More dollars going into classrooms to support today’s students

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.

Government of Alberta

This is a news release from the Government of Alberta.

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

Published on November 21, 2024

Todayville

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:

Tegan Hill

Alberta

Premier Smith says Auto Insurance reforms may still result in a publicly owned system

Published on November 21, 2024

Government of Alberta

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