It’s a mixed bag of reactions to last week’s provincial budget announcement, with the NDP touting success at maintaining frontline services and boosting infrastructure spending – and fiscal hawks furious over record-levels of debt.
The budget projects a $10.3 billion deficit and offers nothing major in the form of tax cuts, say critics.
“My biggest concern is in the $2.3 billion debt financing,” said Chestermere-Rocky View MLA Leela Aheer, adding that she is “deeply concerned” that the debt will exceed $71 billion by the 2019 election.
For Banff-Cochrane NDP MLA Cameron Westhead, this budget is proof that this government is making decisions in a “thoughtful and prudent manner” rather than slashing services.
“The debt to GDP ratio is the lowest in Canada so we remain to have a strong balance sheet,” said Westhead, adding that this budget aims to create jobs, invest in long overdue infrastructure needs and repairs and modernize health care and education services.
With respect to how the budget dollars will roll out, Cochrane made the winner’s list, according to Mayor Ivan Brooker.
Deron Bilous, minister of Economic Development, and Westhead will be in Cochrane tomorrow morning at the RancheHouse to make grant announcements supporting small business and non-profit groups.
“The bottom line is that the budget for the Town of Cochrane is positive,” said Brooker. “It is record debt, but it’s also at incredibly low interest rates across the country.”
Brooker made mention of the boost in MSI capital funding, which increased by eight per cent ($436,770) to $5.97 million. This grant includes $4,463,429 in MSI capital funding and a $1,507 basic municipal transportation grant.
The town will also receive an MSI operating grant of $194,878 – an increase of $14,010. According to Brooker, these dollars can be put toward “pretty much anything.”
The town’s 2017 budget – which resulted in a nominal taxpayer increase of 0.83 per cent – was based on MSI capital funding remaining stable, so the unexpected boost will mean extra dollars for the town.
While the Highway 1A/22 intersection remains on the unfunded capital projects list, Brooker said it’s too preliminary to assume it won’t make the shortlist of infrastructure projects to receive funding and he doesn’t want to jump the gun and assume the intersection won’t make the cut.
Banff-Cochrane NDP MLA Cameron Westhead confirmed this.
Westhead said he will “continue to advocate for the intersection” but when he asked the minister about the infrastructure project at Question Period two weeks ago, he was unable to receive confirmation.
While Nagel is not surprised that the Highway 1A/22 intersection remains unfunded, he said it’s time for the town to take matters into its own hands.
“We need to stop growing at double digit rates,” said Nagel, who would be in favour of directing administration to redraft the 10-year capital plan to figure out some solutions, if only temporary, to the problematic intersection – such as exploring the possibility of re-routing Sunset Ridge traffic into downtown Cochrane through an alternate route.
The same is true for seniors housing. It is too preliminary to extrapolate whether the Bethany site redevelopment will receive funding or whether there will be any seniors housing funds for Cochrane and area, said.
Cochrane Family and Community Support Services funding is maintained at $566,503 and there will be “access to grant dollars for initiatives such as affordable housing and seniors’ supports,” according to a release issued by the town this week.
The town also advised that Cochrane’s 2017 education requisition will increase by 15 per cent, to $13,912,757 from $12,102,770 last year as a result of growth. The requisition percentage increase is not directly reflective of property tax increases, which are finalized in May.
Coun. Morgan Nagel is declaring the budget a “total disaster” where this government is “paying bills with a credit card.”
Nagel is also concerned about Cochrane’s heavy reliance on developer levies.
Westhead said the NDP is looking at more targeted and effective ways to find efficiencies, such as renegotiating with Alberta doctors to result in savings of more than $500 million.
He also highlighted that the government has frozen salaries for management, non-union staff, political staff and ministers, as well as inflated perks to agencies, boards and commissions.
But the Official Opposition isn’t buying it.
Neither are credit rating agencies Moody’s Investor Service and DBRS Ltd. – both have blasted the NDP and warned of a downgrade.
The budget is based on West Texas Intermediate benchmark oil prices at U.S. $55/barrel, rising to $68/barrel by 2019/20 – what critics feel is a lofty goal.
As of Wednesday morning, oil was at U.S. $41.71/barrel.
With unemployment rates hovering around nine per cent and climbing, Aheer said this government is on a spending frenzy that will equate to “mortgaging our children’s futures.”
