Planning for tomorrow

A message from Premier Ed Stelmach

As the Government of Alberta’s 2009-10 forecast deficit of $6.89 billion indicates, these are difficult economic times.

As a government, our focus will continue to be on growing Alberta’s economy – not on increasing taxes or abandoning our long-term goals. We remain committed to building Alberta because tomorrow’s prosperity depends on it.

Over the past few years, we’ve put in place plans to strengthen and expand Alberta’s economy. We’re able to do these things because of the actions we’ve taken over the past decade. Since 2003, we’ve put aside about $25 billion, including $17 billion in the Sustainability Fund. Our policy of investing surpluses into a sustainability fund has proven to be the right approach. While other provinces face increased debt to deal with the recession, Alberta is able to tap into its emergency savings account and does not need to borrow to cover the projected budget deficit.

As we deal with the financial pressures of the coming year, it’s also a time to look forward – to plan for the next period of growth as we look towards the future. What do we need to do today to better prepare us for tomorrow?

We need to protect Alberta’s economy and that includes living within our means. This is how Albertans manage their finances – being diligent and careful with all spending and ensuring financial commitments that are made can be met and sustained.

Even as the economy recovers, government revenues will lag for the next two or three years. There's no question we'll face difficult decisions in the coming months as we work on next year's provincial budget. But, we will make those decisions in the best interests of the province with an eye to our future prosperity and quality of life.

Read more about the First Quarter Fiscal Update.

Forecasting Alberta’s finances

In preparing Alberta's budget, government forecasts the Alberta economy, analyzes current economic conditions, develops population projection scenarios, and undertakes quantitative economic impact analyses of major developments within the province. This is a very complex process with some surprising sensitivities. For example:

• Over the last five years, more than 35% of Alberta's revenue has been directly tied to volatile sources, affected by variables such as energy prices, equity markets and exchange rates.
• Natural gas has accounted for nearly half of all actual dollars brought in by non-renewable resource revenue in recent years.
• Every $1 change in the price of oil affects Alberta’s budget by $143 million.
• Every 10-cent change in the price of natural gas affects Alberta’s budget by $126 million.
• Every one-cent change in the US-Canada exchange rate for the dollar affects Alberta’s budget by $221 million.
• A one-per cent change in the interest rate changes Alberta’s budget by $212 million.

It’s back-to-school time

With school back in, parents, students and teachers will find many resources, tips and information from the Alberta government.

Click here to access a vast array of resources

Alberta comes alive September 18-20!

Guitars are being tuned, dance steps rehearsed and paint supplies stocked. The countdown to Alberta Arts Days is on! With only a couple of weeks until the province-wide festivities start up, communities all around Alberta are preparing to discover, experience and celebrate the arts and culture.

With over 200 community events already being planned across the province, Alberta Arts Days promises to be a trio of wildly creative days. Everyone is invited – so make sure to mark September 18, 19 and 20 on your calendars. Watch a play, listen to a story, learn about graffiti, take in a concert – the possibilities are nearly endless.

Get involved in Arts Days in your community