There is a better way than the government’s poorly considered municipal funding plan, which short-changes Edmontonians and sets the stage for a new era of bitter battles between the capital city and its surrounding communities.
Here’s the problem: nearly half of the funding will be allocated by measuring the assessed education tax base of any given municipality. The larger that tax base, the more funding that city or town will receive. For example, Strathcona county, thanks to the huge tax base provided by its refineries and heavy industry, will receive 17% more funding per person than Edmonton. The richer your city, town or county, the more funding you’ll receive. It’s reverse welfare.
Based on the existing tax bases in the region, communities like Strathcona and Sturgeon County will win, while other municipalities, including Edmonton, will lose. A process that divides Albertans into winners and losers isn’t just fundamentally unfair, it’s counterproductive, making cooperation in the capital region even harder.
Here’s why. Now that provincial funding depends on the property tax base, municipalities have a huge incentive to act selfishly. The more development each community gains for itself, the greater the reward from the provincial government. Instead of encouraging cooperation, municipalities will compete with each other to get every project for themselves. Every upgrader and chemical plant, every industry and office will mean more cash from the provincial government. Why share and work together when this government’s policy rewards hoarding?
And yet the Premier has directed the communities in the capital region to “find common agreement on planning.” There’s no incentive here for municipalities to work together – this formula actively encourages each of the 24 communities in the region to compete aggressively for development and funding, to the detriment of their neighbours! Yet again, Albertans suffer the unintended consequences of ad hoc policies made by a government without a plan.
Where were Edmonton’s government MLAs – Dave Hancock, Gene Zwozdesky and Thomas Lukaszuk, when this plan was being formulated? Why didn’t they stand up for Edmonton, for basic fairness, for regional cooperation? For that matter, why wasn’t there any representation from Edmonton on the committee?
There is a better way. As Premier, I would allocate municipal funding on a per capita basis. I’ve travelled all over this province to meet with local officials, and I’ve learned from them that every community faces unique challenges: too much growth, too little growth, crime, traffic, and so on. Per capita funding is the only fair way for the provincial government to get the dollars where they can benefit the greatest number of people. Per capita funding works: it’s the way the province pays for policing, for example, and it has a long history of providing equal levels of public services and infrastructure to the citizens of this province. Extraordinary projects such as ring roads or LRT expansions can be funded separately, as needed.
People from the entire capital region use Edmonton’s roads, public facilities and services. Edmontonians deserve their fair share, their equal share, of municipal funding. Anything less pits our communities against each other and leaves Edmontonians holding the short end of the stick.
According to the Premier, “there are great things possible with the right kind of cooperation and leadership.” But that kind of cooperation is impossible under a formula that fosters a climate of mistrust and self-interest.
These are exciting times for the capital region. It’s time for leadership that builds trust and treats everyone fairly.
