Dear Editor,

 

 

In my last letter to the editor I suggested that the NDP government of Alberta could continue to have the support of Alberta’s parents, grandparents, and parents-to-be if this government could find a way to become more financially responsible. To assist the NDP government to achieve that objective, I suggested that the segment of our population which would bear the lion’s share of the financial burden, if a right-of-centre government was elected in 2019, organize and work with our NDP government to achieve a balanced operating budget for 2019. Most Albertans would likely be inclined to applaud such an effort and re-elect the NDP for another term.

What was not addressed in my last letter to the editor was how I proposed to have our NDP government attain financial responsibility. It should also be noted here that many groups and individuals complain about our growing deficit, but suggested ways to overcome our current year deficit position are mostly lacking. Par for the course!

The NDP’s 2017 budget document (www.alberta.ca/budget.aspx) provides the starting point of my analysis (total expenditures of $54,859 BN and total revenues of $45,015 BN provide a deficit of $9,844 BN: Capital Plan direct borrowing of $5,944 BN and Fixed Plan direct borrowing of $6,362 BN).

The 2017 budget document devotes five pages to the detailing of the $5,944 BN capital budget. It also provides three pages listing unapproved capital projects. There is no question – infrastructure investments are long overdue and we should not question such borrowing – let’s get it done!

What parents, grandparents, and parents-to-be should be concerned about is the $6,362 BN borrowing planned for the Fiscal Plan (to keep the lights on). Is it possible to find such an amount of cash to reach a balanced operating position for the fiscal year (2017-2018)? (For the record, balancing the operating costs for 2017-2018 would require an 11.6 per cent decrease in expenditures). We need to accept the fact that our operating costs for 2017-2018 will require borrowing. However, and disregarding a giant increase in oil prices which is unlikely, there are areas of expense which together could lead us to a balanced operating budget for the 2019-2020 fiscal year.

Firstly, the Whitecourt Star (14 Dec. 2016) Postmedia editorial entitled ‘Public Service Pay is Unsustainable’ indicated that public service workers earn 11 per cent (isn’t that figure interesting) more than their private sector counterparts. It is natural for the Fraser Institute to finger ‘workers’ but be assured, that 11 per cent definitely includes politicians and bureaucrats at all levels of government (federal, provincial, and municipal). The bottom line here is that expenditure savings can be attained by marginally reducing public service remuneration, say three per cent down to $75,000 gross income.

 

Secondly, our provincial auditor has indicated that the health care system doesn’t need more cash – it needs changes (in the way service is provided and the number of people needed to provide that service). It is my contention that our auditor’s assertion that changes are needed is true for all government departments, both provincial and municipal, and education and health care. Significant savings can be attained in this area.

There is no question – we can have a balanced operating budget for 2019-2020. My recommendation is for our NDP government to double-down on the rationalization of expenses. Further, there should be placed, immediately, a remuneration cut of three per cent for the entire public service down to about $75,000 gross income. Adjustments can then be made for the 2018-2019 and 2019-2020 fiscal year.

Because Premier Notley has not shown any tendency to adopt any form of real fiscal restraint, I used the word force in my last letter to the editor and recommended a five-member body to work with our NDP government to achieve financial responsibility – a balanced operating budget for the 2019-2020 fiscal year. So, let’s get on with it!

Alex Bauer