Premier Alison Redford’s tale of financial woe found an audience in Barrhead last week.
During private talks at Alberta Distance Learning Centre, Johnson told Pembina Hills school division about a projected $6 billion shortfall from falling oil and gas revenues.
In a televised address recently, Redford blamed this financial hole on a “bitumen bubble.”
She referred to a rise in the supply of energy in the United States, which equates to less need for Alberta’s oil. Some might be surprised that government spending is tied to the fickleness of energy prices in a single market.
It could seem almost reckless given our province’s insufficient pipeline capacity. It seems too much like gambling with Alberta’s resources in the hope of a favourable swing in prices.
Most private investors are cautioned about over reliance on a single stock when they are developing their portfolios. They are advised to diversify and spread the risk.
Shouldn’t governments be subject to the same injunctions when managing the people’s coffers?
The budget will be announced on March 7. As the date approaches many sectors that receive funding from the government are bracing for an impact. Among those holding their breath are PHRD educators.
Since Redford has ruled out tax increases, reduced government spending and reallocation of financial resources are inevitable and there are reports that some post-secondary institutions are already taking drastic measures in advance of cuts, such as hiring freezes.
Barrhead-Morinville-Westlock MLA Maureen Kubinec, who attended last Wednesday’s meeting with Johnson, said savings and efficiencies would have to be found.
Somewhat easier said than done, one imagines.
PHRD Supt. Colleen Symyrozum-Watt also spoke of belt tightening, but said the Minister noted that Alberta had a leading education system, with excellent teachers, which could hopefully soften the impact of financial constraints.
It is a hope everyone will share, but does little to allay the primary concern: what will be the effect in the classroom? It is the $6 billion question that may only be partially answered next month.
In the longer term, it is clear that Alberta needs to diversify and expand its market. The folly of relying on one customer, the US, has been laid bare by the drop in bitumen prices.
It is also clear the government needs to rein in spending so the province can live within its means.
The gambling with the future must cease.
Fed up with talk about the budget? Suffering from winter blues?
Well, help is on the way in the form of Valentine’s Day, which falls on Thursday. Naysayers might deride it as a commercialized farce, but don’t we sometimes need a distraction from the serious business of life?
Of course, we do. What harm in buying a box of chocolates or a bouquet of red roses for someone you love?
Go on. Make this Valentine’s Day special.
