AB Today – Daily Report October 15, 2020

Quotation of the day

“There will be tough decisions in the short term so we can sustain services into the future.”

Finance Minister Travis Toews indicates cuts are coming in the 2021 budget.

Today in AB

Written by Catherine Griwkowsky

On the schedule The house will reconvene Tuesday, October 20, for the fall session.

In the legislature Justice Minister Kaycee Madu met with the Métis Settlements General Council in the legislature on Tuesday to discuss policing as part of the government’s ongoing review.

Next spring’s budget will include cuts, finance minister teases Finance Minister Travis Toews warned “tough decisions” are ahead as he invited public feedback ahead of budget 2021.

To reduce spending, the finance minister said he is looking at creating “efficiencies” in the public sector.

“It’s clear the status quo is not sustainable, but this is also a great opportunity to reset our course, not only for the next fiscal plan, but for future generations of Albertans,” Toews told reporters. “There will be tough decisions in the short term so we can sustain services into the future.”

While the UCP ran on a promise of balanced budgets, the pandemic — and ensuing oil price collapse and economic challenges — has thrown those plans for a loop.

“The four-year fiscal plan we introduced with Budget 2019 was working,” Toews said. “Since that time, Alberta has been hit by a very serious triple black swan event.”

The deficit is on track to hit a record high of $24.2 billion in 2020-21, with debt forecast to hit $99.6 billion by March 31, 2021.

When asked about the size of the projected deficit, Toews said the UCP is still in the consultation phase and to "stay tuned" on budget day — which is set for sometime in February.

User fee hikes on the table With revenue expected to be $11.5 billion lower than the $38.3 billion forecast in Budget 2020, the minister is open to suggestions, including user fees.

Just not a provincial sales tax.

That, Toews said, would have to be decided by a referendum.

The UCP harshly criticized the province’s debt-servicing costs when it was in opposition, and Toews used similar language to show that he’s still not a fan.

The forecasted $2.5 billion in debt servicing costs are higher than the combined operating expenses of 16 out of 20 ministries, the finance minister explained, and that money should be going toward public services instead of “bankers and bondholders.”

The government launched an online survey Wednesday, as well as plans to host three telephone town halls and a provincial tour. By November, an online “build-a-budget” tool will go live.

The online survey focuses on four areas: reducing costs, finding savings, prioritizing revenue and strengthening the economy.

NDP Finance critic Shannon Phillips said Albertans have good ideas about addressing the fiscal challenges, but “the UCP is listening to none of them.”

“Instead, Jason Kenney is pursuing his own ideological agenda of firing thousands of frontline health workers, ripping benefits away from Albertans with disabilities, closing parks, hiking car insurance, and cutting funding to kids in school just to pay for his failed $4.7-billion-dollar corporate handout,” Philips said in a statement.

When asked by reporters about potential legislation ahead of collective bargaining to meet targets for public sector cuts, Toews replied, “I’m not at liberty to say.”

Today’s events

October 8 at 9 a.m. — Lethbridge Agriculture and Forestry Minister Devin Dreeshen will make farmer-led research funding announcements at both Lethbridge College and the University of Lethbridge.

October 8 at 10:30 a.m. — Airdrie Premier Jason Kenney and Transportation Minister Ric McIver will make a funding announcement for a highway project at the Canadian Pacific Railway flyover in Airdrie.

October 8 at 11:30 a.m. — Virtual UCP MLA Laila Goodridge, parliamentary secretary for the Francophonie, will speak at the Alberta Advisory Council on the Francophonie meeting.

October 8 at 2:30 a.m. — Lacombe Environment and Parks Minister Jason Nixon will dole out $750 million in TIER funding for a new facility in Lacombe.

Topics of conversation

● There were 243 new cases of Covid confirmed yesterday. The increase brings the total number of active cases to 2,689 (up 74). There are now 100 people hospitalized (up three), including 13 in ICU (unchanged). Another death was reported, bringing the total to 287.

● The Business Council of Alberta’s quarterly economic report reveals signs of hope in Alberta’s struggling economy. ○ Recovery is expected to be stronger than initially anticipated with GDP in Canada expected to hit 98 per cent of 2019 levels by the end of the year. ○ In Alberta, more businesses opened than closed in June, with 7,400 businesses that either opened or reopened versus 6,900 that shut down. ○ “We are seeing [some] positive movement in employment and business creation, on some forward-looking indicators, and in sectors such as agri-food and forestry,” BCA chief economist Mike Holden said in a news release.

○ Currently, 65 per cent of Albertans who lost their jobs due to COVID-19 are back at work, but 47 per cent of businesses say they expect to reduce staff in the coming year. ○ While employment levels for women aged 25 to 54 is at 99.5 per cent of February levels, employment for women aged 15 to 24 is at 81 per cent.

● The Alberta Gaming, Liquor and Cannabis commission (AGLC) lifted the cap on cannabis stores, the Calgary Herald reports. ○ The current cap limits one company from owning more than 15 per cent of the province’s total stores, but it will be lifted on November 1. ○ The cap was originally introduced to allow smaller businesses to compete in the new retail sector. There are currently 527 cannabis stores in the province.

● Conservative Party of Canada Leader Erin O’Toole is embarking on an Alberta fundraising blitz, hosting 11 events from today through Saturday.

News briefs

NDP calls for a reversal in the rise of student loan interest rates ● NDP Advanced Education critic David Eggen joined students at the University of Calgary on Wednesday to call on the government to reverse February’s interest rate hike to student loans now that students, many of whom are unemployed, are being forced to start repaying. ○ Student loans had been at prime, but the government quietly added one per cent to the interest rate earlier this year, a move Eggen called “unnecessary and callous.” ○ Eggen also called on the government to extend the pandemic-related student loan deferral, which ended September 30, by at least another six months.

Funding announcements

Ministry of Agriculture and Forestry ● Agriculture and Forestry Minister Devin Dreeshen announced $3.44 million in funding for the University of Calgary’s Faculty of Animal Medicine for a four-year pilot program on animal diagnostics. ○ Of the funding, $2.04 million will come from the federal-provincial Canadian Agricultural Partnership program and $1.4 million will come from the province’s Strategic Research and Development Program.

Ministry of Education Ministry of Advanced Education

● The government announced a four-year funding partnership with Shad Canada with $125,000 per year for bursaries to encourage more students in science, technology, engineering, arts and math.

Appointments and employments

Grande Prairie Regional College ● Shawna Miller and Kevin Szakacs were appointed three-year terms on the board of directors for Grande Prairie Regional College.

Ministry of Justice ● Deana Nicole Dumaresque was appointed justice of the peace for a 10-year term. ○ Cathryn Aliina Duxbury was also designated a full-time justice of the peace.

AB Today is written by Catherine Griwkowsky, reporting from the Alberta Legislative Press Gallery.

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