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New tax bracket among features of Alberta’s 2024 Budget

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Budget 2024: A responsible plan for a growing province

Budget 2024 is a responsible plan to strengthen health care and education, build safe communities and manage resources wisely to support a growing Alberta.

With a steady focus on fiscal responsibility and wise spending, Alberta’s government will continue to meet the needs of Albertans today and tomorrow. Budget 2024 presents three more years of balanced budgets, beginning with a forecast surplus of $367 million in 2024-25. Budget 2024 strengthens the vital services Albertans rely on and ensures those services remain sustainable over the long run.

“Alberta is growing. Budget 2024 is a plan that manages the pressures faced by a growing province today while securing the future for generations who follow. I’m proud of the choices we made in this budget that support Albertans’ top priorities and prepare our province to meet the challenges that lie ahead. Budget 2024 invests today and saves for tomorrow so we can continue to be the nation’s economic engine.”

Nate Horner, President of Treasury Board and Minister of Finance

Budget 2024 is a responsible plan that puts Albertans and Alberta families first by investing in their health, education, safety, and economic growth and success. Priority investments include:

  • Health and mental health supports: $26.2 billion in operating dollars, a 4.4 per cent increase over the forecast for 2023-24.
  • Education supports: $9.3 billion in operating expenses, a 4.4 per cent increase from last year, to support record enrolment growth, hire hundreds more education staff including teachers and educational assistants, and support students with specialized needs.
  • Social supports: $2.9 billion in 2024-25 to Albertans through the Assured Income for the Severely Handicapped program, the Alberta Seniors Benefit and other social support programs, plus $355 million for Alberta Child and Family Benefit payments to help low-income families, indexing payments to inflation and providing for more eligible clients.
  • Workforce supports: An increase of $102 million over three years to add 3,200 apprenticeship classroom seats in high-demand areas and support curriculum updates to the apprenticeship program, as well as $62.4 million over three years to expand physician education, including through rural health training centres.
  • Public safety supports: $1.2 billion in 2024-25 operating expense for Public Safety and Emergency Services to support police and mental health crisis teams, deploy street-level police officers to tackle crime in Calgary and Edmonton, and provide $74 million to the Alberta Emergency Management Agency.
  • Wildfire supports: $151 million operating expense over the next three years for enhancements to the Wildfire Management Program and $55 million in capital investment for new firefighting equipment and facilities.
    • The fiscal framework provides the flexibility the government needs to respond quickly to disasters and emergencies as they arise, including a $2-billion contingency.
  • Water management and drought preparedness supports: $1.3 billion in capital funding over the next three years, including $251 million to better prepare the province for floods and droughts; $272 million for irrigation projects; and $539 million to support municipal water supply and wastewater infrastructure.
    • Budget 2024 also provides additional operating support of $19 million over three years for the Strategy to Increase Water Availability and $9 million for water management initiatives.
  • Capital supports: In total, $25 billion over three years in capital funding to build schools, hospitals, roads and other infrastructure, supporting 24,000 direct jobs and 13,000 indirect jobs across the province.

Alberta is well-positioned to remain the economic engine of Canada, with real gross domestic product forecast to grow 2.9 per cent in 2024, but the province continues to face challenges. While Alberta’s growing population is supporting economic activity and helping to ease labour shortages, it is also increasing demand for housing, health care, education and other public services. Ongoing geopolitical turmoil, uncertainty from federal government policies and high consumer prices risk dampening growth. Budget 2024 prepares Alberta to face those headwinds, with its responsible plan that invests in Albertans today and builds prosperity for tomorrow.

The fiscal framework introduced in spring 2023 requires the government to use at least half of any available surplus cash to pay down debt, freeing up more money to support Albertans. Taxpayer-supported debt will be reduced by a forecast $3.2 billion in the 2023-24 fiscal year. With the government’s commitment to paying down debt, the total taxpayer-supported debt will be $78.4 billion at the end of 2024-25.

High interest rates and the need to refinance maturing debt are driving up debt-servicing costs (the interest payments and fees on the debt) paid by taxpayers. As a result, debt-servicing costs are growing by $229 million in 2024-25 to $3.4 billion. While high interest rates on refinanced maturing debt are driving up those costs in the short term, the government’s strategic debt repayment plan will save Albertans millions in the long term.

The province is retaining more than $1 billion in investment earnings from 2023-24 in the Alberta Heritage Savings Trust Fund. Alberta’s government will also deposit another $2 billion from the Alberta Fund, increasing the value of the Heritage Savings Trust Fund to a forecast $25 billion. This is a significant investment in the future of Albertans and the province’s main long-term savings fund

Revenue

  • In 2024-25, total revenue is estimated to be $73.5 billion, which is $2.1 billion lower than the  third-quarter forecast for 2023-24.
  • Revenue from personal income taxes is estimated to increase to $15.6 billion in 2024-25, up $365 million from the third-quarter forecast, and grow in the following two years as more people continue to move to Alberta.
  • Corporate income tax revenue is estimated at $7 billion in 2024-25, down $176 million from the third-quarter forecast for 2023-24, but rising over the next two years.
  • Non-renewable resource revenue is estimated to drop to $17.3 billion in 2024-25, from $19.4 billion forecast for 2023-24, and is forecast to pick up over the medium term.

 

Expense

  • Total expense in 2024-25 is $73.2 billion, a 3.9 per cent increase from the forecast for 2023-24.
  • Total expense is expected to be $74.6 billion in 2025-26 and $76.2 billion in 2026-27.
  • Total operating expense in 2024-25 is $60.1 billion, a 3.9 per cent increase from the 2023-24 forecast.
  • A contingency of $2 billion will help the province respond to disasters and emergencies and other in-year expense pressures, a $500-million increase from 2023-24.

 

Surplus

  • A surplus of $367 million is forecast for 2024-25.
  • Surpluses of $1.4 billion and $2.6 billion are forecast for 2024-25 and 2025-26, respectively.

 

Economic outlook

  • In 2024, real gross domestic product is expected to grow by 2.9 per cent, up from the 2.6 per cent forecast at mid-year.
  • Strong population growth is expected to continue at 3.7 per cent in the 2024 calendar year, down from 4.1 per cent growth in 2023.

 

Energy and economic assumptions, 2024-25

  • West Texas Intermediate oil (USD/bbl)                            $74
  • Western Canadian Select @ Hardisty (CND/bbl)            $76.80
  • Light-heavy differential (USD/bbl)                                    $16
  • ARP natural gas (CND/GJ)                                              $2.90
  • Conventional crude production (000s barrels/day)          507
  • Raw bitumen production (000s barrels/day)                    3,429
  • Canadian dollar exchange rate (USD¢/CDN$)                75.90
  • Interest rate (10-year Canada bonds, per cent)               3.70

 

Related information

 

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This is a news release from the Government of Alberta.

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Alberta

Alberta judge sides with LGBT activists, allows ‘gender transitions’ for kids to continue

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From LifeSiteNews

By Clare Marie Merkowsky

‘I think the court was in error,’ Alberta Premier Danielle Smith has said. ‘There will be irreparable harm to children who get sterilized.’

LGBT activists have won an injunction that prevents the Alberta government from restricting “gender transitions” for children.

On June 27, Alberta King’s Court Justice Allison Kuntz granted a temporary injunction against legislation that prohibited minors under the age of 16 from undergoing irreversible sex-change surgeries or taking puberty blockers.

“The evidence shows that singling out health care for gender diverse youth and making it subject to government control will cause irreparable harm to gender diverse youth by reinforcing the discrimination and prejudice that they are already subjected to,” Kuntz claimed in her judgment.

Kuntz further said that the legislation poses serious Charter issues which need to be worked through in court before the legislation could be enforced. Court dates for the arguments have yet to be set.

READ: Support for traditional family values surges in Alberta

Alberta’s new legislation, which was passed in December, amends the Health Act to “prohibit regulated health professionals from performing sex reassignment surgeries on minors.”

The legislation would also ban the “use of puberty blockers and hormone therapies for the treatment of gender dysphoria or gender incongruence” to kids 15 years of age and under “except for those who have already commenced treatment and would allow for minors aged 16 and 17 to choose to commence puberty blockers and hormone therapies for gender reassignment and affirmation purposes with parental, physician and psychologist approval.”

Just days after the legislation was passed, an LGBT activist group called Egale Canada, along with many other LGBT organizations, filed an injunction to block the bill.

In her ruling, Kuntz argued that Alberta’s legislation “will signal that there is something wrong with or suspect about having a gender identity that is different than the sex you were assigned at birth.”

However, the province of Alberta argued that these damages are speculative and the process of gender-transitioning children is not supported by scientific evidence.

“I think the court was in error,” Alberta Premier Danielle Smith said on her Saturday radio show. “That’s part of the reason why we’re taking it to court. The court had said there will be irreparable harm if the law goes ahead. I feel the reverse. I feel there will be irreparable harm to children who get sterilized at the age of 10 years old – and so we want those kids to have their day in court.”

READ: Canadian doctors claim ‘Charter right’ to mutilate gender-confused children in Alberta

Overwhelming evidence shows that persons who undergo so-called “gender transitioning” procedures are more likely to commit suicide than those who are not given such irreversible surgeries. In addition to catering to a false reality that one’s sex can be changed, trans surgeries and drugs have been linked to permanent physical and psychological damage, including cardiovascular diseases, loss of bone density, cancer, strokes and blood clots, and infertility.

Meanwhile, a recent study on the side effects of “sex change” surgeries discovered that 81 percent of those who have undergone them in the past five years reported experiencing pain simply from normal movements in the weeks and months that followed, among many other negative side effects.

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Alberta

Why the West’s separatists could be just as big a threat as Quebec’s

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By Mark Milke

It is a mistake to dismiss the movement as too small

In light of the poor showing by separatist candidates in recent Alberta byelections, pundits and politicians will be tempted to again dismiss threats of western separatism as over-hyped, and too tiny to be taken seriously, just as they did before and after the April 28 federal election.

Much of the initial skepticism came after former Leader of the Opposition Preston Manning authored a column arguing that some in central Canada never see western populism coming. He cited separatist sympathies as the newest example.

In response, (non-central Canadian!) Jamie Sarkonak argued that, based upon Alberta’s landlocked reality and poll numbers (37 per cent Alberta support for the “idea” of separation with 25 per cent when asked if a referendum were held “today”), western separation was a “fantasy” that “shouldn’t be taken seriously.” The Globe and Mail’s Andrew Coyne, noting similar polling, opined that “Mr. Manning does not offer much evidence for his thesis that ‘support for Western secession is growing.’”

Prime Minister Mark Carney labelled Manning’s column “dramatic.” Toronto Star columnist David Olive was condescending. Alberta is “giving me a headache,” he wrote. He argued the federal government’s financing of “a $34.2-billion expansion of the Trans Mountain pipeline (TMX)” as a reason Albertans should be grateful. If not, wrote Olive, perhaps it was time for Albertans to “wave goodbye” to Canada.

As a non-separatist, born-and-bred British Columbian, who has also spent a considerable part of his life in Alberta, I can offer this advice: Downplaying western frustrations — and the poll numbers — is a mistake.

One reason is because support for western separation in at least two provinces, Alberta and Saskatchewan, is nearing where separatist sentiment was in Quebec in the 1970s.

In our new study comparing recent poll numbers from four firms (Angus Reid InstituteInnovative Research GroupLeger, and Mainstreet Research), the range of support in recent months for separation from Canada in some fashion is as follows, from low to high: Manitoba (6 per cent to 12 per cent); B.C. (nine per cent to 20 per cent); Saskatchewan (20 per cent to 33 per cent) and Alberta (18 per cent to 36.5 per cent). Quebec support for separation was in a narrow band between 27 per cent and 30 per cent.

What such polling shows is that, at least at the high end, support for separating from Canada is now higher in Saskatchewan and Alberta than in Quebec.

Another, even more revealing comparison is how western separatist sentiment now is nearing actual Quebec votes for separatism or separatist parties back five decades ago. The separatist Parti Québécois won the 1976 Quebec election with just over 41 per cent of the vote. In the 1980 Quebec referendum on separation, “only” 40 per cent voted for sovereignty association with Canada (a form of separation, loosely defined). Those percentages were eclipsed by 1995, when separation/sovereignty association side came much closer to winning with 49.4 per cent of the vote.

Given that current western support for separation clocks in at as much as 33 per cent in Saskatchewan and 36.5 per cent in Alberta, it begs this question: What if the high-end polling numbers for western separatism are a floor and not a ceiling for potential separatist sentiment?

One reason why western support for separation may yet spike is because of the Quebec separatist dynamic itself and its impact on attitudes in other parts of Canada. It is instructive to recall in 1992 that British Columbians opposed a package of constitutional amendments, the Charlottetown Accord, in a referendum, in greater proportion (68.3 per cent) than did Albertans (60.2 per cent) or Quebecers (56.7 per cent).

Much of B.C.’s opposition (much like in other provinces) was driven by proposals for special status for Quebec. It’s exactly why I voted against that accord.

Today, with Prime Minister Carney promising a virtual veto to any province over pipelines — and with Quebec politicians already saying “non” — separatist support on the Prairies may become further inflamed. And I can almost guarantee that any whiff of new favours for Quebec will likely drive anti-Ottawa and perhaps pro-separatist sentiment in British Columbia.

There is one other difference between historic Quebec separatist sentiment and what exists now in a province like Alberta: Alberta is wealthy and a “have” province while Quebec is relatively poor and a have-not. Some Albertans will be tempted to vote for separation because they feel the province could leave and be even more prosperous; Quebec separatist voters have to ask who would pay their bills.

This dynamic again became obvious, pre-election, when I talked with one Alberta CEO who said that five years ago, separatist talk was all fringe. In contrast, he recounted how at a recent dinner with 20 CEOs, 18 were now willing to vote for separation. They were more than frustrated with how the federal government had been chasing away energy investment and killing projects since 2015, and had long memories that dated back to the National Energy Program.

(For the record, they view the federal purchase of TMX as a defensive move in response to its original owner, Kinder Morgan, who was about to kill the project because of federal and B.C. opposition. They also remember all the other pipelines opposed/killed by the Justin Trudeau government.)

Should Canadians outside the West dismiss western separatist sentiment? You could do that. But it’s akin to the famous Clint Eastwood question: Do you feel lucky?

Mark Milke is president and founder of the Aristotle Foundation for Public Policy and co-author, along with Ven Venkatachalam, of Separatist Sentiment: Polling comparisons in the West and Quebec.

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