The bad optics of leaving federal cash on the table
As we head into a year in which the Alberta government intends on following through its planned referendum on the federal equalization program, we're likely to see the rhetoric over federal transfers heat up even beyond where it's been through much of 2020.
In recent weeks, the premier has denounced changes to the fiscal stabilization program and the federal health and social transfers as insufficient. I've no doubt that we'll be hearing much more about these complaints in 2021.
Interestingly, this past year has actually represented a year where Alberta ended up as a net recipient of federal funds (to the tune of over $20 billion), as a result of Ottawa's fiscal response to the pandemic combined with a considerable decline in the amount of federal tax dollars being generated here in this province. These are unique circumstances, to be sure, but it is worth noting.
Certainly, though, if one of our primary arguments is that there has been an insufficient flow of dollars from Ottawa to this province, then we're not helping our cause by being selective when it comes to accepting federal funds.
For example, when it comes to the federal program aimed at boosting the wages of low-income essential workers, Alberta appears to be leaving a considerable amount of federal funding on the table. This cost-sharing program involves a federal contribution of $3 billion with each province's contribution adding up to an additional $1 billion.
Under this program, Alberta would be eligible for almost $350 million in federal funds. At this point, however, it would appear as though less than 10 per cent of that total has made its way to our province. This is not a case of the feds holding back on us, but rather, it seems, a case of
We're not helping our cause by being selective when accepting federal funds.
Alberta being reluctant to make a request. The smaller amount we've received thus far is what we were eligible for absent any cost-sharing.
Alberta's position stands in stark contrast to other provinces which have received far more under this program and have also published comprehensive data about which jobs qualify and exactly how much additional funding those workers have received.
It must feel like a bit of a slap in the face to frontline workers in Alberta to see their colleagues in other provinces receiving lump sum payments or boosts in their hourly wage ( both, in some provinces) while their own government opts instead for intransigence. What must further compound the insult, I'm sure, is the enthusiastic embrace by Alberta's ruling party of a different federal wage subsidy program.
As the Canadian Taxpayers Federation reminded us all last week, Alberta's UCP applied for and received funding through the Canada Emergency Wage Subsidy (CEWS) program. No other governing provincial party accepted CEWS funding — even Alberta's opposition NDP declined to apply.
And while the pandemic has no doubt impacted the fundraising abilities and activities of political parties, the UCP appears to have had a profitable year on this front. Third quarter data released in late September showed the UCP with a sizable 2020 fundraising lead over the NDP: $3,115,793.78 to $2,741,507.64.
And while there are obvious differences in the scope and the mechanisms of these two federal wage subsidy programs, the optics of embracing one for political staffers (who happen to be employed by a well-funded political party, no less) while rejecting another for low paid frontline workers are not great, to say the least.
Furthermore, the optics of Alberta leaving hundreds of millions of federal dollars on the table while simultaneously lamenting what's seen as insufficient federal contributions to our province are pretty bad, too.
None of this is to say that Alberta doesn't have legitimate gripes with the federal government, but the government isn't doing our cause any favours here.