Budget 2010
Tuesday, February 9, 2010 at 11:41PM Well it looks like my predictions were largely correct.
I'll step out and say that I like what the budget was designed to do. I like that this government HAD savings to dip into, and we can still lay claim to being the lowest tax province in the Country. I like that the long-term trend for energy revenues seems to support holding tight on slashing services, and maintaining a committment on capital projects while the development cost structure for them remains low, but I am also concerned about a few things:
- There seems to be a major disconnect between healthcare spend (17% increase in this budget) and services received by Albertans. This efficiency gap is scary, and I tend to agree with the Wildrose Alliance that decentralization is the answer, plus a follow-the-patient formula.
- I am concerned with a no-tax increase statement, when we should be looking at different ways to increase revenues for this government. Maybe not income tax, and of course PST would never fly, but what about reintroducing healthcare premiums? As I recall, the elimination of the same was a $2B pick-up just two years ago, when times were cooking. This kind of user-pay at least hits employers for those who pay employee expenses, and that would mitigate the tax cost on average Albertans.
- I get a sense that there is no plan should we not see an increase in Oil and Gas prices. Leaving much of the problem to be addressed, very quickly.
All in all, as I stated earlier today, I think this was a moment where the PC's were drawing a line in the sand between what they stand for and what the Wildrose Alliance stands for. If they stick to their guns, and resist falling for the slash-and-burn mentality that is the far right-wing, they will have a chance at holding on.
The risk of course, is that Premier Ed Stelmach is lacking the ability to create a vision for Albertans which compels us to think above the "No New Taxes" mindset, and reminds Albertans that with budgets like these, we are trading some of our tax dollars for a maintained higher standard of life for our families. So in a way, at least in my opinion, he is backing himself into a corner that he lacks the ability to vision his way out of.
Regardless of your opinion of this budget, it must be recognized that this wil buy time for the PC's to try and create a greater narrative. I just don't believe that they have the ability to do so if they continue to try to be everything to all people.