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Alberta

Equalization Program grows to record $20.9 Billion – Fairness Alberta looking to Ontario and BC for support

Published

3 years ago

4 minute read

This article submitted by Fairness Alberta

FAIRNESS ALBERTA: RECORD EQUALIZATION PAYMENTS IN BUDGET ARE UNFAIR, UNAFFORDABLE, AND UNNECESSARY

Fairness Alberta has released an analysis highlighting how this year’s federal budget allocates a record $20.9 billion to the Equalization program and plans to hike payments to so-called ‘have not’ provinces by 20% over the next four years.

Fairness Alberta Executive Director Dr. Bill Bewick is calling on Canadians in British Columbia and Ontario in particular – who will pay roughly $2,400 per family of four this year into payments for others – to join Albertans in demanding Equalization reform.

“The $20 billion-and-growing price tag for Equalization payments to 30% of the country is not just unaffordable, it is totally unfair and unnecessary given how much the gap between the ‘have’ and ‘have not’ provinces shrunk since 2015,” said Dr. Bewick. “When you consider the higher costs and budget struggles in places like Ontario, B.C., and Alberta, it is unacceptable to take so much from them to fund other provinces’ budgets, and outrageous that this would increase by 20% over the next four years.”

Fairness Alberta used the most recent Library of Parliament breakdown of federal revenues by province to estimate the share of Equalization funding that comes from each province, and broke it down to a per capita basis.
Alberta families are contributing about $2,700 to cover this year’s record Equalization payments, and Ontario and B.C. families are on the hook for about $2,400 each at a time when every provincial government is under tremendous strain.  Fairness Alberta recently called for a rebate to contributing provinces until a new formula is worked out or Equalization is scrapped altogether.

“The 67% of Canadians in the contributing provinces were struggling with their own provincial services even before COVID-19,” said Dr. Bewick.  “Given the collapse of the wealth gap between provinces, the ‘have’ provinces should get the share of Equalization that came from their taxpayers rebated until serious reforms are made.”

As Dr. Bewick outlined recently in the National Post, even a 50% rebate would mean a bump to provincial budgets of $4 billion in Ontario, and $1.5 billion being returned to B.C. and Alberta as provincial responsibilities like health care come under strain.

Fairness Alberta is a grassroots, non-partisan, and non-separatist association of concerned citizens, aiming to increase awareness across the country related to Albertans’ major contributions to Canada, while also providing clear, factual information on unfair federal policies that are anticipated to undermine the prosperity of Alberta and other contributing provinces further.

Fairness Alberta previously released analysis and recommendations for reforms to Equalization and the Fiscal Stabilization program, with an overview of fiscal federalism as well at fairnessalberta.ca.

Our previous releases, interviews, columns, and presentations to the House of Commons Standing Committee on Finance can be found in the NEWS section of our website. For more information on Fairness Alberta, its mandate, and future plans, please visit our website at www.fairnessalberta.ca.

For further information or to arrange interviews, please contact:

Bill Bewick, Ph.D.
Executive Director
Fairness Alberta
Cell: (780) 996-6019
Email: [email protected]
Background Calculations:

Ben Eisen and Milagros Palacios recently published a reportshowing the “Great Convergence” in provincial fortunes since the 2015 energy downturn.  While the gap between the median ‘have’ and ‘have not’ fell from $5000 per person in 2015 to only $1600 now, Equalization payments grew by 23%. This year’s $20.9 billion windfall to 5 provinces with one-third of the population is budgeted for $25.1 billion in 4 years.

Using the contribution rates to federal revenues by province last updated here we broke down Equalization funding per capita as follows:
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On April 4, 2024, the RCMP’s Provincial Financial Crime Team charged a Calgary resident for fraud-related offences after embezzling millions of dollars from his clients while serving as a senior financial advisor.

Following a thorough investigation, the accused is alleged to have fraudulently withdrawn funds from client accounts and deposited them into bank accounts he personally controlled. A total of sixteen victims were identified in the Red Deer area and suffered a combined loss of nearly $5 million.

Marc St. Pierre, 52, a resident of Calgary, was arrested and charged with:

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St. Pierre is scheduled to appear in Red Deer Provincial Court on May 14, 2024.

“The ability for financial advisors to leverage their position to conduct frauds and investment scams represents a significant risk to the integrity of Alberta’s financial institutions. The investigation serves as an important reminder for all banking clients to regularly check their accounts for any suspicious activity and to report it to their bank’s fraud prevention team.”

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Alberta

Political parties will be part of municipal elections in Edmonton and Calgary pilot projects

Published on April 25, 2024

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Strengthening Alberta’s local elections

Alberta’s government is introducing legislation to ensure Albertans can rely on transparent, free and fair elections, and municipally-elected officials have clearer accountability measures.

In a democratic society, Albertans expect their local elections to be free and fair, and their elected officials to be held to account by clear rules that govern their local councils. The Municipal Affairs Statutes Amendment Act proposes amendments to the Local Authorities Election Act (LAEA) and the Municipal Government Act (MGA) to add greater transparency to local election processes and ensure local councils and elected officials continue to remain accountable to the citizens who elected them.

“Our government is committed to strengthening Albertans’ trust in their local governments and the democratic process that elects local leaders. The changes we are making increase transparency for Alberta voters and provide surety their votes will be counted accurately. We know how important local democracy is to Albertans, and we will work with local authorities to protect and enhance the integrity of local elections.”

Ric McIver, Minister of Municipal Affairs

Local Authorities Election Act

Albertans expect free and fair elections and that’s why it’s important we strengthen the rules that govern local elections. To strengthen public trust in local elections, Alberta’s government will eliminate the use of electronic tabulators and other automated voting machines. All Albertans should be able to trust the methods and results of local elections; requiring all ballots to be counted by hand, clarifying rules and streamlining processes for scrutineers will provide voters greater assurance in the integrity of the results.

All eligible Albertans should be able to vote in local elections without impediment. Alberta’s government will limit the barriers for eligible voters to cast a ballot by expanding the use of special ballots. Currently, special ballots can only be requested for very specific reasons, including physical disability, absence from the municipality, or for municipal election workers. By expanding the use of special ballots, the government is encouraging more voter participation.

Amendments in the Municipal Affairs Statutes Amendment Act would increase transparency in local elections by enabling political parties at the local level. Political parties would be enabled in a pilot project for Edmonton and Calgary. The act will not require candidates to join a political party in order to run for a local or municipal office, but will create the opportunity to do so.

In addition, proposed changes to the Local Authorities Election Act would allow municipalities the option to require criminal record checks for local candidates, thus increasing transparency and trust in candidates who may go on to become elected officials.

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The role of an elected official is one with tremendous responsibility and expectations. Changes proposed to the Municipal Government Act (MGA) will strengthen the accountability of locally elected officials and councils. These include requiring mandatory orientation training for councillors, allowing elected officials to recuse themselves for real or perceived conflicts of interest without third-party review and requiring a councillor’s seat to become vacant upon disqualification.

If passed, the Municipal Affairs Statutes Amendment Act will also unlock new tools to build affordable and attainable housing across Alberta. Proposed amendments under the MGA would also create more options for municipalities to accelerate housing developments in their communities. Options include:

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Municipal Affairs will engage municipalities and other partners over the coming months to hear perspectives and gather feedback to help develop regulations.

Quick facts

  • The LAEA establishes the framework for the conduct of elections in Alberta municipalities, school divisions, irrigation districts and Metis Settlements.
  • The MGA establishes the rules governing the conduct of local elected officials once on council, as well as the overall administration and operation of municipal authorities in Alberta, including any policy those authorities may wish to implement.

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