff, lower class sizes and provide enhanced educational support to students with complex needs.

The budget invests $2.6 billion in capital dollars over three years, an increase of 23.9 per cent from the last budget. This includes $225 million to advance the planning and design of 30 new schools, five replacement schools, three modernization school projects, three public charter school projects and modular classrooms. These schools are in addition to the 22 that have been advanced to the next construction phase under the School Construction Accelerator Program, launched in fall 2024. Another 28 projects are in other stages of construction. Alberta’s government is committed to building much needed schools across the province and aims to deliver more than 100 new and updated schools – or about 200,000 student spaces – over the next seven years.

“All Albertans deserve access to the best our health care and education systems have to offer. Alberta is growing as many families choose us as home. Budget 2025 will help meet the growing demands of the province while continuing to provide the services Albertans have come to trust and rely on.”

Nate Horner, President of Treasury Board and Minister of Finance

Budget 2025: Strengthening health care

Budget 2025 supports the government’s plan to build a refocused health care system that will provide Albertans with the necessary care when and where they need it.

Health investments across the refocused health care system in Budget 2025 include:

  • $644 million for primary care to attach every Albertan with a primary care team and improve access to family doctors and frontline health-care professionals. This includes $20 million to support the work of nurse practitioners.
  • $4.6 billion for acute care, to support increases to services to meet volume and costs, and to improve the acute care system in hospitals, urgent care centres, chartered surgical and other health facilities.
  • $45 million for Indigenous health initiatives over three years, to help address health inequities and promote health, wellness and increased choice.
  • $7 billion for physician compensation and development, including $15 million for recruitment and retention.
  • $1.9 million for drugs and supplemental health benefits including the seniors drug program, which is the largest component that supports more than 700,000 seniors.
  • $1.7 billion to support addiction and mental health services to increase access to the supports Albertans require to pursue recovery and personal wellness. This includes implementation of the compassionate intervention framework, support for Recovery Alberta services, new recovery communities, and to expand mental health classrooms for clinical support to students with complex mental health needs.
  • $3.8 billion for Assisted Living Alberta, the new provincial continuing care health agency, which will provide wraparound medical and non-medical supports, home care, community care and social services.

A total of $3.6 billion in capital dollars over three years will support new urgent care and primary care centres, build capacity at existing hospitals, expand surgical capacity, enhance rural hospitals and health facilities, and replace aging equipment to support improved health outcomes. This includes:

  • $769 million to support transformational changes in continuing care, increase the number of assisted living spaces and modernize existing assisted living homes in Alberta.
  • $265 million for the Alberta Surgical Initiative capital program to expand, renovate and build more operating rooms to boost surgical capacity.
  • $207 million for the development of specialized compassionate intervention facilities to provide care for patients.
  • $168 million in new funding to enhance diagnostic capabilities across the province.
  • $148 million to continue building Recovery Communities. A total of 11 recovery communities, including five in Indigenous communities, have been approved, with the Calgary Recovery Community scheduled to open in 2025. So far, 200 new addiction treatment beds are operational in Red Deer, Lethbridge and Gunn.
  • $60 million over three years to purchase new EMS vehicles and ambulances, upgrade the existing fleet and buy more equipment.

“Budget 2025 builds on our commitment to refocusing Alberta’s health care system, improving access for Albertans, and supporting frontline workers. With significant investments in primary care, capital projects, Indigenous health, and acute services, we are ensuring Albertans receive the care they need, when and where they need it.”

Adriana LaGrange, Minister of Health

 

“Alberta is an international leader in addiction treatment and recovery, driven by the Alberta Recovery Model. We remain committed to investing in the wellness of Albertans and providing those struggling with mental illness or addiction with the services they need to rebuild their lives. We are also committed to expanding access to treatment services by building new facilities across the province.”

Dan Williams, Minister of Mental Health and Addiction

Budget 2025: Investing in kindergarten through Grade 12 (K-12) education

Albertans deserve world-class education for their families now and in the future. Budget 2025 provides an operating expense budget of $9.9 billion in 2025-26, a 4.5 per cent increase from the 2024-25 third-quarter forecast.

  • $54 million in 2025-26, along with $348 million more over the following two years will support additional enrolment growth.
  • an increase of $55 million in 2025-26, and another $94 million in each of the following two years, to adjust the funding formula for school authorities to provide increased sustainable funding for growth within the funding model.
  • In total, almost $1.1 billion will be provided over the next three years to address growth and hire more than 4,000 new teachers and classroom support staff.
  • More than $1.6 billion in 2025-26 will support students with specialized learning needs or groups of students who need additional help.
  • An investment of $55 million in 2025-26, a 20 per cent increase from last year, will allow school authorities to add staff and supports to complex classrooms so students receive the focus and attention they need.
  • $389 million over three years will provide increases to funding rates to cover the rising costs of maintaining educational facilities, unavoidable expenses like insurance and utilities, and providing programs and services to students.

“Budget 2025 offers solutions to many of the challenges our education system is experiencing. We’re making new investments to hire more teachers, build more schools and give our youngest learners the strongest possible start. I’m excited to present this strong education budget to Albertans and am confident it will help keep our education system world-class.”

Demetrios Nicolaides, Minister of Education

As Alberta continues to attract families, workers, and businesses, strategic investments in health care and education will address current demands and lay the groundwork for long-term prosperity.

Budget 2025 is meeting the challenge faced by Alberta with continued investments in education and health, lower taxes for families and a focus on the economy.

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Alberta

Alberta Premier Danielle Smith Discusses Moving Energy Forward at the Global Energy Show in Calgary

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From Energy Now

At the energy conference in Calgary, Alberta Premier Danielle Smith pressed the case for building infrastructure to move provincial products to international markets, via a transportation and energy corridor to British Columbia.

“The anchor tenant for this corridor must be a 42-inch pipeline, moving one million incremental barrels of oil to those global markets. And we can’t stop there,” she told the audience.

The premier reiterated her support for new pipelines north to Grays Bay in Nunavut, east to Churchill, Man., and potentially a new version of Energy East.

The discussion comes as Prime Minister Mark Carney and his government are assembling a list of major projects of national interest to fast-track for approval.

Carney has also pledged to establish a major project review office that would issue decisions within two years, instead of five.

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Alberta

Punishing Alberta Oil Production: The Divisive Effect of Policies For Carney’s “Decarbonized Oil”

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From Energy Now

By Ron Wallace

The federal government has doubled down on its commitment to “responsibly produced oil and gas”. These terms are apparently carefully crafted to maintain federal policies for Net Zero. These policies include a Canadian emissions cap, tanker bans and a clean electricity mandate.

Following meetings in Saskatoon in early June between Prime Minister Mark Carney and Canadian provincial and territorial leaders, the federal government expressed renewed interest in the completion of new oil pipelines to reduce reliance on oil exports to the USA while providing better access to foreign markets.  However Carney, while suggesting that there is “real potential” for such projects nonetheless qualified that support as being limited to projects that would “decarbonize” Canadian oil, apparently those that would employ carbon capture technologies.  While the meeting did not result in a final list of potential projects, Alberta Premier Danielle Smith said that this approach would constitute a “grand bargain” whereby new pipelines to increase oil exports could help fund decarbonization efforts. But is that true and what are the implications for the Albertan and Canadian economies?


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The federal government has doubled down on its commitment to “responsibly produced oil and gas”. These terms are apparently carefully crafted to maintain federal policies for Net Zero. These policies include a Canadian emissions cap, tanker bans and a clean electricity mandate. Many would consider that Canadians, especially Albertans, should be wary of these largely undefined announcements in which Ottawa proposes solely to determine projects that are “in the national interest.”

The federal government has tabled legislation designed to address these challenges with Bill C-5: An Act to enact the Free Trade and Labour Mobility Act and the Building Canada Act (the One Canadian Economy Act).  Rather than replacing controversial, and challenged, legislation like the Impact Assessment Act, the Carney government proposes to add more legislation designed to accelerate and streamline regulatory approvals for energy and infrastructure projects. However, only those projects that Ottawa designates as being in the national interest would be approved. While clearer, shorter regulatory timelines and the restoration of the Major Projects Office are also proposed, Bill C-5 is to be superimposed over a crippling regulatory base.

It remains to be seen if this attempt will restore a much-diminished Canadian Can-Do spirit for economic development by encouraging much-needed, indeed essential interprovincial teamwork across shared jurisdictions.  While the Act’s proposed single approval process could provide for expedited review timelines, a complex web of regulatory processes will remain in place requiring much enhanced interagency and interprovincial coordination. Given Canada’s much-diminished record for regulatory and policy clarity will this legislation be enough to persuade the corporate and international capital community to consider Canada as a prime investment destination?

As with all complex matters the devil always lurks in the details. Notably, these federal initiatives arrive at a time when the Carney government is facing ever-more pressing geopolitical, energy security and economic concerns.  The Organization for Economic Co-operation and Development predicts that Canada’s economy will grow by a dismal one per cent in 2025 and 1.1 per cent in 2026 – this at a time when the global economy is predicted to grow by 2.9 per cent.

It should come as no surprise that Carney’s recent musing about the “real potential” for decarbonized oil pipelines have sparked debate. The undefined term “decarbonized”, is clearly aimed directly at western Canadian oil production as part of Ottawa’s broader strategy to achieve national emissions commitments using costly carbon capture and storage (CCS) projects whose economic viability at scale has been questioned. What might this mean for western Canadian oil producers?

The Alberta Oil sands presently account for about 58% of Canada’s total oil output. Data from December 2023 show Alberta producing a record 4.53 million barrels per day (MMb/d) as major oil export pipelines including Trans Mountain, Keystone and the Enbridge Mainline operate at high levels of capacity.  Meanwhile, in 2023 eastern Canada imported on average about 490,000 barrels of crude oil per day (bpd) at a cost estimated at CAD $19.5 billion.  These seaborne shipments to major refineries (like New Brunswick’s Irving Refinery in Saint John) rely on imported oil by tanker with crude oil deliveries to New Brunswick averaging around 263,000 barrels per day.  In 2023 the estimated total cost to Canada for imported crude oil was $19.5 billion with oil imports arriving from the United States (72.4%), Nigeria (12.9%), and Saudi Arabia (10.7%).  Since 1988, marine terminals along the St. Lawrence have seen imports of foreign oil valued at more than $228 billion while the Irving Oil refinery imported $136 billion from 1988 to 2020.

What are the policy and cost implication of Carney’s call for the “decarbonization” of western Canadian produced, oil?  It implies that western Canadian “decarbonized” oil would have to be produced and transported to competitive world markets under a material regulatory and financial burden.  Meanwhile, eastern Canadian refiners would be allowed to import oil from the USA and offshore jurisdictions free from any comparable regulatory burdens. This policy would penalize, and makes less competitive, Canadian producers while rewarding offshore sources. A federal regulatory requirement to decarbonize western Canadian crude oil production without imposing similar restrictions on imported oil would render the One Canadian Economy Act moot and create two market realities in Canada – one that favours imports and that discourages, or at very least threatens the competitiveness of, Canadian oil export production.


Ron Wallace is a former Member of the National Energy Board.

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