By Erika Chorostil

Budget 2020

UCP focused on job creation and economic growth in Budget 2020

Feb 28, 2020 | 1:23 PM

“A plan for jobs and the economy” is the slogan accompanying the United Conservatives’ Budget 2020.

The budget was tabled Thursday and the government revealed that third-quarter results show the provincial deficit has declined more than expected, being $1.2 billion lower than projected in Budget 2019. According to the UCP, that means the government is on track to balance the budget by 2022-23, and Alberta taxpayers can expect to pay $35 million less in debt-servicing costs.

The budget deficit for 2019-2020 is $7.5 billion, which is less than the $8.7 billion that was originally forecast. For 2020-21, the province will see a $6.8 billion deficit on revenues of $50 billion.

The province stresses the budget provides stable funding for health, education, and core social services while finding cost efficiencies and creating jobs. The UCP says they are focused on living within their means and finding savings through efficiencies and pushing money to the “front lines.”

When revealing the budget, Alberta Finance Minister, Travis Toews, said, “Budget 2020 continues our focus on creating jobs, growing our economy and streamlining programs and services to ensure a sustainable future. Our plan is working. We are on track to balance the budget by 2022-23 and Alberta’s surplus in that year is expected to be higher than that projected in Budget 2019. We are also maintaining funding for health and education while ensuring each dollar is wisely spent on what Albertans need most.”

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Included in Budget 2020 is “A Blueprint for Jobs” – the government’s plan to get Albertans back to work. The government says it supports “dynamic” growth from the technology, energy, agriculture, and forestry sectors and supports diversification in other key sectors through initiatives.

These initiatives include: Improving competitiveness through further reductions in the Job Creation Tax Cut; Accelerating growth-oriented projects through the capital plan to provide job opportunities for Albertans; Reducing red tape in all sectors to make Alberta the best place to do business in Canada; Accelerating the reclamation of “legacy sites” – including orphan wells – in ways that prioritize job creation; and filling gaps in the labour market, such as increasing access to training for Class 1 drivers.

The 2020 Capital Plan commits $6.9 billion in 2020-21 to build and maintain key infrastructure projects across the province. Over the course of the three-year fiscal plan, an estimated $772 million in new projects will be added, bringing the total capital plan to $19.3 billion. The government says this will create opportunities for private sector participation and support more than 3,000 jobs, increasing employment by 2022.

The province will spend $26.7 billion on public sector compensation, with full-time equivalent jobs expected to drop but mostly through attrition.

The government promises $200 billion for growth initiatives in areas like high-tech, artificial intelligence, aviation, and financial services.

$97 million will be spent over three years for an Alberta and Television Tax Credit to attract medium and large TV and film productions to Alberta.

The province will establish a tourism strategy, with a goal of doubling tourism to $20 billion by 2030. This strategy includes the four percent tourism levy be extended to online marketers, like Airbnb, to level the playing field with traditional rentals.

Other highlights from Budget 2020 include:

Healthcare:
Healthcare funding will be maintained at $20.6 billion to provide health services, including $100 million for mental health and addiction strategy, $40 million for an opioid response, and $20 million for palliative care.

The government is also introducing a 20 percent tax on vaping devices and liquids to help discourage youth from buying vaping products.
Some new health projects include the Alberta Surgical Wait-Times Initiative, which will see $500 million over the next three years fund new operating rooms and purchase new hospital equipment. This will provide up to 80,000 more publically funded surgeries, reducing Alberta’s surgical wait times to an average of four months.

Another project focus is the new Rural Health Facilities Revitalization Program, which includes $35 million to provide infrastructure upgrades across Alberta. This will improve services and address accreditation or compliance issues at rural health facilities.

Alberta will maintain the government’s current level of spending on physicians at $5.4 billion and implement a new funding framework to avoid $2 billion in cost overruns by 2022-23. The new physician funding framework will be introduced starting on March 31, 2020. It’s a multi-year process that will require consultation with the Alberta Medical Association (AMA) at all stages.

It will include: Implementing changes proposed during negotiations to prevent cost overruns, aligning benefit programs and administrative fees with those of comparable provinces, and improving services for patients.

Education:
The province will spend $8.3 billion for education, which is an increase of $100 million as school jurisdictions transition to a new funding model by using reserves and their own source funding.

Of the $8.3 billion, $6.55 billion will be spent on Early Childhood Services to Grade 12 instruction for public, separate, Francophone and charter schools spending, and $841 million to maintain and enhance school infrastructure across the province.

Twenty-five new school projects were announced as part of the fall 2019 Capital Plan. The 2020 Capital Plan adds two new modernization projects and provides full funding for nine projects that had previously only received design funding.

Services:
$3.9 billion will be spent on community and social services with a focus on more sustainable outcomes.
$6.37 million is being invested for seniors benefits and housing services, and $1.6 billion is included for children’s services.