Budget falls short on infrastructure deficit, municipalities say
By
Colin Gallant
and Karen Unland
While Alberta's 2023 budget upped spending significantly, it leaves municipalities with a lingering infrastructure deficit that won't be erased by the incoming fiscal framework, says Alberta Municipalities.
The budget "clearly shows (the province) has taken the political temperature of Alberta" in prioritizing funds for healthcare, education, and public safety, ABMunis president Cathy Heron said at a briefing on March 1. "This is necessary and understandable. And Alberta Municipalities believes this spending will help."
But the budget falls short when it comes to addressing Alberta's growing infrastructure deficit, which ABMunis pegs at $30 billion, she said.
"While numerous infrastructure projects will receive funding in the 2023 provincial budget — things like hospitals, schools, roads, and bridges — these projects represent a small fraction of the infrastructure projects needed to build a province that attracts and retains talented people so that Alberta remains economically successful and prosperous," Heron said.
The Municipal Sustainability Initiative (MSI), which has funded billions of dollars in municipal infrastructure since its inception in 2007, will be replaced in 2024 by the Local Government Fiscal Framework (LGFF). On paper, it looks like municipalities will get an increase, as the budget puts MSI funding in 2023 at $485 million and LGFF funding in 2024 at $722 million.
However, the municipalities once had access to the Basic Municipal Transport Grant (BMTG), which is also to be replaced by the LGFF. The total number has gone up and down over the years, but ABMunis argues that the budgeted LGFF funding is far below the 12-year average of the previous two funding programs.
"We were hoping to see it bumped up to match what we were historically promised," Heron said.
While ABMunis didn't get the overall increase it wanted, it was happy to see the LGFF will be fully indexed, meaning dollars will increase and decrease as the provincial government's revenues fluctuate.
"In this respect, Alberta municipalities feel more like full partners, rather than a child of the province," Heron said.