For reeve Bill Lee the budget is good for the municipality and agriculture.
“There is forecast of strong growth, there are no tax increases and the deficit situation is being handled,” he said.
For Barrhead mayor Brian Schulz the budget neither surprised nor disappointed. While he welcomed no tax hikes, he had hoped for more money for small towns.
“We have to make do with what we have got and keep the majority of people satisfied with the services they are getting,” he said.
Link Byfield, Wildrose Alliance candidate for the Barrhead-Morinville-Westlock riding in the 2012 Alberta general election, saw it as an irresponsible election budget. Tax increases down the line now seemed unavoidable, he said.
“My reaction and the party’s reaction is that they are proving once again that they are not interested in disciplining their own spending and living within their means,” he said.
Last Thursday’s budget saw no new taxes, tax increases or cuts to public service. Spending went up on health, education and social assistance, and $11 million was earmarked for oilsands region environmental monitoring. The budget is using up half of Alberta’s $7.4 billion Sustainability Fund.
The governing Progressive Conservatives anticipate an $886 million deficit in 2012, a $952 million surplus in 2013 and a $5.2 billion surplus in 2014-15.
They forecast $40.3 billion in revenue in the coming year and expenditures estimated at $41.1 billion. Bitumen royalties are forecast to be $5.7 billion in 2012-13, then continuing to grow for each of the next two years.
The government is basing its revenue forecast on an oil prediction of $99.25 a barrel, as well as $2 billion in land lease sales.
Lee said Finance Minister Ron Liepert’s budget presentation underlined the strength of Alberta’s economy, with the province leading the nation in the creation of new jobs.
Employment growth in Alberta was 3.8 per cent last year, by far the highest in Canada. In fact, the province accounted for about half of all new jobs created in the country in 2011. In June 2011, Alberta’s economy created more jobs than in the entire United States.
Lee said the budget laid the groundwork for three-year funding cycles for municipalities.
“This will be very beneficial, and allow us to plan for the future,” he said.
Lee also welcomed a budget investment of about $1 billion in agriculture and rural development.
“I thought overall the budget was very unsurprising,” said Schulz, although he added it would take a while to dissect the contents.
Schulz said he had been hoping for a greater financial commitment to small towns like Barrhead.
“Money goes more to the bigger cities, which is understandable although there is a need to make sure small communities like Barrhead and Westlock maintain their infrastructure.”
Schulz said every community wanted the best-paved roads and sidewalks, so it was important to target resources where they were most needed. Funds were also needed for contingencies like water lines breaking or road repairs.
“You can’t always forecast these types of things,” he said. “Fortunately, I have a sense that people in small communities are very resilient and understand that.”
Schulz also wanted to see more money for affordable housing and seniors housing.
He added, however, he could understand how tough it was being in government. The budget always required making difficult decisions.
“I understand their predicament,” he said.
Byfield said Wildrose took the approach that the government should not be borrowing needlessly – which is what had been happening for the fifth year.
“There is no doubt that this is an election budget,” he said.
Byfield said he deplored the neglect of former premier Peter Lougheed’s Alberta Heritage Fund, under which a portion of oil and gas revenues was deposited in long-term investments.
“The heritage fund has shrunk by half in real value over 26 years,” he said. “Virtually no money has been put into it.”
Byfield said the deficit and overspending had been a big issue on the doorstep when he had gone canvassing.
“People say to me ‘if oil is $100 a barrel why are we borrowing money?’ That is a very good question.”
Wildrose has presented its alternative budget, which calls for a one-year extension of the capital plan, a one-year across the board public sector wage freeze and a 2.5 per cent overall spending increase.
The party says these actions would allow for more targeted spending on priority areas and a modest $16 million cash surplus in 2012-2013 instead of the $3.1 billion cash deficit the PC government posted last Thursday (reported $886 million deficit plus $2.2 billion capital deficit).
Alternative budget highlights include: A $4.12 billion investment in priority infrastructure over four years; an $854 million overall spending increase; and targeted investment with new operational spending, which includes $114 million for 1,425 more teachers, $80 million for 1,000 more health workers, technicians and support staff, $50 million for 1,000 more seniors care support workers and $53 million for 300 more police officers.
