The 2021 Provincial Budget and Alberta’s Nonprofit Sector
Budget 2021-22 was tabled by the Government of Alberta on February 25. Since the UCP government's first budget in 2019, it has emphasized spending cuts and a race to balance the budget. Because of the detrimental effects of the COVID-19 pandemic, the provincial government indicated that balancing the budget was not a priority for them this year. However, programs that affect the nonprofit sector have seen a decline in funding in the past and are expected to continue to see budget cuts in future years.
Albertans have made it clear that they want the provincial government to invest in the nonprofit sector, which is working daily to lead our communities through recovery. In a September 2020 poll by ThinkHQ Public Affairs Inc., 39% of Albertans felt that the provincial government should be spending more to support nonprofits in Alberta, compared to just 15% who think the government should be spending less. One respondent indicated that “it is never a mistake to invest in our people. Now is not the time to be cutting back on social services and community supports.”
Budget 2021 does not reflect this sentiment, although investments in programs and services have been maintained in key areas, there is no clear plan for investment in the recovery of communities. This lack of investment in pandemic recovery will lead to potentially detrimental effects for many organizations and the people they support – many of whom were vulnerable before the pandemic.
“Our people and the prosperity of our communities are a critical component of Alberta’s advantage moving forward,” states Karen Ball, CCVO President & CEO. “This budget does not adequately invest in the prosperity of all of our communities to be able to recover from the devastating effects of the pandemic.”
The government projects a total of $18.2 billion in deficits and $98 billion in taxpayer-supported debt at the end of 2020-21. The fiscal plan estimates $57 billion in spending in 2020-21, with a minimum of $1.1 billion allocated to COVID-19 recovery.
Budget 2021 Highlights for the Nonprofit Sector
The Alberta Budget 2021 shows no major investments for the nonprofit sector. CCVO has urged the government to invest in social infrastructure to help communities recover from the pandemic in our pre-budget submission. An investment in social infrastructure aims to facilitate an inclusive and equitable recovery. Yet, spending cuts from Budget 2021 will continue to be felt across Alberta.
Nonprofits will be facing reduced funding for programs that support their work. A $225.8 million budget is designated for the Ministry of Culture, Multiculturalism and Status of Women, which supports the arts and cultural industries, sports, physical activity and recreation, heritage, multiculturalism, inclusion and equality, the provision of government services in French, and the nonprofit sector. This is a $29.6 million reduction from the 2020 forecast which is a significant amount when considering the impacts of the pandemic on the nonprofit sector.
More cuts to major programs will occur through 2021-22, including:
Community Facility Enhancement Program (CFEP): The program's budget is $18.5 million to provide financial assistance for the purchase, construction, renovation, or improvement of public-use community facilities such as sports, cultural, recreational, or other facilities. As of 2019, CFEP continues to decline, down 15% from 2020 forecast.
Community Initiatives Program (CIP): The program, which funds community groups, is anticipated to receive $37.1 million for 2021-22. The program increased its budget for COVID-19-related programs in 2020, although the budget for 2021 shows a decrease of $4.8 million from forecasted spending in 2020.
Other Initiatives Program (OIP): This program provides funding for community-based projects not covered by other Community Grants funding streams. The OIP's budget for this year is $2 million and has gradually decreased over the last two years from forecasted spending in 2020.
The chart above shows the percentage change in the 2021 budgets of key Ministries from 2020's budget.
Please note: this chart has been updated to reflect consolidated amounts.*
The Ministry of Culture, Multiculturalism and Status of Women has allocated $15 million in the Stabilize Program, a one-time funding program that allows qualifying cultural, sports, and arts organizations to offset operational costs and support reopening. In addition, the ministry intends to implement the Freedom to Care Act (click here for CCVO’s feedback on a potential Act), so that nonprofit organizations can be granted a "common sense exemption" to current health and safety regulations.
The budget for the Ministry of Community and Social Services, which provides income support and other benefits to help meet Albertans' basic needs, will remain flat at $3.9 billion for 2021-22. Additionally, funding for the Family and Community Support Services (FCSS) also remains flat at $100 million. The ministry plans to expand the nonprofit sector's capacity through the Premier's Council on Civil Society and Charities' $7 million Civil Society Empowerment Fund to help nonprofit organizations and charities tackle pressing social challenges.
We have only identified initial analysis and will publish a full budget analysis in the coming weeks.
Alberta Budget 2021 Webinar
In the meantime, we invite you to attend a webinar on Friday, March 5 in partnership with ECVO and Global Public Affairs which will provide an in depth look at the 2021 provincial budget and the implications it could have on Alberta’s nonprofit sector.