The Government of Alberta is set to spend billions of dollars on capital projects as part of the 2023 provincial budget, February 28, 2023. (Photo: Lethbridge News Now)

By David Opinko

Alberta budget includes $23 billion for infrastructure

Feb 28, 2023 | 3:30 PM

EDMONTON, AB – A major component of the 2023 Alberta Budget is investments into infrastructure.

Released by the Government of Alberta on February 28, 2023, the 2023 Capital Plan includes nearly $23 billion in funding over three years.

The biggest allocations will go towards municipal infrastructure support at $6.508 billion, followed by capital maintenance and renewal at $3.542 billion, and health care services with $3.1 billion in funding.

In each year between 2023-26, the government states that an average of 20,000 direct and 12,000 indirect jobs will be supported by capital projects.

Infrastructure Minister and Lethbridge-East MLA Nathan Neudorf says the investments being made by the province will help to ensure Alberta can thrive for years to come.

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“Over the next three years, Alberta’s government is investing $23 billion into public infrastructure through the 2023 Capital Plan. By building and revitalizing hospitals, schools, courthouses and other public facilities, we are investing in the critical infrastructure projects that Albertans need and help keep people working,” says Neudorf.

According to the budget document, the Capital Plan includes $6.9 billion over three years to “assist municipalities in creating vibrant communities.”

As part of that, the province will replace the Municipal Sustainability Initiative (MSI) with the Local Government Fiscal Framework (LGFF). The MSI program will only be in effect for one more year in 2023-24, providing $485 million to communities. The new LGFF will result in an average of $767 million in each of the following two years.

The province says in its Capital Plan document, “As part of the transition from MSI to the LGFF funding formula, the Government of Alberta is committed to providing additional top up funding to ensure that no municipality will receive a year-over-year decrease in funding in the shift to the LGFF.”

The province plans to spend a total of $2.3 billion over the next three years on roads and bridges. This includes $75 million for 23 engineering projects to plan for initiatives such as fully twinning Highway 3 from Medicine Hat to the B.C. border.

Included in the $1.6 billion for capital projects relating to the K-12 education system, new funding will address larger-than-anticipated enrolment growth, particularly in metro areas.

The Capital Plan includes funding to design and construct new schools in Taber, Airdrie, Lethbridge, Red Earth Creek, Breton, and Calgary. There is also money set aside to plan for 14 potential new schools in Stettler, Okotoks, High Prairie, Coalhurst, Edmonton, and Calgary.

There will be an effort to aid communities in acquiring, building, repairing, renovating, upgrading, and expanding sports, recreational, cultural, and other public-use community facilities. Funding under the Community Facility Enhancement Program (CFEP) is set to increase to $50 million per year, rising by more than $11 million annually.

The new provincial budget provides $497 million over three years for housing and other social supports, including in Edmonton, Calgary, Lethbridge, High Level, Manning, DeBolt, and Fort Chipewyan.

A total of $3.1 billion will be spent on health care infrastructure in 2023-26, primarily focusing on acute care and continuing care. Some highlights include:

• Alberta Surgical Initiative Capital Program – $120 million in new funding for projects to increase surgical capacity and reduce wait times in Brooks, Calgary, Camrose, Crowsnest Pass, Edmonton, Fort Saskatchewan, Grande Prairie, Innisfail, Olds, Pincher Creek, Ponoka, Red Deer, St. Albert, Stettler and Taber.
• Rural Health Facilities Revitalization Program – $75 million in new funding for projects in rural communities.
• New or upgraded facilities in Bassano, Cardston, and Whitecourt.
• Upgraded EMS vehicles and equipment – $15 million.
• Chinook Regional Hospital – $11 million over three years for an expanded renal dialysis program.

The province says $155 million will be invested into recovery communities, offering long-term residential addiction treatment. The Red Deer Recovery Community is set to open in March 2023 while the Lethbridge Recovery Community is expected to open in spring 2023. More recovery communities are planned on the Blood Tribe First Nation, Grande Prairie, Central Alberta, Northern Alberta, Calgary, and Edmonton.

The government plans to spend $594 million over three years for safety-related initiatives, including continued work on a new courthouse in Red Deer and flood mitigation in Drumheller.Other highlights from the 2023 Capital Plan are listed below.

Municipal Infrastructure Support – $6.508 billion in 2023-26

• Red Deer Airport expansion – $30 million in 2023-24
• Municipal Sustainability Initiative – $485 in 2023-24
• Local Government Fiscal Framework – $1.535 billion in 2024-26 – replaces MSI

Protecting Quality Health Care – $3.064 billion in 2023-26

• Health facilities support – $529 million in 2023-26
• Chinook Regional Hospital – renal dialysis expansion – $11 million in 2024-26
• Pandemic response – $0 – down from $35 million in 2022-23
• Intensive care unit expansions – $34 million in 2023-24
• Red Deer Regional Hospital Centre Redevelopment – $321 million in 2023-26
• Recovery Communities – $155 million in 2023-26

Roads and Bridges – $2.293 billion in 2023-26

• Highway 11 Twinning from Red Deer west to Rocky Mountain House – $108 million in 2023-26
• Highway 3 Twinning from Taber to Burdett – $94 million in 2023-26
• Highway 40 Twinning south of Grande Prairie – $84 million in 2023-24

Public Safety and Emergency Infrastructure – $594 million in 2023-26

• Grande Prairie Courthouse Expansion – $1 million in 2023-24
• Red Deer Justice Centre – $83 million in 2023-25

Agriculture and Natural Resources – $1.052 billion in 2023-26

• Alberta Petrochemical Incentive Program – $484 million in 2023-26
• Kainai Forage Natural Gas Pipeline – $1 million in 2023-24
• Lethbridge Irrigation Planning – $5 million in 2023-24

Family, Social Supports and Housing – $497 million in 2023-26

• Affordable Housing Partnership Program – $202 million in 2023-26
• Affordable Housing Strategy – $68 million in 2023-26
• Lethbridge Supportive Housing for the Chronically Homeless – $9 million in 2023-26
• Red Deer Integrated Emergency Shelter – $7 million in 2023-25

Skills for Jobs – $180 million in 2023-26

• University of Lethbridge Destination Project Phase 2 Planning – $3 million in 2023-24