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Alberta

Alberta $8.8 billion education budget – plan to hire 3,000 new staff

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Alberta’s government is committed to providing the support and services students need to succeed, and the resources schools need to support teachers and their staff. Budget 2023 increases the operating budget for the Ministry of Education by nearly $2 billion over the next three years. This will support hiring up to 3,000 education staff, including teachers, educational assistants, bus drivers and school support staff.

In the 2023-24 school year, Alberta will spend about $8.8 billion on education for students in kindergarten to Grade 12, the equivalent of $44 million for every day students are in school and an increase of more than five per cent.

“School authorities in Alberta deserve a government that will support them in addressing this year’s unprecedented enrolment growth, be properly resourced to address complex learning needs, and make transportation safer and more affordable. This investment addresses rising enrolment, helps meet students’ diverse needs and helps school authorities combat inflation.”

Adriana LaGrange, Minister of Education

“Our children are our future and Budget 2023 ensures every child is supported in the classroom. By investing in our education system, we are ensuring students are prepared for success throughout their lives. While inflation continues to be a challenge, we are providing stable, predictable funding so school authorities can hire the staff they need to help students learn.”

Travis Toews, President of Treasury Board and Minister of Finance

Welcoming more students

Alberta’s booming economy led to one of its largest-ever population increases in 2022, which has meant more students in Alberta schools. Budget 2023 will provide increased funding to school authorities of $820 million specifically to support enrolment growth over the next three years.

This increased funding will begin the work to address class sizes by allowing school authorities to hire more teachers and classroom staff over the next three years. The increase will come through a variety of existing grants that include an enrolment component.

“Dozens of school projects are in the planning, design or construction phases right now across Alberta. Through Budget 2023, we’ll be adding approximately 20,000 more new and modernized student spaces that will help to ensure our kids get to go to school in their own communities in world-class facilities.”

Nathan Neudorf, Minister of Infrastructure

Meeting students’ unique needs

Budget 2023 includes almost $1.5 billion in Learning Support funding for Alberta’s most vulnerable students, those with specialized learning needs and those requiring additional help at school. This includes specialized learning supports, program unit funding, English as a second language, refugee students, First Nations, Métis and Inuit.

On top of the funding increase for enrolment growth, Budget 2023 also includes targeted funding of $126 million over three years to increase staffing. This funding will allow school authorities to hire more educational assistants or increase their hours, provide more training opportunities for staff and/or hire specialists such as counsellors, psychologists, interpreters and more teachers.

These additional supports will give schools the ability to work more closely with students who have diverse learning needs, such as those with disabilities or those learning English as an additional language. This new funding will be delivered through a new targeted grant to school authorities. Overall, Budget 2023 includes almost $1.5 billion in Learning Support funding for Alberta’s most vulnerable students, those with specialized learning needs and those requiring additional help at school.

To help close learning gaps caused by the pandemic, Alberta’s government will spend an additional $20 million over the next two years to assist students in grades 1 to 5. This increased funding builds off previous successes to help students regain literacy and numeracy skills.

Increasing affordability for transportation

School authorities will also receive an additional $414 million over the next three years through Budget 2023 to support increased transportation funding that will result in more students having access to provincially funded transportation services. This increased funding will lower fees charged to thousands of parents, address rural ride times and cost pressures, and address rising costs for driver training.

Budget 2023 highlights

  • Budget 2023 will increase staffing supports in complex classrooms by up to 10 per cent, which will enhance experiences and have positive effects on students’ personal and social development.
  • The government is investing $50 million to support mental health pilot projects over the next two years to improve K-12 students’ well-being.
  • Rising inflationary pressures are affecting school authorities and families. Budget 2023 will boost transportation funding to offset rising transportation costs like insurance, fuel and driver training. These costs are often passed on to Alberta families, so increasing the amount of funding available will decrease the parent fees associated with school transportation.

Budget 2023 secures Alberta’s future by transforming the health-care system to meet people’s needs, keeping our communities safe, and growing the economy with more jobs, quality education and continued diversification.

Alberta

Alberta’s fiscal update projects budget surplus, but fiscal fortunes could quickly turn

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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.

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Alberta

Premier Smith says Auto Insurance reforms may still result in a publicly owned system

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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.”

Danielle Smith, Premier

“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.”

Nate Horner, President of Treasury Board and Minister of Finance

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.”

Nathan Neudorf, Minister of Affordability and Utilities

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
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