Newsrelease

March 17, 1998
Edmonton, Alberta

"Supplementary estimates are designed to take care of spending pressures that we couldn’t anticipate as part of the regular budgeting process. These supplementary estimates deal with one-time spending, not something we expect to continue every year."

Government tables supplementary estimates and a fiscal update

The Alberta Government tabled Supplementary Estimates today for the General Revenue Fund and Lottery Fund. These Supplementary Estimates will add to government spending above what was originally planned in the budget for 1997-98. Additional funding will be provided for the departments of Health, Education, Transportation and Utilities and the Legislative Assembly.

1997-98 Supplementary Estimates:

• A Supplementary Estimate is required to provide $130 million to Alberta Health. The additional funds will be used by Regional Health Authorities (RHAs) to move forward on Year 2000 compliance. This new funding is in addition to the $40 million of General Revenue Funds announced for this initiative in January 1998 and will be added to the $260 million provided for one-time infrastructure grants in 1997-98. These additional funds will be transferred from the Lottery Fund to Alberta Health.
• A Supplementary Estimate for $4.37 million is needed for Education to pay for accrued interest due on the $70 million in school debentures that were repaid early.
• · A Supplementary Estimate for $1 million for Transportation and Utilities is necessary to cover emergency assistance provided during the Fort Chipewyan winter road closure.
• A Supplementary Estimate is required by the Legislative Assembly for $267,000 to accommodate achievement bonuses for employees of the Offices of the Auditor General, Ombudsman, Chief Electoral Officer, Ethics Commissioner, and Information and Privacy Commissioner.

"Given the RHAs’ need to deal with Year 2000 compliance, we decided to take action now to address this pressing problem. The key focus for these supplementary estimates is in health, and the urgent need to help Regional Health Authorities address the significant costs of making sure medical equipment and health systems function on January 1, 2000," said Provincial Treasurer Stockwell Day.

Government’s Accountability Act requires that a fiscal update be provided whenever Supplementary Estimates are introduced.

Highlights from the March Fiscal Update:

• The 1997-98 surplus is now forecast to be $2.347 billion, a $148 million increase from the Third Quarter Update. This includes the supplementary estimates tabled today.
• Total revenue is expected to be $17.373 billion. This is an increase of $284 million from the Third Quarter Update forecast and reflects higher personal and corporate income tax, and natural gas revenues.
• Total expense is now expected to be $15.021 billion, $136 million higher than the Third Quarter Update. This reflects the Supplementary Estimates described above.

For more information, please contact:

Trish Filevich
Director of Communications
Alberta Treasury
Telephone (780) 427-5364
e-mail: webmaster@treas.gov.ab.ca

Stockwell Day
Provincial Treasurer
(780) 427-8809

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