With our responsible borrowing plan the Alberta Party Caucus will balance the budget by 2018/19 by limiting spending in core areas to a maximum of inflation plus population growth, and use more conservative energy royalty forecasts than the NDP budget. We will do more with less in Alberta s public service by conduction rolling zero-based audits of all departments to ensure programs deliver value to Albertans, and by creating an innovative, entrepreneurial culture in Alberta s public service. How the Alberta Party Caucus will balance the budget by 2018/19: Constrain operational spending by conducting rolling zero-based audits of all departments to ensure programs deliver value to Albertans; this will ensure our public service does more with less, just like Alberta households and businesses Use a more conservative estimate of energy prices to ensure revenue forecasts are realistic Limit core program spending to a maximum of inflation plus population growth, even when that growth is negative We will not borrow to cover operational spending Replace the NDP job creation grant with the Alberta Party Caucus innovation tax credit Reduce small business tax 1% to encourage entrepreneurship and reduce tax leakage to other jurisdictions Aggressively collect unpaid corporate tax, save $35 million annually by transferring tax collection to the CRA Responsibly invest in infrastructure projects based on the ability to deploy capital for maximum job creation and economic return Balanced Growth, Balanced Budget
Alberta s public service is home to a lot of very talented people, but often their ideas for improvement and cost savings are held back. Alberta s public service must be a free market for ideas where a culture of innovation thrives, where people feel safe to bring up ideas to increase efficiencies, and where front line workers are empowered to innovate. We will increase spending this year to honour existing agreements. As contracts come due, it s important for the government to ensure a fair deal for public sector employees and Alberta taxpayers. The Alberta Party Caucus assumes lower inflation plus population growth as a result of the difficult economic situation in our province. The Alberta Party alternative budget increases operational spending as follows: 2015/16 2.1% 2016/17 0.0% 2017/18 0.5% 2018/19 1.0% The Alberta Party Caucus values social responsibility. We believe every Albertan deserves the opportunity to succeed. Our government should aspire to provide excellent and innovative public education, public health care, and infrastructure, as well as a compassionate helping hand in times of need. We believe this can be accomplished through responsible use of public funds. Proud Public Service
The Alberta Party Caucus believes in prosperity. We believe that private enterprise and entrepreneurship are the keys to our economic success. The government should foster an environment which facilitates economic investment, reduces red tape and encourages creativity. The Alberta Party Caucus believes in quality of life. We believe that a great quality of life requires strong communities. Through support of recreation, sports, arts and culture, government can help to build strong and vibrant communities. Alberta has a strong and vibrant entrepreneurial culture, with nearly one in five working-age Albertans engaged as early-stage entrepreneurs. In Alberta it doesn't matter where you come from. It doesn't matter where you went to school or who your parents were. If you have a good idea, if you're honest and if you work hard, you will succeed in Alberta. That isn't always true in other parts of our country or other parts of the world. But it is in Alberta, and that's one of the many things that makes our province special. The Alberta Party Caucus innovation plan will give Alberta entrepreneurs and businesses the tools they need to continue to succeed. We will: Reduce small business tax 1% to encourage investment in Alberta and eliminate the risk of tax leakage to other provinces Replace the NDP job creation grant with an investor tax credit Continue to invest in post-secondary education Support NDP plan to improve access to capital Innovation
Alberta s energy industry makes a tremendous contribution to our economy and our communities. The Alberta Party Caucus is proud of our energy industry and believes it can and should continue to be a significant part of the Alberta story. And this will only be the case if we gain market access for our core products, including oil sands bitumen, conventional oil and natural gas. The Alberta Party Caucus believes strong environmental policy will help earn market access but, equally important, it is our responsibility to address carbon emissions, air and water quality. Doing so will not only gain us access to market, but will create companies and technologies that will diversify our economy by helping the world address climate change. The following is the Alberta Party Caucus energy price forecast used in our balanced budget plan: The Alberta Party values Sustainability. We believe that sustainability must be a core value of government. Rethinking unsustainable practices, making strategic investments in research and technology, and implementing smart policy choices will protect and enhance our environment for future generations. 2015-2016 2016-2017 2017-2018 2018-2019 2019-2020 WTI (US$/bbl) $50 $56 $62 $68 $71 Differential (US$/bbl) Natural Gas Price (CDN$/GJ) $13.60 $13.60 $15 $16 $17 $2.63 $2.76 $2.90 $3.05 $3.20 Energy, Environment, & Economy
The Alberta Party Caucus will invest in infrastructure to build the schools, roads, hospitals and transit Albertans need, while taking advantage of historically low interest rates to borrow build. Our plan will create jobs during a difficult economic time and provide stable capital funding for much needed growth, flood mitigation, and public services. The Alberta Party Caucus believes our province must borrow to build while interest rates are low. However, it is vital there is a clear description of the benefits of each infrastructure project, including job creation details and economic impact. The Alberta Party Caucus calls on the government to release the delayed infrastructure sunshine list. As well, capital spending should be realistic and reflect the environment Alberta is in. The Alberta Party Caucus is committed to a realistic capital plan which can actually be deployed to the areas of greatest need: 2015-2016 2016-2017 2017-2018 2018-2019 2019-2020 Capital Grants 1,975 2,075 2,096 2,237 2,259 Capital Investment 5,382 5,286 5,224 5,067 4,172 Total Capital Plan 7,357 7,361 7,320 7,304 6,431 Capital Plan
Tables The Alberta Party Caucus values fiscal responsibility. We believe that government must use public dollars as effectively and efficiently as possible. The government should balance the books and set aside money for a rainy day. This is best accomplished through long-term planning, common sense and transparency.
In Millions of $ 2015-2016 2016-2017 2017-2018 2018-2019 2019-2020 Revenue Income Tax Revenue 16,729 17,282 18,038 18,564 19,162 Other Tax Revenue 5,334 5,403 5,592 5,788 5,991 Non-Renewable Resource Revenue 2,684 3,616 4,444 5,308 5,728 Other Revenue 19,019 20,872 21,321 21,802 22,549 Total Revenue 43,766 47,175 49,395 51,462 53,430 Expense Operating Expense 42,936 42,936 43,151 43,582 44,018 Disaster Assistance (with operating 2013 flood support) 757 300 200 50 50 Capital Grants (including 2013 flood support) 1,975 2,075 2,096 2,237 2,259 Amortization/ Inventory Consumption/ Disposal Losses 3,117 3,226 3,339 3,456 3,577 General Debt Servicing Costs 371 413 506 602 702 Capital Plan debt servicing costs 472 673 896 1,015 1,084 Pension Provisions 31 (42) (97) (97) (142) Total Expense 49,659 49,581 50,090 50,845 51,548 Surplus (Deficit) (5,893) (2,406) (695) 617 1,882 Fiscal Overview
In millions of dollars 2015-2016 2016-2017 2017-2018 2018-2019 2019-2020 Aboriginal Relations 182 182 183 185 187 Agriculture and Forestry 1,069 1,069 1,074 1,085 1,096 Culture and Tourism 269 269 270 273 276 Education 7,359 7,359 7,396 7,469 7,544 Energy 655 655 658 665 671 Environment and Parks 397 397 399 403 407 Health 18,616 18,616 18,709 18,896 19,085 Human Services 4,148 4,148 4,169 4,211 4,253 Infrastructure 491 491 493 498 503 Advanced Education 5,040 5,040 5,066 5,116 5,168 Economic Development & Trade Jobs, Skills, Training and Labour 231 231 232 234 237 126 126 127 128 129 Justice and Solicitor General 1,313 1,313 1,320 1,333 1,346 Municipal Affairs 237 237 238 241 243 Seniors 569 569 572 578 583 Service Alberta 226 226 227 229 232 Status of Women 1 1 1 1 1 Transportation 484 484 486 491 496 Treasury Board and Finance 1,378 1,378 1,385 1,399 1,413 Executive Council 23 23 23 23 24 Legislative Assembly 122 122 123 124 125 Total Program Spending 42,936 42,936 43,151 43,582 44,018 Increase from Previous Year 2.11% 0.00% 0.50% 1.00% 1.00% Program Spending
In Millions of $ 2015-2016 2016-2017 2017-2018 2018-2019 2019-2020 Balance at the start of year 6,527 1,502 167 14 0 Surplus/(Deficit) (5,893) (2,406) (695) 617 1,882 Adjustments to Fiscal Plan basis SUCH/Alberta Innovates revenue/expense adjustments 345 462 374 186 212 Pension provisions 31 (42) (97) (97) (142) Cash Adjustments - Sources/(Requirements) Heritage Fund inflation-proofing (166) (244) (279) (315) (356) Retained income of funds and agencies (659) (742) (843) (897) (957) Energy royalties (47) (49) (50) (52) (54) Student Loans (367) (341) (304) (266) (232) Other cash adjustments (76) (35) (58) (46) (393) 2013 Alberta flood assistance revenue/expense (456) (100) (100) (100) (100) Inventory Acquisition (170) (175) (163) (159) (159) Inventory Consumption (Non-Cash Expense) 214 190 158 132 141 Capital Plan Cash Adjustments - Source/(Requirements) Capital Investment (5,382) (5,286) (5,124) (5,014) (4,741) Amortization/book value of disposals (non-cash expense) 880 980 1,093 1,177 1,223 Direct borrowing for capital Plan 6,649 6,354 5,786 4,525 2,680 Alternative financing of capital projects (P3s) 114 150 211 242 338 Current Principal repayments (P3s/direct borrowing) (42) (51) (61) (564) (966) Surplus/(deficit) plus net cash adjustments (5,025) (1,335) (153) (631) (1,623) Balance at end of year prior to allocations 1,502 167 14 (617) (1,623) NRR allocation to Contingency Account - - - 617 1,882 Balance at End of Year 1,502 167 14 0 259 Contingency Account