Building a Better Alberta

central Edition Summer 2011

A Message from Premier Ed Stelmach

Listening to Albertans guided our intact, but strengthened in priority areas, government’s plan to weather the and ready for the growth we know is recession and prepare for the future. coming. All the signs are there: our province led the nation in job creation over the past We took a careful look at spending, and year – in June alone, Alberta added 22,000 tightened our belt where we could. But new jobs, more than were created in the we stayed strong in supporting the priority entire United States during the same areas of health and education – both of these month...provincial revenues are on the rise... areas have seen budget increases, even our deficit for last year was $1.3 billion during the darkest days of the recession. lower than expected and is covered by our savings...and a return to the days of surplus Infrastructure, too, has remained a focus. budgets is just around the corner. And by building during the recession, our dollars went much further than before, This Report to Albertans highlights actions Our plan is working. Alberta is on the move which allowed us to catch up – and even your government has taken to enhance again, after the worst global recession get a head start on meeting future needs public services to meet Albertans’ needs. since the Great Depression. in a province that is predicted to be among If you have any questions or comments, the fastest-growing in Canada in the please talk to your MLA or see the end The economic downturn tested us – made coming years. of this publication for where to find us consider what was most important and more information. what could wait. And Albertans were very I think Albertans can be very proud of how clear on their priorities: health care, we came through the recession – with education and local infrastructure projects. public programs and services not only

In 2011-12, of every dollar spent by Health and education are the two biggest spending the Alberta government: areas in the entire Government of Alberta budget. • 41 cents goes to health • 23 cents goes to education A better bottom line

Alberta leads Canada in economic growth during the past 20 years, with an average annual GDP growth of 3.2% per year.

Careful management of spending plus higher in place a four-point plan for recovery by: financial assets of more than $28 billion than expected revenue means Alberta’s and enough money in our savings to see • preserving health care, education and deficit was cut by $1.3 billion last year. us through the economic recovery. other priority programs; Revenue from Crown lease sales, bitumen • protecting jobs and building for the After growing by an estimated 3.8 per cent royalties and investment income were all future by investing in infrastructure; in 2010, the Alberta economy is expected higher than forecast, while spending was • guarding the province’s fiscal position to increase by 3.2 per cent in 2011. Over down by $452 million. by managing our spending; and the next few years, economic growth is forecast to continue to remain solid, Alberta entered the recession in the best • enhancing our competitiveness. averaging around three per cent per year. shape of any province in Canada, with no Steady growth combined with careful debt and more than $17 billion in cash This plan worked. Alberta is in the strongest spending will help the province return to reserves in the Sustainability Fund. We put fiscal position of all the provinces, with net a balanced budget in 2013-14.

Alberta’s Fiscal Results 2010-11 “Doubts that the Albertan economy could

Expense reclaim its position as one of Canada’s faster Revenue $38.3 billion $34.9 billion growing provincial economies are dissipating

$866 million $452 million quickly because the wheels of growth are higher than lower than Deficit estimated estimated $3.4 billion starting to spin faster in the province.” $1.3 billion lower than – Royal Bank of Canada, provincial outlook, June 2011 forecast Albertans have the lowest overall

personal taxes in Canada: a low

single-rate tax system, the highest

basic and spousal exemptions

in the country, no general sales

tax, the lowest fuel taxes among

provinces, and no health

care premiums.

“Alberta is blessed with an abundance of natural advantages, which have formed the foundation of our province’s thriving economy. The Alberta government has built on this by engineering an economic plan that ensures a positive business climate exists in our province. A climate that encourages investment, creates diversity, and empowers Alberta businesses to compete successfully around the globe. The result is one of the world’s most vibrant and competitive economies.” – Alberta Chambers of Commerce

Savings and Infrastructure Investment

Sustainability Fund Heritage Fund Capital Plan (Savings)

• Value on March 31, 2011: • Value on March 31, 2011: • Support in 2010-11: $5.9 billion for $11.2 billion $14.2 billion roads, schools, hospitals and other • Created in 2003 to be used • Long-term savings vehicle – not public infrastructure for unexpected declines in used to cover deficits • Alberta’s per capita investment in revenue or to offset the costs • Created in 1976 as a way to preserve infrastructure was nearly 35 per of emergencies or disasters Alberta’s resource wealth for future cent higher than the per capita • Offsets budget deficits, allowing generations of Albertans average of other provinces programs to be protected during • Since 2005, the Alberta • This will strengthen the economy, tough times without raising taxes government has deposited more help keep Albertans working and or borrowing than $7 billion into the Heritage support core public services to Fund and other funds maintain a high quality of life • Over the last five years, the Government of Alberta has invested $35 billion to catch up on needs Building the things we need

Infrastructure Projects – Central

In 2011-12, the Alberta government will invest $6.6 billion into priority public infrastructure (such as schools, hospitals, roads and long-term care facilities). This is part of a $17.6 billion investment over the next three years.

Building and modernizing schools Replacement Bawlf School, Bawlf Modernize St. Anthony’s School, Drumheller John Wilson School/Innisfail Junior Senior Middle École Desrochers, Jasper and High School / St. Marguerite School, Innisfail Jasper Junior Senior High School, Jasper Ponoka Composite High School Phase I, Ponoka Griffiths-Scott Middle School, Millet Ponoka Solution, Ponoka Mundare School, Mundare Racette Junior High School, St. Paul New School, Penhold F. G. Miller Junior Senior High School, Elk Point École La Prairie, Red Deer Trochu Valley School, Trochu Two Hills Mennonite School, Two Hills Vilna School, Vilna Hilltop High School, Whitecourt Post-secondary institutions

New More than 70 post-secondary projects worth over $2.7 billion are Shared Public/Catholic, Beaumont underway in Alberta. These projects will create about 11,000 new Aspen Ridge, Red Deer student spaces throughout the province, including: K-5, Red Deer Holy Trinity School, Olds Portage College, St. Paul Red Deer College, Red Deer Lakeland College, Vermilion Olds College, Olds Research Facilities, St. Albert/Kinsella Alberta is getting ready for the next decade of economic

activity. Building infrastructure during the recent economic

downturn kept Albertans working and allowed the province

to take advantage of savings in construction costs.

Over the next three years, the Alberta government will

spend $17.6 billion on capital projects – health facilities,

schools, post-secondary institutions, water treatment

systems, roads and municipal infrastructure, to support

core public services and prepare Alberta for strong future

economic growth and a high quality of life.

Alberta has a 20-year Capital Plan that ensures we are prepared for the next economic growth cycle.

Increasing access to health care Highway 14 - repaving 48 kilometres from Bruce to east of Kinsella ($4.5 million) Central Alberta Cancer Centre, Red Deer - $46 million Highway 16 - repaving 49 kilometres from Minburn to east new cancer treatment facilities of Vermilion ($13 million) Health Care Centre, Edson - $108 million new hospital Highway 56 - repaving 24 kilometres between Highways 13 and 609 south of Camrose ($8.7 million) Community facilities Major ongoing projects in central Alberta include: new vehicle inspection station, Whitecourt new vehicle inspection station, Morrin Highway 2 - Highway 11A interchange in Red Deer to be complete by fall 2011 Highway 9 - Widening and reconstruction of 15 kilometres between Highways 21 and 840 west of Drumheller to be Improving roads complete by fall 2011 Major new projects in central Alberta include:

Highway 13 - widening 19 kilometres between Highway 56 and Bawlf ($18.1 million) Highway 13 - repaving 39 kilometres between Killam and Hardisty ($6.4 million) Better access to health care

Funding for Alberta Health and Wellness is budgeted at $14.9 billion for 2011/2012. Over the past five years, Health and Wellness spending has grown by 48.2% or $4.9 billion.

Alberta’s health system caregivers are among and more addiction treatment beds with trusted health care information and the best anywhere and major health facilities and palliative/hospice care beds. services, other health tools and wellness are available in every area of Alberta. Work management tips. is underway to improve access to services More continuing care beds across the province. added 1,155 Taking action on wait times Alberta’s goal is to build the best-performing, continuing care beds in 2010-11 and is on The new Alberta Wait Times Reporting publicly funded health care system in Canada. track to add another 1,000 each year up website (www.waittimes.alberta.ca) shows With the 5-year funding commitment to Alberta to 2015. With the addition of these new wait time information, including 13-month Health Services and Becoming the Best: continuing care beds, our province now has trends, on surgical procedures and diagnostic Alberta’s 5-Year Health Action Plan, significant the lowest rates of Albertans waiting for tests including MRI scans, cancer services, progress has been made towards achieving placement in more than three years. This – and hip and knee replacement surgeries. that goal. coupled with new province-wide emergency Albertans can search wait times by procedure, room protocols and additional home care by specialist and by facility. The 5-Year Health Action Plan is an aggressive support – is also helping lower emergency plan that will help Albertans get quicker department wait times across the province. These accomplishments are the result of the access to surgeries and cancer treatment; great work of many front-line professionals provide more continuing care options; move More information tools and health care providers. Because of people in and out of emergency departments them, we are on track to ensuring our health Albertans also have two new tools faster; improve access to health care providers; system is providing the best care possible to help manage their own health care. and get Albertans healthier. to Albertans. MyHealthAlberta (www.myhealthalberta.ca) is a new online health tool connecting Last year saw the addition of 305 acute Albertans to nearly 9,000 health topics care beds, 17 psychiatric/stand-alone beds, Specific performance measures and targets allow Albertans to track and monitor the performance of the health care system. By March 2012, Albertans can expect to see: • 360 new hospital beds • 3,000 more surgeries • 2,300 new continuing care spaces • 3,000 more Albertans receiving home care services

There has been significant Funding Alberta’s health system: improvement in the length of $14.9 billion through Alberta Health and Wellness includes: time people are waiting in hospital $14.8 billion in ongoing operating expense: emergency departments. In May, • $9.6 billion for Alberta Health Services operating costs (a 6% increase from 2009-10) • $3.3 billion for physician compensation and development the daily average number of • $1 billion for prescription drugs and other health benefits for Albertans emergency inpatients waiting to • $800 million for other health services, including $4 million for a sexually transmitted infections and blood borne pathogens strategy, and $2 million for the Alberta Injury be moved from emergency beds Control Strategy to acute care beds, compared • $134 million for vaccine utilization, amortization, and capital grants primarily for diagnostic and medical equipment and health information systems to September 2010, declined 77 per cent in ; 53 per nearly $2.6 billion in health capital spending over 3 years includes: • almost $2.2 billion for new or expanded health facilities and for maintenance and cent in ; and, 39 per renewal of existing facilities cent in Red Deer. • $407 million for health information systems, including $150 million for the purchase of vaccines and $107 million primarily for diagnostic and medical equipment Equipping our students for success

According to the most recent Education is a cornerstone of Alberta’s The Alberta government’s Programme for International current and future success. Our province’s education system is recognized as one of spending on education continues Student Assessment (PISA) results, the best in the world. We’re staying at the 15 year-old Alberta students were: forefront by providing students with the to be among the highest of any tools they need to achieve their potential. province in the country and • first in Canada and eigth We’re looking at our curriculum, to ensure the world in reading literacy; that it remains relevant in a changing world, continues to grow. Nearly $6.2 leverages technology, and keeps students • first in Canada and eigth engaged. We’re also modernizing and billion is budgeted for education in building more schools. And we’re taking the world in scientific literacy a new approach to supporting students 2011-12, a 2.7 per cent increase and with special needs so they can continue to succeed. from the previous year. School • second in Canada and eigth boards will receive funding for: in the world in mathematical Lifelong learning • an anticipated 4.4 per cent literacy Whether you are thinking of becoming a increase in teachers’ salaries; tradesperson, improving your reading ability, getting your degree or being trained • an expected 1.1 per cent Albertans are among the for a specific job, Alberta’s post-secondary system has affordable, accessible and high increase in enrolment; best-educated people in North quality options. America. Alberta’s 26 diverse • increased supports to students For more information on Alberta’s publicly-funded post secondary post-secondary educational system visit: with severe disabilities; and, www.aet.alberta.ca. For more information institutions serve over 264,000 on funding for post-secondary education • student transportation click on “funding and supports” in the students, spanning every region left-hand menu. services. of the province. Energy powers Alberta’s economy

As the engine of Alberta’s economy, energy revenues account for almost a third of the Alberta government’s total revenue and just over half of the value of the province’s total exports.

Blessed with abundant coal, minerals, To meet the province’s growing electricity “Owing to robust crude oil prices, natural gas, conventional oil, renewable needs, Alberta’s electrical transmission an increase in drilling activity, and energy sources and the oil sands, Alberta system is being upgraded. There hasn’t is a global energy leader. been an upgrade for decades and the a healthy inflow of inter-provincial system is near its capacity. While most and international migrants, Alberta The Alberta government remains committed places in North America are struggling to is slated to be among the provincial to strengthening Alberta’s investment meet rising demand for electricity with aging economic growth leaders in 2011 competitiveness and demonstrating that infrastructure, Alberta is moving forward Alberta is a secure, environmentally with a plan to meet future needs, not just (4.2%) and 2012 (3.2%).” responsible supplier of energy. immediate ones – a strategy praised by the – TD Economics, provincial Canadian Electricity Association. economic forecast, April 4, 2011 Steps to improve the fiscal framework for royalties have generated renewed activity in For more information go to the oil and gas sector, bringing increased www.energy.alberta. investment and aiding in the solid recovery “Favourable conditions have our province is making from the global New records in petroleum and economic downturn. revived interest in developing the natural gas land sales for the non-conventional oil industry. Advancements are also being made on Investment in the sector is set to carbon capture and storage, with agree- last calendar year ($2.39 billion) jump this year and see solid ments in place to allow pilot projects to proceed. For example, the Government of and fiscal year ($2.56 billion) increases over the medium term. Alberta recently signed an agreement with Bitumen and synthetic crude oil Shell Canada Energy for the Shell Quest have been followed by a single production will also rise strongly. carbon capture and storage project. The project will capture more than one million day land sale record on June 1 The strength will not be just in tonnes of carbon dioxide per year from the energy sector; benefits will the Scotford Upgrader and inject it deep of over $841 million. In addition, spill over to the services side of underground. This CO2 will repressurize the economy.” old oilfields so that the remaining crude the active rig count in our oil can be recovered, generating royalties. – Conference Board of Canada, These efforts will not only help reduce province is up over fifty per cent provincial outlook economic Alberta’s carbon footprint, but also forecast, Spring 2011 enhance oil recovery. compared to last year. Welcoming communities

Vibrant communities are the key to a GreenTrip, Strathcona County received In addition to ongoing grants prosperous province. The Government of $13.6 million for a transit terminal; Banff Alberta remains committed to supporting and Canmore received $900,000 for and programs, since 2007 strong, sustainable and safe communities. a regional transit service; Grande Prairie received $1.1 million for new transit buses; the Alberta government has Sustainable communities and the Town of Hinton received $109,000 for public transit improvements. provided $3.1 billion through With the assistance of Alberta’s Municipal Sustainability Initiative (MSI), communities the Municipal Sustainability across the province are able to plan and Safe communities build for the future. MSI provides stable, A big part of our quality of life is having a Initiative to turn more than reliable funding to municipalities, helping to safe place to call home. Over the past few make them even better places to live, work years, significant strides have been made to 2,200 infrastructure capital and raise families. deal with the root causes of both crime and homelessness. priorities into reality, and Since Premier Ed Stelmach launched MSI in 2007, the program has put more than Alberta is a leader in crime prevention, with committed to $2 billion to $3.1 billion into the hands of municipalities a balanced approach that includes prevention, to help turn more than 2,200 infrastructure treatment, and enforcement. Over the past support public transit through and capital priorities into reality. Of those three years, the $60-million Safe Communities projects, more than a third have been public Innovation Fund has benefited 88 pilot the GreenTRIP initiative ($800 transit related, 38 per cent have been for projects to help address crime-related municipal buildings and recreation facilities, issues and make a real difference in building million to the Capital Region: and about a quarter have been for municipal safer and stronger communities. roads and emergency services. Recent $800 million to Calgary and projects include a new animal care and Affordable housing continues to be an control centre for the City of Edmonton; a important issue for Albertans. The province area; and, $400 million to other fire hall in Elk Point; upgrades to Waskasoo is working with municipalities and community Park in Red Deer; the Calgary Police Service groups to ensure that a range of housing municipalities throughout forensic centre; and new county facilities in options are available for low-income the County of Newell. Albertans, including those who are homeless, Alberta). This funding allows or are at risk of becoming homeless. Over The Government of Alberta’s $2-billion the past four years, the Government of municipalities to build GreenTRIP program provides one-time Alberta has provided funding to help develop infrastructure projects without capital funding to communities to provide over 10,790 affordable housing units and is Albertans with a wider range of public on track to meet the commitment made in having to rely on municipal transit alternatives for local, regional and 2007 to provide funding to support the intermunicipal travel. For example, through development of 11,000 units by 2012. property taxes. Planning for the future

Alberta’s economic and population growth In response, the Government of Alberta holders can apply for variances to the plan over the past decade has put pressure on launched a province-wide system of regional and landowners can apply for compensation our land, roads, utility systems, towns and land-use planning with the introduction of where they have a right under the law. cities, and increased demands for different the Land-use Framework in 2008. Proposed regional plans or amendments land uses, like farming, energy and recreation. must be provided to the Legislative Assembly The purpose of the Land-use Framework, of Alberta before they are approved by the Albertans from all sectors, backgrounds and the regional plans developed under it, is Alberta Cabinet. and interests have told us they want more to manage growth and sustain our growing long-term planning and coordination of economy in balance with Albertans’ social Regional planning is important to the future activity on the land, and a balancing of and environmental goals. of Alberta—to our prosperity, our environment economic growth with Alberta’s environmental and our communities. We are all partners in and community goals. They also made it The Alberta government is consulting with building that future. clear that government has to protect private people in each region as it develops, and property rights when making decisions in before it approves, regional plans. Title- the public interest. Growing prosperity

The agriculture and food sector is Alberta’s manufacturing shipments of Alberta’s food and With 20 per cent of the total largest renewable industry. Agriculture and beverage processing industries reached $11.9 rural communities are an integral part of billion. Meat product manufacturing accounted value of agricultural production Alberta’s economic and social fabric. for more than half of the sector’s shipments. and the third highest livestock Alberta has one of the world’s most To expand the sector, the Alberta government productive agricultural economies with more is working with the Government of Canada and crop market receipts in the than 51 million acres or 20 million hectares and our provincial and territorial partners on used for crop and livestock production. a pilot project which will assess the needs country, Alberta is a leading and challenges of small and medium-sized In March, to address challenges and non-federally registered meat processors to exporter of food and an changing needs, the Alberta government meet federal requirements for interprovincial announced the Cattle Price Insurance trade. The pilot project is intended to create agricultural powerhouse within Program-Calf. It is the third made-in- an environment that will encourage and allow Alberta insurance plan available under for more interprovincial trade of meat products Canada. By 2020, Canada will the Cattle Price Insurance Program. It by small and medium-sized processors. provides beef producers with protection be one of only six nations in against price, currency and basis risks. Alberta is a global leader in agriculture. A similar program for the pork industry is However, to ensure our continuing success, being developed. The Alberta government Alberta must stay competitive with the the world that will be net has also introduced a hog price insurance United States, New Zealand, Australia and program to help hog producers weather Brazil. Countries such as China, Japan and exporters of food, growing volatile market prices. India represent large markets for Alberta products and these regions will be the focus more than they consume. Alberta has a rapidly expanding value- of our international efforts. added agricultural products sector. In 2009, See Alberta Find out more To learn more about the province’s strategic plan, visit www.alberta.ca. this summer To reach any government office call 310-0000 toll-free throughout Alberta.

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