Alberta
Alberta 2023 budget plows ahead with twinning highway 11 from Sylvan Lake to Rocky Mountain House
Building Alberta’s economic corridor network
Budget 2023 includes strategic investments in Alberta’s highway network to build economic corridors, creating jobs, improving safety and supporting economic development.
Budget 2023 includes $8 billion for the Ministry of Transportation and Economic Corridors’ three-year capital plan, a $718-million increase compared with Budget 2022.
“Budget 2023 is focused on securing Alberta’s future by growing the economy. Our investments will enhance economic corridors that provide vital links to markets in and out of Alberta, helping our industries expand and succeed. These projects will increase the safety and efficiency of our provincial highway network, improving travel for Albertans and commercial carriers in key industries.”
The total capital investment is $2 billion for planning, design and construction of major highway and bridge projects. This work focuses on improving traffic flow and supporting investments in the province’s major trade corridors. Examples of projects across the province that are receiving funding include the Calgary and Edmonton ring roads, Highway 3 twinning, Highway 11 twinning, and replacing the Highway 2 and Highway 556 interchange at Balzac. This capital investment funding also includes $75.5 million over three years for 23 engineering or planning projects to address known future needs.
“Budget 2023 is investing in Alberta drivers through improvements to Highway 60 through Acheson. These improvements will help families save time on their commute while improving the efficient movement of goods across the province. Budget 2023 also responds to safety concerns from the community with a new intersection at Highway 16A and Range Road 20 in Parkland County. The new intersection will not only help area residents get to and from home safely but will also improve traffic flow along this major economic corridor.”
“Highway 63, north of Fort McMurray, is a critical link in northern Alberta for oversize and overweight vehicles transporting goods for the energy sector. Twinning this highway will improve efficiency and safety for both commercial drivers and commuters. It also enables oilsands workers to more easily commute from Fort McMurray, which we know provides a healthier lifestyle for them and their families as opposed to flying from out of province and living in a camp. The workers who decide to make this move will see the benefits of living in such an amazing province like Alberta.”
“Alberta’s Industrial Heartland Association is pleased that the 55-year-old Vinca Bridge replacement is included in the Government of Alberta’s 2023 budget. As a vital component of Alberta’s high-load corridor and a strategic connector in Alberta’s Industrial Heartland, the bridge services a thriving industrial zone with over $45 billion in total capital investment and billions more expected in the coming years. Replacing Vinca Bridge will shorten travel times, reduce greenhouse gas emissions and enhance the competitiveness of both the Industrial Heartland and the manufacturing supply chain that contributes to its success.”
“We have been advocating hard for twinning and rail grade separation for Highway 60, and we are pleased to see this commitment from the Government of Alberta. Acheson is not only the beating, industrial heart of Parkland County, it is one of the largest industrial areas in Western Canada. Completing this work in a timely matter will improve access and movement along Highway 60 and allow for further development in Acheson, which will contribute to economic growth and job creation throughout Parkland County and the Edmonton region.”
“Representing hundreds of businesses in the Acheson area, the Acheson Business Association is thrilled with and would like to thank the Government of Alberta for this latest announcement for the twinning and rail grade separation for Highway 60. Highway 60 is an important connector of arterial highways, allowing products to move all directions through the metro Edmonton area, and the twinning and overpass will create a safer route for employees, travellers and business owners who are passing through this stretch of road every day. This will also enable the region to continue to attract more investors and businesses by reducing delays and eliminating congestion along this major trade corridor.”
Budget 2023 also includes $1.7 billion over three years for capital maintenance and renewal, which extends the life of the province’s existing road and bridge network and helps industry create and maintain jobs. These investments will allow the province to maintain existing roads and bridges to support safe and efficient travel to benefit Albertans and the economy.
Transportation and Economic Corridors will also be providing $3.9 billion for capital grants to municipalities over the next three years. This includes maintaining the funding commitment to Calgary and Edmonton for their LRT projects and continuing to provide funding for the Strategic Transportation Infrastructure Program to help municipalities improve critical local transportation infrastructure. Ongoing investments in water and wastewater infrastructure programs will also ensure all Albertans have reliable access to clean drinking water and effective wastewater services.
Additionally, Budget 2023 will provide nearly $400 million to support building and repairing water management infrastructure that provides irrigation for the agriculture sector and flood mitigation for Alberta communities such as the Springbank Off-stream Reservoir.
Budget 2023 secures Alberta’s future by transforming the health-care system to meet people’s needs, supporting Albertans with the high cost of living, keeping our communities safe and driving the economy with more jobs, quality education and continued diversification.
Alberta’s government is introducing a new acute care funding model, increasing the accountability, efficiency and volume of high-quality surgical delivery.
Currently, the health care system is primarily funded by a single grant made to Alberta Health Services to deliver health care across the province. This grant has grown by $3.4 billion since 2018-19, and although Alberta performed about 20,000 more surgeries this past year than at that time, this is not good enough. Albertans deserve surgical wait times that don’t just marginally improve but meet the medically recommended wait times for every single patient.
With Acute Care Alberta now fully operational, Alberta’s government is implementing reforms to acute care funding through a patient-focused funding (PFF) model, also known as activity-based funding, which pays hospitals based on the services they provide.
“The current global budgeting model has no incentives to increase volume, no accountability and no cost predictability for taxpayers. By switching to an activity-based funding model, our health care system will have built-in incentives to increase volume with high quality, cost predictability for taxpayers and accountability for all providers. This approach will increase transparency, lower wait times and attract more surgeons – helping deliver better health care for all Albertans, when and where they need it.”
Activity-based funding is based on the number and type of patients treated and the complexity of their care, incentivizing efficiency and ensuring that funding is tied to the actual care provided to patients. This funding model improves transparency, ensuring care is delivered at the right time and place as multiple organizations begin providing health services across the province.
“Exploring innovative ways to allocate funding within our health care system will ensure that Albertans receive the care they need, when they need it most. I am excited to see how this new approach will enhance the delivery of health care in Alberta.”
Patient-focused, or activity-based, funding has been successfully implemented in Australia and many European nations, including Sweden and Norway, to address wait times and access to health care services, and is currently used in both British Columbia and Ontario in various ways.
“It is clear that we need a new approach to manage the costs of delivering health care while ensuring Albertans receive the care they expect and deserve. Patient-focused funding will bring greater accountability to how health care dollars are being spent while also providing an incentive for quality care.”
This transition is part of Acute Care Alberta’s mandate to oversee and arrange for the delivery of acute care services such as surgeries, a role that was historically performed by AHS. With Alberta’s government funding more surgeries than ever, setting a record with 304,595 surgeries completed in 2023-24 and with 310,000 surgeries expected to have been completed in 2024-25, it is crucial that funding models evolve to keep pace with the growing demand and complexity of services.
“With AHS transitioning to a hospital-based services provider, it’s time we are bold and begin to explore how to make our health care system more efficient and manage the cost of care on a per patient basis. The transition to a PFF model will align funding with patient care needs, based on actual service demand and patient needs, reflecting the communities they serve.”
“Covenant Health welcomes a patient-focused approach to acute care funding that drives efficiency, accountability and performance while delivering the highest quality of care and services for all Albertans. As a trusted acute care provider, this model better aligns funding with outcomes and supports our unwavering commitment to patients.”
“Patient-focused hospital financing ties funding to activity. Hospitals are paid for the services they deliver. Efficiency may improve and surgical wait times may decrease. Further, hospital managers may be more accountable towards hospital spending patterns. These features ensure that patients receive quality care of the highest value.”
Leadership at Alberta Health and Acute Care Alberta will review relevant research and the experience of other jurisdictions, engage stakeholders and define and customize patient-focused funding in the Alberta context. This working group will also identify and run a pilot to determine where and how this approach can best be applied and implemented this fiscal year.
Final recommendations will be provided to the minister of health later this year, with implementation of patient-focused funding for select procedures across the system in 2026.
David Clinton
Contrasting the principle of equalization with the execution
Quebec – as an example – happens to be sitting on its own significant untapped oil and gas reserves. Those potential opportunities include the Utica Shale formation, the Anticosti Island basin, and the Gaspé Peninsula (along with some offshore potential in the Gulf of St. Lawrence).
So Quebec is effectively being paid billions of dollars a year to not exploit their natural resources. That places their ostensibly principled stand against energy resource exploitation in a very different light.
You’ll need to search long and hard to find a Canadian unwilling to help those less fortunate. And, so long as we identify as members of one nation¹, that feeling stretches from coast to coast.
So the basic principle of Canada’s equalization payments – where poorer provinces receive billions of dollars in special federal payments – is easy to understand. But as you can imagine, it’s not easy to apply the principle in a way that’s fair, and the current methodology has arguably lead to a very strange set of incentives.
According to Department of Finance Canada, eligibility for payments is determined based on your province’s fiscal capacity. Fiscal capacity is a measure of the taxes (income, business, property, and consumption) that a province could raise (based on national average rates) along with revenues from natural resources. The idea, I suppose, is that you’re creating a realistic proxy for a province’s higher personal earnings and consumption and, with greater natural resources revenues, a reduced need to increase income tax rates.
But the devil is in the details, and I think there are some questions worth asking:
- Whichever way you measure fiscal capacity there’ll be both winners and losers, so who gets to decide?
- Should a province that effectively funds more than its “share” get proportionately greater representation for national policy² – or at least not see its policy preferences consistently overruled by its beneficiary provinces?
The problem, of course, is that the decisions that defined equalization were – because of long-standing political conditions – dominated by the region that ended up receiving the most. Had the formula been the best one possible, there would have been little room to complain. But was it?
For example, attaching so much weight to natural resource revenues is just one of many possible approaches – and far from the most obvious. Consider how the profits from natural resources already mostly show up in higher income and corporate tax revenues (including income tax paid by provincial government workers employed by energy-related ministries)?
And who said that such calculations had to be population-based, which clearly benefits Quebec (nine million residents vs around $5 billion in resource income) over Newfoundland (545,000 people vs $1.6 billion) or Alberta (4.2 million people vs $19 billion). While Alberta’s average market income is 20 percent or so higher than Quebec’s, Quebec’s is quite a bit higher than Newfoundland’s. So why should Newfoundland receive only minimal equalization payments?
To illustrate all that, here’s the most recent payment breakdown when measured per-capita:
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For clarification, the latest per-capita payments to poorer provinces ranged from $3,936 to PEI, $1,553 to Quebec, and $36 to Ontario. Only Saskatchewan, Alberta, and BC received nothing.
And here’s how the total equalization payments (in millions of dollars) have played out over the past decade:
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Is energy wealth the right differentiating factor because it’s there through simple dumb luck, morally compelling the fortunate provinces to share their fortune? That would be a really difficult argument to make. For one thing because Quebec – as an example – happens to be sitting on its own significant untapped oil and gas reserves. Those potential opportunities include the Utica Shale formation, the Anticosti Island basin, and the Gaspé Peninsula (along with some offshore potential in the Gulf of St. Lawrence).
So Quebec is effectively being paid billions of dollars a year to not exploit their natural resources. That places their ostensibly principled stand against energy resource exploitation in a very different light. Perhaps that stand is correct or perhaps it isn’t. But it’s a stand they probably couldn’t have afforded to take had the equalization calculation been different.
Of course, no formula could possibly please everyone, but punishing the losers with ongoing attacks on the very source of their contributions is guaranteed to inspire resentment. And that could lead to very dark places.
Note: I know this post sounds like it came from a grumpy Albertan. But I assure you that I’ve never even visited the province, instead spending most of my life in Ontario.
Which has admittedly been challenging since the former primer minister infamously described us as a post-national state without an identity.
This isn’t nearly as crazy as it sounds. After all, there are already formal mechanisms through which Indigenous communities get more than a one-person-one-vote voice.
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