Local MLA blasts "Getty" style deficits

Alberta Finance Minister projects deficit will grow to $5 billion

Airdrie-Chestermere MLA Rob Anderson accused the Province of mortgaging Alberta’s future when Finance Minister Ted Morton released his government’s second quarter fiscal update, Nov. 22.

According to the update, the government’s deficit is increasing from $4.7 to $5 billion for 2010-11.

Anderson, the Wildrose Alliance party’s finance critic, said these numbers don’t take into consideration $2.7 billion borrowed to finance infrastructure.

“They’re masking that… because it looks terrible,” said Anderson. “Five billion looks terrible enough. $7.7 (billion) looks like things are completely out of control.”

Revenue projections were $127 million higher than predicted in the 2010 budget, but nearly $500 million below first quarter forecasts. Budget expenses ballooned to $39.1 billion after $384 million was put towards disaster and emergency funding.

“We said we would control our spending and we have done that,” said Morton.

“In fact, when you factor out spending for disasters and emergencies, government expense is forecast to be $150 million lower than budgeted. We can’t control forest fires, floods and drought, but we still have to pay for them.”

Morton vowed his government would balance its books and be back in the black by 2012-13. In the meantime, the extra $257 million deficit will be paid for with by the Province’s Sustainability Fund, which has a current year-end value of $11 billion.

Anderson doubts Morton’s ability to balance the budget by 2012.

“Anybody with a child or grandchild should be worried about the spending and debt habits of this crew,” said Anderson. “They make the Don Getty government look fiscally responsible.”

“The PCs must quit pouring hundreds of millions into empty buildings with no staff and half billion-dollar boondoggles such as grants to corporations to pump carbon dioxide into the ground if they ever hope to get this budget under control,” he added.

“If we continue down this road, in 10 years or sooner, the Alberta Advantage will be no more.”