It is Budget Day in Alberta. Indications are for record spending om operations and capital and proof the new Stelmach government is going to be big on planning. Albertans are going to be paying a premium for public infrastructure projects given the overheated economy, lack of labour and shortages of materials but the overwhelming needs that are being caused by rapid growth.
Some economists are calling for restraint and delay in such projects. We shall see what Finance Minister Oberg has in mind in how to proceed in a few hours.
I will be at the Legislature this afternoon to read the the documents and collect my thoughts. I will post my preliminary comments on the Budget tomorrow or late tonight.
This is Budget will undoubtedly be a dramatic change of course for the Alberta government and there will be lots to talk about I expect.
I think you'll like the budget Ken. Strikes the right balance.
ReplyDeleteThis is Budget will undoubtedly be a dramatic change of course for the Alberta government and there will be lots to talk about I expect.
ReplyDeleteI'll be intrigued to hear you explain that one, Ken.
Hey Andy, good to hear from you - I have the Budget documents and reviewing them now - feverishly.
ReplyDeleteTune in later tonight or tomorrow my friend and all will be revealed.
The legislature rotunda tonight was like old home week with Graham Thomson back from Afghanistan, Kevin Edwards the Mayor of Three Hills in town, Les Hagen from ASH revelling in the positive efforts around a smoking suppression strategy starting with a hefty tobacco tax increase, Ken Kobly from the Alberta Chambers of Commerce and Mayor Mandel of Edmonton in the crowd, just to name a few.
So much for gossip...substantial commentary is in process. I picked up lots of Edmonton reaction at the Hancock post-Budget reception at Government House tonight. I think I may wait for the Obeg presentation tomorrow at the Glenora constituency breakfast before I weight in on the document and its implications in terms of fiscally, socially and political outcomes.
Some will call it a swack of spending and others will see it as the return of activist government. Both are right-ish! More to come.!
Mr. Ed should stop horsing around.
ReplyDeleteFiscal conservatism is dead in the PC Party.
The only difference between the Getty regime and the Klein /Stelmach regime is that Getty was stuck with $10 oil and Stelmach has $60 oil.
Klein recklessly cut with no plan and no clue and now Stelmach spends with no plan and no clue.
How much bigger must the surpluses get before we see tax cuts. Why is the Heritage Fund so small. Why is the oil prosperity being piddled away by the Tories on election gimmicks (ie Ralphbucks) rather than real cuts and proper fiscal management.
A 10% increase in spending in one year (plus the 54% increase in spending since 2002) is insane.
Fortunately for Stelmach, rural Alberta (with 1/3 of the population but 1/2 of the seats) will keep Mr. Ed in power despite profligate spending.
Very disappointing.
bagdad bob,
ReplyDeleteDo you even know what you are talking about? Or, as is typical with you, is this just another disrespectful rant against the Premier (Mr. Ed indeed)?
It is true it is a big budget. But we are playing catch-up on infrastructure. Years of cutbacks on projects that now need to be addressed. Capital spending is the largest component of the budget. How many more years do you think it would be possible to wait before building more roads and repairing the old ones? Not spending on maintenance, in order to puff up some rainy day fund, is non-sensical when the cost of replacement will then be many times larger than what you could have covered off with proper maintenance.
I see people saying that the government "spent too much" in this budget. Yet, if this is true, how come for each section of spending, there is a group that says "not enough was spent". How do you reconcile the two? The silence of the Liberals and the NDP with respect to singling a government department for cuts (e.g. health, education) is very telling. Hell, Rick Miller, the Liberal Finance critic (sorry, "shadow minister") was quoted before the budget as saying "he wouldn't want to be in their shoes" because of Albertan's demands on the provincial treasury. God willing, he won't.
Alberta is already the lowest tax jurisdiction in Canada. So long as we remain so, we are fine. Tax cuts now would simply serve to spur on an already over-heated economy. Let's build the infrastructure we need now, and cut taxes with the benefits that will come later from a diversified economy.
Note there are no "Ralphbucks" in this budget, and relatively little for personal income tax cuts. And the health care premiums remain. Gee, if I was looking to put in "election gimmicks", wouldn't those have been on the table?
Gee Anon, you forgot to mention that Alberta has the highest per capita spending in the country. More civil servants per capita too.
ReplyDeleteHow about cutting the spin doctor public affairs dept. The public affairs bureau is larger than the press office of the US president. Ridiculous. How do the massive subsidies for horseracing fit in???
Hey, don't talk to me about disrespect. I ahve seen Ralph Klein in the legislature and he was utterly the most disrespectful man to the opposition. And I am not even going to mention throwing a book at the high school page.
If you want the ultimate in disrespect? Here it is: how would you feel if your children grew up to be like Ralph Klein. If you are insulted by that then you know why I hold him in such low regard.
Ken, is there anything in the budget regarding environment, water management, groundwater, and the changes in AEUB?
ReplyDeleteJulien
Juline - I know there is wastewater treatment provisions as part of municipal infrastrucutre but I don't think there is much on the larger environment issues but I know they are the big issues whose time has come.
ReplyDelete