Edmonton, March 19, 2002 Budget Summary by Ministry

Following are Budget 2002 spending and full-time equivalents (FTEs) summaries for all ministries. Total FTE reductions across government are expected to be 298.

Aboriginal Affairs and Northern Development

• The 2002-03 budget stands at $30 million, which is down $1 million from $31 million in 2001-02. There is no change in the number of FTEs, which remains at 61.
  For information, contact Peter Tadman (780) 415-0876

Agriculture, Food and Rural Development

• Total Ministry spending for 2002-03, which includes Alberta Dairy Control Board, Safety Net Programs and the Farm Income Assistance Program, is budgeted at $671 million compared to $1.2 billion in 2001-02. The reduction is due largely to the discontinued Farm Income Assistance Program, which provided one-time emergency drought and farm assistance payments to Alberta farmers and ranchers. In 2003-04, Ministry spending is targeted to return to the base level of about $550 million per year, with the divestment of the Alberta Dairy Control Board.
• With lower input costs, higher commodity prices and the need for prudent fiscal management, the special 30 per cent crop insurance premium reduction provided for the last two years has been discontinued. The need for any special drought or agriculture assistance in the current year will be assessed in the context of the province's overall fiscal position.
• The department's FTEs will be reduced by 145 FTEs from 1,170 to 1,025 FTEs. Restructuring of the Industry Development sector to provide increased agri-business support for producers and processors will be the most significant factor in the reduction. In addition, 2002-03 estimates reflect a 34 FTE reduction in Agriculture Financial Services Corporation as a result of program changes and administrative efficiencies from 2001-02. Dairy production and marketing regulation will move to a producer-elected commodity board, resulting in a further seven FTE reduction. In total, Ministry FTEs will be reduced by 186, to 1,606 in 2002-03.
  For information, contact Terry Willock (780) 422-7683

Children's Services

• The 2002-03 budget for Children's Services is $675 million, up from $648 million in 2001-02. This includes increases for services to children and families in such areas as child welfare and services for children with disabilities. Family and Community Support Services will also receive a $15 million increase (36 per cent) from 2001-02.
• The Alberta Response Model is a key initiative to be developed this year. The model includes building on successful child protective services and improving community-based supports for families at risk.
• Total FTEs for 2002-03 is 2,402, down from 2,588 in 2001-02. The reduction of 186 FTEs will largely come through attrition. There were will be no reduction in social workers or other front-line staff.
  For information, contact Mark Kastner (780) 427-4801.

Community Development

• The budget for 2002-03 is $580 million, an increase of some $17 million over 2001-02. This includes an eight per cent increase to Persons with Developmental Disabilities (PDD) and a $711,000 increase in operating grants for Alberta's 234 library boards and seven regional systems, bringing total funding to $17.2 million. The funding increase to libraries is to keep pace with Alberta's growing population.
• The Centennial Legacies Grant Program, which provided funding for the construction or renovation of major publicly accessible facilities by municipalities and non-profit groups, was deferred on October 18, 2001. The program will remain on hold until the province's financial situation changes and new provincial monies are allocated.
• Staff reductions of 83 FTEs are planned in 2002-03, with approximately 34 per cent achieved through attrition.
  For information, contact Kathy Telfer (780) 427-2395

Economic Development

• The budget for 2002-03 remains unchanged at $51 million.
• FTEs will increase by four, to 194 in 2002-03 from 190 in 2001-02. This includes positions in new international offices in Germany and Mexico.
  For information, contact Mark Erdman (780) 427-0528

Energy

• Energy ministry spending for 2002-03 is $177 million, down from $179 million in 2001-02.
• Total FTEs will increase to 1,313 (556 department and 757 EUB), up seven from 2001-02. The seven new EUB positions will work with landowners on energy-related concerns and will provide an increased Board presence at public meetings and in the field, more support for Alternate Dispute Resolution for early resolution of development issues, and additional expertise on public safety and sour gas initiatives.
  For information, contact Charlotte Moran (780) 422-3667

Environment

• The 2002-03 budget is $110 million, an $18 million reduction over 2001?02. A reduction of six FTEs, from 775 in 2001-02 to 769 in 2002-03, reflects staff reallocated to parks functions in Community Development. Budget variances include one-time spending in last year's budget for a variety of projects.
• The ministry will continue to focus on high-impact areas such as water quality and quantity, climate change, air quality, hazard and risk management and will put increased emphasis on stewardship and innovation.
  For information, contact Val Mellesmoen (780) 427-2848

Executive Council

• The budget for 2002-03 remains unchanged at $15 million.
• FTEs will be reduced by three, from 180 in 2001-02 to 177 this year. This reflects the transfer of one position to Alberta Corporate Service Centre and staffing efficiencies achieved through the combination of Calgary RITE telephone service and Queen's Printer Bookstore offices.
  For information, contact Fay Orr (780) 427-4350

Finance

• Spending in 2002-03 will be $442 million, compared to $432 million in 2001-02 to reflect ministry operations.
• FTEs increased to 351 from 331, which reflect increased service levels to Albertans in the area of pensions administration.
  For information, contact Ed Greenberg (780) 427-5364

Gaming

• Gaming's expenses in Budget 2002 are almost $216 million, an increase of about $12 million over the 2001-02 forecast of $204 million.
• The discontinuation of the Community Lottery Board Program will reduce spending by about $51 million.
• $2.5 million will be provided to the Community Facility Enhancement Program, returning that program to total funding of $25 million for 2002-03 with further increases in funding to CFEP in future years. As well, $5.4 million will flow through to Alberta's two NHL teams from the "Breakaway to Win" ticket lottery and $3.2 million to bingo associations through the introduction of electronic bingo and keno. Other lottery funded initiatives are budgeted to increase about $4 million dollars. An additional $17 million will flow through the Racing Industry Renewal Initiative from increased gaming revenues generated at Racing Entertainment Centres. Operating costs of the Alberta Gaming & Liquor Commission are budgeted to increase about $31 million primarily as a result of increased equipment costs, and increased liquor, gaming and tobacco enforcement activities.
• FTEs will remain at the previous year's level of 32.
• Revenue is expected to be almost $1.8 billion in 2002-03, an increase of about $140 million over the 2001-02 forecast of $1.6 billion. This increase reflects higher gaming and liquor profits.
  For information, contact Marilyn Carlyle-Helms (780) 447-8719

Government Services

• The 2002-03 operating expense budget for Government Services will be $58 million, up from the 2001-02 forecast of $52 million reflecting increased spending to begin renewal of the motor vehicles, land titles and personal property registry systems. Excluding the 1,133 FTEs associated with the Alberta Corporate Service Centre, the Ministry's FTEs will increase, from 414 in 2001?02 to 426 in 2002-03, to support the registries system upgrade.
  For information, contact Megan Parker (780) 415-6051

Health and Wellness

• Funding for 2002-2003 will reach $6.8 billion, up $468 million or 7.3 per cent over the 2001-2002 forecast. Ministry FTEs will change from 1,188 to 1,197.
• Of the $468 million increase, health authorities will receive additional operating funds totaling $247 million for an overall increase of 6.9 per cent. Funding for Province Wide Services such as cardiovascular surgery, major organ transplants and renal dialysis will increase by $21 million or 5.3 per cent. The remaining $200 million will provide for an increase of $177 million (14.1 per cent) for physician compensation as part of the agreement negotiated last year with the AMA, an additional $16 million for use of blood products, $9 million for AADAC to implement a tobacco reduction program, and $25 million to commence implementation of the recommendations of the Premier's Advisory Council on Health. Cost containment strategies total $28 million.
  For information, contact Michael Shields (780) 427-7164

Human Resources and Employment

• The budget will rise by 3.7 per cent, from $1.022 billion in 2001-02 to $1.059 billion in 2002-03. Monthly benefits for Albertans receiving social assistance, including single parents, widows, and the severely disabled, will remain at current levels. There will be a 0.9 per cent decrease in funding for skills programs.
• The number of staff in the ministry, which includes Personnel Administration Office, will increase from 1,900 to 1,940 FTEs to accommodate the reallocation of staff for the commission responsible for workers' compensation appeals.
  For information, contact Laurie Collins (780) 427-5649

Infrastructure

• Program expense and capital investment spending on government-owned and supported infrastructure is down from the 2001-02 forecast of $2.3 billion to $835 million in 2002-03, primarily due to capital project funding deferrals and completion of the provincial energy rebate program. There is a net reduction of 2 FTEs, from 955 in 2001-02 to 953 in 2002-03. This reflects the transfers to Alberta Transportation.
  For more information, contact David Bray (780) 422-0506

Innovation and Science

• The combined 2002-03 operating and capital budget will increase to $320 million, from $230 million in 2001-02. FTEs will increase to 787 this year, up 10 from 2001-02.
  For more information, contact Glenn Guenther (780) 427-0285

International and Intergovernmental Relations

• The ministry's budget for 2002-03 is $6.08 million, a $20,000 reduction from 2001-02. The reductions are not expected to have an adverse impact on ministry priorities. These priorities focus on providing leadership in the management of Alberta's international and intergovernmental relationships. The number of FTEs stands at 53, unchanged from 2001-02.
  For more information, contact Beryl Cullum (780) 422-2465

Justice and Attorney General

• Alberta Justice will spend $236 million in 2002-03 - an increase of $9 million over the 2001-02 forecast of $227 million. Changes in anticipated expenditures include:
  • Some $12.7 million for additional prosecutors and prosecution support staff, additional staff for traffic ticket processing and general manpower costs.
  • A $1 million increase in Legal Aid funding, and
  • A reduction of about $4.7 million in Court Services, Legal Services, Criminal Justice and Maintenance Enforcement.
• Total FTEs will increase from 2,066 in 2001-02 to 2,123 in 2002-03. This includes 34 new FTEs for additional prosecutors (15 announced in fall 2001 and 19 to be added in 2002-03), as well as prosecution support staff and court staff for highway traffic ticket processing.
  For more information, contact Bart Johnson (780) 427-8530

Learning

• Total program spending will increase by $208 million, or 4.7 per cent to almost $4.7 billion in 2002-03, and by $557 million, or 12.5 per cent, over the next three years. By 2004-05, Learning program spending will exceed $5 billion. Ministry FTEs for 2002-03 are unchanged at 984.
  For more information, contact Jerry Bellikka (780) 427-0965

Municipal Affairs

• The estimated budget for 2002-03 is $132 million, which is a decrease of approximately $38 million from 2001-02 forecast of $170 million. The decrease is from the Underground Petroleum Storage Tank Site Remediation Program. The ministry's commitment to municipalities through its grant programs is not affected.
• FTEs in 2002-03 will be 311, down from 317 in 2001-02. This is due mainly to voluntary staff retirements and changes in the staff complement to meet ministry priorities and objectives.
  For information, contact Jay O'Neill (780) 422-8817

Revenue

• In order to continue effectively managing the investments of approximately $39 billion in funds, make certain technology meets rapidly-changing investment industry standards, and ensure the integrity of collection of over $8.4 billion dollars of revenue, the Revenue Ministry has received funding for a 2002-03 spending increase to $158 million, up from $153 million in 2001-02.
• The additional funding will allow for an increase in FTE's to 296, up from 268 last year. The increase in FTEs will address pressures in tax administration through allocation to tobacco tax audit, assessment, corporate tax assessors and auditors; and contracted services required to ensure compliance with tax programs.
• The Alberta Securities Commission will use industry-funded reserves for an increase of one FTE to 126 from 125 last year, salary adjustments, investor and industry education initiatives, and enforcement proceedings.
  For information, contact Gordon Vincent (780) 422-4591

Seniors

• Consolidated program expense for 2002-03 is $283 million, down from $298 million in 2001-02. While the reduction is due primarily to the ending of the Health Aging Partnership Initiative, additional funds have been transferred to the ministry to help cover increases in long term care rates and optical and dental services for low-income seniors. Seniors will continue to receive support through a variety of programs, including the Alberta Seniors Benefit. FTEs will increase from 225 in 2001-02 to 232 in 2002-03. The increase in FTEs is to due program transfers from other ministries.
  For information, contact Jan Berkowski (780) 427-2201

Solicitor General

• The 2002-03 budget will increase to $268 million, up from $259 million in 2001-02. The $9 million increase includes an additional $1.8 million for overall spending on policing in Alberta, as well as salary and classification adjustments for more than 2,000 employees in corrections facilities, probation officers and other staff in community corrections, as well as court and prisoner security staff.
• FTEs will be unchanged at 2,090 in 2002-03.
  For information, contact Jean Olynyk (780) 427-6153

Sustainable Resource Development

• The $191 million budget for 2002-03 is a change from $297 million in 2001-02. The decrease reflects the elimination of some one-time spending and a further savings of $4 million from streamlining processes and cost-saving initiatives.
• FTEs will decrease to 1,879 in 2002-03, down from 1,899 last year. Reductions will be achieved primarily through attrition. Reductions are not expected to impact service levels at this time.
  For information, contact Susan McManus (780) 427-8636

Transportation

• Alberta Transportation's program expense and capital investment will decrease to $893 million in 2002-03 from the 2001-02 forecast of $1.2 billion due to transportation project deferrals. Funding for highway maintenance and traffic safety programs will be maintained and funding for the Municipal Water and Wastewater program will be sustained at $25 million.
• Funding for Premier's Task Force on Infrastructure initiatives will be reduced or deferred.
• Ministry FTEs for 2002-03 will increase by two to 819. This reflects a transfer from Infrastructure and also the fact that services are delivered through consulting agencies and contracting companies.
  For information, contact Cheryl Mackenzie (780) 427-7674

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For media inquiries, contact:

Ed Greenberg Alberta Finance Communications (780) 427-5364 (780) 718-5699 (cell)