Surprise, surprise.
“Albertans support ongoing savings, investment in infrastructure, responsible and efficient government spending and a more diverse economy that reduces Alberta’s reliance on oil and gas,” according to a government news release about the results of the province’s Dollars and Sense consultation with residents last fall.
That sounds pretty straightforward. It also sounds like what we’ve been hearing. Savings, efficient government spending, investment in infrastructure. Who could argue. We need more schools, highways and support for seniors to address a growing population.
What’s not so clear cut were the comments of Doug Horner, President of the Treasury Board and Alberta’s Minister of Finance.
“There is an immediate need to deal with our fiscal challenges and deliver on Albertans’ priorities — this work began well before the price for Alberta oil began to plummet. While we look at every dollar we are spending, we must not lose sight of the long-term direction of Alberta and the vision of Premier Redford.”
No hints there about what the forthcoming budget will contain. When it’s delivered on March 7, we could expect from the first sentence that drastic cuts are in the works. But then you throw in the second sentence and, if you understand the premier’s vision, you may see a hopeful light.
University of Calgary Professor Ron Kneebone recognizes there’s a lot of sorting to do when listening to our politicians. As a result he’s created a “citizen primer”.
“Budgets like this tend to be laced with financial jargon and political rhetoric, making it hard for the average citizen to understand the true state and direction of provincial finances,” states a university news release on his research.
“As Kneebone outlines the basics of how governments arrive at either a surplus or deficit in any given year, and what they do in response to either case, he begins to unveil some unnerving realities regarding Alberta’s finances — some of which are the produce of basic budgeting rules being broken,” states the release.
He wrote that between 2008 and 2012 the government reduced savings by $16.5 billion. “The average rate of burn of the government’s savings during this period — $4.1 billion per year — is eerily similar to that during the Getty years — $4.3 billion per year.”
(The report can be found at www.policyschool.ucalgary.ca/publications.)
In the past couple of days, Horner has warned that Alberta’s next budget isn’t going to be pretty. But there will be no talk of tax increases, yet.
“The first thing that we do is we look to our own house before we dig into the pockets of those in your house,” Horner told reporters.
We can just imagine the balancing act that’s going on behind the doors of government. And we must be prepared when we hear their conclusions. After all we’ve benefitted from this government’s financial leadership without enough squawking to change the directions they’re headed.