Alberta government must further restrain spending to stabilize provincial finances

This year, program spending will reach a projected $14,334 per Albertan, which is $1,603 more per person (inflation-adjusted) than the Smith government originally planned to spend this year as outlined in the 2022 mid-year budget update.

Despite recording a $4.3 billion surplus last year, Premier Danielle Smith remains committed to a new approach to Alberta finances that relies less heavily on resource revenue, which includes restraining spending levels below the rate of inflation and population growth. That’s a big step forward, but is it enough to stabilize Alberta’s boom and bust rollercoaster?

First, some background.

After nearly a decade and a half of routine budget deficits, Alberta swung to a budget surplus when resource revenue (which includes includes oil and gas royalties) skyrocketed from $3.1 billion in 2020/21 to $16.2 billion in 2021/22. In 2022/23, the government enjoyed the highest level of resource revenue on record and relatively high levels have continued in recent years. Correspondingly, Alberta’s surpluses have continued.

Alberta governments have a habit of increasing spending during times of high resource revenue, such as the province is currently experiencing, to levels that are unsustainable without incurring deficits when resource revenue inevitably declines. That’s why the Smith government’s commitment to spending restraint is an important one.

Unfortunately, however, due to the Smith government’s spending increases in previous years, this restraint won’t go as far in stabilizing provincial finances. Moreover, there are a number of limitations and exceptions to these new spending rules that may impede their effectiveness.

Consider that this year, program spending will reach a projected $14,334 per Albertan, which is $1,603 more per person (inflation-adjusted) than the Smith government originally planned to spend this year as outlined in the 2022 mid-year budget update.

As shown above, program spending (inflation-adjusted) will reach a projected $14,041 per person in 2025/26 and a projected $13,750 per person in 2026/27, which is equivalent to per-person increases of $1,571 and $1,538, respectively, compared to the original plan in 2022.

So while per-person (inflation-adjusted) spending is set to decline, which aligns with the Smith government’s commitment, this restraint is starting from a higher base level due to spending decisions thus far. That means more work needs to be done to rein in spending.

Indeed, for perspective, if the Smith government had simply stuck to its original plan, spending would be closely aligned with stable, more predictable sources of revenue. And ultimately, that’s the way to avoid deficits.

There’s also several limitations and exceptions for the government’s new spending rule. For example, the spending limit applies only to “operating expense,” which does not include longer-term spending, disaster and emergency assistance, spending related to dedicated revenue, or contingencies. As a result of various limits and exceptions, total program spending growth in 2023/24 exceeds inflation and population growth by 1.8 percentage points. Put simply, these limitations and exceptions add to the risk of budget deficits.

Sustainable finances have been impeded by increases in per person spending since 2022. So while the Smith government deserves credit for its commitment to restrain spending moving forward, Alberta’s fiscal challenges aren’t over.

Author:

Tegan Hill

Related Topics:#AlbertaBudgetUpdate #AlbertaGovernmentSpending #FraserInstitute #TeganHill

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Alberta

Parents group blasts Alberta government for weakening sexually explicit school book ban

Published on September 17, 2025

Todayville

From LifeSiteNews

By Anthony Murdoch

The revised rules no longer place restrictions on written descriptions of sexual content.

Some parental rights advocates have taken issue with the Conservative government of Alberta’s recent updates to a ban on sexually explicit as well as pornographic material from all school libraries, saying the new rules water down the old ones as they now allow for descriptions of extreme and graphic sexual acts in written form.

As reported by LifeSiteNews last week, Alberta Education Minister Demetrios Nicolaides of the ruling United Conservative Party (UCP) released revised rules outlining the province’s ban on sexually explicit content in school libraries.

The original ban included all forms of sexually explicit as well as pornographic material. However, after a large public school board alleged the ban applied to classic books, the government changed the rules, removing a clause for written sexual content that has some parental rights groups up in arms.

Tanya Gaw, founder of the conservative-leaning Action4Canada, noted to media that while she is happy with Premier Danielle Smith for the original book ban, she has deep concerns with the revised rules.

“We are very concerned about the decision that no longer places restrictions on written descriptions of those acts, which is problematic,” she said in an interview with The Epoch Times.

Gaw noted how kids from kindergarten to grade 12 should “never” be “exposed to graphic written details of sex acts: incest, molestation, masturbation, sexual assaults, and profane vulgar language.”

According to John Hilton-O’Brien, who serves as the executive director of Parents for Choice in Education, the new rule changes regarding written depictions “still shifts the burden onto parents to clean up what should never have been purchased in the first place.”

He did say, however, that the new “Ministerial Order finally makes catalogs public, and what we see there is troubling.”

Alberta’s revised rules state that all school library books must not contain “explicit visual depictions of a sexual act.” To make it clear, the standards in detail go over the types of images that are banned due to their explicit pornographic nature.

As reported by LifeSiteNews in May, Smith’s UCP government went ahead with plans to ban books with sexually explicit as well as pornographic material, many of which contain LGBT and even pedophilic content, from all school libraries.

The ban was to take effect on October 1.

The UCP’s crackdown on sexual content in school libraries comes after several severely sexually explicit graphic novels were found in school libraries in Calgary and Edmonton.

The pro-LGBT books in question at multiple school locations are Gender Queer, a graphic novel by Maia Kobabe; Flamer, a graphic novel by Mike Curato; Blankets, a graphic novel by Craig Thompson; and Fun Home, a graphic novel by Alison Bechdel.

Alberta

Alberta updates TIER system: Businesses can direct compliance payments to on-site technologies

Published on September 16, 2025

Government of Alberta

Modernizing TIER to secure tomorrow

Alberta is seeking to update the Technology Innovation and Emissions Reduction (TIER) system to drive investment at large industrial facilities, helping companies stay competitive and protecting jobs.

This fall, Alberta’s government will introduce updates to the TIER system that would empower Alberta industries to invest in on-site emissions reduction technology that works for their specific businesses. Making Alberta’s highly successful TIER system even more effective and flexible will make industries more globally competitive while maintaining Alberta’s leadership in emissions reductions.

“TIER has always been about Alberta leading the way – proving to the world that it’s possible to increase energy production, grow the economy and lower emissions at the same time. These amendments build on that success by giving industry the certainty and flexibility they need to invest right here at home. We know this work is not finished. We will continue to press the federal government to match Alberta’s leadership with realistic policies and timelines so that together we can keep building an economy that is strong and ready for the future.”

Danielle Smith, Premier

“We are committed to ensuring our industry remains competitive and can once again bring in the capital investment needed to deliver safe, affordable and reliable energy to Canadians and the rest of the world. Enabling them to reinvest their dollars into their own facilities will be good for the environment while growing our economy and creating jobs.”

Rebecca Schulz, Minister of Environment and Protected Areas

“TIER has played a critical role in helping Alberta energy be the most responsibly produced energy in the world. These changes will further allow our major energy companies to increase production and finance new world-leading emission reduction efforts consistent with Alberta’s Emissions Reduction and Energy Development Plan.”

Brian Jean, Minister of Energy and Minerals

Proposed updates to the TIER system include:

Recognizing on-site emissions reduction investments as a new way for industry to comply with the TIER system in addition to the current options available, which include paying into the TIER fund or buying credits. This would reward companies for investing directly in emissions reduction technology that encourages innovation, supports local jobs and reduces emissions.
Allowing smaller facilities that currently participate in the TIER system to leave or opt out for 2025 to reduce costs and red tape. Smaller facilities below the regulatory emissions threshold can face disproportionate compliance costs under the TIER system, which is mainly designed for large facilities. This change would help smaller industries save money and redirect resources into emissions reduction investments or other operational improvements for more cost savings. It offers flexibility, especially for small manufacturers and rural operations, which protects jobs across Alberta.

These changes will position Alberta, once again, as a world leader ready to meet the challenges and realities of shifting global markets, increased competition and trade uncertainty.

“We are pleased to see the Government of Alberta is taking steps to improve competitiveness of climate policy. Today’s announcement recognizes industry concerns around competitiveness and signals that the province is moving forward to support emissions reduction in a way that helps companies reduce emissions, compete for investment, and create jobs for Albertans. EPAC believes provinces are best positioned to lead on climate policy, and we look forward to continued work with Alberta.”

Tristan Goodman, president and CEO, The Explorers and Producers Association of Canada

“Pathways Alliance appreciates the Government of Alberta’s efforts to support the oil sands industry and protect jobs. Direct investment through the TIER system is expected to encourage continued investment in emission reduction technologies, and advance innovative infrastructure. The oil sands industry looks forward to ongoing work with governments to strengthen global competitiveness and attract investment.”

Kendall Dilling, president, Pathways Alliance

Alberta’s economy is growing and emissions are declining thanks to the province’s common-sense approach. Alberta’s government will continue to work with industry to protect jobs, strengthen competitiveness and maintain Alberta’s position as the destination of choice for global investment.

Quick facts

Alberta’s TIER system was established in 2007 and was the first of its kind in North America.
Currently the TIER system includes about 60 per cent of the province’s total emissions, helping Alberta’s industrial facilities find innovative ways to reduce emissions and invest in technology to stay competitive, save money and create jobs.
The TIER Regulation requires any facility that emits 100,000 tonnes or more of emissions in a year to meet annual emissions reductions using either a facility-specific or a sector benchmark approach.
Under the current system, regulated facilities can comply using credits (carbon offsets, emission performance credits or sequestration tonnes) or pay into the TIER fund at $95 per tonne of emissions.
Sectors regulated under the TIER system include oil and gas, oil sands mining, electricity, forestry, chemicals, fertilizers, minerals, food processing and waste.
Since 2019, Alberta has invested $1.6 billion from the TIER fund into geothermal, hydrogen, energy storage, methane reduction, carbon capture and other technology projects, reducing approximately 70 million tonnes of emissions by 2030 and supporting about 21,000 jobs across the province.