Alberta's 2026 budget has ignited controversy, projecting a $9.4 billion deficit while implementing substantial increases in fees and levies. Provincial finance minister Nate Horner tabled the budget, which critics argue amounts to "sneaky tax hikes."
The UCP government attributes the deficit to lower-than-expected oil prices and increased spending driven by rapid population growth. Despite promises against tax increases or deep service cuts, the budget introduces a $360 million boost in fees and levies this year alone. Property taxes for education are also rising, with Calgary homeowners facing an additional $340 annually and Edmonton residents $154.
Kris Simms, Alberta Director for the Canadian Taxpayers Federation, condemned these measures as disguised taxes. She urged the government to scrutinize Alberta Health Services (AHS) for potential spending cuts, citing excessive director salaries. Simms also suggested eliminating corporate welfare, including subsidies for NHL arenas.
Calgary Mayor Jeromy Farkas criticized the surge in education property taxes, noting a more than 30 percent increase over two years. He warned that this trend, where a significant portion of property tax revenue goes to the province, resembles "another version of equalization," suggesting Alberta is being taken advantage of.
Farkas pointed to Calgary's city council as an example of fiscal accountability, having reduced a proposed property tax increase to 1.6 percent while still investing in infrastructure. He called on the provincial government to adopt similar practices.
Edmonton Mayor Andrew Knack acknowledged conversations with the premier and ministers as constructive but expressed concern over the lack of provincial funding for critical infrastructure projects. He called for a forward-looking plan to address infrastructure deficits exacerbated by population growth.
Despite the criticisms, Knack viewed the budget as "neutral" and expressed willingness to collect additional education property tax funds if they support school construction and staffing. However, Simms remained unconvinced, stating she "can’t really think of good things to say on this budget."