While the provincial government continues to survey and poll voters on just what they would like to see done with the challenging budget ahead, the desperate times call for desperate measures from the finance department has already been seen in a couple of instances.
The first came from Alberta Health Services about two weeks ago – ironically the same day the finance minister announced his online survey of Albertans asking for their ideas to save money in the budget.
AHS explained they will be looking to cut spending on things such as extravagant cell phone bills – some as high as $10,000 in one month – severance packages and travel.
So, that represents the first step in the government’s three pronged approach to finding the $7 billion revenue shortfall – searching for about $2.3 billion in operational savings throughout government.
AHS made no mention of staff or services cut since Premier Jim Prentice has promised core front-line services will be maintained, but it may be only a matter of time before that changes.
The second prong in the government’s plan – finding alternative revenue sources – arrived last Thursday when fees for campers rose by $3 and many other flat fees for services will now see people pay a range of fees depending on how much they use.
Granted, the hikes don’t seem like much, but are expected to add at least $2 million into the coffers of the Environment and Sustainable Resource Development ministry.
That is a significant amount when all ministries were handed their budget targets last Wednesday morning and asked to trim, on average, nine per cent from their spending while adding $2.3 billion in new revenue across the board.
Though a good chunk of that camping fees increase will be pay for by tourists, one can bet there are other departments searching to find ways to derive more money from revenue generating programs – some of which is likely to come through higher taxes on liquor, gas, cigarettes and income.
If you are wondering where the other approximate $2.3 billion – aka the third prong – is going to come from, the premier and the finance minister have made it clear they will be taking it from the contingency fund set up by the government a few years ago to shield itself in case of a financial crisis.
And that’s the bite that hurts, since once it’s gone there pain will get worse.
