Budgeting in the age of austerity

In response to the provincial budget, the City will be making significant changes to our annual budget, but I want to be clear: we will not be raising taxes, beyond what was already approved for 2020 and beyond, to cover provincial cutbacks and downloads.

Before the provincial budget dropped, Council already understood Alberta was going through a period of restraint — and we accounted for this last year when we built our four-year budget. The depth and complexity of the changes, as a result of the provincial budget which dropped October 24, was the unexpected part. As a result, yesterday city council began work on adjusting our 2019-2022 budget and fiscal plan to meet the new realities in Alberta. 

This means City Council will make selective cuts to service levels and infrastructure projects to absorb the impact of the provincial budget’s cuts and downloads. What this may look like has yet to be determined but it may mean reduced hours at recreation centres, closure of some aging facilities, and an indefinite delay to the Lewis Farms Recreation Centre, for example. We’ll get a better sense of where cuts will need to be made in early December, when we get reports back from our administration and hear from the public during the public hearing process that begins on December 6th. 

I was pleased to see that in a show of solidarity yesterday, and an act that signifies our willingness to put Edmonton first above individual wards, all council members agreed to withdraw motions adding to the budget on files such as cannabis legalization impacts, increases to the Edmonton Transit budget, Valley Zoo upgrades, and community facility grants. We’re committed to trimming our way to a balanced budget, And restraining our initial appetites was a very good first step.

Broadly, this provincial budget will have a lot of other impacts on Edmonton and the Metro Region that we don’t yet fully understand, which is why I brought forward a motion (which passed) that directed City Administration to develop a comprehensive report on our City’s economic outlook, investor confidence, downtown vibrancy, innovation corridor, and talent attraction, with respect to the Provincial budget’s funding cuts. We need a big picture perspective on what effect these cuts are having on Edmonton’s industries so we can work to mitigate them. 

Edmontonians have reason to be concerned — but partnership with the provincial government and this city is still possible. We can show thoughtful restraint AND continue to invest in our key economic assets. We will continue to build a city we can be proud of, that can attract talent and investment, and continue to help drive Alberta’s economy.