Alberta
Province spending $36 million to free up hospital space for Covid patients

More funding to increase health-care capacity
Up to $36 million in new funding will improve wages and create additional workforce capacity to allow more Albertans to receive care outside of hospitals and free up resources to treat COVID-19 patients during the fourth wave.
Improving home care and facility-based continuing care will mean more Albertans will get the care they need in their homes and communities. This will help reduce pressure on all parts of the health-care system, namely acute care, during a time when hospitalizations are increasing due to COVID-19.
More than 400 Albertans are currently waiting in hospitals to move into continuing care facilities, with many more waiting to return to their homes outside of facility-based care with the support of home care services.
“We know that home care agencies are experiencing staffing challenges. Increasing the pool of available staff will mean we can move additional patients from hospitals to their homes when it is safe to do so. This is a benefit to patients who would rather get the care they need in the comfort of their own homes. It also benefits hospitals as they manage the increasing number of patients who need beds because of COVID-19 complications.”
“Supporting home care agencies recruit and retain staff will enable more patients to receive high-quality care in their homes, improving capacity in our hospitals and allowing more patients to stay close to their loved ones.”
Wage increases for health-care aides
Contracted home care agencies will receive $22 million over two years in additional funding to provide wage increases to their certified health-care aides. The additional funding will provide a pay increase of $2 an hour for the next 13 months for health-care aides working in home care agencies contracted with Alberta Health Services. The purpose of providing this increase in funding rates is to help retain current and recruit additional staff, which will allow more Albertans to be cared for in their own homes. There are currently hundreds of vacant health-care aide positions in the home care system.
Alberta Health Services is also increasing home care hours authorized for agencies; the funding increase will help the agencies meet these hours. This supports the shift to more care in the community, as recommended in the facility-based continuing care review.
Expanding the home care workforce
An additional $14 million is being provided to expand workforce capacity to support home care and continuing care facilities on a short-term basis until March 31, 2022. There is a need to be able to respond quickly to new health system pressures arising from COVID-19. Similar to the comfort care aide program that provided a staffing pool for continuing care facilities, this additional funding will support a variety of innovative approaches to mobilize existing or new staff to where they are most needed for short periods of time.
“The Alberta Continuing Care Association welcomes this additional funding to improve Alberta’s continuing care system as a whole. Our members provide care and services for over 13,000 individuals in long-term care and designated supportive living settings and over 5.2 million hours of home care to Albertans.”
“Our caregivers provide exceptional client-focused home support services and go the extra mile to make our clients feel special, comfortable and safe. This additional funding will help to sustain the home care sector and our dedicated staff who deliver high-quality care to Albertans every day.”
“We thank the Alberta government for their recognition and support of the ever-important work our home care health-care aides provide to keep our clients safe and well in their homes. This announcement is a positive step forward to developing a sustainable funding model to make home care a desirable career choice.”
Quick facts
- A Canadian Institute for Health Information (CIHI) study found that a growing number of seniors in Canada could have been supported in their homes through home care, helping to delay or avoid admission to continuing care residences.
- There are more than 132,000 Albertans who receive home care services annually and nearly 28,000 Albertans residing in continuing care facilities.
- The $22 million for the health-care aide wage increase will be provided over two years; $12 million in 2021-22 and $10 million in 2022-23.
- The home care aide salary increase is for staff working in contracted home care agencies. This increase does not apply to Alberta Health Services or Covenant Health home care staff.
Alberta
Low oil prices could have big consequences for Alberta’s finances

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.
Alberta
Governments in Alberta should spur homebuilding amid population explosion

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 Calgary, Edmonton 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.
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