What's in Budget 2009 for Albertans?

Budget 2009 invests in priority areas like health care, education, and infrastructure, providing the priority services Albertans need while maintaining the lowest overall tax regime in Canada.

See the links below for highlights on what's in Budget 2009 with regard to:

All Albertans

  • Budget 2009 builds on Alberta’s strength to see the province through these difficult times.

  • Budget 2009 will ensure government continues to provide the programs and services Albertans require and expect, with a focus on healthcare, education and helping those who need it most.

  • Budget 2009 will meet the needs of Albertans during challenging times while maintaining the lowest tax regime in Canada, thanks to actions government has taken in the last 16 years.

  • Alberta has put away $17 billion in savings to help protect against downturns like we’re experiencing now.

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Businesses and the economy

  • $7.2 billion in 2009-10 in infrastructure investment through the Capital Plan and a record $23.2 billion over three years. This year’s investment alone will support over 80,000 jobs across the economy. Alberta continues to spend more than twice the per capita average of what other provinces have been spending.

  • $164 million in 2009-10 for employment and training programs, including:
    • $60 million for training programs.
    • $53 million for career development services.
    • $9.1 million for Summer Temporary Employment Programs (STEP) to support 2,100 summer jobs.
    • $15.8 million for workforce partnerships to design and implement initiatives to help build a skilled workforce.

  • $78 million for immigration programs, including settlement services, international qualification assessments, and the Provincial Nominee Program.

  • $104 million in 2009-10 for innovation, research and technology commercialization initiatives in areas of strategic importance such as agriculture, forestry, energy and the environment, health and life sciences.

  • New drilling incentive initiatives announced in March 2009 to encourage drilling of new oil and gas wells. Each new oil or gas well drilled supports 120 jobs across the economy. The initiatives are expected to cost government $1.5 billion in revenues over two years.

  • The small business income threshold rises to $500,000 this year (effective April 1) from $460,000, encouraging small businesses to grow.

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Roads

  • Start SE segment of Calgary ring road in 2010.

  • Complete NW segment of Edmonton ring road in 2011.

  • Complete interchange at Anthony Henday Drive and Stony Plain Road in Edmonton.

  • Complete two interchanges on Highway 63 in Fort McMurray.

  • Complete further twinning of Highway 63 south of Fort McMurray.

  • Replace bridge at Highway 22 over North Saskatchewan River near Drayton Valley.

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Communities

  • Health and Wellness operating expense is $12.6 billion in 2009-10 – an increase of $558 million, or 4.6%.

  • Alberta Health Services base operating grant will increase in 2009-10, to $7.7 billion – includes $122 million for integrating ambulance technicians into the provincial health care system.

  • $3 billion for physician services, up $363 million, or 13.8 per cent from 2008-09. About 85% of this is for physician compensation.

  • $768 million for prescription drugs, ambulance and other health services for all Albertans, up 10.3 per cent from 2008-09. Most of the funding is to provide prescription drug benefits for seniors.

  • $1.1 billion for other health services, including allied health services, vaccination programs, tissue and blood services and air ambulance  An increase of $16 million, or 20 per cent, for cancer therapy drugs.

  • $288 million in health capital grants – part of $2.9 billion over three years to align with the goals and strategies of Vision 2020: The Future of Health Care in Alberta. Funding is lower in 2009-10 than the other two years as capital cash reserves held by Alberta Health Services will be drawn down this year.  Three-year total includes:
    • $2.56 billion for facilities and equipment;
    • $238 million for health information systems;
    • $118 million for vaccine purchases.

  • Increasing support and respite programs for families and community members assuming care on behalf of their loved ones.

  • Complete NE and NW segments of Calgary ring road in fall 2009.


  • Safe Communities:
    • Another 100 front-line police officers will be added in 2009-10, part of government’s plan to add 300 over three years.
    • Additional Crown prosecutors and Provincial Court resources.
    • Safe Communities and Neighbourhoods program will be implemented.
    • $156 million in operating support for Safe Communities programs.
    • $40 million to build additional addiction-treatment facilities.

  • $380 million over two years for new and upgraded infrastructure in Fort McMurray.

  • $5.6 billion over three years for municipal infrastructure support (Capital Plan).

  • $5.8 billion over three years for highways (Capital Plan).

  • $2.9 billion over three years for health facilities (Capital Plan).

  • $260 million over three years for community facilities (Capital Plan).

  • $715 million over three years for water and wastewater (Capital Plan).

  • $3.3 billion over three years for government facilities/other (Capital Plan).

  • $56 million to continue work on Royal Alberta Museum.

  • $18 million for parks and protected areas.

  • Construction of Edmonton Remand Centre, to be completed in 2012.

  • Restoration of Federal Building in Edmonton by 2012.

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First Nations and Métis settlements

  • Approximately 40% of the net proceeds from slot machines at First Nations casinos flows through Aboriginal Relations to the First Nations Development Fund. The $110 million budget for the fund in 2009-10 will be used to benefit First Nations communities through social, economic, and community development projects.

  • Over $10 million will go towards resource consultation and the completion of Traditional Use Studies.

  • Continue working with representatives of the three Treaty areas to implement the historic Protocol Agreement on Government-to-Government Relations.

  • Continue to work with Métis Settlements to facilitate improved governance, long-term sustainability, and accountability.

  • Presenting an unprecedented International Symposium, “Gathering for Success”, that will bring together key stakeholders in the Aboriginal and business communities to develop and share Indigenous economic development best practices.

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Parents

  • Children and Youth Services budget is $1.14 billion in 2009-10 – a $43 million (3.9%) increase over the 2008-09 program. Funding includes:
    • $206 million for child care, including $29 million over two years to fulfill commitment to add 14,000 childcare spaces by 2011.
    • 4.5% increase, or $24 million, to $560 million in child intervention and foster care support to alleviate demand pressures, declining availability of foster homes and challenges in retaining and attracting staff in the agency sector.
    • $113 million for Family Support for Children with Disabilities.

  • Another 8,000 new child care spaces by 2011 – in addition to 6,000 that have already been created (Capital Plan).

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K-12 students

  • Operating budget for Education of $5.4 billion, an increase of $165 million or 3.2%. Includes:
    • $5.2 billion in operating grants to school boards including property tax support, an increase of $184 million, or 3.6%. Will cover teachers’ salary increases, address projected enrollment growth, and address other cost pressures within this budget.
      • $222 million for class size initiative.  Since 2004-05 government has invested nearly $1 billion to reduce class sizes, resulting in the hiring of 2,900 teachers.
      • $452 million to operate and maintain schools.

  • $760 million in 2009-10 for school capital projects, including $252 million for capital maintenance and renewal.

  • $226 million for current service payments for teachers’ pensions, plus $356 million to cover the costs of the pre-1992 unfunded teachers’ pension liability.

  • $1.7 billion over three years for schools (Capital Plan).

  • Complete 54 new and replacement schools to accommodate over 31,000 students.
    • Build 18 K-9 schools – nine each in Edmonton and Calgary – through P3s.
    • Continue with plans to build 14 elementary, middle and high schools in Edmonton, Calgary, Okotoks, Langdon, Spruce Grove, and Sherwood Park through bundled school construction, to be completed in 2012.

  • Continue 54 new and ongoing major modernization and addition projects.

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Post-secondary students

  • Operating budget for Advanced Education of $2.65 billion, an increase of $88 million, or 3.4%. Includes:
    • 6.1 per cent increase in support for adult learning, or $124 million, to over $2.1 billion. Increase to support 6% increase in base operating grants to post-secondary institutions.
    • $170 million in scholarships, bursaries, grants, student loan debt relief, and grants to Registered Education Savings Plans.

  • $484 million in 2009-10 and some $1.2 billion over three years for post-secondary capital projects and capital maintenance and renewal.

  • New facilities will provide space for more than 16,000 learners in high-demand programs. Specific projects include:
    • Health Research Innovation Centre – University of Calgary.
    • Teaching, Research and Wellness Building – University of Calgary.
    • Energy, Environment and Experiential Learning Building – University of Calgary.
    • Centennial Centre for Interdisciplinary Science – University of Alberta.
    • Edmonton Clinic – University of Alberta.
    • Markin Building for Health Sciences and Management – University of Lethbridge.
    • University of Athabasca main campus expansion.
    • SAIT’s Trades and Technology Complex.
    • Bow Valley College renovation and expansion.
    • Lab expansions at Mount Royal College and Grant MacEwan College.

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People with disabilities

  • Assured Income for the Severely Handicapped (AISH):
    • AISH maximum monthly support increased by $100, or 9.2%, to $1,188.
    • Overall AISH program funding to increase 10.2%, or $65 million, to $709 million in 2009-10 for rate increase and projected caseload growth.

  • Persons with Developmental Disabilities:
    • Total budget increases by $33 million, or 5.8%, to $604 million in 2009-10.
    • This includes funding for an expected increase in complex cases and projected caseload growth.
    • It also includes $24 million for staff recruitment and retention.

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Albertans with lower incomes, seniors and Albertans in need

  • Seniors supports:
    • Increase of $40 for singles and $60 for couples in the maximum monthly benefit for Alberta Seniors Benefit. Eligibility thresholds also increasing to $24,000 for singles and $39,000 for couples.
    • Total funding for seniors programs to increase 11.9%, or $49 million, to $456 million.

  • Affordable Supportive Living:
    • $50 million in 2009-10 to add 450 affordable supportive living and assisted living units.
    • $150 million over three years to 1,200 units in total.

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Affordable housing

  • Affordable housing:
    • $178 million in 2009-10 and $468 million over three years for affordable housing. This is part of government’s commitment to develop 11,000 affordable housing units. About 5,600 have been developed so far.
    • Another $103 million is budgeted for operating support to affordable housing programs, including $56 million for the rent supplement program.

  • Homelessness supports:
    • $100 million in 2009-10 and $400 million over three years to help develop 2,700 housing units for the homeless – part of the province’s 10-year plan to end homelessness.
    • Another $107 million is budgeted for operating support of homelessness programs, including $41 million to support over 3,600 spaces in emergency/transition shelters, and $32 million to provide outreach supports to 1,500 homeless Albertans.

  • $1.0 billion over three years for housing (Capital Plan).

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Farmers and ranchers

  • $1.14 billion to support agriculture, including $55 million in 2009-10 for the new Alberta Livestock and Meat Agency, which will help develop new markets, increase innovation and improve supply chain management in the livestock sector.

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The environment

  • Provincial Energy Strategy outlines a long-term action plan for Alberta to achieve clean energy production, wise energy use, and sustained economic prosperity.

  • Implementation of the provincial climate change action plan continues with significant new investments for:
    • Carbon capture and storage – $100 million in 2009-10 and $800 million over three years. CCS project proposals currently being evaluated and announcements regarding successful projects expected by June 30.
    • Green Transit Initiatives Program (GreenTRIP) public transit projects – $10 million in 2009-10 and $520 million over three years.

  • $55 million in each of 2009-10 and 2010-11 for biofuels initiatives.

  • $20 million in each of 2009-10 and 2010-11 to complete implementation of conservation and energy initiatives (part of three-year $60 million commitment initiated in 2008-09).

  • $15 million in 2009-10 to support the Land-Use Framework.

  • $30 million to encourage the clean-up of inactive oil and gas wells, reducing the environmental foot print of the energy sector.

  • $100 million in capital support and $22 million in operating support to continue implementing the Water for Life strategy.

  • $95 million in payments from industry in 2009-10 to the Climate Change and Emissions Management Fund to support research and development of clean energy technologies.

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Community groups and the arts

  • $56 million to continue work on Royal Alberta Museum.

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Tax cuts

  • Additional tax savings for Albertans and Alberta businesses:

  • Personal and spousal credits are indexed to inflation and will rise by $614 to $16,775.  The indexing of all non-refundable credits will save Albertans $115 million in 2009.

  • Indexation will also increase benefits for recipients of the Alberta Family Employment Tax Credit.

  • Albertans will feel the full benefit in 2009-10 of the elimination of health care premiums, saving Albertans and Alberta businesses $1 billion.

  • The only tax increase is to tobacco taxes:
    • Tobacco tax up $3 to $40 per carton of cigarettes; up 11.5 cents to 30 cents per gram for loose tobacco – will generate an estimated $70 million more in revenue.

  • Liquor markups are also being increased for the first time since 2002:
    • Liquor markup up by $1.30 per dozen beer; 75 cents per 750-ml bottle of wine; $2.85 per 750-ml bottle of spirits – will generate an estimated $180 million more in revenue.

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Surplus and savings

  • The new Fiscal Responsibility Act provides for a simpler and clearer fiscal framework that contains limitations but enhances flexibility needed at this time:
    • Deficits are permitted only if funds can be transferred from the Sustainability Fund to offset them.
    • As with the former fiscal framework, government may borrow for capital. Borrowing for operating purposes is not allowed.
    • In-year increase in operating expense is limited to 1% of total ministry operating expense. For this year, that totals $315 million. Funding for emergencies and disasters is excluded from this limit.
    • No longer a limit on the amount of resource revenue that can be used for budget purposes. It had previously been $5.3 billion.

  • The Sustainability Fund is expanded to include the assets of the Capital Account and the amounts set aside for CCS and GreenTRIP (this does not affect spending on CCS and GreenTRIP). The total amount is now $17 billion.

  • When government’s fiscal situation begins to improve in 2012-13, cash from surpluses will be saved in the Sustainability Fund until it reaches about $10 billion. This is the first plank of the province’s savings strategy.

  • To date, government has essentially saved more than $47 million since 1993-94, equivalent to roughly 40% of the $115 billion collected in non-renewable resource revenue during that time. It includes:
    • Paying down nearly $23 billion in accumulated debt.
    • Setting aside some $25 billion in savings in the Heritage Fund and endowments, the Sustainability Fund and the Capital Account.

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Page last updated:  April 24, 2009