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Alberta

Alberta and B.C. budgets represent two different approaches to government finances

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4 minute read

From the Fraser Institute

By Grady Munro and Tegan Hill

” for every $1 of additional revenue enjoyed by both provinces, the Eby government increased spending by more than $6 compared to 79 cents for the Smith government. “

In its recent budget, the Alberta government promised a new approach to provincial finances, with spending restraint and limited debt accumulation. While there’s still work to do, this is a far better approach than the reckless spending and massive debt accumulation of the British Columbia government.

The Smith government projects a $367 million surplus in 2024/25, followed by two more surpluses of $1.4 billion in 2025/26 and $2.6 billion in 2026/27. The government plans to use these surpluses largely to pay down debt, so although provincial net debt (financial assets minus liabilities) is expected to rise slightly in 2024/25 due to increased long-term capital spending (e.g. schools and highways), the debt is projected to decrease 4.1 per cent ($1.7 billion) from 2023/24 to 2026/27.

Alberta’s strong fiscal outlook is largely driven by historically high resource revenues. But while the government plans to increase program spending (total spending minus debt interest costs) nominally over the next three years, spending will grow at a slower rate than population growth and inflation—meaning spending will decline on an inflation-adjusted per-person basis.

The Smith government still must better align spending with stable revenues, but this is an important step in the right direction.

By contrast, B.C.’s 2024 budget projects a $7.9 billion deficit in 2024/25 followed by deficits of $7.8 billion in 2025/26 and $6.3 billion in 2026/27. These deficits, combined with borrowing for capital projects, will drive a projected $55.1 billion (74.7 per cent) increase in provincial net debt from 2023/24 to 2026/27. As a result, the level of net debt projected in 2026/27 ($128.8 billion) is nearly triple the level recorded in 2019/20 ($46.9 billion).

These deficits are due to a substantial increase in provincial spending by the Eby government. Indeed, similar to Alberta, B.C. has recently enjoyed an unexpected surge in revenues, but unlike the Smith government, the Eby government has shown no spending restraint.

From 2023/24 to 2025/26, revenues in B.C. will be a projected $2.0 billion higher than the government projected in last year’s budget, yet the plan for spending over that same period increased by $13.2 billion. For comparison, the Smith government also increased spending in these years relative to its 2023 budget, but did so by $2.1 billion less than the  increase in revenues.

In other words, for every $1 of additional revenue enjoyed by both provinces, the Eby government increased spending by more than $6 compared to 79 cents for the Smith government.

The consequences of B.C.’s approach are clear. By spending far outside its means, the Eby government will saddle future generations of British Columbians with tens of billions more in debt that must be financed through taxes. For perspective, debt interest payments will nearly cost a projected $1,000 per British Columbian by 2026/27—that’s taxpayer money no longer available for programs or services. Moreover, continued deficits weaken the government’s ability to deal with future challenges (such as an economic downturn) without taking on more debt and driving up interest costs.

The Alberta and B.C. budgets provide examples of two different approaches to government finances. While there’s more to be done, Alberta is moving in the right direction to help prevent debt accumulation. On the other hand, B.C. is massively increasing spending and debt, to the detriment of British Columbians now and in the future.

Alberta

Alberta introduces bill banning sex reassignment surgery on minors

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From LifeSiteNews

By Anthony Murdoch

Alberta Conservative Premier Danielle Smith followed through on a promised bill banning so-called ‘top and bottom’ surgeries for minors.

Alberta Conservative Premier Danielle Smith made good on her promise to protect kids from extreme transgender ideology after introducing a bill banning so-called “top and bottom” surgeries for minors.

“It is so important that all youth can enter adulthood equipped to make adult decisions. In order to do that, we need to preserve their ability to make those decisions, and that’s what we’re doing,” Smith said in a press release.

“The changes we’re introducing are founded on compassion and science, both of which are vital for the development of youth throughout a time that can be difficult and confusing.”

Bill 26, the Health Statutes Amendment Act, 2024 “reflects the government’s commitment to build a health care system that responds to the changing needs of Albertans,” the government says.

The bill will amend the Health Act to “prohibit regulated health professionals from performing sex reassignment surgeries on minors.”

It will also ban the “use of puberty blockers and hormone therapies for the treatment of gender dysphoria or gender incongruence” to kids 15 and under “except for those who have already commenced treatment and would allow for minors aged 16 and 17 to choose to commence puberty blockers and hormone therapies for gender reassignment and affirmation purposes with parental, physician and psychologist approval.”

Alberta Minister of Health Adriana LaGrange, the bill’s sponsor, said the province’s legislative priorities include “implementing policy changes to continue our refocusing work, position our health care system to respond to pressures and public health emergencies, and to preserve choice for minors. These amendments reflect our dedication to ensuring our health care system meets the needs of every Albertan.”

Earlier this year, the United Conservative Party (UCP) provincial government under Smith announced  she would introduce the strong pro-family legislation that strengthens parental rights, protecting kids from life-altering, so-called “top and bottom” surgeries as well as other extreme forms of transgender ideology.

With Smith’s UCP holding a majority in the provincial legislature, the passage of Bill 26 is almost certain.

While Smith has done far more than predecessor Jason Kenney to satisfy social conservatives, she has been mostly soft on social issues such as abortion and has publicly expressed pro-LGBT views, telling Jordan Peterson that conservatives must embrace homosexual “couples” as “nuclear families.”

This weekend, thousands of UCP members will gather for the party’s annual general meeting, where Smith’s leadership will be voted on along with many other pro-freedom and family policy proposals from members. Smith is expected to pass her leadership review vote with a large majority.

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Alberta

Alberta court upholds conviction of Pastor Artur Pawlowski for preaching at Freedom Convoy protest

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From LifeSiteNews

By Clare Marie Merkowsky

Lawyers argued that Pastor Artur Pawlowski’s sermon was intended to encourage protesters to find a peaceful solution to the blockade, but the statement was characterized as a call for mischief.

An Alberta Court of Appeal ruled that Calgary Pastor Artur Pawlowski is guilty of mischief for his sermon at the Freedom Convoy-related border protest blockade in February 2022 in Coutts, Alberta.

On October 29, Alberta Court of Appeal Justice Gordon Krinke sentenced the pro-freedom pastor to 60 days in jail for “counselling mischief” by encouraging protesters to continue blocking Highway 4 to protest COVID mandates.

“A reasonable person would understand the appellant’s speech to be an active inducement of the illegal activity that was ongoing and that the appellant intended for his speech to be so understood,” the decision reads.

Pawlowski addressed a group of truckers and protesters blocking entrance into the U.S. state of Montana on February 3, the fifth day of the Freedom Convoy-styled protest. He encouraged the protesters to “hold the line” after they had reportedly made a deal with Royal Canadian Mounted Police to leave the border crossing and travel to Edmonton.

“The eyes of the world are fixed right here on you guys. You are the heroes,” Pawlowski said. “Don’t you dare go breaking the line.”

After Pawlowski’s sermon, the protesters remained at the border crossing for two additional weeks. While his lawyers argued that his speech was made to encourage protesters to find a peaceful solution to the blockade, the statement is being characterized as a call for mischief.

Days later, on February 8, Pawlowski was arrested – for the fifth time – by an undercover SWAT team just before he was slated to speak again to the Coutts protesters.

He was subsequently jailed for nearly three months for what he said was for speaking out against COVID mandates, the subject of all the Freedom Convoy-related protests.

In Krinke’s decision, he argued that Pawlowski’s sermon incited the continuation of the protest, saying, “The Charter does not provide justification to anybody who incites a third party to commit such crimes.”

“While the appellant is correct that peaceful, lawful and nonviolent communication is entitled to protection, blockading a highway is an inherently aggressive and potentially violent form of conduct, designed to intimidate and impede the movement of third parties,” he wrote.

Pawlowski was released after the verdict. He has already spent 78 days in jail before the trial.

Pawlowski is the first Albertan to be charged for violating the province’s Critical Infrastructure Defence Act (CIDA), which was put in place in 2020 under then-Premier Jason Kenney.

The CIDA, however, was not put in place due to COVID mandates but rather after anti-pipeline protesters blockaded key infrastructure points such as railway lines in Alberta a few years ago.

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