Alberta’s Bill 10 includes carve-out to government’s fiscal framework

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The Alberta government took the first steps to putting parts of its Budget 2024 plan into action on Tuesday through new legislation that outlines new details on the government’s plan for the month ahead, including a carve-out to its fiscal framework that would allow it to spend more than previously permitted.

Bill 10, the Financial Statutes Amendment Act, was introduced in the legislature on Tuesday afternoon by Finance Minister Nate Horner and, if passed, would affect four ministries.

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Apart from the fiscal framework, the legislation also details changes to the province’s film and TV tax credit and Alberta is Calling campaign incentives. It also formalizes rules around the hike in tobacco taxes, land title transfer and registration fees, and applications for the Agri-processing Investment Tax Credit program that were all announced in the budget.

Here’s some other details from the government’s Bill 10.

Fiscal framework

Along with Budget 2023, then-finance minister Travis Toews introduced a new fiscal framework that set out four requirement for the government to follow — mandated balanced budgets (with rare exceptions); limiting spending to the rate of population growth plus inflation; limits on in-year expense increases; and a requirement that half of surplus cash be used for debt reduction while the other half be deposited in the Alberta Heritage Savings Trust Fund or to the Alberta Fund for one-time spending.

Bill 10 makes an exception from that framework, exempting the Alberta Fund from in-year expense limitation rules in Alberta’s fiscal framework. The Alberta Carbon Capture Incentive Program is also exempt.

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Horner said the government would still be required to return budgetary surpluses, but the exemption would allow the government to capitalize on new opportunities.

“We created these rules (and) we’re committed to following them,” he said. “But we do need flexibility to make them actually work.”

“Alberta is Calling”

Bill 10 also puts into action the $5,000 “attraction bonus” through a refundable tax credit as outlined in February’s budget that is given to skilled tradespeople who move to the province this year.

It’s a different plan than what the United Conservative Party (UCP) pitched in the spring election campaign where the plan would have provided $1,200 cash payments to an estimated 14,000 people who work in a variety of fields that includes trades, but also health care and childcare workers, and moved to the province in 2023 and 2024.

The program is budgeted for $10 million, or $7 million less than the party pledged, and will apply to about 2,000 workers.

“What was proposed was a party platform, and what has been put forward has been informed by consultation with stakeholders,” said Jobs Minister Matt Jones, adding skilled trades were “the Number 1 area” where the province is seeing a labour shortage.

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“We’re all facing health-care worker shortages,” said Jones in response to a question about why health-care workers weren’t a higher priority.

“We certainly wouldn’t want to cause any hardship for other provinces that are also dealing with health care challenges.”

Opposition health critic Luanne Metz called it “another broken promise” from the UCP.

“Alberta needs health care workers. We were promised that they would be recruiting health care workers. We’re not competitive in wages or in recruitment opportunities,” she said.

“New people are choosing other provinces because we’re not bringing in the needed recruitment initiatives.”

Film and Television tax credit

The bill also includes changes intended to give Alberta-based TV and film productions more flexibility, by opening up the tax credit to include reality TV and game shows, neither of which qualified under the prior program.

Jones said those productions are typically indoors and can better balance the production calendar from the typically busy summer months.

He added the bill includes a “sweetener” to draw more productions to rural areas, and to give companies 120 days to apply for the credit once shooting starts instead of before.

mblack@postmedia.com

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