Friday, November 22

Budget 2018- Voices under the Dome

Originally posted 23 March 2018
Updated 26 March 2018
After the Finance Minister rises to give the budget address, media outlets and political parties gather around their cameras and party banners to give their reaction to the budget.  Under the Rotunda Dome and around the fountain around the large fountain there is a buzz of excitement as the bows and arrows are drawn in this political blood sport.
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Reporters scurry to line up interviews with party leaders and political staffers mix to hear the take from lobbyists, municipal and school board officials.
We spoke with several politicians and representatives from lobby groups to get a sense of what letter grades they would give to this year’s budget.  Business groups such as the Canadian Taxpayers Federation (CTF), the Canadian Federation of Independent Business (CFIB), and the Alberta Chambers of Commerce were not very generous with their grades. The main problem with the budget was a concern with increases in spending and the run-up in debt.
AmberRuddythumbnailAmber Ruddy of the CFIB gave the budget a C grade without much in the way of policy innovations for small business.  Tax credits offered don’t seem to have much take-up from the CFIB’s members. This group was pleased that taxes weren’t going up but there has been a lack of progress in addressing the costs of doing business.

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Greg Clark, former leader of the Alberta Party was highly critical of the budget.  He gave the budget a “D” with unrealistic expectations of revenue growth and insufficient attention to spending control. In Clark’s view, the government is heading towards another credit rating downgrade due to the lack of a credible plan to move back into balance.  Tdownloadhe government should be moving to show the public that expenditures are being well managed before looking at increasing taxes. He cited a failure on the part of Alberta Health and AHS to listen to advice on how to improve service delivery at lower cost.

Dr. David Swann of the Liberal Party characterized the budget as a hold the line.  He was concerned about the government following the energy roller coaster.  We need to have an adult conversation about a harmonized sales tax.  The Liberals will be discussing this issue at their upcoming policy convention. He also commented on the need to improve the reporting on gas emissions and rising well abandonment. Another area of disappointment was the lack of recognizing the opportunities to save funds in the health sector. Poor management of chronic disease and high physician pay were areas of potential savings.ph-mla0754

Joel French of Public Interest Alberta termed the budget as piece cuts on public services.  While increasing budgets below inflation and population growth, a steady erosion of program quality.  French highlighted the huge revenue differential with other provincJoelFrenches that the government has failed to tap.

My last interview was with Stephen Mandel the new leader of the Alberta Party.  Mandel gave the budget a ‘D’ due to a lack of effort to control spending and rising public debt.  “We need to recreate Alberta”  The Alberta Party leader pointed to high administration costs in the health care system and in other departments.  He believed StephenMandel-Twitterpic-300x300that all sides of moving toward balance should be addressed but spending must be examined first.  According to Mandel, Albertans don’t believe the government is running an efficient business and therefore it is premature to look at the revenue side before the cost side.  No future Alberta Party would introduce a sales tax without a referendum.