`A sleight-of-hand shell game bait-and-switch'

Still, the province aims to grow the Heritage Fund to between $250 billion and $400 billion by 2050. Horner said not raiding the rainy day fund, and retaining $1 billion in investment earnings, will help grow the Heritage Fund over the long term.

“The retained earnings is the key,” he said.

As telegraphed by Premier Danielle Smith in a television address last week, spending will fall short of population growth and inflation in the province, measured at 8.7 per cent in 2022-23 and at 7.4 per cent in 2023-24.

Health care operating spending will see a 4.4 per cent boost compared to last February's budget, bringing it to $26.2 billion.

K-12 education will also see a 4.4 per cent increase, bringing operating spending to $9.3 billion.

NOTLEY ACCUSES UCP OF `NOT BEING FRANK'

NDP Opposition leader Rachel Notley told reporters Thursday the budget won't fix staffing shortfalls in the health-care system, and K-12 spending is just over onethird of what is required to keep up with enrolment growth over three years.

Notley also accused the UCP government of using a shortterm investment in the Heritage Savings Trust Fund, while borrowing cash, to distract from the fact that a promised tax cut won't be delivered.

“This is a sleight of hand shell game bait-and-switch of a budget,” said Notley, adding the government's narrative doesn't reflect the numbers.

“They're not being frank with Albertans.”

The province spent almost double its $1.5 billion in a contingency fund for natural disasters or emergencies. Those costs came in at $2.9 billion — including $839 million on wildfire fighting and $1.8 billion on relief for the agriculture sector.

However, $264 million will be reimbursed through transfers from the federal government.

This year, the government plans to cushion that contingency fund with another $500 million in 2024-25, bringing it to $2 billion.

DYNALIFE BUYOUT COST REVEALED

After the government reversed course on contracting community lab services, Horner said Thursday the buyback cost $32 million, along with $11 million in annual costs.

The cost of the UCP'S plan to restructure the health-care system, dismantling Alberta Health Services and setting up four new governance organizations, has been estimated at $85 million over two years, including $70 million in 2024-25. However, government officials said Thursday they expect the “efficiencies” created by the restructuring will offset the costs.

Real gross domestic product (GDP) is expected to grow by 2.9 per cent in 2024-25 after an estimated 2.5 per cent increase in 2023 — although it isn't keeping pace with population growth.

A personal income tax cut, first promised by the UCP in last year's provincial election, could start in 2026, with a new rate of nine per cent for those making up to $60,000. That rate could then be lowered to eight per cent in 2027, but that's only contingent on “sufficient fiscal capacity” in the future.

The government estimates that the new bracket will eventually save some 2.2 million Albertans up to $760 each, costing the province $1.4 billion.

Notley said future projections in the budget do not include allowance for the tax cut in the next three years.

“At every turn, Danielle Smith and the UCP are breaking their promises to Albertans at a time when families need help the most,” said Notley, adding there is a “long list” of fee increases buried in the budget.

Meanwhile, taxes on tobacco products will go up in March, and a new $200 annual fee for electric vehicle registrations will be introduced in January.

Horner pointed to other jurisdictions that have moved forward with similar fees for electric vehicles to collect an estimated $1 million for infrastructure upkeep in 2024-25.

“I'm interested in fixing the roads,” he said.

At every turn, Danielle Smith and the UCP are breaking their promises to Albertans at a time when families need help the most.

RACHEL NOTLEY