Alberta
Red Deer City Council needs these three things in next week’s provincial budget
From The City of Red Deer
Justice, health and social infrastructure are priorities for Red Deer in the 2020 Provincial Budget
The City of Red Deer is specifically looking for commitment and investment in crown prosecutors for Red Deer, a 24/7 permanent shelter and hospital expansion, as well as a commitment to maintain Municipal Sustainability Initiative (MSI) funding, which was reduced in 2019 impacting The City’s overall capital plan going forward.
“This provincial budget is unlike any other as we continue working to respond to critical social and economic challenges that we hope will be provincially prioritized,” said Mayor Tara Veer. “Investment in a 24/7 permanent shelter and funding for Red Deer Regional Hospital expansion are critical needs that must be addressed for the health and wellbeing of our city as a whole. An investment in justice, especially additional crown prosecutors for Red Deer, is also a top priority to strengthen the court’s ability to uphold charges and obtain justice for victims of crime.”
In addition, The City of Red Deer continues to be concerned about potential downloading of provincial responsibilities to municipalities resulting in potential local tax impacts.
“The impacts of provincial downloading can be significant, especially at a time when many citizens are already feeling the pressures of difficult economic times. While we support the provincial government’s efforts in furthering financial sustainability and efficiency, we are working locally to maintain service and program delivery that responds to the economic and social challenges we face today as a city, and as a province,” said Veer.
As part of the priorities highlighted at the City Council meeting today, The City of Red Deer noted its commitment to community safety and crime reduction with continued focused on advocacy for additional crown prosecutors, as well as a need for a province-wide needle distribution protocol and debris strategy, residential treatment and increased affordable housing in Red Deer.
“It is our responsibility, as local government, to build a safe community while providing stability to businesses and residents in our city, especially in times of economic volatility,” said Mayor Tara Veer. “Earlier this year, Red Deer City Council approved the 2020 budget based on the best information we have right now, and it is our hope that this provincial budget reflects and acknowledges the needs of our citizens and our community at a time when we are working to maintain services and infrastructure for 2020 and beyond.”
The speech from the throne will take place on Tuesday, February 25 with the provincial budget on Thursday, February 27. Upon release of the 2020 provincial budget, administration will conduct an in-depth review to fully understand its impact on Red Deer and its citizens.
Alberta
Integrated Border Enforcement Team makes 189 kg cocaine bust at Coutts port of entry
News release from Alberta RCMP
Canada Border Services Agency (CBSA) officers, working with the Integrated Border Enforcement Team (IBET) in Alberta, a joint force operation between the RCMP Federal Policing Northwest Region, CBSA and Calgary Police Service, seized 189 kg of cocaine following a secondary examination of a commercial truck seeking entry at the Coutts port of entry on Nov. 13, 2024. The drugs have an approximate wholesale value of $2 million.
“The safety and security of Canadians is the RCMP Federal Policing Northwest Region’s top priority. With the support of various law enforcement agencies, we’ve successfully prevented harmful drugs from entering Canada and harming our communities.
- Supt. Sean Boser, Officer in Charge of Federal Serious Organized Crime and Border Integrity – Alberta, RCMP Federal Policing Northwest Region
“I want to commend our CBSA officers who prevent illegal narcotics from breaching our borders and disrupt crime networks. In cooperation with our law enforcement partners, the RCMP and the Calgary Police Service, this significant seizure serves as another example of how Canada’s borders are being secured and drugs are kept off our streets.”
- Ben Tame, Director, Southern Alberta and Southern Saskatchewan District, Canada Border Services Agency
“Our efforts to combat drug trafficking rely heavily on working closely with our partner law enforcement agencies, including the CBSA and RCMP. This is a significant seizure that undoubtedly had the potential to cause serious damage to our community.”
- Supt. Jeff Bell, Criminal Operations & Intelligence Division, Calgary Police Service
IBET’s mandate is to enhance border integrity and security along the shared border, between designated ports of entry, by identifying, investigating and interdicting persons, organizations and goods that are involved in criminal activities.
All partners are engaged in the ongoing criminal investigation.
Alberta
Alberta government must do more to avoid red ink
From the Fraser Institute
By Tegan Hill
As Albertans look toward a new year, it’s worth reviewing the state of provincial finances. When delivering news last month of a projected $4.6 billion budget surplus for fiscal year 2024/25, the Smith government simultaneously warned Albertans that a budget deficit could be looming. Confused? A $4.6 billion budget surplus sounds like good news—but not when its on the back of historically high (and incredibly volatile) resource revenue.
In just the last 10 years, resource revenue, which includes oil and gas royalties, has ranged from a low of $3.4 billion in 2015/16 (inflation-adjusted) to a high of $26.1 billion in 2022/23. Inflation-adjusted resource revenue is projected to be relatively high in historical terms this fiscal year at $19.8 billion.
Resource revenue volatility is not in and of itself a problem. The problem is that provincial governments tend to increase spending when resource revenue is high, but do not similarly reduce spending when resource revenue declines.
Overall, in Alberta, a $1 increase in inflation-adjusted per-person resource revenue is associated with an estimated 56-cent increase in program spending the following fiscal year, but a decline in resource revenue is not similarly associated with a reduction in program spending. Over time, this pattern has contributed to historically high levels of government spending that exceed ongoing stable levels of government revenue.
And while the Smith government has shown some restraint, spending levels remain significantly higher than reliable ongoing levels of government revenue. Put simply, unpredictable resource revenue continues to help fund Alberta’s spending—and when resource revenues inevitably fall, Alberta is at high risk of plummeting into a deficit.
Indeed, Finance Minister Nate Horner continues to emphasize that we are “living in extremely volatile times” and warning that if oil prices fall below $70.00 per barrel a budget deficit is “very likely.” According to recent forecasts, the price of oil may hit $66.00 per barrel in 2025.
To avoid this fate, the Alberta government must do more to rein in spending. Fortunately, there’s plenty of options.
For example, the government spends billions in subsidies (a.k.a. corporate welfare) to select industries and businesses every year. A significant body of research shows these subsidies fail to generate widespread economic benefits. Eliminating this corporate welfare, which would generate significant savings in the budget, is a good place to start.
If the Smith government fails to rein in spending, and Alberta incurs a budget deficit, it will only mean more government debt on the backs of Albertans. And with Albertans already paying approximately $650 each in provincial government debt interest each year, that’s something Albertans simply can’t afford.
With a new year set to begin, the Smith government continues to warn of a budget deficit. But rather than simply prepare Albertans for more debt accumulation—financed by their tax dollars—the government should do more to avoid red ink. That means cutting wasteful government spending.
Tegan Hill
Director, Alberta Policy, Fraser Institute
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