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Alberta

Province pumping up support for growing school enrolment

Published

1 year ago

6 minute read

Supporting more students in classrooms

Budget 2023 provides more than $820 million over the next three years to support enrolment growth in schools.

Based on strong population growth in Alberta, a large increase in student enrolment is expected in September 2023.

“With Alberta’s rising population, we know many school authorities across the province continue to face growing enrolment pressures. Our strong funding commitment in Budget 2023 will empower school authorities to hire more teachers and obtain more resources for students.”

Adriana LaGrange, Minister of Education

Over the next three years, Education’s operating expense is increasing by nearly $2 billion. This will support the hiring of approximately 3,000 education staff, including teachers, educational assistants, bus drivers and school support staff, and will help authorities manage growing class sizes.

Funding increases for enrolment will be provided to school authorities through existing grants that include enrolment components. This includes the Early Childhood Services and Grades 1-9 Base Instruction grant and the High School (Grades 10-12) Base Instruction grant, as well as grants in the services and supports category, such as Specialized Learning Support, English as an Additional Language, and Program Unit Funding. The Operations and Maintenance grant also includes an enrolment component. The flexible funding provided allows local authorities to make decisions on how to best use the funding to support their students.

The Funding Manual for School Authorities 2023/24 School Year and projected operational funding profiles are being released March 9, providing school authorities with their funding information for the coming year.

“ASBA is pleased that government has been responsive to school boards’ requests for early release of the funding manual and operational funding profiles, as it assists in informed decision-making. Government’s investment in enrolment growth is welcome news as boards address the growing, diverse and complex student needs within their divisions while remaining accountable to their communities.”

Marilyn Dennis, president, Alberta School Boards Association

“This funding announcement is timely and much appreciated. In the 2022-23 school year, enrolment at the Calgary Board of Education has grown by more than 5,800 students and we are projecting another significant increase next year. This investment means we can hire additional teachers, educational assistants and other staff to support our growing student population.”

Laura Hack, board chair, Calgary Board of Education

“As one of the fastest-growing school divisions in the province, the funds provided for enrolment growth will help Rocky View Schools hire more staff to support the 1,000 new students we will welcome in the fall. Knowing additional funding will be available is positive news, as RVS continues to experience increasing enrolment pressures across the division.”

Norma Lang, board chair, Rocky View Schools

“The CASS board of directors recognizes the importance of supporting enrolment growth while maintaining sustainable support for all boards. The early release of the funding manual will assist school authorities in initiating planning needs for the 2023-24 school year.”

Scott Morrison, president, College of Alberta School Superintendents

“The investment in enrolment growth of Budget 2023 and other increases in grants are most welcome and will greatly help school authorities face significant challenges including high inflation and labour shortage. The association also appreciates the timeliness of the release of the funding manual and recognizes the extraordinary work of the department staff to make this possible.”

Francois Gagnon, president, Association of School Business Officials Alberta

Budget 2023 secures Alberta’s future by transforming the health-care system to meet people’s needs, supporting Albertans with the high cost of living, keeping our communities safe and driving the economy with more jobs, quality education and continued diversification.

Quick facts

  • Last fall, the government announced a new supplemental enrolment growth grant that provided school authorities with more than $21 million in additional funding. This grant will continue to be available in the 2023-24 school year.
  • Alberta Education introduced the Supplemental Enrolment Growth (SEG) grant in the 2022-23 school year to support school authorities with significant enrolment growth.
  • The SEG grant provided additional per-student funding for authority enrolment growth of more than two per cent in the 2022-23 school year. The SEG grant, in addition to weighted moving average-based allocations, will provide additional funding to school authorities that have significant growth.
  • Over the next three years, the government will provide school authorities with more than $820 million in additional funding to support enrolment growth.
  • In the 2020-21 school year, school boards were funded for about 730,000 students and actual attendance was 705,000.
  • In the 2021-22 school year, school boards were funded for about 730,000 students and attendance was about 716,000.
  • The robust financial health of school jurisdictions continues to be demonstrated by taxpayer funded reserves, reported to be $407 million as of Aug. 31, 2022.
Related Topics:

This is a news release from the Government of Alberta.

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Alberta

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

Published on April 23, 2024

By

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.

Author:

Tegan Hill
Associate Director, Alberta Policy, Fraser Institute
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Alberta

Province to stop municipalities overcharging on utility bills

Published on April 22, 2024

By

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
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