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Red Deer Advocate FRIDAY, MARCH 27, 2015
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Time to pay up! ALBERTA GOVERNMENT INCREASES TAXES, STILL PLANS TO RUN RECORD DEFICIT
BUDGET HIGHLIGHTS EDMONTON — Highlights of the 2015-16 Alberta budget: The bottom line: Total spending of $48.4 billion on revenue of $43.4 billion for a $5-billion deficit — the largest in Alberta’s history. The deficit will be covered mainly by the province’s contingency fund. End of the flat tax: Alberta will end its 10 per cent flat income-tax rate and phase in two new tax brackets for those making more than $100,000 or $250,000 a year. The change will affect about 330,000 workers. Health levy: Individuals making more than $50,000 a year will have to pay a health-care levy, effective July 1. The amount will be tied to income and capped at $1,000 annually. The levy is to be collected through the income-tax system and won’t be paid by employers. Gasoline tax: The gasoline tax jumps four cents a litre on Friday. The government notes Alberta’s gas tax has not been raised since 1991 and remains the lowest in the country. Smokes and booze: It will cost 16 cents more for a bottle of wine and 90 cents more for a case of 12 beers starting Friday. The tax on a carton of cigarettes will go up by $5 to $45. Tax breaks for the working poor: Families earning less than $41,220 a year will be eligible for a supplement for each child, to a maximum of $2,750 each year. The government says about 75,000 families will be eligible. Fees aplenty: Fees are going up for everything from camping to court filings and marriage certificates. Traffic fines are being boosted by an average of 35 per cent. Job cuts in government: The government plans to shed 2,016 full-time jobs across all departments. Most of those positions are already vacant and will not be filled. About 370 layoffs are expected.
BY DEAN BENNETT THE CANADIAN PRESS
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EDMONTON — Albertans will pay more to get married, go camping, have a drink, go for a drive or do pretty much anything else as the province fights to get out from under the collapse in oil prices. The 2015-16 budget increases taxes and fees virtually across the board and runs the largest deficit in Alberta’s
history at $5 billion. The government is retooling its tax take so the wealthy will pay more. It’s also bringing in a health-care levy, boosting the gasoline tax by four cents a litre and increasing sin taxes on cigarettes and booze. “This has been one of the hardest budgets to develop in many years and has required tough decisions,” Fi-
nance Minister Robin Campbell said. “We’re going to get off of oil.” Premier Jim Prentice has billed the document as necessary to make up for billions in lost oil revenue and to insulate the province’s spending from roller-coaster swings in energy prices. The premier has also said he needs a mandate to implement the budget and is expected to call an election soon.
Please see BUDGET on Page A2
PAIN AT THE PUMP
Photo by JEFF STOKOE/Advocate staff
Deer Park Co-op gas bar attendant Evan Keith was kept busy as customers lined up to fuel their vehicles Thursday afternoon. The gasoline tax jumps four cents a litre today.
Budget greeted with caution, optimism A tough spring budget was greeted with some caution and optimism. Despite a significant cut in Municipal Sustainability Initiative funding, Mayor Tara Veer said the city will be able to fulfill its commitments in the city’s 2015 capital budget but cannot predict what will happen beyond 2016. Red Deer will receive $9.7 million in MSI funding, compared to $18 million in 2014 and $6.2 million in Basic Municipal Transportation Grant, compared to $6.1 million last year. The decrease will be offset by the one-time $8 million MSI injection from the province earlier this month. City staff are currently reviewing the other areas of the budget, includ-
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ing policing, to determine potential impacts on the municipality. “Every indication that the province has given us in the last couple months, it would be a time of fiscal restraint,” said Veer.
through on its funding commitments. “Beyond 2016, obviously we will have to reserve judgement,” said Veer. Veer was pleased that the province remains committed to keeping Michener Centre open, no cuts to Family Com-
‘EVERY INDICATION THAT THE PROVINCE HAS GIVEN US IN THE LAST COUPLE MONTHS, IT WOULD BE A TIME OF FISCAL RESTRAINT. OBVIOUSLY THERE ARE QUITE A FEW AREAS AFFECTING THE CITY DIRECTLY AND THE COMMUNITY . . . THAT WE WERE WATCHING.’ — TARA VEER MAYOR OF RED DEER
“Obviously there are quite a few areas affecting the city directly and the community ... that we were watching.” Veer said the 2015 capital plan is stable and the city will be able to follow
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munity and Support Services funding, and the repurposing of the Red Deer Nursing Home site as announced last week. She was also pleased to see a
$20-million commitment to Red Deer College for its multi-use facility and follow-through on the previously announced new schools in Red Deer. The city will also be keeping a close eye on the impacts of increased user fees, levies and taxes for any possible downloads from the province. The budget also boosts public library services to $36 million, up $3 million. Red Deer North MLA Mary Anne Jablonski said she was proud of her government’s new budget. “I was worried. But I think that we have found a balance here for all our families and I think it’s something we can all live with,” said Jablonski about her final provincial budget since she isn’t running in the next election.
Please see REACTION on Page A2
Germanwings crash no accident The account of the final moments of Germanwings Flight 9525 prompted airlines to impose stricter cockpit rules.
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