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Alberta

More dollars going into classrooms to support today’s students

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6 minute read

Staffing projections show up to 1,600 more teachers and support staff will be hired in the upcoming school year. Alberta’s government is also providing school authorities additional funding to support higher salaries for teachers, address enrolment growth and support francophone education.

More staff in schools

School authorities are projecting up to 800 more teachers and principals will be hired in the upcoming school year. This represents an increase of 2.2 per cent from the certificated staff in the 2021/22 school year and means more teachers in the classroom supporting Alberta’s students.

Additionally, an increase of approximately 800 support staff is also expected. This includes classroom-based educational and teacher assistants and represents an increase of 3.1 per cent from the previous school year.

“I’m thrilled to see more teachers and educational assistants will be hired in the coming school year. Alberta’s school board reserve policy has played an important role in directing today’s education dollars towards today’s students.”

Adriana LaGrange, Education Minister

Funding to support higher salaries for teachers

Alberta’s government is also providing up to an additional $50 million in 2022/23 to cover recently ratified bargaining agreements with teachers. By funding these agreements, Alberta’s government is further ensuring stability for school authorities.

“ASBA appreciates that the government will provide funding for the recently ratified teacher bargaining agreements in addition to providing targeted supports for enrolment growth as school boards face rapidly increasing student populations. This funding will help offset pressures and enable boards to address operational needs while they continue to make informed decisions in support of students and their local school communities across Alberta.”

Marilyn Dennis, president, Alberta School Boards Association

“ASBOA welcomes the commitment to fund teacher collective agreements, and the additional funding to support enrolment growth and francophone education in Alberta. This announcement provides greater funding certainty for publicly funded education as we are about to start a new school year.”

François Gagnon, president, Association of School Business Officials of Alberta

Additional funding for enrolment growth

More than $7 million in additional funding will be provided to school authorities through a new enrolment growth grant. Early childhood services (ECS) operators will also receive support if they see significant enrolment increases.

The funding available through this new supplemental enrolment growth grant provides for additional student funding for authority enrolment growth above a set threshold, with higher rates for more growth.

“While the CASS Board of Directors recognizes that the current funding formula softens the impact of enrollment decline, we are pleased to see that this announcement will allow divisions to better meet their needs when addressing significant enrollment growth.”

Scott Morrison, president, College of Alberta School Superintendents

“The Association of Independent Schools & Colleges in Alberta appreciates the additional funding that is being allocated to school authorities that are seeing significant growth. The Supplemental Enrollment Grant will allow schools to better meet the needs of a growing student population, and ensure their students receive an educational experience that prepares them for future success.”

Abraham Abougouche, president, Association of Independent Schools and Colleges of Alberta 

Redesigned grant for francophone school authorities

About $5 million in additional funding will be provided to francophone school boards through an updated francophone equivalency grant. This increased investment means that in the 2022/23 school year, Alberta Education will allocate $7 million to francophone school authorities to support francophone education in Alberta.

“The Fédération des conseils scolaires francophones de l’Alberta welcomes the announcement of an adjustment to school funding to better meet the needs of francophone students in the province. We appreciate the collaborative work that has taken place over the past few months to make the challenges faced by francophone school boards heard. Their reality is unique and the response to their challenges must, by that very fact, be unique.”

Tanya Saumure, president, la Fédération des conseils scolaires francophones de l’Alberta (FCSFA)

Quick facts

  • Increased staffing levels will be supported by the use of operating reserves in the 2022/23 school year.
    • The Minister of Education recently approved 64 requests to use operating reserves for the 2022/23 school year. This included $88 million in requests for reserves to be spent on staffing, instruction and educational assistants.
  • By the end of the 2022/23 school year, maximum operating reserve amounts will be set for school boards, as described in the Funding Manual for School Authorities to ensure public dollars go to educational purposes in the same year the funding is provided.
  • The limit on allowable reserve balances was signaled to school jurisdictions with the new funding model in 2020.
  • School authorities will also receive additional funding from the province to support higher than expected fuel costs, while monthly average diesel prices exceed $1.25 per litre.

Alberta

Low oil prices could have big consequences for Alberta’s finances

Published on

From the Fraser Institute

By Tegan Hill

Amid the tariff war, the price of West Texas Intermediate oil—a common benchmark—recently dropped below US$60 per barrel. Given every $1 drop in oil prices is an estimated $750 million hit to provincial revenues, if oil prices remain low for long, there could be big implications for Alberta’s budget.

The Smith government already projects a $5.2 billion budget deficit in 2025/26 with continued deficits over the following two years. This year’s deficit is based on oil prices averaging US$68.00 per barrel. While the budget does include a $4 billion “contingency” for unforeseen events, given the economic and fiscal impact of Trump’s tariffs, it could quickly be eaten up.

Budget deficits come with costs for Albertans, who will already pay a projected $600 each in provincial government debt interest in 2025/26. That’s money that could have gone towards health care and education, or even tax relief.

Unfortunately, this is all part of the resource revenue rollercoaster that’s are all too familiar to Albertans.

Resource revenue (including oil and gas royalties) is inherently volatile. In the last 10 years alone, it has been as high as $25.2 billion in 2022/23 and as low as $2.8 billion in 2015/16. The provincial government typically enjoys budget surpluses—and increases government spending—when oil prices and resource revenue is relatively high, but is thrown into deficits when resource revenues inevitably fall.

Fortunately, the Smith government can mitigate this volatility.

The key is limiting the level of resource revenue included in the budget to a set stable amount. Any resource revenue above that stable amount is automatically saved in a rainy-day fund to be withdrawn to maintain that stable amount in the budget during years of relatively low resource revenue. The logic is simple: save during the good times so you can weather the storm during bad times.

Indeed, if the Smith government had created a rainy-day account in 2023, for example, it could have already built up a sizeable fund to help stabilize the budget when resource revenue declines. While the Smith government has deposited some money in the Heritage Fund in recent years, it has not created a dedicated rainy-day account or introduced a similar mechanism to help stabilize provincial finances.

Limiting the amount of resource revenue in the budget, particularly during times of relatively high resource revenue, also tempers demand for higher spending, which is only fiscally sustainable with permanently high resource revenues. In other words, if the government creates a rainy-day account, spending would become more closely align with stable ongoing levels of revenue.

And it’s not too late. To end the boom-bust cycle and finally help stabilize provincial finances, the Smith government should create a rainy-day account.

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Alberta

Governments in Alberta should spur homebuilding amid population explosion

Published on

From the Fraser Institute

By Tegan Hill and Austin Thompson

In 2024, construction started on 47,827 housing units—the most since 48,336 units in 2007 when population growth was less than half of what it was in 2024.

Alberta has long been viewed as an oasis in Canada’s overheated housing market—a refuge for Canadians priced out of high-cost centres such as Vancouver and Toronto. But the oasis is starting to dry up. House prices and rents in the province have spiked by about one-third since the start of the pandemic. According to a recent Maru poll, more than 70 per cent of Calgarians and Edmontonians doubt they will ever be able to afford a home in their city. Which raises the question: how much longer can this go on?

Alberta’s housing affordability problem reflects a simple reality—not enough homes have been built to accommodate the province’s growing population. The result? More Albertans competing for the same homes and rental units, pushing prices higher.

Population growth has always been volatile in Alberta, but the recent surge, fuelled by record levels of immigration, is unprecedented. Alberta has set new population growth records every year since 2022, culminating in the largest-ever increase of 186,704 new residents in 2024—nearly 70 per cent more than the largest pre-pandemic increase in 2013.

Homebuilding has increased, but not enough to keep pace with the rise in population. In 2024, construction started on 47,827 housing units—the most since 48,336 units in 2007 when population growth was less than half of what it was in 2024.

Moreover, from 1972 to 2019, Alberta added 2.1 new residents (on average) for every housing unit started compared to 3.9 new residents for every housing unit started in 2024. Put differently, today nearly twice as many new residents are potentially competing for each new home compared to historical norms.

While Alberta attracts more Canadians from other provinces than any other province, federal immigration and residency policies drive Alberta’s population growth. So while the provincial government has little control over its population growth, provincial and municipal governments can affect the pace of homebuilding.

For example, recent provincial amendments to the city charters in Calgary and Edmonton have helped standardize building codes, which should minimize cost and complexity for builders who operate across different jurisdictions. Municipal zoning reforms in CalgaryEdmonton and Red Deer have made it easier to build higher-density housing, and Lethbridge and Medicine Hat may soon follow suit. These changes should make it easier and faster to build homes, helping Alberta maintain some of the least restrictive building rules and quickest approval timelines in Canada.

There is, however, room for improvement. Policymakers at both the provincial and municipal level should streamline rules for building, reduce regulatory uncertainty and development costs, and shorten timelines for permit approvals. Calgary, for instance, imposes fees on developers to fund a wide array of public infrastructure—including roads, sewers, libraries, even buses—while Edmonton currently only imposes fees to fund the construction of new firehalls.

It’s difficult to say how long Alberta’s housing affordability woes will endure, but the situation is unlikely to improve unless homebuilding increases, spurred by government policies that facilitate more development.

Tegan Hill

Director, Alberta Policy, Fraser Institute

Austin Thompson

Senior Policy Analyst, Fraser Institute
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