Northern Alberta mayors call for new provincial revenues as cuts loom
‘We have to be very careful not to accidentally cause a recession,’ says Mayor Don Iveson
Mayors and reeves from across northern Alberta have asked the province to look for new ways to make money, instead of slashing their budgets, to avoid recession.
“It certainly sounded like there was a consensus that new revenue tools are required, or some kind of change, so that we are less dependant on oil and gas revenues,” said Mayor Don Iveson, who attended a meeting between the mayors and the Minister for Municipal Affairs.
Minister Diana McQueen said the message from municipalities has been consistent across the province.
“Last week I was in southern Alberta and Lethbridge and concerns there are the same as they are here.” McQueen said.
Northern municipal officials raised ideas like health care premiums, a fuel tax as well as taxes on liquor and tobacco.
McQueen said she would deliver the feedback to the government, but warned municipalities should brace for the possibility of budget cuts.
“Every line item is being looked at,” she said.
McQueen gave no hint about which programs might come under threat, but Iveson said he’s particularly concerned about the Municipal Sustainability Initiative (MSI), which helps cities pay for big infrastructure projects.
“Any infrastructure transfer coming to municipalities is important in order to ensure that the doom and gloom doesn’t come to fruition,” he said.
Yesterday the city’s Chief Economist John Rose said slashing public sector jobs could impact consumer confidence, which would seriously hurt a government town like Edmonton.
The mayor said maintaining MSI funding would help keep people in jobs while the energy sector struggles.
“I think we have to be very careful not to accidentally cause a recession, and one of the best ways to make sure that the right stimulus is happening is to continue to invest in infrastructure,” he said.
McQueen said the province is committed to the remaining $5.3 billion in MSI funding it promised.
She would not say when the money would be available.
Laura Osman