Budget 2008: Albertans apparently fans of talking the talk

Today, as millions of Albertans went about their daily lives not caring, Finance Minister Iris Evans delivered the new government's first budget. The big story (quite literally if you read the Globe) is that Alberta's spending spree continues.

I, for one, can't say that I'm very surprised. The two main drivers of this increase, (according to Bloomberg, the government backgrounder, and a little Excel magic from yours truly) were Health and Wellness, which accounted for about 35% of the increase, and spending on new infrastructure, which accounted for about 50% of the increase (this includes spending for health-related infrastructure; I couldn't find infrastructure breakdowns by ministry).   

Healthcare spending is projected to rise by 9.1%. Last year, the combination of inflation and population growth totaled 8%. Although that likely won't be as high this year, when you factor in the demographic shifts that Alberta and much of the western world are seeing (aging and fattening population), 9.1% isn't entirely out of line (although it will no doubt be bandied about for yet another year by private healthcare advocates as evidence that healthcare costs are "spiraling out of control"). So, like I said, no surprises here.

The other big driver, infrastructure, isn't a real shock either when one considers the myopic and single-minded debt reduction of the Klein years. According to this article in the Herald, Calgary Economic Development chief economist Adam Legge agrees with me. Although we differ greatly in our degree of sanguinity, appreciation of the wisdom of the "paying off the mortgage," and general contempt for the government, we share more-or-less the same view:

"I don't really get too concerned about spending growth, because we took so long paying off the mortgage we weren't worried enough about the roof and the foundation," said Legge. "I'm of the opinion that we have a lot of catch-up to do."

Some may recall some jerks spoiling the debt-free party a few years ago by pointing out that despite being technically debt free, Alberta still had a massive infrastructure debt to contend with. If I recall correctly, this was dismissed as whiny communist nonsense by Klein and his always-open-to-suggestion Alberta PC party, but it seems their chickens have come home to roost. Unfortunately the rest of us have to actually pay for this, but I digress.

So, when you think about it, about 80% of the increases were pretty predictable. To me, the truly interesting thing about this budget is that it serves as further proof that Albertans seem to like the idea of being conservative more than they actually like being conservative. Firmly ensconced in the ivory tower located on the left side of the political spectrum, even I'm getting worried about these year-over-year spending increases -- but the supposedly government-hating people of Alberta just elected the living shit out of the government pumping them out.

It's also interesting to see things like the ministry of the environment getting 120% increase to its budget, and people like this guy getting excited about publicly-subsidized culture. Lloyd Snelgrove has a good quote in this CBC story that further adds to this sentiment:

... Treasury Board President Lloyd Snelgrove questioned whether Albertans are ready to accept a cut in government spending.

"None of the universities, none of the hospitals, none of the school boards, none of the towns and counties and cities have said to us: Take some money back from us and put in the bank — we have no more need for it."

Don't get me wrong -- it makes me happy to think that Albertan's might not be as conservative as they like to talk about being. It makes me sad, though, to think that we have a positively meagre Heritage Savings Trust Fund and face the possibility of deficits in the near-to-medium term. Come on, Alberta conservatives: where are the calls for penny pinching? Have you wasted all your energy denying climate change or what?