Alberta
Province will step in to help Grande Prairie replace RCMP with Municipal Police Force
Alberta funds community policing in Grande Prairie
Alberta’s government is ready to support Grande Prairie in establishing a community-led municipal police service to find solutions unique to their community.
Grande Prairie is in the final stages of deciding to create a municipal police service and Alberta’s government is ready to help them do so. If passed, Budget 2023 will provide $9.7 million over two years toward the costs associated with starting a local police service.
“Alberta’s government is ready to support Grande Prairie as the city improves public safety by exploring new and innovative approaches toward local policing. Having a community-led and focused police service will ensure Grande Prairie is finding unique solutions that will better serve their region.”
The City of Grande Prairie is currently policed by the RCMP under an agreement between the municipality and Public Safety Canada. A recent review of policing independently completed by the city found a significant level of concern with the current policing arrangement. To address these concerns, Grande Prairie commissioned a detailed transition study and public engagement process in September 2022 to consider other police service models.
If Grande Prairie proceeds with setting up a municipal police service, provincial funding will help to offset startup costs such as equipment, uniforms, vehicles and information technology.
“This initial funding gives us confidence that the province will support the City of Grande Prairie should council decide on March 6 to proceed with a municipal police service model.”
The province recognizes that startup costs could be a barrier for communities that want to establish a municipal or regional police service. Alberta’s government supports municipalities studying and developing alternate policing models as a way to address public safety concerns and ensure policing priorities are aligned with local priorities. Every municipality and region has unique needs and they are in the best position to decide how to improve safety in their community.
“As Grande Prairie works toward establishing its own community-driven police force, the Alberta government is fully supportive. This is an excellent example of a made-in-Alberta solution that will strengthen enforcement.”
“Crime has been an ongoing concern for rural Albertans and the community hubs that support policing of these large, sparsely populated areas. I am pleased to work with the City of Grande Prairie to support alternatives to address policing concerns going forward.”
Funding for Grande Prairie is based on the city going ahead with a municipal police service. If Grande Prairie establishes a municipal police service, the provincial government is prepared to work closely with municipal officials to ensure that public safety is maintained during any transition period.
Quick facts
- Under Alberta’s Police Act, towns and cities with populations greater than 5,000 are responsible for their own policing.
- The Police Act gives municipalities the option of having their own police service, forming a regional policing arrangement or contracting for the provincial police’s services (i.e., the RCMP under Alberta’s provincial police service agreement).
- In 2022, Alberta’s government established the Community Policing Grant, which offers Indigenous communities and municipalities up to $30,000 toward developing a business case examining local needs, capital requirements and transition considerations
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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