Connect with us
[bsa_pro_ad_space id=12]

Alberta

Albertans continue to contribute disproportionately to Canadian federalism

Published

1 month ago

4 minute read

From the Fraser Institute

By Tegan Hill 

Net contribution totaled $244.6 billion between 2007 and 2022

Between 2007 and 2022, Albertans continued to contribute disproportionately to Canadian federalism in terms of the amount of federal taxes paid versus federal spending in the province, finds a new study published today by the Fraser Institute, an independent non-partisan Canadian think-tank.

“It’s clear that Albertans continue to disproportionately contribute to the economic success of the country and to federal finances,” said Tegan Hill, director of Alberta Policy at the Fraser Institute and co-author of Understanding Alberta’s Outsized Contribution to Confederation.

Overall, from 2007 and 2022, Albertans’ contributed $244.6 billion to the federal government in taxes and other payments in excess of the money Ottawa spent or transferred to Alberta – more than five times as much as was contributed (on net) by either British Columbians or Ontarians. The other seven provinces, and most notably Quebec were net recipients of federalism, meaning the amount of revenues collected by the federal government in those provinces was exceeded by the amount of money spent or transferred by Ottawa back to the provinces.

“When Alberta’s economy is strong and prosperous, it benefits the entire nation,” commented Hill.

In 2022, Alberta’s inflation-adjusted GDP growth was the fastest in the country (5 per cent), it also reported the fastest private sector employment growth (7.8 per cent), the highest level of business investment per private sector worker ($36,412) and had the highest net interprovincial migration (56,245 people).

“It is the economic success of Alberta that leads to Albertans contributing more to Canadian federalism than other provinces, which is absolutely something to be encouraged rather than discouraged,” said Hill.

  • When Alberta is economically strong, all Canadians benefit, because money is redistributed to other parts of Canada.
  • In 2022, despite restrictive federal policies, Alberta continued to contribute disproportionately to the federation.
  • Alberta’s 5.0% real GDP growth rate was the fastest in Canada in 2022, accounting for 17.9% of Canada’s real GDP growth, despite being home to 11.6% of the population.
  • In 2022, 56,245 Canadian residents relocated to Alberta, representing more than 75% of total net in-migration within Canada.
  • Alberta reported the fastest private sector employment growth among the provinces (7.8%) in 2022, accounting for 19.2% of private sector jobs created in Canada.
  • Per private sector worker, Alberta attracted $36,412 of business investment, more than double the national average (excluding Alberta).
  • From 2007 to 2022, Alberta’s net contribution to the federal finances totalled $244.6 billion—more than five times as much as BC’s ($46.9 billion) or Ontario’s ($41.9 billion). In 2022, Alberta contributed $14.2 billion more to federal revenues than it received back in federal spending.
  • If Alberta were an “average contributor” based on the other provinces, rather than a large net contributor, the federal government would have had a fiscal shortfall of $16.9 billion in 2022. For perspective, to cover this net revenue loss, the federal GST rate would need to increase from 5.0% to 7.2%.
  • Put simply, without Alberta’s oversized contribution to the federation, Canada would be worse off. To benefit all Canadians, the federal government should focus on supportive policies, not restrictive ones.

Authors:

Tegan Hill
Director, Alberta Policy, Fraser Institute
Nathaniel Li
Senior Economist, Fraser Institute
Spencer Gudewill
Research Intern, Fraser Institute
Milagros Palacios
Director, Addington Centre for Measurement, Fraser Institute
Related Topics:

Todayville is a digital media and technology company. We profile unique stories and events in our community. Register and promote your community event for free.

Follow Author

More from this author
Business / 2 hours ago

Feds blow $2.7 million on global film festivals

National / 2 hours ago

Liberal House Leader tells gov’t-funded media they must ‘scrutinize’ Conservatives

conflict / 3 hours ago

Second Wave Of Blasts Sweep Through Lebanon As Hezbollah Walkie-Talkies Suddenly Explode

Alberta

$8.6 billion committed: Province to fund up to 30 new schools and 8 modernizations in each of next 3 years

Published on September 18, 2024

By

Alberta’s government is committing $8.6 billion to complete and open 200,000 new student spaces across the province in the next seven years.

Alberta’s population is growing exponentially as more people from across Canada and around the world choose to make the province their home. This rapid growth is causing strain on the Kindergarten to Grade 12 education system, with student enrolment increasing at historic rates.

To keep up with fast-rising student enrolment, Alberta’s government is committing $8.6 billion through the new School Construction Accelerator Program. This program will create more than 200,000 new and modernized spaces for students to learn, grow and reach their full potential. Starting in Budget 2025, Alberta’s government will kick-start up to 30 new schools and as many as eight modernizations and replacement schools every year for the next three years.

“Every student deserves a quality education in a school that can meet their learning needs and set them on a path to success in the future. As hundreds of thousands of people are choosing to make Alberta their home, we are responding by funding and building the schools our fast-growing communities need. As we build, we’re asking school boards and municipalities to work with us so we can get shovels in the ground as quickly as possible.”

Danielle Smith, Premier

The Calgary Metropolitan Area and Edmonton Metropolitan Region, along with other communities across the province, have been feeling the pressures of strong student growth and aging school infrastructure. The School Construction Accelerator Program will result in 50,000 new or modernized student spaces over the next three years – and more than 150,000 new and modernized spaces over the following four years. In total, the School Construction Accelerator Program will mean approval for up to 30 new school projects and as many as eight new modernization and replacement projects every year over the next three years. In addition to the school projects, 20,000 new student spaces will be delivered through modular classrooms over the next four years.

“We are investing in the future of our province. Through our commitment to kick-start 30 new schools each year over the next three years, we are delivering new student spaces across the province and in our fastest-growing communities for students to learn, grow and reach their full potential.”

Demetrios Nicolaides, Minister of Education

“I look forward to working with my ministry and industry partners to build the schools Albertans need and ensuring that each project is as unique as the students who use them. School builds, modernizations and renovations support tens of thousands of jobs across the province. As Alberta communities continue to grow, this announcement will allow us to meet demands for spaces faster and more efficiently, all while creating jobs and boosting our local and provincial economies.”

Pete Guthrie, Minister of Infrastructure

The School Construction Accelerator program also takes immediate action to speed up the construction of schools by enabling school projects to be approved in-year for their next stage in the construction process without having to wait for the next budget cycle. This means all previously approved school projects currently in the planning and design stages can move forward to the next stage as soon as they are ready to do so. Through this change, 10 previously announced priority school projects are now approved for the next stage of project delivery, including six moving to full construction.

“We appreciate the government’s recognition that there is an urgent need to provide additional learning spaces for CBE students. CBE families are looking forward to new schools in their growing communities and modernizations to address aging infrastructure. Thank you to the Premier and the Government of Alberta for this much-needed investment.”

Patricia Bolger, board chair, Calgary Board of Education

“Edmonton Public Schools is grateful for the province’s funding for school infrastructure. This crucial support will help us meet urgent needs and positively affect our students and families.”

Julie Kusiek, board chair, Edmonton Public Schools

The population growth has not only increased pressure in the public and separate school system but has increased demand for publicly funded charter programming and space needs. Public charter schools play an important role in Alberta’s education system by offering unique programming to students focused on a learning style, teaching style, approach or pedagogy not already being offered by school boards where the charter is located. As part of this accelerated program, Alberta’s government will add 12,500 new charter school student spaces over the next four years through a Charter School Accelerator pilot program.

“The Association of Alberta Public Charter Schools is elated by this historic capital announcement. It will help ensure that more families and students can access the excellent programming our public charter schools offer for generations to come.”

Joanne Higgins, president, The Alberta Association of Public Charter Schools (TAAPCS)

Independent schools offer specialized learning supports as well as religious and cultural programming to support parental and educational choice. Alberta’s government will continue to explore opportunities for a school capital pilot program for non-profit independent schools to broaden learning options for Alberta families.

Quick facts

  • The School Construction Accelerator Program will deliver more than 200,000 new and modernized student spaces.
    • Previously approved school projects and modular classrooms will create about 50,000 new and modernized student spaces over the next three years.
    • The program will create about 150,000 additional new and modernized student spaces. This includes:
      • more than 100,000 new student spaces
      • more than 16,600 modernized student spaces
      • more than 20,000 student spaces in new or relocated modular classrooms
Continue Reading

Alberta

Premier Smith to Ottawa: Alberta can’t afford thousands of asylum seekers right now

Published on September 17, 2024

By

From Free Alberta Strategy

For decades, Canada’s immigration policies were uncontroversial – parties across the spectrum maintained generally sensible policies.

But the current government in Ottawa has ditched this consensus, and the public mood is turning fast.

A large influx of newcomers has put a significant strain on public services and the housing market across the country.

Alberta, in particular, is feeling the strain, as our province receives both a disproportionately large share of the immigrants arriving in Canada, as well as by far the largest number of people moving between provinces.

Earlier this year, the Alberta government reported that in the year from April 2023 to April 2024, Alberta’s population had grown a record 4.11%, representing 204,677 people.

This is by far the highest annual growth rate in the country, outpacing second-place Ontario by nearly a full percentage point.

Importantly, international migration is responsible for about 68% of the increase, interprovincial migration is responsible for about 25%, and just 8% is caused by natural increase.

Another area of immigration that has significantly increased in Alberta is asylum seekers, which have more than doubled from 5,076 per year to 11,292 per year.

Of course, this represents just a small portion of the overall immigration to Alberta, and Alberta actually accepts a much smaller share of asylum seekers (about 5% of the total) compared with our population (about 12% of Canada).

But, Ottawa is now pushing to change this – they want provinces like Alberta to accept more of their “fair share” of asylum seekers – despite the fact that Alberta already receives more than its “fair share” of other types of immigrants.

Federal Immigration Minister Marc Millers says the federal government anticipates full cooperation from all provinces and territories as it strives for a fair and sustainable approach to managing the influx.

He says the federal government has “levers that we need to push and pull” when it comes to enticing provinces to agree to their terms:

“The reality is that Quebec and Ontario are facing disproportionate pressures, compared to any other province in the country – as they have been welcoming the majority of asylum seekers,” says the Minister.

“We will have proper incentives for those willing to welcome asylum seekers, and will take a holistic view with regards to other immigration programs based on participation – as this is work we cannot do alone, nor unilaterally. All options remain on the table.”

In other words, the federal government is once again planning on spending more of our tax dollars to effectively bribe the provinces’ to go along with their policies.

This idea isn’t new – Quebec has already urged the Trudeau government to disperse asylum-seekers more evenly across the provinces.

Premier Smith, however, is saying no:

“Section 95 of the Constitution is clear – immigration is an area of shared authority between the federal government and the provinces.”

“We are informing the Government of Canada that until further notice, Alberta is not open to having these additional asylum seekers settled in our province,” she added.

“We simply cannot afford it.”

Maybe, when the full details of the federal government’s plan are made public, the numbers will stack up.

But, based on past precedent, it seems unlikely.

More likely, this is just another agreement with the federal government that Alberta can’t afford to make.

Time and time again, we’ve seen the federal government approach the provincial government with a deal that – in Ottawa’s view – is good for the province.

We know, as we’ve seen with the nationalized childcare fiasco, that these deals very rarely work out for Alberta.

The Free Alberta Strategy continues to be Alberta’s shield against federal overreach, ensuring that Albertans remain in control of our future.

This issue is just the latest battle in which our unwavering defence of our provinces’ best interests can make a real difference.

If you believe in defending Alberta from Ottawa, join us!

Your contribution will help ensure that the Free Alberta Strategy has the resources and voice it needs to push back. 

Donate today to stand up for Alberta’s sovereignty and sustainability!

Continue Reading

Trending

X