Fiscal Responsibility

Fiscal Responsibility

Has Alberta adequately managed, controlled, and optimized public spending? Has Alberta saved a sufficient portion of non-renewable resource revenue and invested it in such a way as to provide for future economic growth and prosperity?

Speaker: Mark Milke – Director of Research, Frontier Centre for Public Policy

Session summary:

Do we accept the speaker’s assessment of Alberta’s performance in this area?

  • General agreement on “D” grade
  • Current savings plan not acceptable
  • Difficult not to increase spending when times are good (i.e., when massive surplus, people flowing into the province)
  • Comparisons to other oil producing jurisdictions not fair because of equalization program

Do we agree with the proposed solutions and alternatives? If not, how would we alter them?

  • Broad agreement with solutions and alternatives
  • Consumption tax as a long term solution
  • Legislate 30% of resource revenues to Heritage Fund
  • Concern given current spending; others prefer tax cuts to diversify economy
  • Funding that follows student / patient
  • One group concerned about schools/hospital in rural communities
  • Dealing with the public sector monopoly on labour
  • Pension reform, from defined benefits to defined contributions
  • Return to balanced budget, consider infrastructure debt

What additional ideas, solutions, and alternatives do we think would improve Alberta’s performance in this area?

  • Reduce / streamline bureaucracy, look for service delivery efficiencies
  • More funds for municipalities, should be part of the solution
  • More careful consideration of regional spending within Alberta
  • Need to have a plan to manage growth
  • Transparency in financial reporting (Capital vs. Operating)
  • Long term operation costing for infrastructure (full cost accounting)
  • Give surpluses back to Albertans
  • Encourage development of creative economy
  • Citizen engagement on spending increases, statutory spending restraint
  • Stop subsidization of water and power
  • Similar royalties for oil & gas as Alaska / Norway

Small Group Discussion response forms: