Tag: jim prentice

Edmonton is ground zero in the PC campaign of fear

What an interesting week in the Alberta Election, especially here in Edmonton. It started with Mayor Don Iveson’s confident State of the City address, in which he declared that “Edmonton is too important to Alberta’s future to be ignored.” He said he’s confident that Edmontonians “will not stand for any provincial government ever forgetting about Edmonton again.” The mayor contrasted a strong, vibrant Edmonton with an uncertain, shaky Alberta, and said that Edmonton could play a significant role in a provincial turnaround. Edmonton is not just the capital.

With every passing day the NDP have looked stronger and stronger. The polls, whether you trust them or not, have consistently had the NDP either in the lead or close to it, with today’s predicting a minimum victory of 25 seats. Everywhere you look there are signs of the “orange crush” sweeping across the province, but especially here in Edmonton where NDP support is strongest. The prospect of an NDP win has become so realistic in fact, that the PCs have had to take the unusual position of fighting back. And it’s here in Edmonton that they have focused their efforts.

Last week Edmonton-Rutherford PC candidate Chris Labossiere wrote a widely-criticized blog post that said the NDP “have not demonstrated any real passion or partnership with Edmonton as a dynamic and changing global city.” He wrote, “I do not trust that they share or appreciate Edmonton’s story, our energy or our ambition.”

Edmonton-Spruce Grove MP Rona Ambrose said today that an NDP government here in Alberta would be a “risky experiment.” She said that although she understands the anger being directed at the PCs, Albertans “need to think twice about electing an NDP government.”

edmonton business leaders
Photo by Dave Cournoyer

And in a press conference late this morning, five Edmonton businessmen called the NDP’s policies “amateur” and urged Albertans to make sure they’re “thinking straight” when they go to vote on Tuesday (you can read their opinion letter here). The Journal reports that together, the five have given nearly $95,000 to the PCs since 2010. There have been incredible things said every day during this election, but a couple of comments today were just on another level. Here’s what Tim Melton, executive chairman of Melcor Developments said:

“I don’t understand the unhappiness and disenchantment that appears to be out there. We don’t need amateurs running this province through these difficult times … we’ve got to stay with the government that has got us to where we are today.”

Is it really so hard to understand why Albertans are unhappy with a government that has faced scandal after scandal? With a government that has failed, again and again, to get us off the resource revenue roller coaster?

As if that wasn’t enough, NPO Zero CEO Ashif Mawji had this to say at the same news conference:

“If there’s no bottom line, then there’s no money that goes to charities. We won’t make donations to charities,” Mawji said, using the Stollery Children’s Hospital and the University of Alberta as examples of where the losses will be felt.

There’s no question that leaders like Doug Goss have done great things for Edmonton, and I’m sure they will continue to, but to threaten the charities that support Albertans when the government won’t? Disgusting.

Rachel Notley
Photo by Dave Cournoyer

Here’s what NDP leader Rachel Notley said in response today:

“Frankly, if I were them, I’d be more focused on talking with Albertans about what it is they can do to make the lives of regular families better. They’ve chosen to fearmonger about the NDP instead. I guess we’ll see … which approach is more appealing and more convincing to Alberta voters.”

Indeed we will, in just a few days.

“Changing our government is not something Albertans should be afraid of,” is what Dave wrote today. “It is something we should probably do on a regular basis.”

What does Alberta’s Budget 2015 mean for Edmonton?

Today was budget day in Alberta. Budget 2015 is being called “a bad news budget” but it could have been much worse. There are tax and user fee increases, cuts to spending (including the first cut to health spending in 20 years), and a new “Health Care Contribution Levy”, and still Alberta’s deficit will grow, to a record $5 billion this year. On the other hand, infrastructure spending seems to be mostly intact, programs for the most vulnerable have not been cut, Alberta retains its tax advantage, and the Province is taking some baby steps toward getting us off the energy price roller coaster. Here is Dave’s take.

Budget 2015

There’s a lot of truth to the “government town” label that people often apply to Edmonton, so any Provincial cuts are going to have an impact. According to the City’s chief economist John Rose, 22% of Edmonton’s employment is related to health care, education, or public administration.

Still, Rose said in recent weeks that Edmonton as a whole would weather the storm better than others in Alberta. From his Labour Force Report issued on March 13:

“Although the impact of lower oil prices is evident in some sectors, the diversity and depth of
Edmonton’s economy has insured that employment continues to grow in Edmonton and that the
City remains a very attractive location for those seeking new opportunities.”

So what does Budget 2015 mean for Edmontonians and for Edmonton?

Highlights

Here are some of the key takeaways from the budget that I think are relevant to Edmonton:

  • For 2015-2016, Alberta Health Services (AHS) faces a decrease of $286 million or 2.1% and will need to cut nearly 1,700 positions
  • The budget includes $926 million in capital spending for health-related “capacity expansion projects” in Calgary and Edmonton
  • There is $50 million over at least two years to renovate emergency rooms in Calgary and Edmonton (specifically the Misericordia, Grey Nuns, and Royal Alexandra hospitals)
  • The budget promises than 300 new restorative care beds in Calgary and Edmonton
  • Post-secondary institutions face $114 million in cuts
  • Campus Alberta institutions (which includes the University of Alberta) are facing a 1.4% operating grant reduction in 2015-2016 and a 2.7% reduction in 2016-2017
  • School boards will receive no money for more students and must cut 3% from non-instructional costs
  • The Province says that “most” school projects announced in 2013 and early 2014 will open in 2016-2017
  • Family and Community Support Services, which helps to fund more than 60 agencies and 80 programs in Edmonton, will be maintained at $76 million.
  • Funding for police remains the same
  • Capital spending of $1.1 billion for the next 5 years includes $124 million for NAIT expansion and $120 million for NorQuest downtown
  • GreenTRIP funding remains intact, which means the first portion of the Valley Line LRT will continue to move ahead
  • MSI funding will remain stable, even if it is more of a loan than a grant
  • The smart fare proposal from Edmonton, St. Albert, and Strathcona County is still “under consideration”
  • The budget contains no funding for the proposed Galleria project

Discussion

Certainly the health care sector is going to take a hit and that will have some impact on Edmonton. The Province maintains that we can get the same quality of service for less, while critics disagree and suggest the effect of this budget won’t be felt only by those at AHS who lose their jobs but also by Edmontonians in need of care. “The time has come for us to start looking at how we can do things in a more efficient manner,” said Health Minister Stephen Mandel. “I don’t think Albertans should have to pay 20 and 30 per cent more for things.”

In addition to the cuts in health-related spending, the budget also introduces the Health Care Contribution Levy, which will apply to individuals with taxable income greater than $50,000 per year. There’s a sliding scale from $200 to $1000 depending on your income bracket. This tax takes effect on July 1, 2015, and applies to roughly 1.1 million Albertans.

The health-related surprise though was money for hospitals, especially given recent suggestions that Edmonton facilities need more than $225 million in maintenance and repairs. The previously announced funding for emergency room upgrades will help in that regard.

It’s not clear how many cuts the education sector will face, but clearly the 3% reduction is going to have an impact. A lack of new funds to deal with growth will likely also mean larger class sizes. At the post-secondary level the cuts are much smaller than many expected.

While there is no provincial sales tax, there are increases to personal income taxes. If you make more than $100,000 per year your tax rate will increase from 10% to 11.5% (phased in over three years) and if you earn more than $250,000 your tax rate will rise to 12% when fully implemented (Edmonton’s media family income is about $100,000). We know that nearly 10,000 employees of AHS earn at least $100,000 a year, which means if they aren’t among the job cuts, they will face increased personal income tax. Though it likely won’t be those who make the most that face the cuts. According to the Herald, Mandel’s own department will spend 18% more than last year.

For most Edmontonians, increased taxes, fines, and user fees will be felt immediately. Gas taxes are increasing by 4 cents to 13 cents per litre. Cigarette taxes are increasing by $5 to $45 for a carton of 200. A bottle of wine or spirits will cost 16 cents more, and a 12-pack of beer will cost 90 cents more. Fines for speeding and other traffic offences are increasing by an average of 35%. Marriage licenses are increasing by $10 as are birth and death certificates.

There is some good news for the most vulnerable Edmontonians. There will be no reductions to child care subsidies for low-income families, nor are there any reductions to the Alberta Seniors Benefit income support. The budget will also accommodate growth for AISH and Persons with Development Disabilities. Starting July 1, 2016 there will also be a new Alberta Working Family Supplement refundable tax credit on earnings up to $41,220. Funding for FCSS, which supports many Edmonton agencies, will be maintained.

On infrastructure there’s mostly good news. Or at least a sigh of relief that important projects will continue moving forward, like the Valley Line LRT which the Province previously committed to.

Responses to Budget 2015

From Mayor Don Iveson:

“The city of Edmonton and Alberta municipalities faired reasonably well on this budget, all things considered – certainly compared to what we all heard and were concerned might be coming,” Iveson said.

“The numbers are fairly small and speaking to our chief economist just now, it may have a small effect on Edmonton’s growth, but we’re talking a decimal to Edmonton’s GDP, not a side-swipe,” Iveson said.

“We can work with the dollars provided,” said Iveson.

From Doug Goss, char of the University of Alberta’s board of governors:

“The message is clear — we all have to find new ways of doing business, we have to be a little more creative,” said Goss.

From Indira Samarasekera, President of the University of Alberta:

“This is a very good outcome,” said Samarasekera, “much better than many were expecting. The provincial government is facing financial pressures, but they’ve demonstrated they understand the importance of post-secondary to Alberta’s future.”

President Samarasekera will address the campus community at a forum on March 31.

From Michael Janz, Edmonton Public School Board chair:

“We’re going to see more students arriving at the school doorsteps with no new money provided to educate them,” he said. “I don’t think this is a good news budget for Edmonton public schools.”

From Marilyn Bergstra, vice-chair of Edmonton Catholic Schools:

“The budget cuts will make it increasingly difficult to support all of our students, particularly our most vulnerable, as well as the new students that are coming to our district,” she said.

From Helen Rice, President of the Alberta Urban Municipalities Association (AUMA):

“Sufficient funding for infrastructure is vital to address the deficit that has continued to grow across the province, and to provide for new infrastructure requirements to meet our obligations to citizens,” said Rice.

“Given the current economic climate, now is the time to secure funding to meet infrastructure needs when prices are falling and the availability of resources to work on projects is increasing,” said Rice.

The reaction from the business community appears to be more mixed.

Budget 2015

Budget 2015 Details

Here are all the budget-related news releases:

Here is the budget presentation from Robin Campbell, Minister of Finance:

You can also download the budget speech in PDF here. You can access the full list of budget documents here.

Roundup: Pre-Election Politics in Alberta

As you know I stay fairly focused on municipal issues, especially as they relate to Edmonton. But with the provincial budget set to be released on Thursday, a televised address from the Premier tonight, the review of the Municipal Government Act, and expectations of an imminent election, I’ve been thinking more about provincial politics lately. Here’s a brief summary and some thoughts on what I’ve been paying attention to.

Premier Prentice’s TV Address

Tonight, Premier Jim Prentice delivered a 16 minute address called Alberta Looks Ahead on CTV (which apparently cost between $80K and $100K). “We are a turning point in our province,” he said at the beginning. He described the need for “thoughtful decisions for the future” and said Albertans have told him they want balance.

The highlights as I understood them:

  • A 10 year plan will be introduced with the budget, with three pillars: strong fiscal foundation, building a lasting legacy, securing Alberta’s future
  • There will be no sales tax and Alberta will retain “the most competitive tax system in Canada”
  • The goal is to be back to a balanced budget by 2017
  • The government will hold the line on expenditures, which essentially means cuts in a growing province
  • Albertans will be asked “to contribute to the costs of the health system”, slowly at first but growing over time
  • By 2018-2019, 75% of energy revenue will go to program spending
  • By 2019-2020, 50% of energy revenue will go to program spending, with 25% going to emergency funds and paying down the debt and 25% going to the Heritage Savings Trust Fund

The Premier talked a lot about how he is determined to restore our commitment to the Heritage Fund, and said “paying off our debts is something we simply must do.” If I remember correctly, he mentioned only two former Premiers by name: Peter Lougheed and Ralph Klein.

Perhaps this is a more accurate, succinct recap courtesy of Marty Chan:

There were no “look in the mirror” comments tonight, but I did love the soundbite toward the end when Premier Prentice spoke about “a spirit of openness across every segment of Alberta”. He offered some examples, including “from bloggers to loggers,” which led to this gem:

Dave is probably the most well-known political blogger in the province. You can see his latest nomination update post here.

The Premier is also planning to host a series of Telephone Town Halls along with various Ministers, on March 25 and March 30. You can dial in toll-free at 1-855-269-4484. Tonight I saw many complaints about robocalls, so it’ll be interesting to see how those town halls are received.

Budget 2015 Consultations

The Province conducted an online survey for Budget 2015 and in total received 40,513 responses. The survey was open from February 5-28. Some of the key findings include:

  • 9 out of 10 respondents feel low oil prices will greatly or somewhat affect the Alberta government’s ability to budget
  • when asked what is the right balance to respond to the drop in revenue, Albertans were split almost evenly 3 ways between reducing spending, increasing revenue and running a deficit budget
  • 9 out of 10 respondents feel government needs to take action either immediately or within this year

I’m not sure how representative the results are, but it’s useful data to consider nonetheless. Budget 2015 will be released on Thursday, March 26.

Perhaps most interesting to me is that the survey results were made available through the Open Data Portal! This enables you to ask the hard questions, like: how long did the average person take to fill out the survey? The average length of time was 7 minutes, with the median at 11 minutes. Ignoring the records that were greater than 90 minutes (people leave tabs open all the time) here’s what the data looks like in a chart:

budget survey time taken

You can download all the data as a 13 MB Excel file. Give it a go and have some fun!

I hope this is a sign of things to come in terms of making information available through the open data catalogue in a timely fashion.

Municipal Government Act Amendments

Last week, the Government of Alberta tabled amendments to the Municipal Government Act. You can get a brief overview of what’s changing here. From the news release:

“The last major consolidation of the MGA took place in 1995, after nearly 10 years of review. The current MGA review began in 2012 and has involved input from more than 1,200 written submissions, and more than 1,500 people at 77 community meetings.”

A few of the proposed changes I found interesting:

  • Municipalities would be required to adopt public participation policies that outline their approaches for engaging with stakeholders. Edmonton already has a policy for this and is actively review and improving its approach to public engagement.
  • Existing petition requirements make it difficult to successfully petition a municipality, so one proposed changed would allow municipalities to change the rules for petitions.
  • Currently municipalities need to use snail mail or newspapers to notify the public about things like bylaws and public hearings, but this is 2015! The proposed change would make it possible for municipalities to announce notifications online or using other methods as they see fit.
  • Another change would require municipalities to adopt three-year operating plans and five-year capital plans. Edmonton is already moving in this direction.
  • Municipalities are currently required to have statutory plans, but there is no explicit hierarchy specified, they simply need to be consistent with one another. The proposed change is to identify the hierarchy and relationship of those plans. In Edmonton, this could impact The Way Ahead.
  • Another change would allow for the creation of civic charters, which the Province, Edmonton, and Calgary have already been pursuing.

There are more amendments still to come. Additional review and consultation will take place this spring with the goal of proclaiming the fully revised MGA and regulatory updates by the end of 2016.

MSI Funding (March 2015)

Another pre-election, pre-budget announcement was about the allocation of $400 million in MSI funding. Edmonton is slated to receive just over $80 million out of that, which is less than half of what the City was expecting for 2015.

“Until we get the provincial budget, I won’t know how much additional dollars are available and we won’t be able to make any decisions about which projects go ahead until we see the provincial budget,” said Mayor Don Iveson.

For its part, the Liberals have called the MSI announcement “an elaborate ruse” due to some creative accounting with the Basic Municipal Transportation Grant.

Wildrose Leadership Race

Also tonight, we held our third #abvote Hangout at http://abvote.ca. In addition to Dave, Ryan, and myself, we had the three Wildrose leadership candidates join us: Drew Barnes (MLA for Cypress-Medicine Hat), Derek Fildebrandt sitting in for Brian Jean (Former MP for Fort McMurray - Athabasca) and Linda Osinchuk (Former Mayor for Strathcona County). We started with a discussion about the Premier’s address, and then moved on to some other questions for the candidates.

You can watch the archived video on YouTube or here:

I asked a question about how they’d support municipalities, and of course the Wildrose 10/10 plan came up, which would allocate 10% of tax revenues and 10% of surpluses to municipalities.

They’re rushing this race, but with speculation the writ will drop on March 30, they don’t have much of a choice. You can learn more about how voting works for the leadership race here. The Wildrose party will announce its next leader on March 28 in Calgary.

Other

I have already mentioned these things in previous roundups but it’s worth linking to them again:

That’s it for now! Stay tuned for our next Hangout and follow all the latest stuff online using #ableg and #abvote. Now I guess I had better go update the Election Results dashboard…