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Budget in Brief Contents:
Introduction
Alberta heads toward
its second century backed by a strong fiscal
framework, a commitment to fund priority programs
and services,
and a long-term vision that builds on Alberta’s
strengths and
creates new opportunities. The solid fiscal position
of Alberta’s
eleventh-consecutive balanced budget is the foundation
from
which the government will build for the future.
Budget 2004
includes the release of the government's twenty-year
strategic
plan, Today’s Opportunities, Tomorrow’s
Promise, and the four
pillars that comprise the plan:
- unleashing innovation,
- leading in learning,
- competing in the
global marketplace, and
- making Alberta
the best place to live, work and visit.
Debt
Budget 2004
keeps Alberta on route to a future free of accumulated
debt
by paying off another $1 billion over the next two
years, cutting the debt
to $2.7 billion by the end of 2005-06. We are within
striking distance of
eliminating accumulated debt.
Debt servicing costs
are about $1.4 billion less than in 1994-95. These
savings have been reinvested in provincial programs,
services and tax cuts.
Taxes
The ability to compete
in the global marketplace is crucial, and low taxes
are important to attracting industry, investment,
jobs and skilled people. Alberta
has among the lowest personal and corporate income
taxes, property taxes and fuel taxes in the country.
When combined with no general sales tax, payroll
tax or capital tax, individuals and businesses in
Alberta pay much less in taxes than they would in
any other province.
Alberta's low personal
income taxes are important to making this the best
province to live, work and visit. Albertans will
save about $150 million in 2004 as we continue to
index our system to inflation.
The general corporate
income tax rate will drop to 11.5 per cent, and
the
small business rate to 3 per cent, saving businesses
$142 million in 2004-05.
School property tax
rates have been reduced or frozen in each of the
last
11 years. This year, school property tax rates will
be cut by about 2.3 per cent, saving about $20 million
for residential, farm and business property owners.
Since 1993, rates
have fallen by more than 27 per cent.
Learning
The government's strategic
plan includes developing well-educated
and skilled citizens. Our students are some of the
world's best, and we intend to keep it that way.
Learning program spending
will increase by about 15 per cent over the
next three years, with a $284 million, or 5.7 per
cent increase this year.
Total program spending will increase to $5.3 billion
in 2004-05, rising to
$5.7 billion in 2006-07. Alberta will remain on
course as a leader in learning.
Ongoing support to
public and separate school boards will be close
to $3.4 billion, an increase of $189 million or
6 per cent over last year. A new funding framework
beginning September 2004 will allow boards to respond
to local needs. Support to public and separate boards
is on route to $3.7 billion by 2006-07, a three-year
increase of $532 million, or about 17 per cent.
Ongoing funding for
post-secondary institutions will increase by $85
million, or 7.5 per cent, to more than $1.2 billion,
putting Alberta further on course to being a leader
in post-secondary learning.
Funding for scholarships,
bursaries and grants will increase by more than
$6 million in 2004-05. About 27,700 students will
be helped on route to their futures with scholarships
this year.
Health
A reliable and sustainable
health care system is part of keeping Alberta
on course to be the best place to live and work
as we head toward the
province's second century.
Sustainable health
care is a priority for Albertans. Health and Wellness
spending will be $8 billion in 2004-05, an increase
of 8.4 per cent, or
$618 million. In the next three years, Health and
Wellness spending
will rise by $1.4 billion.
Support for health
authorities will increase in 2004-05 by $390 million
or
8.4 per cent to $5 billion, allowing the authorities
to continue and expand
levels of service. This includes targeted funds
for mental health services,
which will support treatment and care. A new provincial
mental health
plan will strengthen services for Albertans with
mental illness.
Ground ambulance governance
and funding responsibility will be transferred to
regional health authorities from municipalities
to improve coordination of services, particularly
in rural areas. Funding of $13 million
will be provided in 2004-05, rising to $55 million
in 2005-06.
Social
Service Programs
More than 10 per cent of the budget, about $2.4
billion, will go to social service programs, an
increase of $103 million or 4.5 per cent.
Seniors
About $11 million
will be added to the Alberta Seniors Benefit for
expected increases in the number of eligible seniors
and the full-year
cost of assistance with long-term care accommodation
rates. Also
included is $10 million per year to enhance support
for seniors.
The Lodge Assistance Program, subsidizing lodge
accommodation
rents for lower to middle income seniors, will be
increased by
$1.5 million to ensure rents remain affordable for
them.
Alberta Works
Alberta Works is a
new program that will integrate income support,
employment and training services, health benefits,
and child support
services to coordinate benefits and services for
low-income Albertans
who need support to find a job or meet basic needs.
Health benefit
programs
The Alberta Child
and Adult Health Benefit programs are part of
Alberta Works. These programs provide health benefits
to children in
low-income families, qualified adults leaving income
support programs
for training or work, and qualified former AISH
recipients. Funding
will increase by $11 million or 44 per cent over
the next three years.
Children
Spending for the protection
and support of children will increase.
Children's Services spending will rise by $33 million
this year and by
$75 million over the next three years. Funding for
services to children
with disabilities will increase 25 per cent over
the next three years, and
funding for family violence prevention programs
will rise 60 per cent
over the next three years.
Strong
and Secure Communities
Provincial support
for policing programs will increase $58 million,
or
50 per cent in 2004-05. The province is doubling
the population
threshold to 5,000 for municipalities not paying
for policing, meaning a
further 20 smaller municipalities will no longer
pay for policing. A new
$16 per capita policing grant will be introduced,
providing $37 million in
assistance to municipalities required to pay for
policing. Money will also
be available for a full complement of RCMP provincial
police service
officers, First Nations Policing, and other initiatives.
The government is
also proceeding with restructuring of ground
ambulance services, a new rural development strategy,
and upgrading of
community facilities.
Capital
Plan
Alberta's population
is growing annually at a rate equivalent to adding
a small city. The 2004-07 Capital Plan supports
$6.5 billion for infrastructure, about $900 million
more than the 2003-06 Capital Plan, a level of support
for infrastructure projects unmatched in Canada.
The 2004-07 Capital
Plan will:
- keep Alberta on
course as a leader in learning by supporting $1.1
billion worth of schools and post-secondary facilities,
- support Alberta
as a competitor in the global marketplace by providing
$2.7 billion to the provincial highway network
and municipal transportation grants,
- support $1.1 billion
for health facilities and equipment, and
- support $1.6 billion
for other capital, including community facilities,
centennial projects, water and wastewater management,
housing, parks and information technology.
Building
on the Alberta Advantage
- This is Alberta's eleventh consecutive balanced
budget.
- Accumulated debt will be reduced by another
$1 billion to
$2.7 billion by the end of 2005-06.
- At least $2.5 billion will be maintained in
the Sustainability
Fund to protect spending plans against revenue
declines
and other unforeseen events.
- Alberta is expected to be a leader in economic
growth in
2004 at 3.6 per cent.
- 42,700 new jobs are expected in 2004.
- Alberta has the highest real Gross Domestic
Product per
capita among the provinces.
- Over the last five years, Alberta's average
business
growth has been the fastest of any province in
Canada.
- Alberta has by far the lowest combined provincial
and
municipal tax load among the provinces, at 56
per cent
of the national average.
- New initiatives are being undertaken to promote
innovation and economic opportunities. Continued
support will be provided to the agriculture sector.
Revenue,
Expense and Capital Plan Graphs
For more information,
please see the complete
version of Budget 2004, On Route,
On Course. Copies of Budget 2004 and
the 2004-07 Government of Alberta Business Plans,
are also available by calling toll free (310-0000)
427-3035.
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