Alberta
Defending Provincial Priorities
News release from Free Alberta Strategy
The recent debate around zoning across the province is a prime example of federal encroachment.
The federal government offered money to cities to help with housing affordability challenges, but only made the money available if cities promised to change zoning policies.
As you are aware, The Free Alberta Strategy was built on the concept that the federal government needs to keep out of provincial jurisdiction.
For years, Ottawa has been watering down the constitutional delineation of duties between the federal government and the provincial government.
Bill 18 – the Provincial Priorities Act – is anticipated to pass in the Alberta Legislature this week, and represents a huge step in the direction of greater provincial jurisdictional autonomy.
The Provincial Priorities Act has been dubbed the “Keep Out of Our Backyard” law by Alberta Premier Danielle Smith.
Under the Provincial Priorities Act, any agreements between the federal government and any provincial entities – including municipalities – must receive provincial approval to be considered valid.
Agreements between the federal government and provincial entities lacking Alberta’s endorsement will be deemed illegal under this legislation.
When the legislation was announced, Smith was not mincing words:
“It is not unreasonable for Alberta to demand fairness from Ottawa. They have shown time and again that they will put ideology before practicality, which hurts Alberta families and our economy. We are not going to apologize for continuing to stand up for Albertans so we get the best deal possible.
“Since Ottawa refuses to acknowledge the negative impacts of its overreach, even after losing battles at the Federal and Supreme Courts, we are putting in additional measures to protect our provincial jurisdiction to ensure our province receives our fair share of federal tax dollars and that those dollars are spent on the priorities of Albertans.”
Although the federal government has limited direct authority in provincial jurisdiction, it can leverage its substantial financial resources to prompt or pressure provincial governments into specific actions.
The recent debate around zoning across the province is a prime example of federal encroachment.
The federal government offered money to cities to help with housing affordability challenges, but only made the money available if cities promised to change zoning policies.
Calgary Mayor Jyoti Gondek tried to claim that the federal housing funds were not contingent on the city’s rezoning efforts, but federal Housing Minister Sean Fraser posted a pretty strong response on social media platform X (formerly Twitter):
“If Calgary, or any other city, does not meet the conditions they have agreed to, we will withhold funding under the agreement.”
The federal government played the same trick in many other provinces, too.
But, notably, in Quebec, the federal government just gave the Quebec government the cash and let them distribute it to their municipalities without conditions.
It’s tempting to think this is just more federal bias towards Quebec.
But, actually, this is a great example of how pushing back can have results.
You see, the Provincial Priorities Act in Alberta is modeled after existing legislation in Quebec, known as “An Act Respecting the Ministère du Conseil exécutif,” which prohibits any municipal body from negotiating or entering into agreements with the federal government or its agencies without explicit authorization from the Quebec government.
If Ottawa wants to meddle in Quebec’s jurisdiction, it must first seek Quebec’s approval.
And it works – the federal government got back in line.
Now, with the Provincial Priorities Act, if Ottawa wants to meddle in Alberta’s jurisdiction, it must first seek Alberta’s approval.
It’s time for Ottawa to recognize Alberta’s autonomy and respect our right to determine our own future.
At the Free Alberta Strategy, we understand that constant vigilance is necessary – every time we establish a boundary, the federal government tries to circumvent it.
We will continue to inform you about what’s happening in Alberta and fight to keep Ottawa out.
But we need your support.
With your help, we can continue our work to defend Alberta’s sovereignty and serve the best interests of all Albertans.
Enough is enough – we will not stand by while our interests are disregarded.
If you are in a financial position to contribute to our work, please donate!
Alberta
Alberta’s fiscal update projects budget surplus, but fiscal fortunes could quickly turn
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:
Alberta
Premier Smith says Auto Insurance reforms may still result in a publicly owned system
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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