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Alberta

Big news for Alberta’s students in pandemic update from Minister LaGrange

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Helping students catch up after pandemic disruption

As part of Alberta’s Recovery Plan, up to $45 million will support younger students who have fallen behind during the pandemic and more flexibility will be provided for students writing diploma exams.

Supporting reading, writing and numeracy skills for early learners

In May 2021, Alberta’s government announced $45 million would be available for school authorities to offer targeted programming to enhance literacy and numeracy skills.

School authorities have completed learning assessments to identify students who could benefit from targeted programming and now funds will be distributed at a per-student rate of $490.

School authorities have the flexibility to use this funding to design programming to best meet the needs of their students. Programming will be above and beyond classroom learning. The initial focus will be on students in grades 2 and 3, with targeted support for students in Grade 1 starting in February 2022.

“Many Alberta students had their education disrupted during the pandemic, which resulted in lost classroom and instruction time. We are committed to addressing this learning loss, and this funding will support students who need extra help to improve their reading, writing and numeracy skills. This grant gives school authorities the funds and flexibility they need to ensure each student is successful.”

Adriana LaGrange, Minister of Education

“This $45 million for student learning is welcome news as school boards continue to face a variety of unique challenges due to the pandemic. This will help boards support recovery from long-term effects of learning loss, based on local needs.”

Lorrie Jess, president, Alberta School Boards Association

“AISCA is thankful that the Government of Alberta is recognizing and addressing learning disruptions caused by the COVID-19 pandemic. Our association appreciates that the government has taken a proactive approach to remediate and target learning challenges in the early years of a student’s development.”

Simon Williams, president, Association of Independent Schools and Colleges in Alberta

Diploma exams

In response to feedback from students, parents and education partners about stress and anxiety around academic achievement exams, Alberta Education will temporarily change the weighting of diploma exams to 10 per cent from 30 per cent for the 2021-22 school year.

The ministers of Advanced Education and Education have sent an open letter to Alberta’s post-secondary institutions to advise them of this change and encourage them to further consider the impact the pandemic has had on students who are applying to their post-secondary institutions.

“Alberta’s students continue to face challenges due to the pandemic and I have heard concerns for our graduating class of 2022. I’ve heard feedback from students on my Minister’s Youth Council as well as from education partners that changing the weight of diploma exams will reduce the burden on students while still giving them valuable exam writing experience. We’re making this temporary change in recognition of these circumstances, which we hope will place less of a burden on these students.”

Adriana LaGrange, Minister of Education

“The College of Alberta School Superintendents is pleased with the Alberta government’s commitment to provide additional funding to support school divisions with addressing Grade 1 to 3 student learning challenges stemming from the pandemic. We’re also grateful for the Minister’s decision to reduce the weighting of diploma exams as it will support Grade 12 students whose learning has also been adversely impacted.”

Wilco Tymensen, president, College of Alberta School Superintendents

“As a member of the Minister’s Youth Council, it pleases me to see the Minister taking our feedback and concerns into consideration. As a Grade 12 student, the experience of writing diplomas is essential to prepare us for success as we consider post-secondary. Reducing the weighting of the exams will lessen the impact on mental health in youth while still ensuring that students are motivated to learn and understand the critical value of our education despite the effects of the pandemic.”

Tacey, member of the Minister’s Youth Council, Parkland School Division

At-home rapid tests

Alberta’s government is continuing to use all available tools to stop the spread of COVID-19. Beginning Oct. 27, at-home rapid test kits will be provided to schools with kindergarten to Grade 6 students across the province that are on outbreak status. The program is optional, free, and starts immediately.

Schools will provide the students and staff who wish to participate with 10 tests to take home, and they will be required to test twice weekly for five weeks. Testing regularly ensures testing is most effective. A how-to video for parents and a fact sheet translated into multiple languages offer tips on how to use the kits.

Quick facts

Programming support:

  • Of the up to $45 million in learning loss supports, approximately $30 million will be invested now to benefit students in grades 2 and 3. In response to feedback received from school authorities, up to $15 million will be allocated to students in Grade 1 in February 2022.
  • With this funding, in grades 2 and 3, approximately 38,000 students will receiving literacy programing and approximately 25,000 will receive numeracy programming, recognizing that some students would qualify for both supports. The number of Grade 1 program opportunities will be available after assessments in the new year.
  • Focused programming sessions are intended to be provided for up to 16 weeks. School authorities have the flexibility to design the length and frequency of the programming sessions.
  • Funds will be distributed on a per-student basis with a minimum funding amount based on the number of eligible students per school.

At-home rapid tests:

  • If a student or staff member has symptoms of COVID-19, they should not use a rapid test. They should stay home and book a test online with the Alberta Health Services (AHS) assessment tool or by calling 811.
  • Schools on outbreak must submit a request to Alberta Health to receive tests for this program.
  • If a student or staff member has a positive rapid test result, they must isolate for 10 days or until they have a negative test through AHS.

Alberta

Alberta government should create flat 8% personal and business income tax rate in Alberta

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From the Fraser Institute

By Tegan Hill

If the Smith government reversed the 2015 personal income tax rate increases and instituted a flat 8 per cent tax rate, it would help restore Alberta’s position as one of the lowest tax jurisdictions in North America

Over the past decade, Alberta has gone from one of the most competitive tax jurisdictions in North America to one of the least competitive. And while the Smith government has promised to create a new 8 per cent tax bracket on personal income below $60,000, it simply isn’t enough to restore Alberta’s tax competitiveness. Instead, the government should institute a flat 8 per cent personal and business income tax rate.

Back in 2014, Alberta had a single 10 per cent personal and business income tax rate. As a result, it had the lowest top combined (federal and provincial/state) personal income tax rate and business income tax rate in North America. This was a powerful advantage that made Alberta an attractive place to start a business, work and invest.

In 2015, however, the provincial NDP government replaced the single personal income tax rate of 10 percent with a five-bracket system including a top rate of 15 per cent, so today Alberta has the 10th-highest personal income tax rate in North America. The government also increased Alberta’s 10 per cent business income tax rate to 12 per cent (although in 2019 the Kenney government began reducing the rate to today’s 8 per cent).

If the Smith government reversed the 2015 personal income tax rate increases and instituted a flat 8 per cent tax rate, it would help restore Alberta’s position as one of the lowest tax jurisdictions in North America, all while saving Alberta taxpayers $1,573 (on average) annually.

And a truly integrated flat tax system would not only apply a uniform tax 8 per cent rate to all sources of income (including personal and business), it would eliminate tax credits, deductions and exemptions, which reduce the cost of investments in certain areas, increasing the relative cost of investment in others. As a result, resources may go to areas where they are not most productive, leading to a less efficient allocation of resources than if these tax incentives did not exist.

Put differently, tax incentives can artificially change the relative attractiveness of goods and services leading to sub-optimal allocation. A flat tax system would not only improve tax efficiency by reducing these tax-based economic distortions, it would also reduce administration costs (expenses incurred by governments due to tax collection and enforcement regulations) and compliance costs (expenses incurred by individuals and businesses to comply with tax regulations).

Finally, a flat tax system would also help avoid negative incentives that come with a progressive marginal tax system. Currently, Albertans are taxed at higher rates as their income increases, which can discourage additional work, savings and investment. A flat tax system would maintain “progressivity” as the proportion of taxes paid would still increase with income, but minimize the disincentive to work more and earn more (increasing savings and investment) because Albertans would face the same tax rate regardless of how their income increases. In sum, flat tax systems encourage stronger economic growth, higher tax revenues and a more robust economy.

To stimulate strong economic growth and leave more money in the pockets of Albertans, the Smith government should go beyond its current commitment to create a new tax bracket on income under $60,000 and institute a flat 8 per cent personal and business income tax rate.

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Alberta

Province to stop municipalities overcharging on utility bills

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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 ActGovernment 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

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