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Alberta

Province promises almost Half Billion Dollars to expand Calgary’s Deerfoot Trail

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Minister Mason, with Service Alberta Minister Brian Malkinson, announces a $478 million investment in Deerfoot Trail.

From the Province of Alberta

Deerfoot Trail upgrades to create jobs, cut commute

The Government of Alberta is expanding Deerfoot Trail to create jobs, ease congestion and reduce commute times.

Deerfoot Trail is the busiest roadway in Alberta with an average of 175,000 vehicles travelling on it every day. The province is adding both northbound and southbound lanes to 21 kilometres of Deerfoot Trail between Beddington Trail and Anderson/Bow Bottom Trail, to improve traffic flow and ease congestion.

Multiple interchanges will also be upgraded with additional lanes at Memorial Drive, 17 Avenue, Glenmore Trail, Southland Drive and Anderson/Bow Bottom Trail to reduce commute times at key bottlenecks.

“Deerfoot Trail is the busiest road in Alberta, and a vital artery for Calgary. It has become increasingly congested, and everyone who drives this road will appreciate this expansion plan. We want commuters to spend less time in traffic, and more time with their families and loved ones.”

Brian Mason, Minister of Transportation

Calgarians rely on Deerfoot Trail as the city’s most used north-south vehicle corridor. This major infrastructure project will transform Deerfoot Trail into a modern freeway that meets the current and future needs of a growing, active city.

“These improvements to Deerfoot Trail have been long awaited by Calgarians. This substantial investment from the Government of Alberta will go a long way in improving the traffic flow and safety on a roadway that is used by thousands of Calgarians every day.”

Naheed Nenshi, mayor, City of Calgary

This major expansion builds upon work already underway to optimize traffic flow on Deerfoot Trail. In early 2019, the province issued a Request for Proposals for engineering of a new Intelligent Transportation System to help ease congestion by employing variable speed limit technology and new message boards to alert commuters of expected travel times and incidents ahead.

The expansion of Deerfoot Trail is expected to create 2,330 jobs, and $478 million has been allocated in the Capital Plan for the project.

Quick facts

  • An initial study released in 2017 made recommendations for short-term improvements to Deerfoot Trail, including:
    • New Intelligent Transportation System
    • New interchange improvements at:
      • McKnight to 64 Avenue ramp connection
      • 11 Street northbound connection to Deerfoot, north of Beddington
      • Southland Drive to Anderson/Bow Bottom Trail
  • In early 2019, the Government of Alberta issued a Request for Proposals for engineering and design work for short-term improvements to Deerfoot Trail.
  • The Government of Alberta and the City of Calgary are engaged in a long-term study of Deerfoot Trail that will be finalized this year. The core initial findings suggest:
    • Additional lanes northbound and southbound between Beddington Trail and Anderson/Bow Bottom Trail are required to meet growing traffic demands.
    • Major interchange improvements are required at Memorial Drive, 17 Avenue, Glenmore Trail, Southland Drive and Anderson/Bow Bottom Trail to reduce commute times and improve traffic flow.
  • Deerfoot Trail first opened to the public in 1971. It has been a full freeway since 2005.
    • When the road was built to its present configuration in 2005, Calgary had one million residents.
    • The population of Calgary is now approaching 1.3 million, excluding the rapidly growing populations of Airdrie and Chestermere.

After 15 years as a TV reporter with Global and CBC and as news director of RDTV in Red Deer, Duane set out on his own 2008 as a visual storyteller. During this period, he became fascinated with a burgeoning online world and how it could better serve local communities. This fascination led to Todayville, launched in 2016.

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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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