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Alberta

Province says Alberta on target for Stage 2 Restriction Easing by June 10

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COVID-19 hospitalizations drop below 500

The province has reached another milestone, with the number of people hospitalized due to COVID-19 dropping to only 478.

If this trend continues, Stage 2 easing of restrictions could start on June 10, given than 60 per cent of Albertans are now vaccinated. Alberta Health will continue to closely monitor hospitalization trends over the next two weeks.

“This decline in the number of people in hospital due to COVID-19 shows that Albertans’ efforts to stick to guidelines and to get vaccinated are paying off. As long as hospitalizations stay below 500, we will move into Stage 2 on June 10 and be one step closer to having an amazing and fully open Alberta summer.”

Jason Kenney, Premier

“Fewer people in hospital shows Albertans are responding to our call for vaccinations, and is yet another welcome sign that we are on the right track. Health officials will continue to monitor this trend closely in the weeks ahead as we move towards reopening the province.”

Tyler Shandro, Health Minister

Alberta’s government is responding to the COVID-19 pandemic by protecting lives and livelihoods with precise measures to bend the curve, sustain small businesses, and protect Alberta’s health care system.

Stage 2 of the Open for Summer Plan:

  • Outdoor social gatherings increase to 20 people, with distancing.
  • Wedding ceremonies may occur with up to 20 attendees. Receptions are permitted outdoors only.
  • Funeral ceremonies remain unchanged with up to 20 people permitted, not including facility staff, funeral clergy or organizers not considered guests. Receptions are permitted outdoors only.
  • Restaurants may seat tables with up to six people, indoors or outdoors.
    • Dining parties are no longer restricted to households only.
    • Physical distancing and other restrictions still apply.
  • Retail capacity increases to one-third of fire code occupancy (must maintain ability to distance).
  • Capacity for places of worship increases to one-third of fire code occupancy.
  • Gyms and other indoor fitness open for solo and drop-in activities with three-metre distancing between participants and fitness classes may resume with three-metre distancing.
  • Indoor settings may open with up to one-third of fire code occupancy, including indoor recreation centres. This includes arenas, cinemas, theatres, museums, art galleries and libraries.
  • Indoor and outdoor youth and adult sports resume with no restrictions.
  • Youth activities, such as day camps and play centres, may resume, with restrictions.
  • Personal and wellness services can resume walk-in services.
  • Post-secondary institutions can resume in-person learning.
  • The work-from-home order is lifted but still recommended.
  • Outdoor fixed seating facilities (e.g., grandstands) can open with one-third seated capacity.
  • Public outdoor gatherings increase to 150 people (e.g. concerts/festivals), with restrictions.
  • Distancing and masking requirements remain in effect.

Indoor masking and distancing requirements will remain in place throughout this stepped approach and some degree of restrictions will still apply to all activities within each step.

Additional details on the current restrictions are outlined on alberta.ca.

Alberta

Low oil prices could have big consequences for Alberta’s finances

Published on

From the Fraser Institute

By Tegan Hill

Amid the tariff war, the price of West Texas Intermediate oil—a common benchmark—recently dropped below US$60 per barrel. Given every $1 drop in oil prices is an estimated $750 million hit to provincial revenues, if oil prices remain low for long, there could be big implications for Alberta’s budget.

The Smith government already projects a $5.2 billion budget deficit in 2025/26 with continued deficits over the following two years. This year’s deficit is based on oil prices averaging US$68.00 per barrel. While the budget does include a $4 billion “contingency” for unforeseen events, given the economic and fiscal impact of Trump’s tariffs, it could quickly be eaten up.

Budget deficits come with costs for Albertans, who will already pay a projected $600 each in provincial government debt interest in 2025/26. That’s money that could have gone towards health care and education, or even tax relief.

Unfortunately, this is all part of the resource revenue rollercoaster that’s are all too familiar to Albertans.

Resource revenue (including oil and gas royalties) is inherently volatile. In the last 10 years alone, it has been as high as $25.2 billion in 2022/23 and as low as $2.8 billion in 2015/16. The provincial government typically enjoys budget surpluses—and increases government spending—when oil prices and resource revenue is relatively high, but is thrown into deficits when resource revenues inevitably fall.

Fortunately, the Smith government can mitigate this volatility.

The key is limiting the level of resource revenue included in the budget to a set stable amount. Any resource revenue above that stable amount is automatically saved in a rainy-day fund to be withdrawn to maintain that stable amount in the budget during years of relatively low resource revenue. The logic is simple: save during the good times so you can weather the storm during bad times.

Indeed, if the Smith government had created a rainy-day account in 2023, for example, it could have already built up a sizeable fund to help stabilize the budget when resource revenue declines. While the Smith government has deposited some money in the Heritage Fund in recent years, it has not created a dedicated rainy-day account or introduced a similar mechanism to help stabilize provincial finances.

Limiting the amount of resource revenue in the budget, particularly during times of relatively high resource revenue, also tempers demand for higher spending, which is only fiscally sustainable with permanently high resource revenues. In other words, if the government creates a rainy-day account, spending would become more closely align with stable ongoing levels of revenue.

And it’s not too late. To end the boom-bust cycle and finally help stabilize provincial finances, the Smith government should create a rainy-day account.

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Alberta

Governments in Alberta should spur homebuilding amid population explosion

Published on

From the Fraser Institute

By Tegan Hill and Austin Thompson

In 2024, construction started on 47,827 housing units—the most since 48,336 units in 2007 when population growth was less than half of what it was in 2024.

Alberta has long been viewed as an oasis in Canada’s overheated housing market—a refuge for Canadians priced out of high-cost centres such as Vancouver and Toronto. But the oasis is starting to dry up. House prices and rents in the province have spiked by about one-third since the start of the pandemic. According to a recent Maru poll, more than 70 per cent of Calgarians and Edmontonians doubt they will ever be able to afford a home in their city. Which raises the question: how much longer can this go on?

Alberta’s housing affordability problem reflects a simple reality—not enough homes have been built to accommodate the province’s growing population. The result? More Albertans competing for the same homes and rental units, pushing prices higher.

Population growth has always been volatile in Alberta, but the recent surge, fuelled by record levels of immigration, is unprecedented. Alberta has set new population growth records every year since 2022, culminating in the largest-ever increase of 186,704 new residents in 2024—nearly 70 per cent more than the largest pre-pandemic increase in 2013.

Homebuilding has increased, but not enough to keep pace with the rise in population. In 2024, construction started on 47,827 housing units—the most since 48,336 units in 2007 when population growth was less than half of what it was in 2024.

Moreover, from 1972 to 2019, Alberta added 2.1 new residents (on average) for every housing unit started compared to 3.9 new residents for every housing unit started in 2024. Put differently, today nearly twice as many new residents are potentially competing for each new home compared to historical norms.

While Alberta attracts more Canadians from other provinces than any other province, federal immigration and residency policies drive Alberta’s population growth. So while the provincial government has little control over its population growth, provincial and municipal governments can affect the pace of homebuilding.

For example, recent provincial amendments to the city charters in Calgary and Edmonton have helped standardize building codes, which should minimize cost and complexity for builders who operate across different jurisdictions. Municipal zoning reforms in CalgaryEdmonton and Red Deer have made it easier to build higher-density housing, and Lethbridge and Medicine Hat may soon follow suit. These changes should make it easier and faster to build homes, helping Alberta maintain some of the least restrictive building rules and quickest approval timelines in Canada.

There is, however, room for improvement. Policymakers at both the provincial and municipal level should streamline rules for building, reduce regulatory uncertainty and development costs, and shorten timelines for permit approvals. Calgary, for instance, imposes fees on developers to fund a wide array of public infrastructure—including roads, sewers, libraries, even buses—while Edmonton currently only imposes fees to fund the construction of new firehalls.

It’s difficult to say how long Alberta’s housing affordability woes will endure, but the situation is unlikely to improve unless homebuilding increases, spurred by government policies that facilitate more development.

Tegan Hill

Director, Alberta Policy, Fraser Institute

Austin Thompson

Senior Policy Analyst, Fraser Institute
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