The provincial government released Alberta's third budget in just over a year Thursday, outlining their fiscal plan to deal with the province's faltering economy.
In Budget 2016, the Alberta government set out a plan to create jobs and deal with growing unemployment, to help support Alberta families, and increase taxes on gas and home heating.
Basic numbers break down as follows: the province's projected expenses are $51.1 billion, with a projected total revenue of about $41.4 billion - leaving a projected deficit of about $10.4 billion.
The province is borrowing $14.1 billion.
The budget, entitled "Alberta Jobs Plan" includes a $250 million, two year job package.
"Albertans are facing anxiety over job loss, and are worried they may be next," Ceci said.
"The Alberta Jobs Plan will provide support for all Albertans to weather these tough times."
The province also outlined plans for helping families, with an Alberta Child Benefit ($147 million), tax credits, income support and employment and training programs.
The government also released details on the $34 billion infrastructure plan introduced last year.
More details were also released on the carbon tax - starting on January 1, 2017, a price of $20/tonne of emissions will be implemented on purchases of fuel for transportation and heating.
The province said the tax is expected to raise $274 million, increasing to $1.7 billion by 2018-2019.
The province is also introducing rebates for lower and middle income Albertans to help deal with the carbon tax.
The province said it will save $33 million by consolidating or dissolving a number of government agencies, stemming from the first phase of a government review of agencies that reviewed 136 public agencies.
On Thursday, the province announced it will consolidate a number of corporations, boards and panels, while dissolving fifteen boards.
In addition the province is deferring a number of other projects promised during the provincial election, projects included on the lengthy list include school projects, upgrades to bridges, lane widening projects and upgrades to provincial buildings.
Planning for potential continued drop in oil revenue
"In the past year and a half, the price of oil has dropped by over two-thirds - from a peak of more than $105 per barrel in the summer of 2014, to less than $30 in January [2016]," Finance Minister Joe Ceci said in his budget speech.
As part of budget planning, the province brought in a risk adjustment factor to account for potential fluctuations in provincial revenue.
Budget 2016 was put together with the oil price estimated at $42 a barrel - which would put the deficit at $9.7 billion.
However, the province has also planned for a potential low price scenario, if the price of oil were to drop to $36 a barrel - which would put the deficit at $10.4 billion.
The province's operating budget has been set at $44.4 billion.
Finance Minister Joe Ceci said he expects to have a balanced budget by 2024, if current economic conditions continue.
Capital Plan
The province introduced a capital plan for $34.8 billion in projects over five years.
In Edmonton, some of those plans include $10 million ($5 million in 2016-17, and another $5 million the following year) for planning on two hospital projects, Misericordia Hospital and Royal Alexandra Hospital.
In addition, Stollery Children's Hospital Pediatric Surgical Suite Expansion has been budgeted at $5 million, in addition to $11 million slated for 2016-17 for the Stollery Children's Hospital Critical Care program - a total of $61 million has been budgeted for that program over five years.
For transit, the province has budgeted $120 million for Edmonton's Valley LRT Line between 2017 and 2020, matching funding from the federal government. The previous PC government had promised the City a $200 million loan for the Valley LRT Line.
Carbon levy coming in the new year
Under the province's Climate Leadership Plan, as of January 1, 2017, a charge of $20 per tonne of carbon emissions will be introduced.
Details on how the levy will be charged to consumers are expected in the coming weeks.
However, there will be a number of exemptions for the levy, including natural gas produced and consumed on site, marked gasoline and diesel used by farmers for farming operations, biofuels, flights between Alberta and other jurisdictions and indigenous use.
For consumers, it's expected the levy will be added in a similar way to Alberta's fuel tax. For heating fuels, it's expected to be integrated into bills.
As far as potential costs, the province said it's expected a couple with two children would pay an extra $136 for natural gas (at $1.011 per gigajoule) in 2017, and an extra $202 for gasoline (at 4.49 cents a litre) that same year, through the levy.
The province is planning to help Albertans cover the added cost with a rebate to lower and middle income families - that rebate will also go into effect January 1, 2017.
For the rebate, a single Albertan, making up to $47,500 annually, they will qualify for a $200 rebate in 2017, and $300 in 2018. A couple that makes up to $95,000 would be eligible for $300 in 2017, and $450 the next year.
A couple with up to four children, with a household income of up to $95,000 would qualify for $420 - $300 for the parents, and $30 for each child - in 2017. In 2018, the same family (with the same income) would be eligible for a $630 rebate - $450 for the parents, with $45 for each child.
Rebate amounts reduce for individuals making more than $47,500, but less than $51,250 at 2.67 percent, in 2018 the maximum income for individuals is increased to $55,000.
A couple without children is eligible for a reduced rebate if they make up to $100,000 in 2017, and up to $103,750 - their rebate would be reduced at 4 percent.
Getting more Albertans to work
In his speech, Ceci said unemployment in Alberta had risen to 7.9 percent this year, due to the oil price slump.
The province is cutting the small business income tax rate from three to two percent.
In addition, the province is rolling out a $250 million jobs package, over two years, it's expected to provide $165 million for two new tax credits to encourage support for small and medium-sized companies, $25 million in investment through the Alberta Enterprise Corporation, $35 million spent to attract new business, and pursue regional economic development, $25 million for new apprenticeship and training oppurtunities.
Finance Minister Joe Ceci says he hopes the jobs plan will create 100,000 jobs over three years.
Plan to support Alberta families
The province is introducing the Alberta Child Benefit, with $147 million slated to 2016-2017, and $196 million per year starting in 2017-2018. It's expected to provide up to $2,750 annually for vulnerable children and families.
A $25 million boost for the Enhanced Alberta Family Employment Tax Credit.
Opposition response to budget
The Official Opposition Wildrose Party quickly responded after the budget was tabled Thursday, panning the government's carbon tax plan and deficit.
"The NDP plan will hit families hard this year with a worsening economy, a punishing new carbon tax and dangerous new levels of borrowing," Wildrose Leader Brian Jean said in a press release. "There is no effort to reduce spending, while an irresponsible carbon tax and unprecedented levels of government debt will hit Albertan's pocketbooks hard.
"Albertans were hoping for an end to risky NDP experiments, a real plan on jobs and a vision to get our budget back on balance, but instead this NDP government is only making things worse."
Opposition Finance Critic Derek Fildebrandt called the budget a "reckless" fiscal plan.
"The NDP are increasing the size of government with over $6.5 billion in irresponsible new spending, imposing in the largest tax increase in Alberta's history and putting Alberta on the edge of a debt cliff," Fildebrandt said.
More information can be found online.
