Municipal infrastructure funding program to be cut by 25 per cent over the next three years
© Provided by Edmonton Journal The province's 2021-22 budget means Edmonton will see a $43.2 million increase in previously promised 2021infrastructure funding followed by a significant decrease in the next two years.
The Alberta government will reduce funding to municipalities for local infrastructure projects by roughly 25 per cent over the next three years in an effort to balance spending with reducing an $18.2-billion deficit.
In its first budget outlining financial impacts of the COVID-19 pandemic tabled Thursday, the province plans to provide more infrastructure dollars to municipalities this year through the Municipal Sustainability Initiative (MSI) with a $1.2 billion investment to provide economic stimulus and create jobs.
But this means a funding drop to $485 million in each of the following two years, where municipalities were initially slated to split $860 million.
Despite the cut to municipalities, a $20.7-billion capital plan will invest in 41 new infrastructure projects across the province and create about 90,000 jobs through 2024.
Local governments also split an additional $593 million in economic stimulus funding in 2020 as part of the province’s COVID-19 recovery plan.
“The 2021 capital plan will build roads, bridges, overpasses, water projects, gas lines, schools hospitals, long-term care homes for seniors, addiction treatment centres, tourism infrastructure and agriculture and natural resources projects that will help develop and protect Alberta’s distinctive resources and support environmental sustainability,” Finance Minister Travis Toews said in his budget address. “We are aggressively pursuing every area where Alberta has a competitive advantage in private sector investment and job growth.”
For Edmonton, this change means an increase in previously promised 2021 infrastructure funding by $43.2 million, but a significant decrease in the next two years with the pot being cut by 44 per cent. While municipalities will see a reduction, $375 million in both years will be reallocated to an “economic recovery capital envelope” toward future strategic projects.
Iveson responds to cuts
Provincial support through the MSI accounts for about one-third of the City of Edmonton’s approved capital budget with over $362 million in investments tied to the funding in the city’s current budget.
Mayor Don Iveson said these cuts offset the prior COVID-19 stimulus funding provided by the province and could sideline planned projects, including roof replacements on city facilities and traffic safety upgrades.
“I’ll be asking city administration to report to council which Edmonton projects are now at risk as a result of these deep cuts, though it’s already clear to me that this cut further injures the City of Edmonton’s jobs and fiscal situation,” Iveson said. “The province’s budget decision to further cut our infrastructure funding, which has already been whittled away, further impacts Edmonton’s momentum and will slow Edmonton and Alberta’s economic recovery.”
An ask from Iveson that wasn’t in the budget was $5.9 million to operate five planned supportive housing developments for homeless residents, slated to open early next year.
The budget maintains $193 million in funding for homeless support and outreach services, but there aren’t any new dollars for supportive housing.
Iveson voiced disappointment with the lack of funding, having long advocated for money to be put toward ending homelessness, which he said will reduce costs in the justice and health-care systems.
“For a budget focused on health, recovery, and finding savings, I am confounded and disappointed the province is still not prepared to work with Edmonton on supportive housing,” he said. “The Government of Alberta’s failure to work with Edmonton on supportive housing for vulnerable people, a failure to follow evidence showing the substantial savings in areas of provincial jurisdiction like health care, is truly frustrating for the people experiencing homelessness during a pandemic.”
The Alberta government will reduce funding to municipalities for local infrastructure projects by roughly 25 per cent over the next three years in an effort to balance spending with reducing an $18.2-billion deficit.
In its first budget outlining financial impacts of the COVID-19 pandemic tabled Thursday, the province plans to provide more infrastructure dollars to municipalities this year through the Municipal Sustainability Initiative (MSI) with a $1.2 billion investment to provide economic stimulus and create jobs.
But this means a funding drop to $485 million in each of the following two years, where municipalities were initially slated to split $860 million.
Despite the cut to municipalities, a $20.7-billion capital plan will invest in 41 new infrastructure projects across the province and create about 90,000 jobs through 2024.
Local governments also split an additional $593 million in economic stimulus funding in 2020 as part of the province’s COVID-19 recovery plan.
“The 2021 capital plan will build roads, bridges, overpasses, water projects, gas lines, schools hospitals, long-term care homes for seniors, addiction treatment centres, tourism infrastructure and agriculture and natural resources projects that will help develop and protect Alberta’s distinctive resources and support environmental sustainability,” Finance Minister Travis Toews said in his budget address. “We are aggressively pursuing every area where Alberta has a competitive advantage in private sector investment and job growth.”
For Edmonton, this change means an increase in previously promised 2021 infrastructure funding by $43.2 million, but a significant decrease in the next two years with the pot being cut by 44 per cent. While municipalities will see a reduction, $375 million in both years will be reallocated to an “economic recovery capital envelope” toward future strategic projects.
Iveson responds to cuts
Provincial support through the MSI accounts for about one-third of the City of Edmonton’s approved capital budget with over $362 million in investments tied to the funding in the city’s current budget.
Mayor Don Iveson said these cuts offset the prior COVID-19 stimulus funding provided by the province and could sideline planned projects, including roof replacements on city facilities and traffic safety upgrades.
“I’ll be asking city administration to report to council which Edmonton projects are now at risk as a result of these deep cuts, though it’s already clear to me that this cut further injures the City of Edmonton’s jobs and fiscal situation,” Iveson said. “The province’s budget decision to further cut our infrastructure funding, which has already been whittled away, further impacts Edmonton’s momentum and will slow Edmonton and Alberta’s economic recovery.”
An ask from Iveson that wasn’t in the budget was $5.9 million to operate five planned supportive housing developments for homeless residents, slated to open early next year.
The budget maintains $193 million in funding for homeless support and outreach services, but there aren’t any new dollars for supportive housing.
Iveson voiced disappointment with the lack of funding, having long advocated for money to be put toward ending homelessness, which he said will reduce costs in the justice and health-care systems.
“For a budget focused on health, recovery, and finding savings, I am confounded and disappointed the province is still not prepared to work with Edmonton on supportive housing,” he said. “The Government of Alberta’s failure to work with Edmonton on supportive housing for vulnerable people, a failure to follow evidence showing the substantial savings in areas of provincial jurisdiction like health care, is truly frustrating for the people experiencing homelessness during a pandemic.”
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