Alberta
Albertans to vote on senators, equalization, daylight saving time
Albertans will have an opportunity to have their say on equalization and daylight saving time and elect nominees to the Senate when they vote in the fall municipal elections.
In addition to voting for Senate nominees, Albertans will be asked to vote on these two provincial topics on Oct. 18, in conjunction with the municipal elections:
- Equalization payments – Should the principle of making equalization payments be removed from the Constitution?
- Daylight saving time – Should Alberta end the practice of changing our clocks twice a year?
“Alberta has a long and proud tradition of grassroots, direct democracy. We will renew that tradition this fall. I encourage all Albertans to get engaged on these important issues and I look forward to taking part in the debate this fall.”
Equalization
Over the last 25 years, Albertans have contributed more than $400 billion more to the nation in tax dollars than they have received in federal spending. Albertans make an immense contribution to equalization through federal tax contributions, which are transferred by the federal government to other provinces for programs and services. The current program has many issues, including a formula that requires it to grow automatically with Canada’s economy, even if contributing provinces like Alberta are experiencing immense economic challenges.
Daylight saving time
Across Canada and the United States, more governments are bringing forward legislation to move to permanent daylight saving time, also known as summer hours. In 2019, Service Alberta asked Albertans if they thought we should make a similar shift. More than 141,000 Albertans responded, of which 91 per cent were in favour of year-round summer hours.
“Changing our clocks twice a year is something that every Albertan has an opinion on. As Alberta first adopted daylight saving time following a referendum in 1971, we owe it to Albertans to give them the same opportunity to make their voices heard now that we are considering another change.”
Senate elections
Along with the municipal elections and the two referendum questions this fall, Albertans will elect three Senate nominees – one for each of the two current vacancies and one in case of early retirement.
The Senate nominee election enhances democracy in the province by allowing Albertans to choose the individuals who will best represent them in Parliament. Having representatives elected by Albertans would increase senators’ accountability to Alberta voters to defend the province’s interests.
Provincial police and pension
For the topics of creating an Alberta Police Service and Alberta Pension Plan, further analysis and work are underway before next steps are determined.
“Through the Fair Deal Panel, Albertans who are policed by the RCMP said that they want to see Alberta build its own provincial police service to improve policing in their communities. We are continuing to study what this could look like and how it could improve the safety and security of Albertans and their property, as part of making an informed decision on the next steps.”
“The potential creation of an Alberta Pension Plan would be a significant decision for Albertans. As such, we are continuing the important work of completing an actuarial, economic and structural analysis so Albertans can make an educated and well-informed choice, and their questions and concerns can be adequately addressed. We look forward to putting this important decision on the table when the time is right.”
Quick facts
- The equalization question will be: “Should Section 36(2) of the Constitution Act, 1982 –Parliament and the Government of Canada’s commitment to the principle of making equalization payments – be removed from the Constitution?”
- Between 2014 and 2019 alone, Albertans made a net contribution of more than $100 billion to the federal government through federal taxes that helped build critical infrastructure.
- Alberta has not received an equalization payment since the 1964-65 fiscal year.
- The question on daylight saving time will be finalized this summer.
- During 2019 and 2020, legislation was tabled in British Columbia and Ontario to move to summer hours all year. These changes have yet to be implemented.
- In March 2020, the Yukon stopped changing their clocks and adopted Pacific daylight time year-round.
- Since 2018, 17 American states have passed legislation to move to summer hours (daylight saving time) permanently and more states are debating the topic. However, in the United States, federal approval is required to enact the change.
- Saskatchewan, Arizona and Hawaii do not change their clocks twice a year.
- The Government of Alberta would provide names of elected Senate nominees to the prime minister for consideration when filling Senate vacancies.
Alberta
Alberta’s fiscal update projects budget surplus, but fiscal fortunes could quickly turn
From the Fraser Institute
By Tegan Hill
According to the recent mid-year update tabled Thursday, the Smith government projects a $4.6 billion surplus in 2024/25, up from the $2.9 billion surplus projected just a few months ago. Despite the good news, Premier Smith must reduce spending to avoid budget deficits.
The fiscal update projects resource revenue of $20.3 billion in 2024/25. Today’s relatively high—but very volatile—resource revenue (including oil and gas royalties) is helping finance today’s spending and maintain a balanced budget. But it will not last forever.
For perspective, in just the last decade the Alberta government’s annual resource revenue has been as low as $2.8 billion (2015/16) and as high as $25.2 billion (2022/23).
And while the resource revenue rollercoaster is currently in Alberta’s favor, Finance Minister Nate Horner acknowledges that “risks are on the rise” as oil prices have dropped considerably and forecasters are projecting downward pressure on prices—all of which impacts resource revenue.
In fact, the government’s own estimates show a $1 change in oil prices results in an estimated $630 million revenue swing. So while the Smith government plans to maintain a surplus in 2024/25, a small change in oil prices could quickly plunge Alberta back into deficit. Premier Smith has warned that her government may fall into a budget deficit this fiscal year.
This should come as no surprise. Alberta’s been on the resource revenue rollercoaster for decades. Successive governments have increased spending during the good times of high resource revenue, but failed to rein in spending when resource revenues fell.
Previous research has shown that, in Alberta, a $1 increase in resource revenue is associated with an estimated 56-cent increase in program spending the following fiscal year (on a per-person, inflation-adjusted basis). However, a decline in resource revenue is not similarly associated with a reduction in program spending. This pattern has led to historically high levels of government spending—and budget deficits—even in more recent years.
Consider this: If this fiscal year the Smith government received an average level of resource revenue (based on levels over the last 10 years), it would receive approximately $13,000 per Albertan. Yet the government plans to spend nearly $15,000 per Albertan this fiscal year (after adjusting for inflation). That’s a huge gap of roughly $2,000—and it means the government is continuing to take big risks with the provincial budget.
Of course, if the government falls back into deficit there are implications for everyday Albertans.
When the government runs a deficit, it accumulates debt, which Albertans must pay to service. In 2024/25, the government’s debt interest payments will cost each Albertan nearly $650. That’s largely because, despite running surpluses over the last few years, Albertans are still paying for debt accumulated during the most recent string of deficits from 2008/09 to 2020/21 (excluding 2014/15), which only ended when the government enjoyed an unexpected windfall in resource revenue in 2021/22.
According to Thursday’s mid-year fiscal update, Alberta’s finances continue to be at risk. To avoid deficits, the Smith government should meaningfully reduce spending so that it’s aligned with more reliable, stable levels of revenue.
Author:
Alberta
Premier Smith says Auto Insurance reforms may still result in a publicly owned system
Better, faster, more affordable auto insurance
Alberta’s government is introducing a new auto insurance system that will provide better and faster services to Albertans while reducing auto insurance premiums.
After hearing from more than 16,000 Albertans through an online survey about their priorities for auto insurance policies, Alberta’s government is introducing a new privately delivered, care-focused auto insurance system.
Right now, insurance in the province is not affordable or care focused. Despite high premiums, Albertans injured in collisions do not get the timely medical care and income support they need in a system that is complex to navigate. When fully implemented, Alberta’s new auto insurance system will deliver better and faster care for those involved in collisions, and Albertans will see cost savings up to $400 per year.
“Albertans have been clear they need an auto insurance system that provides better, faster care and is more affordable. When it’s implemented, our new privately delivered, care-centred insurance system will put the focus on Albertans’ recovery, providing more effective support and will deliver lower rates.”
“High auto insurance rates put strain on Albertans. By shifting to a system that offers improved benefits and support, we are providing better and faster care to Albertans, with lower costs.”
Albertans who suffer injuries due to a collision currently wait months for a simple claim to be resolved and can wait years for claims related to more serious and life-changing injuries to addressed. Additionally, the medical and financial benefits they receive often expire before they’re fully recovered.
Under the new system, Albertans who suffer catastrophic injuries will receive treatment and care for the rest of their lives. Those who sustain serious injuries will receive treatment until they are fully recovered. These changes mirror and build upon the Saskatchewan insurance model, where at-fault drivers can be sued for pain and suffering damages if they are convicted of a criminal offence, such as impaired driving or dangerous driving, or conviction of certain offenses under the Traffic Safety Act.
Work on this new auto insurance system will require legislation in the spring of 2025. In order to reconfigure auto insurance policies for 3.4 million Albertans, auto insurance companies need time to create and implement the new system. Alberta’s government expects the new system to be fully implemented by January 2027.
In the interim, starting in January 2025, the good driver rate cap will be adjusted to a 7.5% increase due to high legal costs, increasing vehicle damage repair costs and natural disaster costs. This protects good drivers from significant rate increases while ensuring that auto insurance providers remain financially viable in Alberta.
Albertans have been clear that they still want premiums to be based on risk. Bad drivers will continue to pay higher premiums than good drivers.
By providing significantly enhanced medical, rehabilitation and income support benefits, this system supports Albertans injured in collisions while reducing the impact of litigation costs on the amount that Albertans pay for their insurance.
“Keeping more money in Albertans’ pockets is one of the best ways to address the rising cost of living. This shift to a care-first automobile insurance system will do just that by helping lower premiums for people across the province.”
Quick facts
- Alberta’s government commissioned two auto insurance reports, which showed that legal fees and litigation costs tied to the province’s current system significantly increase premiums.
- A 2023 report by MNP shows
-
ESG2 days ago
Can’t afford Rent? Groceries for your kids? Trudeau says suck it up and pay the tax!
-
Aristotle Foundation1 day ago
Toronto cancels history, again: The irony and injustice of renaming Yonge-Dundas Square to Sankofa Square
-
International1 day ago
Euthanasia advocates use deception to affect public’s perception of assisted suicide
-
armed forces1 day ago
Judge dismisses Canadian military personnel’s lawsuit against COVID shot mandate
-
Alberta12 hours ago
Alberta government announces review of Trudeau’s euthanasia regime
-
Business9 hours ago
Trump’s government efficiency department plans to cut $500 Billion in unauthorized expenditures, including funding for Planned Parenthood
-
Addictions2 days ago
BC Addictions Expert Questions Ties Between Safer Supply Advocates and For-Profit Companies
-
Business17 hours ago
CBC’s business model is trapped in a very dark place