Small and Remote Municipalities Need Regional Economic Development Alliances (REDAs) to Thrive
IT IS THEREFORE RESOLVED THAT Alberta Municipalities advocate to the Minister of Jobs, Economy and Trade and the Government of Alberta as a whole to implement measures for the provision of continuous, stable funding for the nine existing REDAs, supporting each with a budget of $225,000 per year consisting of $125,000 per year in operational funding and $100,000 per year in project funding.
IT IS FURTHER RESOLVED THAT Alberta Municipalities advocate for a Memorandum of Understanding between the Government of Alberta and the current REDA Chairs to develop a clear purpose and program structure for the REDAs, inclusive of a stable, long-term, collaborative approach to funding.
WHEREAS the Municipal Government Act (MGA) R.S.A. 2000, Chapter M-26, Section 3 – Municipal Purposes states “the purposes of a municipality are (3)(a) to provide good government, (3)(a.2) to foster the economic development of the municipality, (3)(b) to provide services, facilities or other things that, […] are necessary or desirable for all or part of a municipality; and, (3)(c) to develop and maintain safe and viable communities;
WHEREAS the Government of Alberta’s Economic Development in Rural Alberta Plan (EDRAP) document clearly identifies REDAs as essential partners in the work to grow Alberta’s rural economy through “continued collaboration and investment in Regional Economic Development Alliances”; (1)
(1) Government of Alberta’s Economic Development in Rural Alberta Plan, page 14 - https://open.alberta.ca/publications/economic-development-in-rural-alberta-plan
WHEREAS the Premier’s 2023 mandate letter to the Minister of Jobs, Economy and Trade specifically instructs the Minister to work with REDAs by “collaborating with partner organizations, including Regional Economic Development Alliances, to enhance wayfinding services and other business-attraction initiatives for investments under approximately $50 million”; (2)
(2) 2023 Mandate letter to the Minister of Jobs, Economy and Trade https://open.alberta.ca/publications/mandate-letters-toministers-2023
WHEREAS the Government of Alberta (GoA) has embraced a more than 20-year partnership with REDAs and their members to undertake regional economic development initiatives of mutual interest and this partnership has positioned Alberta as a leader in the delivery of regional economic development;
WHEREAS most rural Alberta communities are served by one of the nine REDAs and many small urban and remote municipalities rely on REDAs for economic development service delivery due to limited budget capacity; and
WHEREAS an innovative solution can be implemented to budget for long-term, consistent provincial funding for REDAs to ensure small and remote municipalities continue to have access to economic development services thus ensuring vital growth in Alberta’s economy.
Over 20 years ago, the GoA envisioned a way for groups of municipalities within a geographic region to collaborate on mutually beneficial economic development initiatives and the REDAs were born. Based on an “all for one and one for all” concept, REDAs undertook projects aimed at building economic resiliency in small and remote rural areas where limited capacity meant that economic development was worked off the side of someone’s desk.
REDAs are member-driven organizations that utilize strategic planning to develop regional priorities. Historically, REDAs have tried to align themselves with provincial priorities wherever possible to maximize results for the entire province. Uniquely positioned to help the GoA deliver the Alberta Advantage in rural areas, REDAs are trusted bridges between the provincial government and their member municipalities building and maintaining networks of local, strategic relationships and expanding much needed growth opportunities.
Funding for REDAs has fluctuated over their history. Up until 2011, most REDAs were staffed and managed by GoA employees from regional offices and each had multiple employees and budgets that ranged between $400,000 and $500,000. In 2011, REDA funding was cancelled, and offices closed. The member municipalities of the day chose to continue supporting the work and the organizations received specific project funding from the GoA. Outcomes suffered and REDAs struggled until 2014.
REDA Renewal began as a research project to determine the potential opportunity to be found in renewing the partnership and working with the GoA to set the direction for the re-invigorated collaboration. Agreements were signed that saw each REDA provided with $100,000 per year in operational support and a mandate to align with provincial priorities to deliver certain outcomes.
During the fiscal years of 2016-18, the REDA-CARES funding stream was created, enabling each REDA to receive $200,000 in operational and project funding. It required REDAs to submit project plans to their GoA counterparts. The measure returned significant value to the province for that investment.
Sweeping budget cuts in 2019-20 saw REDA funding slashed to $50,000 each. REDAs continued their work, demonstrating value and, in 2022, the GoA provided a one-time top up of $25,000 for projects. Then, in 2023, the GoA returned the REDAs to $125,000 per year in operational support and expressed strong government support for the value of the partnership.
On January 19, 2024, the Minister of Jobs, Economy and Trade announced the GoA’s intention to defund the current REDA program. This abrupt announcement will impact every REDA member across the province. With the potential to impact roughly half of ABmunis’ members, this is a matter of great consequence. For all current REDA member municipalities, it will likely mean requests for larger municipal funding contributions.
Many REDA members are small communities with limited capacity. They will have to choose between their fiscal responsibilities and their economic development goals. For the smaller REDAs, the untenable choice their members face could mean the dissolution of more than one REDA.
Even for the larger REDAs, the GoA’s decision to defund will have consequences. Without operational funding support, REDAs will have fewer dollars for meaningful projects. And, like the smaller REDAs, communities with limited fiscal capacity could be forced to withdraw from participation, further straining the REDA’s budget.
The County of Paintearth No. 18 presented a resolution on the floor at the Rural Municipalities of Alberta Spring 2024 Conference. Receiving overwhelming support, RMA will advocate for a stable funding agreement for the nine REDAs and a renewal of the partnership between the REDAs and the GoA.
The resolution is consistent with a Request for Decision (RFD) that was passed by members at ABmunis’ Spring 2024 Municipal Leaders’ Caucus. The Government of Alberta’s response to that RFD was that it still intends to proceed with its plan to transition out of providing operational funding to REDAs. If this resolution is passed, it would be forwarded to the Government of Alberta for response and further advocacy would be recommended to ABmunis’ Board by the Economic Strategy Committee within the context of related priorities and positions.