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Alberta announces 11.6 billion surplus

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Strong year-end positions Alberta for stability

A solid end to 2022-23 secures Alberta’s long-term financial outlook and provides stability against future economic uncertainty.

Alberta ended the fiscal year with an $11.6-billion surplus, exceeding the Budget 2022 projected surplus by $11.1 billion. In 2022-23, the province paid down $13.3 billion in debt, eliminating an estimated $260 million in debt servicing costs annually and reducing the overall debt burden on Albertans.

The province’s strong financial situation also resulted in the market value of the Alberta Heritage Savings Trust Fund growing by $2.5 billion to $21.2 billion. The Heritage Fund’s year-over-year growth was primarily due to actions taken by the Alberta government to retain $1.25 billion in net investment income from 2021-22 and deposit $753 million into the fund.

Growing the Heritage Fund benefits current and future generations of Albertans by ensuring the province is well equipped to handle future uncertainty.

In March of this year, Alberta’s government made legislative changes to ensure the fund continues to grow to support Albertans now and in the future. These changes allow the government to retain all investment income within the Heritage Fund instead of it being transferred to general revenue.

“The 2022-23 year-end report is a very positive one. We promised to keep our economy moving forward and Alberta is reaping the benefits. Albertans can rest easy knowing that Alberta’s prosperity today means more stability tomorrow as we continue to pay down debt and save for the future.”

Nate Horner, President of Treasury Board and Minister of Finance

Alberta’s government remains committed to responsible financial management. For the current and subsequent years, Alberta’s new legislated fiscal framework will continue to address Alberta’s unique economic and revenue volatility. The framework requires government to put at least half of any surplus toward debt repayment, with the remainder going toward additional debt repayment, the Heritage Fund or one-time initiatives that do not permanently increase government spending.

Revenue

Revenue in 2022-23 was $76.1 billion, $13.5 billion more than estimated in Budget 2022, including:

  • $25.2 billion in non-renewable resource revenue, $11.4 billion more than estimated in Budget 2022.
  • $26.5 billion in tax revenue, $3.5 billion higher than estimated in Budget 2022. This included:
    • $8.2 billion in corporate income tax, $4.1 billion more than estimated in Budget 2022.
    • $13.9 billion in personal income tax, $543 million more than estimated in Budget 2022.

At the time the Budget 2022 forecast was developed, the global economy was experiencing significant uncertainty related to COVID-19, global growth and energy demand. Budget 2022 was based on a West Texas Intermediate (WTI) forecast of US$70 per barrel in 2022-23.

Oil prices surged last year due to many global factors. WTI reached US$120 per barrel in June 2022 and averaged US$89.69 for the 2022-23 fiscal year, a large reason for the increase in resource and corporate income tax revenue.

Expense

Expense in 2022-23 was $64.5 billion, $2.4 billion more than estimated in Budget 2022, including:

  • $25.2 billion in health expense to expand capacity and for higher costs in response to Albertans’ evolving health-care needs.
  • Investments of $8.9 billion and $6.1 billion in K-12 and post-secondary education, respectively, providing quality learning for Alberta’s youth and building on the province’s world-class post-secondary environment.

Among other factors, the overall increase from Budget 2022 was due to:

  • A $2.2-billion increase in operating expense, mainly for health, increased compensation costs from settled agreements, electricity rebates and other affordability measures, and the cost of selling oil.
  • A $300-million increase in COVID-19 recovery costs.
  • A $167-million increase in debt servicing costs, mainly due to the impact of higher interest rates.

Affordability

In response to rising living costs, Alberta’s government introduced a series of affordability measures in 2022-23 that helped slow inflation and make life more affordable for Albertans. In 2022-23, the government provided $2.9 billion in affordability supports, including:

  • $1.1 billion for the fuel tax relief program, funded through a reduction in revenue.
  • $304 million for indexation of the personal income tax system to inflation retroactive to the 2022 tax year, funded through a reduction in revenue.
  • $644 million for electricity rebates.
  • $441 million for affordability payments to eligible seniors, families with children and vulnerable Albertans on core benefits programs.
  • $51 million for indexation of benefit payments to inflation (Alberta Seniors Benefit, Assured Income for the Severely Handicapped, Income Support, Persons with Developmental Disabilities).

To further reduce the cost burden on Albertans, Alberta’s government recently extended the pause on the collection of the provincial fuel tax, saving Albertans 13 cents on every litre of gasoline and diesel until the end of 2023.

This is a news release from the Government of Alberta.

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Alberta

New red tape reporting website will help ramp up housing construction in Alberta

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Helping builders by putting an end to housing delays

Alberta’s new Stop Housing Delays online portal will allow developers, municipalities and other housing partners to report red tape and unnecessary home-building delays.

Alberta’s government is focused on ensuring Albertans have access to the housing they need, and that means working to streamline processes, cut red tape and reduce delays that are slowing housing construction down. As part of this work, government has launched a new online portal to help in these efforts.

The Stop Housing Delays online portal is now available for developers and municipal authorities to help identify areas that are preventing fast and efficient residential construction. This portal will help government identify and address barriers to building homes across the province.

“The Stop Housing Delays portal will allow Alberta’s government to hear directly from developers, municipalities and other partners on where delays are happening in the construction process. This will help identify and remove barriers, ultimately getting homes built faster and continuing Alberta’s record home-building pace.”

Jason Nixon, Minister of Seniors, Community and Social Services

“Alberta’s government will continue to work with municipalities and find solutions to speed up the home-building process. The Stop Housing Delays portal will give us another tool to inform those discussions and identify areas where we can improve the pace of home building.”

Ric McIver, Minister of Municipal Affairs

Once developers, municipalities or industry partners have submitted their issue using the online form, government will collect and assess the information provided. Alberta’s government will be taking a collaborative, cross-ministry approach to ensure the appropriate departments are working together to find solutions where possible. Solutions may range from minor changes to policy reform.

Alberta’s government continues to support builders and encourage new residential housing construction by reducing red tape, incentivizing housing construction and supporting innovative strategies to build homes faster than ever.

“This webpage is an excellent opportunity to gather knowledge and further eliminate red tape. Government has been persistent in our approach of cutting red tape and removing roadblocks, and this will help to speed up residential construction. I look forward to hearing from developers and our other partners on how we can help get projects moving and Albertans in homes.”

Dale Nally, Minister of Service Alberta and Red Tape Reduction

Alberta continues to see strong housing starts and increases while other provinces across Canada are seeing a reduction in housing starts. The first half of 2024 saw 9,903 apartment unit starts in the province. This marks the highest amount in any half year in Alberta’s history, breaking the previous record of 9,750 set in 1977. Albertans will benefit from 33,577 new housing starts from January through September 2024, up 35 per cent from the same period last year. Alberta’s government remains focused on working with industry and non-profit partners to ensure that the province’s growing population has access to the housing it needs.

“This portal is a valuable tool for industry to highlight gaps, barriers and delays that may need to be prioritized and addressed by either local or provincial governments. Real solutions can only emerge through transparency, open communication and collaboration. This is an important step toward identifying the unique challenges each region and municipality faces in delivering attainable housing.”

Scott Fash, chief executive officer, BILD Alberta Association

Quick Facts

  • Housing starts for January – September 2024 compared with January – September 2023
    • Provincewide: 33,577 compared with 24,904 (up 35 per cent)
    • Edmonton: 13,359 compared with 9,099 (up 47 per cent)
    • Calgary: 17,414 compared with 14,141 (up 23 per cent)
    • Lethbridge: 599 compared with 148 (up 305 per cent)
    • Red Deer: 314 compared with 146 (up 115 per cent)
  • Data shows Alberta had 10,699 purpose-built rentals, making up 32 per cent of all housing starts.
  • Since 2019, Alberta’s government has invested almost $850 million to build more than 5,100 units and close to 900 shelter spaces. This includes projects we have committed to, that are in progress and that are complete.
  • Together with its partners, Alberta’s government is supporting $9 billion in investments into affordable housing to support 25,000 additional low-income households by 2031.

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Turning resources into new jobs and products

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(Left to right: Stéphane Germain, president of GHGSat; John Adams, president and CEO, NGIF Capital and NGIF Accelerator and managing partner of Cleantech Ventures; Rebecca Schulz, Minister of Environment and Protected Areas; Scott Volk, director of emissions and innovation, Tourmaline Oil; Justin Riemer, CEO of Emissions Reduction Alberta)

New funding will advance technologies that turn Alberta’s natural resources, such as bitumen, into materials of the future.

Alberta is Canada’s third-largest producer of manufactured goods and materials and first in clean technology innovation. At the same time, manufacturing companies around the world are looking for ways to make products like concrete, plastics, food, wood, chemicals and machinery more efficient, more durable, easier to recycle and better for the environment.

Alberta’s government is investing $40 million from the industry-funded Technology Innovation and Emissions Reduction (TIER) program to advance technologies that will turn everyday items that would otherwise be wasted or dumped in landfills into modern, low-emission products. These technologies will help create jobs, reduce emissions and help Alberta’s manufacturing industry lead the world.

“We have the resources, expertise and entrepreneurs needed to create some of the most advanced materials in the world. This funding competition will help develop new and exciting technologies that reduce emissions, create jobs, reuse waste and keep growing our economy.”

Rebecca Schulz, Minister of Environment and Protected Areas

Advanced materials are increasing in global demand. They are new or significantly improved materials that provide a distinct advantage in performance when compared to conventional materials. Advanced materials have already been used to create new construction materials, improved batteries and fuel cells and lighter, stronger aircrafts, bicycles and golf clubs, among other products.

Led by Emissions Reduction Alberta, Alberta’s new funding competition will support scale-up, pilot, and demonstration and first-of-kind commercial technologies that improve the extraction, production, manufacturing, and performance of new and existing materials and products in Alberta. It is open to a wide a range of applicants including researchers, businesses, municipalities and Indigenous communities.

“Enhancing existing products and developing new materials with superior performance while embracing circular economy strategies will help deliver deeper emissions reductions, enhance supply chain resiliency and strengthen industrial competitiveness. This funding, sourced from Alberta’s TIER regulation, is critical and the possibilities are endless.”

Justin Riemer, CEO, Emissions Reduction Alberta

The focus of this funding is to help create technologies that turn resources into modern, new products. This includes emerging technologies extracting high value metals like vanadium, titanium and lithium found within natural resources such as bitumen and creating novel, carbon-absorbing materials. These can then be used to improve everything from construction material and consumer electronics to aircrafts and hockey sticks.

“Emerging technology solutions, such as creating advanced carbon products from bitumen, are critical to lowering emissions and creating jobs in the province. Alberta Innovates is pleased to support this call and work closely with Emissions Reduction Alberta to realize a new future for Albertans.”

Dr. Michael Mahon, CEO, Alberta Innovates

“By transforming our abundant natural resources into advanced, low-carbon materials, we are not only driving emissions reductions but also creating valuable opportunities for industry growth and export potential. The Government of Alberta’s investment through Emissions Reduction Alberta’s Advanced Materials Challenge demonstrates a commitment to building a resilient economy that harnesses Alberta’s strengths in new and sustainable ways.”

Md Golam Kibria, co-founder and scientific director, CarboMat Inc.

Quick facts

  • Applications for the Advanced Materials Challenge close on Wednesday, January 22, 2025, at 5 PM MST.
  • Successful applicants are eligible for up to $5 million.
  • Applications are open to innovators, technology developers, commercial and industrial building owners, municipalities, Indigenous communities, small and medium-sized businesses, research and development organizations, universities, and not-for-profit organizations.
  • Applications are open to emerging technologies. While technology solutions can originate from anywhere globally, they must be piloted, demonstrated or deployed in Alberta.
  • The TIER system uses industry dollars to help Alberta facilities find innovative ways to reduce emissions and invest in clean technology to stay competitive and save money.
  • Full details on the Advanced Materials Challenge can be found on Emissions Reduction Alberta’s website.

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