ABmunis' assessment of Budget 2025: Some wins, more to do

Alberta Municipalities’ overall assessment of Budget 2025, which was introduced by the provincial government on February 27, is that it is something of a mixed bag. 

GIPOT funding partially restored

We appreciate the increased funding for Grants in Place of Taxes (GIPOT) in this year’s budget and the provincial government’s commitment to restore funding to pre-2019 levels by fiscal year 2026-27. Alberta Municipalities (ABmunis) and our members advocated for this and we acknowledge the Government of Alberta listened and responded.

Funding for low-income transit riders maintained

We are also pleased to see the provincial government has retained funding for low-income transit riders. Our member communities care deeply about Albertans who are barely making ends meet. This funding will allow low-income Albertans to affordably get to their places of work, schools, access health and social services, and enjoy time with family and friends.

LGFF Capital funding unable to address widening infrastructure gap 

Alberta Municipalities appreciates that Local Government Fiscal Framework (LGFF) Capital funding increased by $96 million in accordance with the agreed-upon formula. Unfortunately, that increase was offset by unexpected decreases in other infrastructure programs for municipalities. We will continue to advocate that the overall funding envelope needs to be increased. Alberta’s multibillion dollar infrastructure gap is growing, thanks to rapid population growth and increased wear and tear on municipal infrastructure like roads, bridges, and wastewater treatment plants.

FCSS funding stagnant, unable to address increased demand

We are concerned about the implications of stagnant funding for Family and Community Social Services (FCSS) at $105 million for fiscal year 2025-26. Considering the rapid population growth Alberta has experienced over the last few years, flat funding is equivalent to a reduction since more people are accessing the same services. A broader conversation about investments in prevention efforts is needed, and local decision-making needs to be considered. Alberta Municipalities is keen to collaborate with the provincial government on this topic.

Shift in taxation

Finally, we are surprised to see that while most Albertans will receive a personal income tax reduction, homeowners and businesses will see a substantial increase in their provincial education property taxes later this year. This shift in taxation will increase the burden placed on property owners. We need to take a closer look at the consequences this shift will have.

Watch webinar, read report on Budget 2025

We hosted a webinar on February 28 to report our initial findings on how Budget 2025 supports municipal governments and communities. Nearly 250 people attended.

Go to our website to watch a recording of this webinar and read our comprehensive report.