Open Letter to Central Albertans
Alberta
THERE’S A BETTER WAY
February 26, 2021
FOR IMMEDIATE RELEASE
Red Deer – Mountain View, AB
I spoke with an Alberta government official in mid-December 2020 re: the status of the proposed recovery community facility in Red Deer, as originally announced in mid-July 2020. I was informed that the project is bogged down in the bureaucratic process. The official hoped that there would be a public update prior to Christmas but this has yet to occur.
With that being said, I wanted to propose a project that I came across that may be beneficial for Red Deer and Central Alberta.
To my knowledge, the project originated in Albuquerque, New Mexico and is called “There’s a Better Way”. Please see this YouTube link for a short video on the project.
In a nutshell, the program aims at providing flexible work opportunities to those experiencing homelessness in order for them to earn some cash and be better connected with services. The ultimate goal of the program is to provide a base for which these individuals can move into permanent housing and full-time employment.
I truly feel that giving people the dignity of work makes an immense difference in their life. This is very evident in 2020-21 as many people have lost their jobs, their businesses and ultimately, their sense of purpose in life.
I have reached out to representatives from Safe Harbour, Turning Point and the Mustard Seed as I feel their involvement would be crucial. All three organizations expressed interest in pursuing a similar program for Red Deer. The major concerns they expressed in seeing this program get off the ground were twofold:
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Funding for staff to facilitate the project along with funding to employ individuals through the program.
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Partnership with the City of Red Deer to provide opportunities to complete manual labour tasks within the community. (cleaning up garbage, shovelling snow, etc.)
I reached out to the City of Red Deer (including the Mayor and all city councilors) along with Red Deer North and South MLAs on February 10, 2021 to discuss the merits of the program in light of the delays to the proposed recovery community facility. I have yet to receive a response.
For 2021, Red Deer City Council is recommending funding of $516,974 for Urban Encampment and Debris Cleanup on Public Lands. My initial thoughts were to see if the “There’s a Better Way” program could be funded through an allocation of some of the funds earmarked for the rough sleeper and drug debris cleanup. Additionally, the program could be funded through private sector donations to the previously noted organizations. Amounts donated to these organizations would qualify for a donation tax credit regardless of whether the funds were donated personally or via your corporation.
If you, your organization or anyone you know feel that there would be an opportunity for a program such as this to operate within Red Deer, I would love to discuss this further with you.
Thank you in advance for your consideration in this matter.
Sincerely,
Jared Pilon
Libertarian Party Candidate for Red Deer – Mountain View, AB
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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