Provincial Budget 2019 and the Nonprofit Sector
The first provincial budget under the Alberta United Conservative Government was tabled on October 24. The Premier addressed the province on October 23, a day before the budget was tabled, to inform Albertans that there will be a 2.8 per cent spending cut. The Premier warned that this would “not be an easy budget” and cuts would be necessary to reduce the deficit and return to balance by 2022-23, which is the primary goal of the government’s budgeting over the next few years.
CCVO will release an in-depth budget analysis for the nonprofit sector in the coming days. CCVO would like to hear from nonprofit organizations who have released a budget analysis as we intend to share these resources with the sector. Please email our policy team at policy@calgarycvo.org.
In the meantime, we have provided brief highlights from budget 2019:
Budget Speech
- The key focus of the budget address was to emphasize the follow-through on promises the provincial government made to Albertans: to reduce spending, assist the energy sector, and get Albertans back to work. There is a focus on cutting taxes and regulation, and reducing funding for certain programs and services, infrastructure, and post-secondary education. 
Highlights:
- A projected $8.7 billion deficit on revenues of $50 billion, up from $6.7 billion from 2018-19. The province’s debt is forecast to reach $71.8 billion by the spring and to reach $93 billion by 2023. 
- The Ministry of Community and Social Services will see an increase of 7.6 per cent, or $276 million. The benefits for the Assured Income for the Severely Handicapped (AISH) will not be increased and will be de-indexed. 
- The Ministry of Culture, Multiculturalism and Status of Women will be cut by 7.6 per cent this year, and a total of 33 per cent by 2022-23. 
- Over the next four years, the province plans to increase $100 million for mental health, $40 million on an opioid response strategy, $20 million for palliative care, $6 million for a new sexual assault hotline, and $4 million for the Health Quality Council of Alberta. Overall, health programs will receive a slight increase of 1.3 per cent in the next four years. 
- A plan to reduce the public service by 7.7 per cent over the next four years, mainly through attrition and coupled with hiring restraints. 
- A 9 per cent cut, or $236 million, to municipal governments under the Municipal Sustainability Initiative over two years. 
- Education (K-12) spending will experience a funding freeze and maintain $8.2 billion each year. 
- Post-secondary tuition freeze will no longer be in effect and a budget cut of five per cent, or $275 million. There are five private institutions that are Christian universities and one former faith-based campus that did not see any funding cuts. 
- The elimination of the Alberta Summer Temporary Employment Program (STEP). 
- Albertans can expect to pay more in income tax and user fees. Trevor Tombe, an economist from the University of Calgary, argues that the education tax credit removal and de-indexing of the tax system of roughly $311 million per year, is equivalent to about a 0.3 per cent sales tax. He suggests this may have a stronger impact on families with incomes between $60,000 to $80,000. 
- The Ministry of Environment and Parks will see a 9 per cent cut over the next four years. 
- A few winners and losers in the budget. 
- Alberta Foundation for the Arts will see a 5 per cent reduction or $1.5 million for 2019-20. 
- Pembina Institute responds to the budget. 
- Mayor Naheed Nenshi’s response to the budget. 
- Alberta Museums Association (AMA) analysis and impact of budget 2019 

