The Alberta Budget 2020: Perspectives From the Nonprofit Sector
The Government of Alberta tabled its 2020-21 budget on February 27, projecting a total provincial debt of $87.8 billion by 2023. As signaled by the government since their election in April 2019, significant cuts in the 2019 budget – including funding to public services such as health and social services – continue on the same trajectory. A projected deficit of $6.8 billion by the end of the 2020-21 fiscal year should remain a concern. The government’s plan is to reduce operating expenses over the next three years in order to balance the budget by the end of its mandate in 2023.
While the Alberta economy continues to remain volatile and revenues remain flat, Minister of Finance, Travis Toews remained hopeful about the government’s plan to increase economic growth and bring jobs back to Alberta. The Government plans to increase its revenue through investment spurred by corporate tax cuts and energy sector expansion, including pipeline construction.
“With Budget 2020, the provincial government is clearly staying the course,” says David Mitchell, President and CEO of CCVO. “Based on clear statements and goals from the UCP election platform last year and in their first Budget in the fall, there are no surprises given the challenging and ambitious objectives set by the government.”
Budget 2020 does not present any additional surprises for the sector when compared to Budget 2019. Although a majority of the cuts were part of the Government’s first budget tabled in the Fall, the Ministry of Culture, Multiculturalism and Status of Women once again saw its total budget decline from $271 million to $246 million. A large part of this reduction stems from the changes attributed to a budget transfer to support the Film and Television Tax Credit, which has moved to the Ministry of Economic Development, Trade and Tourism. Of note, the Community Initiatives Program (CIP) saw an additional decline of $3.3 million, whereas last year it received a $4.8 million reduction.
Funding of key programs for the nonprofit sector, including capital grants for the Community Facility Enhancement Program, and Family and Community Support Services, remained flat over last year. CCVO respects the government’s decision to maintain funding levels for these important programs during challenging economic times. As part of the government’s promise in their election platform, the Ministry of Community and Social Services plans to create a Premiers Charities Council to “advise government on how best to assist the efforts of civil society groups in helping to make Alberta a more compassionate society, preventing and reducing increased social problems.” This aligns with our policy brief recommendation and our 2018 State of the Nonprofit Sector research which recommended establishing a Premier's Advisory Council for the sector. Additionally the Ministry of Culture, Multiculturalism and Status of Women plans to achieve a one-third reduction in the number of regulatory requirements in its statutes, regulations, policies, and forms by 2023.
Other Highlights:
Public sector spending, including health and education, continues to remain flat. Health spending will remain at $20.6 billion and K-12 education will receive an extra $100 million ($8.3 billion total), although this will come from schools’ own-source revenues. Alberta’s public sector reductions of nearly 6000 positions are expected by 2023-24, mainly through attrition.
As part of the Government’s A Blueprint for Jobs to create more jobs and attract investment, a 10-year tourism strategy is being developed projecting a total of $20 billion in spending by 2030; Agriculture is set to create 2,000 new direct jobs in key sectors such as canola processing, pork industry, and food processing among others; $200 million is projected for start-ups to support Artificial Intelligence (AI), aviation, aerospace, and logistics.
Funding for the Calgary Stampede and Edmonton’s Northlands will see a decline to $9 million from $11.2 million.
Budget 2020 continues the path set with the UCP government’s first budget in October 2019, on its way to trimming spending, cutting corporate tax rates, and reducing red tape.
Stay tuned for CCVO’s full budget analysis to be released in the coming weeks.
Watch the budget speech online here, and access the government’s budget documents here.