Alberta
Complete overhaul of rural policing in Alberta! Province adding 500 RCMP officers and support staff
Justice Minister and Solicitor General Doug Schweitzer shakes hands with an RCMP officer in Leduc County.
Historic investment in rural policing
Alberta is adding more than 500 RCMP positions in rural communities across the province and fostering new public safety partnership with municipalities.
The Government of Alberta’s new police funding model will inject more than $286 million over five years into frontline law enforcement for these additional RCMP officer and civilian positions. This new cost-sharing partnership will see small and rural communities begin to pay a portion of frontline policing costs, bringing them into line with larger communities and cities.
Under the cost-sharing terms in the Provincial Police Service Agreement (PPSA), Alberta pays 70 per cent of policing costs and the federal government covers the remaining 30 per cent. With the additional investment from municipalities, the federal share of the PPSA will increase as well. This partnership will constitute a total increase in rural police funding of more than $286 million over five years with every dollar of the additional funds invested in frontline policing.
The province is creating a new Alberta Police Advisory Board, where municipal leadership will have a seat at the table, working in collaboration with law enforcement to ensure local needs are heard and implemented. This new governance mechanism will ensure that policing is in line with the priorities of those they are protecting.
“Ensuring Albertans are safe, secure, and protected in their communities goes to the heart of who we are as a government. We want to ensure we fund law enforcement in an equitable and sustainable way that will ensure we have more police in our communities. With this new police funding model, we are making the single largest investment in rural policing since the March West and delivering on our promise to enhance public safety.”
“Crime affects many in my own rural community, and it is an issue that is incredibly personal to me. All Albertans deserve to feel safe in their own homes and confident that they will not fall victim to violent or property crime. This new police funding model will provide increased security and certainty for rural Albertans, and value for taxpayer dollars.”
“The Government of Alberta has made an unprecedented investment in their police service, and we are ready to deliver on that commitment. The funding model announced will allow the Alberta RCMP to put additional resources where they are needed most immediately – on the frontline in your detachments, protecting your backyards and your farmyards, pushing back crime in a sophisticated and focused manner.”
“Rural Municipalities of Alberta appreciates the Government of Alberta’s willingness to consult on this issue, and as a result of input from RMA and rural municipalities, implement a phased-in police-costing model. Rural crime has been an ongoing issue in Alberta in recent years, and rural municipalities recognize they need to share in the costs of the solutions to support safer communities.”
“AUMA has long advocated for a more equitable police-funding model to address RCMP vacancies and the rising costs of policing while improving community safety. We’re pleased to see action on this critical priority by the provincial government, as safe and healthy municipalities build strong communities and a stronger Alberta. Further consultation is critical to supporting local governments with the policing resources they need, and we look forward to actively contributing to the Alberta Police Advisory Board.”
This partnership places priority on adding uniformed patrol officers in rural RCMP detachments, increasing the total number from under 1,600 to about 1,900, and will also add members to specialized RCMP units that dismantle organized crime and drug trafficking and investigate auto and scrap metal theft.
Furthermore, the new civilian positions will assist with administrative tasks and investigative support to increase response times and help ensure officers have the support network they need to protect Albertans by spending more time on roads and in communities.
Quick facts
- Small and rural communities, with some exceptions, will begin contributing a portion of their frontline policing costs in 2020. To give communities time to adjust, the new funding model is being phased in: communities will contribute 10 per cent of policing costs in 2020, followed by 15 per cent in 2021, 20 per cent in 2022 and 30 per cent in 2023.
- Policing costs for each community will be determined by municipal tax base (as measured by equalized assessment) and population to calculate a base cost. Communities will also be eligible for other subsidies that consider other factors that may affect local policing costs.
- Current annual PPSA amount, 2019-20 (prior to new police funding partnership): $374.8 million
- Government of Alberta contribution: $262.4 million
- Government of Canada contribution: $112.4 million
- Additional investments to current PPSA to April 1, 2024 will be: $286,605,021
- Government of Alberta contribution: $200,623,515
- Government of Canada contribution: $85,981,506
- All additional investments will go towards more frontline resources.
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.
Author:
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.”
“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.”
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.”
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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