So the Stelmach government has really differentiated itself for the Klein days with this budget. It has strong evidence of immediate responses to well known and identified problems and towards some serious planning. The feedback Stelmach, Oberg and Hancock received during the PC leadership campaign has had an obvious impact on this Budget. The entire set of Budget documents are on line and I encourage you to read them
It is about the past, the present and the future. It has lots of catch up spending with almost a 40% increase in infrastructure funding for the infrastructure deficit and to respond to growth. It also adds 10% to current operational spending to deal with a 5% cost increase due to growth and inflation. It also sets up some longer term planning, a line by line departmental review looking at program efficiency and effectiveness and imposes some in-year discipline, something sadly missing in the Klein years.
The long-view is evident throughout the document including a commitment to find solutions to the various unfunded pension liabilities including the teacher’s pension plan which is one of the most unfair fiscal situations we have in Alberta. Some tinkering has been done in the interim but a major decision to take on the entire unfunded liability has to be taken. It will result in massive savings in the long term if the bullet is bitten now.
New and interesting items are a tax increase on tobacco. The 17% tax hit is the first salvo in a major assault on tobacco use in the province. This is the lowest hanging fruit towards better control health care spending and better health outcomes for Albertans. It is part of the new emphasis on wellness that Hancock will be pushing through the policy making process this session.
Another positive start is the embedding of about an 18% increase in the disability sector. This puts about $11.3B in the base for staffing recruitment and retention. Not enough but a start. Alberta spends some $530B on persons with disabilities these days and this program area will no doubt be seriously scrutinized for efficiency and effectiveness in the up coming Treasury Board review. As well the governance system is open to question too. The recent disbanding of the provincial board that represent the government in this area signals a further review in the regional governance system too.
A new day is dawning with this Budget. Dr. Oberg at a breakfast this morning noted this Budget was very much a Caucus document and involved direct input from MLAs because it was reviewed and designed by the various policy committees. That is more indication of a better sense of good governance changes coming from the Premier’s office.
Oberg noted this morning the next Budgets planning starts today and is already scheduled to be released February 14, 2008. That will be the election budget and we shall see how it differs from yesterday’s very positive document.
I agree with you. A 12% increase in spending has Hancock written all over it.
ReplyDeleteNice spin job Ken. This budget is a joke. There is no central plan for the future. This is a province running out of control because no one is willing to put a brakes on the development of the oil sands. There are no tax cuts, little saving, not enough money for education. The government is throwing money at infrastructure because they have failed to plan properly for the last decade. This budget demonstrates that the Tories have screwed up big time and it is time for new leadership.
ReplyDeleteWould your definition of good governance include a minister whose department hires supporters for jobs that are not posted and with no interviews? Just wondering.
ReplyDeleteWowzers, if that is going on in a Minister's department and not on their political staff, they shouldn't be allowed to be a minister. We need to stamp out that kind of nepotism.
ReplyDeleteWhile you might be pleased to see the government move forward on the pension issues, if its treatment of teachers is any indication they are courting serious trouble. Teachers didn't expect anything specific in this budget, merely an indication that government would begin serious negotiations. Instead government decided to spend $25 M on a scheme that manages to piss off those teachers who have contributed most to the underfunded plan and intrudes into collective bargaining. On top of this, the government set grants increases at 3% (well below inflation) which will create serious problems for boards and the union come bargaining. There was apparently no dialogue with the ATA or school boards before the diktat was handed down. New government, same old arrogance. If nothing else, its a waste of money. I piss people off for free!
ReplyDeleteAP@7:53 - I have little to quarrel with you and your comment except to conclude the budget is a joke. Our research shows Albertans do not want tax cuts they want infrastructure - physical social and human capital infrastructure issues dealt with. This Budget does that and shows the political decision to spend the money now the fix the problems.
ReplyDeleteThe past neglect of infrastructure maintenance and expansion to handle growth was poor policy and is the current Klein legacy. We celebrated pay down of the debt and deficit in 8 years instead of the original steady moderate plan of 25 years. That was irresponsible to my mind.
Other voices in Caucus and Cabinet were drowned out or ignored. Most of the old regime, especially in Calgary and the rural south knew they owed their electoral success to Ralph Klein's coattails. They would not be "inKleined" to boat rocking and with Ralph's disengagement in governance it took the PC Party at the AGM a year ago to tell him his best before date had passed.
This is not a perfect Budget - that never happens. It does show a resolve to fix the error of the past, to get started on the critical emerging issues like affordable housing and labour shortages (except perhaps the environment is getting too short a shrift) and positioning for long term planning.
The long term planning needs to wait for the Royalty Regime Review, the Comprehensive Energy Strategy, the McNicol folks on the oilsands and the Land Use policy process to complete their work. All of that will be in place this fall...then expect some serious and comprehensive long term planning to show up
Anon @ 7:55 - can you be more specific about what you are talking about? Without more proof of such claims you sound like Dr. Oberg and his "skeletons" comments.
ReplyDeleteAnonymous innuendo without substantial evidence is irresponsible behaviour so please give us more evidence and facts of your claims or STFU.
Wow Ken, you agree with me that it is time for a change of leadership!
ReplyDeleteAs I wrote to CFCN (CTV Calgary), where this comment was published on the evening newscast:
ReplyDeleteThe Budget 2007 is a disgrace: chaotic spending, which will likely have few tangible results, and no real tax relief for hard-working Albertans. Looks like the Tories have reached the end of their reign.
Werner:
ReplyDeleteI suggest you look at Monday or Tuesday's Calgary Herald.
AP @ 1:38 - Yes you are right I agree with you that the leadership needed to change but you are a little out of touch - the leadership has already changed...it happened Dec 2...Ed Stelmach won and Albertans decided that he is the change we needed.
ReplyDeleteWe are now in a transition time since Stelmach has only been at it for 15 weeks and about 4 of them were pretty much inactive holiday times.
With Premier Stelmach you have to pretty impressed on what he has initiated and changed so far given that time frame thing and the fact he had precious little honeymoon time.
Werner at 2:37 - this is not a disgracful budget it is a pragmatic catch up budget and a repositioning budget. It is too bad we have to do that catch up thing but that is the situation. We have endured 5 years of political drift at the end of the Klein regime and that is the casue of the current situation.
We may still be drifting if Ralph had his way but the PC Party took the Premier by the horns and did some house cleaning just over a year ago at the AGM voting for a leadership change.
The power balance and influence mix has changed in Alberta as has the agenda for Albertans. Stelmach is dealing with the urgent now and has fiscal room only for some of the important issues right now, but many are in this budget.
The full agenda for change needs to wait until fall for all the consultations to work its way through the system but expect bigger changes then...especially in the important agenda areas of environment, managing growth and social well-being.
Stay tuned...and get ready for the election next spring.
Just pulling your leg a bit!
ReplyDeleteAP 2:16 - pull away...but you are might - we needed a leadership change and we have it.
ReplyDeleteNow we some time, about a year, for Albertans to see if they want to retain this change or switch to some other leader like Kevin Taft or Brian Mason or Paul Hinman to determine our collective futures.
As Stelmanch says political office is a priveledge and not a right. PC Party and PC MLAs have some serious adapting to do in the next 12 months. This Budget is a good start...but only a start.
Glad to see the increased tax on tobacco. Just wondering: would it be possible for the government to allow for a tax credit if smokers take courses that AADAC regarding quitting smoking?
ReplyDeleteSpin, spin, spin, you must be made of rubber or something Ken because you are almost doing as much spinning as a tire! Anyway, I enjoy reading your insightful and well-informed commentaries.
ReplyDelete