If you would prefer to download this document as a pdf file, Click Here. Check Against Delivery Mr. Speaker, Alberta is a
place like no other. Thanks to the hard work,
strong spirit and unrelenting determination of Albertans, we’ve built a
province that simply is the best. A province whose exceptional track record of
the past will only be outmatched by our potential for the future. Just think about these facts. Alberta has the strongest
economy in Canada and we’re going to keep it that way. There are more people working
in the province than ever before and our rate of unemployment is among the
lowest in the country. Albertans pay the lowest
overall taxes, and there’s no sales tax, no capital tax, and no payroll tax. Our health and education
systems lead the way in innovation and produce excellent results, and our
universities, colleges and technical institutes rank with the best. We have the best educated
workforce in the country and Alberta businesses consistently outpace the
competition, producing new ideas, new technologies, and new opportunities. Mr. Speaker, when you put all
that together, it’s no wonder why I and every other member of our government
can stand here today and say, “I’m proud to be an Albertan.” Our province’s strong
record of success is unparalleled. But we’re not about to stop now. In fact,
the very reason our province has been so successful is that we never sit back,
rest on our laurels, and assume that what we have today is “good enough.” Today, our province stands on
the brink of a future with unlimited potential. To fulfill that potential, we
need to act now ... respond to the pressures of growth ... and put a solid
foundation in place to prepare Alberta for the future. As our Premier has often
said, people who come to this province for jobs and careers, don’t bring
their roads, their hospitals, and their schools with them. As new businesses set up or
develop new markets, they need highly skilled people and first-rate
transportation systems. As our cities and towns grow,
they need good roads, better access to technology, and excellent
infrastructure to meet their communities’ needs. Mr. Speaker, Budget 2003
reflects these challenges ... the challenges of growth our province faces
today. But more importantly, it is a budget for Alberta’s future. It sets the province on a new
fiscal course. A balanced and determined course that builds on our successes
of the past, recognizes the realities of today, and prepares us for tomorrow. It’s a course that makes
sure our province is ready and well prepared to seize every opportunity that
comes our way. The bottom line ... Budget 2003 is about moving our province
from good to great. It’s about making Alberta even better. In approaching this year’s
budget, we’ve taken the course so many sensible Albertans have taken all
along in making their own budget decisions. We won’t spend more money
than we take in. Balanced budgets are the law in Alberta. And Alberta’s
budget will be balanced for the tenth year in a row. We’re not counting on
winning the lottery every year. So we will put money aside in a savings
account and it will be there to protect us when we need it. We’ll spend most of our
money on the essentials – on priorities like health and education. Most Albertans who need to
buy a new car or make major repairs on their house spread the payments out
over a number of years rather than paying cash. We’ll take the same
approach and introduce new ways to pay for capital projects over the longer
term. Like so many Albertans,
we’d dearly love to pay off the mortgage entirely. But that goal has to be
balanced against important priorities for today. Mr. Speaker, it’s a
practical, sensible approach. An approach that’s right for Albertans and
right for their province. Albertans told us, we want
predictability. Instead of trying to pick the price for oil and gas, and tie
our spending to those guesses, let’s get off the roller coaster. We’ve
listened. We’ve taken action. With the new Alberta
Sustainability Fund, the days of wishing for windfalls or worrying about
downturns in prices are over. Every year, we’ll count on a steady stream of
resource revenues. No more annual ups and downs ... just steady, stable
revenues ... and budgets we can count on. Albertans said, spend money
on what counts most. Health, education, and infrastructure are consistently at
the top of their list. And once again, we’ve listened. Close to 70% of spending in
Budget 2003 goes to health, to education, and to infrastructure ... making
sure children get a first class education and have good schools to go to ...
making sure Albertans have access to health care when they need it. We’ll support
transportation projects in municipalities and improve Alberta’s highways.
The rest will go to new programs for farmers, to programs for children, to
projects that keep Alberta’s environment clean, and to increased support for
families in need. Albertans said, our
province’s economy is growing and we need first-rate infrastructure to keep
pace. From health authorities and school boards, from municipalities, and
industry, we heard about problems with stop and start funding – projects
that are announced one year then can’t go ahead if budgets are tight. We’ve listened. With Budget
2003, we’ll put a new Capital Plan in place, double our investment in
capital projects, and introduce a Capital Account so we end the uncertainty
and get the projects built. Albertans said, get rid of
Alberta’s debt, but not at the expense of addressing real problems today.
Because of the wise choices we made in the past, we’ve reduced accumulated
debt by nearly 80% and we’re in the strongest fiscal position in Canada.
So we’ll use the money
we’ve already set aside to make the payments when they come due this year. That’s it in a nutshell,
Mr. Speaker. It’s a new direction for new times. A balanced direction that
provides stable and predictable budgets, gives more resources to health and
education, and re-affirms our commitment to essential capital projects. It’s
a direction that will make Alberta even better. There’s one clear message I
want all Albertans to understand. They will get all the benefits of this new
direction without paying a single cent more in income tax or health care
premiums. Because of the solid new
direction and the positive forecast for Alberta’s future, previously
announced plans to reduce corporate income taxes will go ahead this year. Corporate tax rates for small
business will drop from 4.5% to 4% this year. The threshold for small
businesses will increase to $400,000. Tax rates for larger businesses will
drop from 13% to 12.5% this year. These steps will result in
direct tax savings of $94 million this year. That’s money they can use to
build their business, build a strong economy, and create more jobs for
Albertans. Mr. Speaker, no other
province in the country can match this kind of budget package. And I’m proud
to be able to deliver the good news to Albertans today. Now for some of the details. The
Alberta Sustainability Fund
I’m sure that, for the past
thirty years, almost every Finance Minister before me has stood here on budget
day and talked about one single word – volatility. Our abundance of natural
resources is a tremendous asset. But it’s also a two-edged sword. When
prices are up, revenues go up, and so do expectations for more and more
services. When prices drop – as they
can do without warning – we’re left high and dry wondering how we can
afford to pay for commitments we’ve made in the past. That roller coaster puts
everyone on edge, and the ride has to end. Last summer I asked the
Financial Management Commission to recommend long term strategies that would
serve Alberta well into the future. The Chairman, David Tuer, and
some of his commission members are here today and I want to thank them for
their excellent work.
Based on the sound advice of
the Financial Management Commission, our government is introducing the new
Alberta Sustainability Fund. With this new Fund in place, the days of
unpredictable, uncertain budgets are over. Instead of pegging our
budgets and spending plans to best guesses about the price of oil and gas,
we’ll consistently count on $3.5 billion in oil and gas revenues. If prices are high, any
additional revenue will go into the Sustainability Fund to cushion us against
years when the prices may not be as good. If prices are low, we’ll be
able to use savings in the Sustainability Fund to guarantee that no less than
$3.5 billion will be available for the budget. Mr. Speaker, this is a
fundamental change for our province. We’ve replaced volatility with
predictability. But it also means
expectations have to change. Too often, as soon as oil or gas prices spike
upwards, so do expectations for more spending. Those days are over. If prices go up during the
year or if we have surpluses at the end of the year, the only place those
funds can go is to the Sustainability Fund. Extra revenues cannot be used for
operating purposes. If revenues are much higher
than expected ... and if we have at least $2.5 billion set aside in the
Sustainability Fund ... then we can use surplus funds to pay down our debt or
put more in the Capital Account. Paying
down Alberta’s debt
With Budget 2003, we are
retaining our strong commitment to burning the mortgage and making Alberta the
first debt free province in the country. But it can’t be our only
objective. Nothing would make our
Premier and his Finance Minister happier than making the final payment on
Alberta’s debt. But we can’t and we won’t ignore the realities of
today. The province is growing, and there are immediate, pressing needs that
simply can’t wait until the debt is gone. Our successful fiscal
policies of the past mean that Alberta’s accumulated debt now stands at just
$4.8 billion, by far the lowest in the country and at least ten years ahead of
our legislated debt repayment plan. Just like a regular mortgage,
Albertans understand that you can only make payments on the mortgage when it
comes due. Thanks to our wise decisions of the past, we’ve set money aside
in a debt repayment fund to pay off the debt on time and on schedule. In effect, we’ve pre-paid
the mortgage down to $4.8 billion, and with the money that’s set aside, all
the payments that come due this year, and part of next year as well, will be
paid without having to touch a cent of this year’s budget. Mr. Speaker, I know some
people will be disappointed that we are not putting every spare dollar into
paying down the debt as quickly as possible. But they should remember we are
years ahead of the game and can now reap the benefits of pre-paying the
mortgage. They should think about the
combined advantages of the Sustainability Fund and the Capital Plan not only
this year but for years to come. They should remember that the
benefits will go to children who now will have better classrooms or new
schools to go to. They should understand that
Alberta needs better transportation routes, better access to health care
services, better safety net programs for farmers. All of those benefits are
possible because of the balanced approach we’re taking.
Mr. Speaker, we will pay off
Alberta’s accumulated debt. We will be the first debt free province in the
country. That’s a promise, and a promise we will keep. Capital
plan
Let
me move now to some of the direct benefits
Budget 2003 provides for Albertans in every corner of this province. Over the past few years, the
first budget priority has consistently been meeting pressing needs in programs
that are important to Albertans, especially in health and education. Spending
on capital projects often had to take a back seat. As a result, there is a
serious backlog of essential capital projects, a backlog that threatens our
ability to provide the necessary infrastructure and to support ongoing growth
in the province. Once again, we’re taking
action. Our new Capital Plan will
support more than $5.5 billion in capital projects over the next three years.
That money will go to highways and municipal transportation projects. It will go to leading edge
health facilities and new equipment. It will go to build new schools, renovate
existing ones, and to upgrade and improve access to technology in schools. It will:
The new Capital Plan not only significantly expands our investment but it also fundamentally changes how we fund capital projects. Funds for new projects will
come from three sources:
Thanks to our strong fiscal
performance in 2002-03, $910 million from our year-end surplus went directly
into the Capital Account. That will pay for roughly 16% of the projects
included in the Capital Plan. About 59% of the funding will come from revenues
in the three-year budget. And the remaining 25% will come from alternative
funding arrangements. Alternative arrangements
could include public private partnerships. They could involve leasing
arrangements or other options that allow us to pay for projects over the
longer term rather than in one fiscal year. Each of those alternatives
will be reviewed on a project-by-project basis by a new Advisory Committee on
Alternative Capital Financing. And I can assure Albertans, that all aspects of
any alternative financing approved by our government will be open and fully
disclosed. Mr. Speaker, the new Capital
Plan is a major investment in the future of our province. An investment that
will benefit Albertans today and for generations to come. An investment that
will make Alberta even better. Investing
in Albertans’ priorities
When it comes to the top
priorities for Albertans, health and education are consistently at the top of
the list. People want to know they have access to health care when they need
it. They want their children and
grandchildren to get an excellent education. And they want every young person
to have a chance to get post-secondary education and build a productive and
positive future right here in Alberta. Spending decisions in Budget
2003 reflect those priorities. In health care, overall
spending will increase by 7.2% this year, including funding received from the
federal government as part of the recent arrangement with Premiers. In total, spending for health
care will increase by $1.26 billion over the next three years. By the time our
province celebrates its hundredth birthday in 2005, we will spend over
$8 billion a year on health care in Alberta. That money will go to health
authorities and the Cancer Board. It will support specialized health services
like cardiac surgeries and organ transplants. It will support continuing
efforts to reform the health care system. And fundamentally, it will result in
better access and better health services for all Albertans. In Learning, base operating
support for kindergarten to grade 12 will increase by 4.9% this year, and over
the next three years, close to $390 million more will go to school boards
across the province. That will bring total funding
to public and separate school boards to $3.4 billion by
2005-06. On top of that investment in
Alberta’s children, $450 million is included in the Capital Plan to build
new schools and improve classrooms across the province. Nearly 80% of the new funds
will go directly to the classroom. It will support the excellent work of
Alberta’s teachers and help ensure that our students continue to achieve the
best results in the world. It will support increases in
enrolments, including an 8% increase in the number of students with severe
disabilities. More funds will be available to buy books and other learning
resources. A new Funding Framework will
also be introduced, giving school boards the flexibility they need to make
local decisions and meet local needs. And later this year,
Alberta’s Commission on Learning will issue its report and help set the
direction for the future of education in this province. At the post-secondary level,
first priority must go to making sure students have access to university,
college and technical institute programs. Funding for post-secondary
education will increase by $44 million or 4.1% this year. This includes $10
million to increase access in high priority areas and $12 million to maintain
spaces in Alberta’s apprenticeship programs.
We also will step up our
investment in loans and scholarships for students and continue to provide loan
relief. Other
highlights
People looking through Budget
2003 will find dozens of initiatives targeted at different segments of
Alberta’s population. But let me highlight some of the initiatives for
Alberta’s farmers, for children, for families, and for our environment. All of us watched last summer
the heartbreaking scenes of farmers forced to abandon their crops, sell their
cattle, and face the ravages of an unrelenting drought. Our government didn’t
hesitate for a minute. We stepped in and provided over one billion dollars in
disaster funding and emergency disaster assistance. This year, we’re keeping
our fingers crossed along with every farmer in the province ... hoping the
winter’s snow combined with spring rains will put our farmers back on track
and the days of drought will be behind us. With this year’s budget,
farm safety net programs are being completely revamped, giving Alberta
producers the most innovative and comprehensive crop insurance program in
Canada. Close to $200 million will be
provided this year to implement this new insurance program - a program that
gives farmers and producers a solid safety net they can count on. Mr. Speaker, Alberta’s
farmers and producers have long been the backbone of our province. They’ve
had a rough go over the past few years. But we’re determined to work with
them to address the issues, expand their ability to add value and market their
products, and find the best ways of building capacity in rural communities.
Our commitment to the future of agriculture in Alberta is stronger than ever. Looking to the future and
making Alberta even better means making sure our children get the best start
in life and are able to look forward to a future full of potential and hope. With Budget 2003, funding for
Children’s Services will increase by 5.4%. Funding will go to protect
vulnerable children, support children with disabilities, and expand early
learning and childcare programs. A new centre for Child, Family and Community
Research will also be established this year. Thanks to our Premier’s
strong leadership, funds will go to support Alberta’s Promise ... an initiative designed to mobilize every
sector of our society ... to bring new resources and new partnerships together
... and support a whole range of community initiatives for children. Mr. Speaker, our children are
Alberta’s promise. And we’ll do our best to make sure that promise is
fulfilled. Actions in Budget 2003 are
also directed at supporting families who need it the most. Following up on the
Low Income Review, income and employment support programs will be combined
into a single, integrated approach that puts people first and matches their
unique needs with a range of programs and support. Along with those changes,
we’ll take action this year to increase the income support rates for 12,000
families with children, and another 10,000 people in assured support who are
not expected to work. To make Alberta even better,
we also need to protect and preserve our environment for future generations of
Albertans. Our government took a strong
stand opposing the Kyoto Accord, not because we disagree with the need to
reduce emissions and protect our environment, but because of the federal
government’s failure to understand and acknowledge the potential impact the
Accord could have on Alberta’s future. Our commitment to Alberta’s
environment is unwavering. We will not be deterred by misguided federal
actions. We’ll act on our own to do what needs to be done ... for Alberta
... and by Albertans. With Budget 2003, we’ll
invest an additional $30 million over the next three years in the Climate
Change Action Plan to reduce emissions, support energy conservation projects,
invest in demonstration projects, and support research on new clean energy
technology. In addition, discussions are
underway with Alberta’s municipalities about a potential interest-free loan
program to support municipal energy efficiency projects. In
summary
Those are some of the key
highlights, Mr. Speaker. Budget 2003 is about a single
goal – making Alberta even better. All signs point to a strong future for
our province, with a growing economy, more jobs for Albertans, and almost
endless opportunities for success. Budget 2003 positions our
province to take advantage of the tremendous potential that lies ahead. It
sets a new fiscal direction – a steady, balanced direction that delivers
what Albertans want and expect – stable, predictable budgets, spending on
what counts the most, investment in the province’s infrastructure to meet
the demands of growth, and no tax increases. It takes courage and
determination to set a new direction. Alberta is known as a national and
international leader in fiscal policy and our success over the past ten years
has been unprecedented in Canada. But as Sir Winston Churchill said,
“Success is never final.” As times change and needs
change, good governments don’t cling to their successes from the past. They
change and adapt. They set the stage for new successes to come. They keep
their eyes firmly focused on the future rather than the rear view mirror. And
they never shy away from taking action that will move their province from good
to great. I remember in one of his
early speeches in this Assembly, Premier Klein said, “Given a choice between
the past and the future, Albertans will choose the future every time.” He was absolutely right ...
and he still is. Once again, we are choosing
the future. Choosing to build new successes. Choosing to make Alberta even
better for all our children and for generations of Albertans to come. Thank you, Mr. Speaker.
Go to: Budget 2003 Highlights
|
|
|||
![]() |
|||
|
|||
Copyright © 2003 Government of Alberta. Finance.Webmaster@gov.ab.ca |