Government of Alberta Budget 2022 Analysis
Government of Alberta Priorities: Budget 2022-23
Budget 2022-23 in Alberta was tabled Thursday, February 24, 2022. Under the theme of “moving forward”, a fiscal plan was outlined for the next three years (2022-2025) with the focus on economic recovery in Alberta.[i] In this budget, the Government of Alberta announced three key priorities and outlined their objectives for each priority area in the strategic plan (see table below).[ii]
The budget projects total revenue of approximately $62.6 billion while total expenses, including the COVID-19 Recovery fund, will equal approximately $62,096 billion, leaving a surplus of $511 million.
While this budget represents a projected surplus, it does not recognize the importance of community recovery or identify the nonprofit sector as a leader in that effort with any major new investments to support community recovery.
In terms of the sector, the focus is on debt elimination and maintaining status quo, stating “until the debt is eliminated, resources will continue to be used to pay interest costs rather than being directed to delivering the important government programs and services that Albertans rely on”.[iii] Investments made into recovery are centred on job creation and diversification, rather than community recovery.
When looking at the key programs within ministries related to the nonprofit sector, there are investments being made into child care (through the new Canada-Alberta Canada-wide Early Learning Child Care Agreement), supports for individuals living with a disability, Indigenous women initiatives, and benefits for seniors. As such, organizations working in these areas may find opportunities to partner with or receive funding from government in the upcoming fiscal year. At the same time, other programs and services within communities have been decreased such as Community and Voluntary Support Services, Cultural Industries, Status of Women, First Nations Development Fund, and Fish and Wildlife.
When considering the expense of key ministries as a whole, many of the funding adjustments made in this budget are negated by other cuts and re-arrangement of funding leaving the nonprofit sector to fend for itself with limited resources. As such, this budget signals a continuation of the attitude that the sector does not play a role in recovery, despite the support they have provided to individuals and communities over the past two years. As a result, the nonprofit sector will be expected to continue operating with stable or decreased budgets in the foreseeable future.
Across all ministries, the average percent change in budgeted expense in 2021-22 Budget to the estimated expense in the 2022-23 Budget was +2% (see table below). The largest increase in expense across ministries were Children’s Services, Culture and Status of Women, Jobs, Economy, and Innovation, Justice and Solicitor General, Service Alberta, and Transportation. This table shows the change in budgeted expense from Budget 2021/22 to Budget 2022/23.
Across key ministries related to the nonprofit sector, the average percent change in budgeted expense to estimated expense was +1% (see table below). This table shows the change in budgeted expense from Budget 2021/22 to Budget 2022/23.
Children’s Services was excluded from the table above due to the substantial increase in funding for childcare of $681,075 or +172% in expenses largely due to $539 million in funding from the Federal Government under the new Canada-Alberta Canada-wide Early Learning Child Care Agreement.[iv] With Children’s Services included, the average percent change in budgeted expense in 2021-22 Budget to the estimated expense in the 2022-23 Budget was +9%, or +$123,595.
Ministries with Increase in Expense
It is important to look into what specific increases and decreases are made within each of the ministries by program to better understand the impact of this budget on the sector overall. Based on a review, 15/30, or 50%, of key programs in key ministries received an increase in expenses this fiscal year. Of these, nine key programs received an increase of more than 3% (see graph below). These show the areas that government may focus their efforts for the upcoming fiscal year. This table shows the change in budgeted expense from Budget 2021/22 to Budget 2022/23.
The average increase across these programs within the ministries was approximately 31% or $898,497. However, when the increase in childcare is removed, the average increase across ministries was approximately 21% or $217,422. Notable changes within programs with an increase are outlined in the table below.
Ministries with Decrease or Unchanged Expense
Conversely, programs that saw reduced or static budgets are outlined in the table below. This table shows the change in budgeted expense from Budget 2021/22 to Budget 2022/23.
The average decrease across these programs within the ministries was approximately -11.4% or -$135,087. Notable changes within programs with a decrease are outlined in the table below.
Investment in Key Priority Areas
CCVO identified the following priorities areas for investment to support the nonprofit sector, both within organizations and the communities they serve:[v]
General community recovery
Equity, diversity, and inclusion
Youth Engagement
Mental health
Digital transformation
Specific recommendations for investments under each priority area focused on ways that the Government can work in partnership with the nonprofit sector to advance goals of community and economic recovery.
Budget 2022-23 is not a budget that supports community recovery or that recognizes investment in community prosperity as an important and necessary element of Alberta’s economic recovery, which was outlined in the CCVO 2022 budget submission.[vi] CCVO has provided an analysis of investments in the Budget 2022-23 based on recommendations for each priority investment area.
The following section contains tables showing the status of investment in the priority areas. The status symbol meanings are as follows:
GENERAL COMMUNITY RECOVERY
Recommended Investment: $100M - $150M
EQUITY, DIVERSITY, AND INCLUSION
Recommended Investment: $10M - $25M
YOUTH ENGAGEMENT
Recommended Investment: $10M - $25M
MENTAL HEALTH
Recommended Investment: $50M - $75M
DIGITAL TRANSFORMATION
Recommended Investment: $50M - $75M
Moving Forward
As stated in the Fiscal Plan, “The province is not only focused on strengthening the energy sector, but also supporting other growth sectors in Alberta’s economy”.[vii] However, analysis of this budget shows that the nonprofit sector did not see any major new investments from this budget despite the crucial role they play in supporting community, particularly at this critical time. This signals that the nonprofit sector is not considered a part of the plan for recovery moving forward. Instead, nonprofits are expected to fit into other programs and services that are available, compete for funding using valuable resources, or continue to operate with reduced or unchanged funding amounts while delivering high-quality support to individuals and communities to meet the growing needs of Albertans and their families.
As written by our President & CEO, Karen Ball, CCVO believes that “Investments that benefit the economy and those that benefit the community are not interchangeable - they are both required to create a prosperous province… For Alberta’s economy to recover we must invest in both community recovery and economic recovery. They are interdependent, reinforce each other, and the strength of each relies on both being equally valued”. [viii] Investments in the sector support the health and wellbeing of citizens and provides meaningful employment across the province. While full of innovative and caring professionals, this budget raises the question of how long the sector can continue to stretch limited resources without serious and costly consequences.
Moving forward, CCVO will continue to press for investment in community recovery that will support community-focused recovery through sound investment in social infrastructure that will create jobs, spur economic stimulus, and equally support those in need.
REFERENCES
[i] “Budget 2022: Fiscal Plan Moving Forward 2022-25”, Government of Alberta, February 24, 2022, https://open.alberta.ca/dataset/6d0f1358-beb5-4bb7-8da1-a350a138039c/resource/36771cab-bee0-44b5-99ad-a03d88da653c/download/budget-2022-fiscal-plan-2022-25.pdf.
[ii] “Budget 2022: Strategic Plan Government of Alberta 2022-25”, Government of Alberta, 2022, https://open.alberta.ca/dataset/6d0f1358-beb5-4bb7-8da1-a350a138039c/resource/0b805749-36ac-4c68-8504-a6daba63e8c7/download/budget-2022-goa-strategic-plan-2022-25.pdf.
[iii] “Budget 2022: Fiscal Plan Moving Forward 2022-25”, Government of Alberta, February 24, 2022, https://open.alberta.ca/dataset/6d0f1358-beb5-4bb7-8da1-a350a138039c/resource/36771cab-bee0-44b5-99ad-a03d88da653c/download/budget-2022-fiscal-plan-2022-25.pdf.
[iv] “Budget 2022: Fiscal Plan Moving Forward 2022-25”, Government of Alberta, February 24, 2022, https://open.alberta.ca/dataset/6d0f1358-beb5-4bb7-8da1-a350a138039c/resource/36771cab-bee0-44b5-99ad-a03d88da653c/download/budget-2022-fiscal-plan-2022-25.pdf.
[v] Marokh Yousifshahi, Esha Mahmood, and Alexa Briggs, “Community Prosperity Now: A Blueprint for Community Recovery”, June, 2021, https://www.calgarycvo.org/community-recovery-now/.
[vi] Calgary Chamber of Voluntary Organizations, “Creating Community Prosperity in Alberta’s Recovery: CCVO Alberta Pre-Budget 2022 Submission”, January 7, 2021, https://www.calgarycvo.org/ccvo-blog-news/creating-community-prosperity-in-albertas-recovery-ccvo-alberta-pre-budget-2022-submission.
[vii] “Budget 2022: Fiscal Plan Moving Forward 2022-25”, Government of Alberta, February 24, 2022, https://open.alberta.ca/dataset/6d0f1358-beb5-4bb7-8da1-a350a138039c/resource/36771cab-bee0-44b5-99ad-a03d88da653c/download/budget-2022-fiscal-plan-2022-25.pdf.
[viii] Calgary Chamber of Voluntary Organizations, “Budget 2022 and Community Prosperity in Alberta: Initial Analysis from CCVO”, February 25, 2022, https://www.calgarycvo.org/ccvo-blog-news/alberta-budget-2022-initial-analysis.