Provincial Budget

The provincial budget came out yesterday. It didn't cut as deeply as many feared. But it also didn't lay out a path to balance like many hoped. I think it will have some big impacts on Grande Prairie and on municipalities. The Good, Fine, Bad, and Ugly from my perspective:

THE GOOD: Grande Prairie will receive a Family Support Centre for families helping kids who have disabilities. This will provide tools, resources, and information to manage and maximize the impact of provincial financial support for things like therapy and respite. This help is very needed, and will have a big impact on families and kids in Grande Prairie. I'm very excited to see it in the budget.

THE FINE: Provincial property taxes are frozen this year. In Grande Prairie, about 1/4 of your property taxes go to the province, not the City. I expected to see these provincial taxes increase in 2021, so I'm glad to see them staying where they are. However, this is "just fine" instead of "good" news, because they are budgeted to rise next year. Worth highlighting: provincial property taxes are meant to support education. But there is no increase to education funding planned to match the planned educational property tax increases.

THE BAD: Municipal infrastructure funding is decreased, and provincial promises are broken. In Canada, municipalities own ~65% of public infrastructure but collect less than 10% of taxes. That means they are dependent on grants from senior levels of government to maintain things like roads and storm water systems. Over the term of this budget, provincial infrastructure funding will be lower than the average of the last 10 years. It will be lower than was previously promised. And most concerning: municipalities can deal with declining funds, but need funding to be predictable so they can plan. A promised stable funding program (the Local Government Fiscal Framework) has been kicked years down the road.

THE UGLY: no plans and funding to address the Opioid Crises, housing needs, and businesses struggling to stay afloat through the pandemic. This budget was titled "Lives and Livelihoods," so it is maddening to not see it take new steps to protect lives and livelihoods in the face of the unprecedented times we are facing.

Dylan BresseyComment