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Alberta

Alberta Premier Danielle Smith marks first anniversary

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Premier Danielle Smith released the following statement on the one-year anniversary of being sworn in as Premier: 

“It is a tremendous honour to serve Albertans as their Premier. Alberta is truly one of the best places in the world to live, work and raise a family. Over the last 118 years, we have written an incredible story together. And I am proud that in the last year, I have had the opportunity to work with an incredible team to help write this latest chapter.
“When I was sworn into office on Oct. 11, 2022, I promised that we would not have our voices silenced or censored by Ottawa, we would address the inflation and affordability crisis driven by the fiscally destructive policies of the federal government, we would get our own fiscal house in order and balance the budget to enable us to afford to be compassionate, and we would address concerns in our public health system.
“I am proud to say that over the past 12 months, we have made significant progress for Albertans in every one of those areas.
“In the fall 2022 legislative session, we passed the Alberta Sovereignty within a United Canada Act to stand up for Alberta, Albertans and our constitutional jurisdiction. In the spring 2023 legislative session, we introduced and passed the Alberta Firearms Act to continue to strengthen Alberta’s position within Confederation. Continuing in 2023, we also released a strategy to reform the broken equalization formula, pushed the federal government on bail reform, resulting in the introduction of federal Bill C-48, and fought back against the federal government’s so-called Just Transition.
“With inflation at its worst in decades and life getting more expensive for Albertans, we provided a suite of inflation-relief measures to help families pay their bills. Because we recognized the extra difficulty on families and seniors, we provided $100 monthly payments for up to six months for every eligible child and senior, and provided an additional $10 million to food banks throughout the province to help those who were struggling most. We expanded the low-income transit pass and indexed AISH, income supports and the Alberta Seniors Benefit. We extended the pause on the fuel tax to save Albertans more money every time they fill up their tanks, while the federal government continues making life more expensive for families through their ever-growing carbon tax.
“We extended supports for Ukrainian evacuees fleeing Russia’s war in Ukraine and offered disaster support for Türkiye and Syria following the terrible earthquake. We increased pay for staff who work with persons with developmental disabilities, who had not seen increases since 2014, and we improved tax credits and grants to support families pursuing adoption. We pushed the federal government to further improve the daycare deal to better meet Alberta families’ unique needs. We opened the Bridge Healing convalescence facility for Edmonton’s vulnerable citizens to ensure they have access to the health care and community supports they need to be well.
“We extended interest-free student loans to 12 months, offering students more certainty in their personal budgeting, and we capped tuition increases so Alberta’s post-secondary institutions can retain their competitive advantage when attracting students. We paused rate increases on auto insurance to protect Albertans from premium increases when they can least afford it, and we ended the Graduated Driver Licensing program, saving drivers on their licensing costs.
“For only the fourth time in 15 years, we presented Albertans with a balanced budget in February. That budget also provided Albertans with a fiscal framework to guide future government spending, debt repayment and savings so that Alberta can continue moving forward in prosperity. We paid off $13 billion in debt, significantly reducing our annual interest payments – ¬funds that are better spent on providing the services and infrastructure Albertans need. We also added $2 billion to the Heritage Savings Trust Fund, which will increase our investment income each year and provide more fiscal stability for the province in the long term.
“Our improved finances enable us to provide additional funding for schools, hospitals and roads so Albertans have access to the infrastructure they need for a growing population. We have also provided funding to close learning gaps experienced by younger students and have expanded seats at universities in high-demand programs. To improve outdoor and recreation opportunities for Albertans and visitors, we allocated $200 million to improve the province’s campgrounds and trails.
“We are continuing to build our economy by creating an Agri-Processing Investment Tax Credit, building strong partnerships with other western provinces to build economic corridors that connect markets across the Prairies, expanding the Alberta Immigrant Nominee Program to invite nearly 10,000 newcomers, and by creating pathways for more skills training opportunities for the most in-demand jobs in our province. At the same time, we are working with Alberta municipalities by changing the municipal funding model to provide them with funding stability and by making the payment of municipal taxes a condition of wellsite transfers.
“We are also growing relationships with Indigenous and Métis communities, which includes the signing of a new Metis Settlement Agreement. We continue to recognize the important role of Indigenous Peoples in Alberta in our economy and remain committed to ensuring they are partners in prosperity. To accomplish this, we doubled the loan capacity of the Alberta Indigenous Opportunities Corporation from $1 billion to $2 billion.
“We indexed personal income taxes, so Albertans keep more of their hard-earned money to spend on the things that are important to them. We are working to increase access to halal financing, so members of Alberta’s Muslim community are better able to pursue their dreams of home ownership.
“Health care remains a top priority for Albertans and we have begun the hard work of repairing and improving our health care system. We brought in more ambulances during peak hours in Calgary and Edmonton and we fast-tracked patient transfers at hospitals to ensure our highly skilled paramedics can respond to more emergencies and do so more quickly. We introduced alternative transportation for non-urgent hospital transfers and have reduced the number of code reds that occur in the province. We have fixed problems with emergency department patient flow, helping us reduce overall hospital wait times, and we have increased our surgical capacity and are projected to eliminate the surgical backlog in the new year.
“I am proud to have addressed the concerns of many Albertans in relation to the COVID-19 pandemic. We put an end to provincial mask mandates, and we replaced the chief medical officer of health and the AHS board. We established a public health emergencies governance review panel to examine the pandemic response and to recommend changes to improve how we handle potential future public health emergencies.
“We have stopped at nothing in our pursuit to improve health care services and supports for Albertans. We worked with our provincial colleagues to fight for increased federal health transfers, and I am proud to have signed a $24-billion health deal with the federal government. When our province and country faced supply issues with children’s pain and fever medication, we stepped up to ensure that parents would have access to these medications. And we honoured Alberta firefighters and the health risks they face by providing them with presumptive cancer coverage.
“In addition, we’ve prioritized recovery for those suffering from the deadly disease of addiction and from mental health challenges. We are progressing on the Alberta model and have opened recovery communities in both Red Deer and Lethbridge, with nine more on the way including four on First Nations land. We are investing in training more mental health professionals and are expanding mental health supports for children and youth in communities and schools, making sure no child is left behind.
“We recognize that public safety is another top concern for Albertans. We share that concern and are taking action to ensure all Albertans feel safe in their communities. This includes establishing public safety task forces in Edmonton and Calgary, committing to provide funding to hire 100 more police officers, increasing the scope and number of sheriffs, and increasing the number of prosecutors available in Alberta’s courts.
“Furthermore, we are introducing additional accountability measures in partnership with police services. We have passed an updated Police Act that will establish a new, independent body for investigating complaints against police, and have taken steps to mandate body-worn cameras for police. At the same time, we are working with municipalities and Indigenous communities that want to establish their own, local police services.
“In addition to this work, we have released a provincial emissions reduction strategy, created a regulatory framework for brine-hosted minerals, established an energy future panel, launched expressions of interest for hydrogen fuelling stations, introduced a new science and French curriculum, and strengthened free speech on campuses.
“As a united government, we accomplished all this while managing the pressures of an unprecedented wildfire season that included support for more than 38,000 evacuees from Alberta communities and more than 21,000 evacuees from the Northwest Territories.
“I could not have accomplished all of this without my dedicated colleagues in cabinet and caucus. I look forward to accomplishing even more, with the ongoing confidence of Albertans, as we begin our second chapter together, ensuring Alberta remains the best place to live, work and raise a family.”

Alberta

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

Published on

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

Published on

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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