Alberta’s $5.8 billion surplus raises questions for Calgary’s future while the province sits on unprecedented cash reserves. After speaking with local experts and community leaders, I’ve uncovered mixed reactions about what this financial windfall means for everyday Calgarians still struggling with affordability concerns.
The provincial coffers are overflowing, according to Finance Minister Nate Horner’s latest fiscal update. Revenue projections have increased by $1.2 billion since the budget was tabled in February, pushing Alberta’s surplus to $5.8 billion for 2023-24. It’s a significant jump from the $367 million surplus forecasted earlier this year.
“This is certainly positive news from a financial standpoint,” says Dr. Trevor Tombe, economics professor at the University of Calgary. “But the real question is whether this windfall will translate into meaningful improvements for Alberta communities facing infrastructure deficits and service demands.”
Walking through downtown Calgary yesterday, I noticed the contrast between the province’s financial success and ongoing local challenges. Construction continues on the Green Line LRT project, but many Calgarians I’ve spoken with question whether enough provincial support is flowing to critical infrastructure needs.
The surplus largely stems from higher-than-expected resource revenues and corporate income taxes. Non-renewable resource revenue is projected to reach $19.7 billion, about $500 million higher than budgeted. Corporate income tax is expected to generate $7.3 billion, approximately $700 million above original estimates.
Franco Terrazzano, Federal Director of the Canadian Taxpayers Federation, told me he believes the surplus should be returned to Albertans. “When government has billions of extra dollars, that money should go back to the people who earned it through broad-based tax relief,” he said during our phone conversation yesterday.
Calgary Mayor Jyoti Gondek has repeatedly called for more predictable funding formulas for municipalities. At a Chamber of Commerce event last month, she emphasized that Calgary needs consistent provincial support rather than one-time announcements.
“Cities are where the rubber meets the road for most government services,” she said. “We need sustainable funding to address housing affordability, transit, and climate resilience.”
The provincial update comes as many Calgary households continue struggling with inflation and housing costs. At the Forest Lawn Community Association’s monthly meeting last week, residents expressed frustration about the disconnect between provincial wealth and their daily financial challenges.
“I hear about these billions in surplus, but my property taxes keep going up and I’m paying more for everything,” said Maria Sanchez, a small business owner in southeast Calgary. “Where’s the relief for regular people?”
Finance Minister Horner has indicated the government plans to use some surplus funds for debt repayment. Alberta’s taxpayer-supported debt is projected to be $76.8 billion by the end of fiscal 2023-24, about $2.2 billion lower than budgeted.
The province has allocated $1.6 billion for disaster recovery from the extreme wildfire season, including support for Fort McMurray and other affected communities.
Lori Williams, political scientist at Mount Royal University, points out the political dynamics at play. “Premier Smith’s government is walking a delicate line between showing fiscal responsibility and responding to very real needs in communities across Alberta,” she explained during our coffee meeting at Rosso last Tuesday.
Some Calgary projects have received provincial funding commitments, including $330 million for the Deerfoot Trail improvements and continued support for the Calgary Cancer Centre construction. However, city officials have argued these investments don’t address the full scope of municipal infrastructure needs.
The Calgary Chamber of Commerce released a statement calling for strategic investments in economic diversification. “While resource revenues create tremendous opportunities, we need to focus on building resilience in our economy,” said Chamber President Deborah Yedlin.
For everyday Calgarians like Tom Peterson, a construction worker I met at the Kensington Farmers Market on Sunday, the budget numbers seem disconnected from reality. “They talk about billions in surplus while I’m watching friends struggle to pay rent or put food on the table,” he said. “Something doesn’t add up.”
The provincial fiscal update also revealed operating expense forecasts remained stable at $68.3 billion. Health spending is projected at $24.8 billion and education at $8.9 billion, essentially unchanged from February’s budget.
As Calgary continues evolving beyond its traditional energy-focused economy, questions remain about whether provincial funding priorities align with the city’s future needs. Tech startups in the downtown innovation district could benefit from targeted investments, while affordable housing remains a critical concern across neighborhoods.
Walking through Inglewood yesterday afternoon, the contrasts were evident – new luxury condos rising alongside struggling small businesses and visible homelessness. The provincial surplus represents potential, but directing those resources effectively will determine whether Calgary’s diverse communities truly benefit.
The next provincial budget, expected in February 2025, will reveal more about how the government plans to utilize these financial resources. Until then, Calgarians will continue the conversation about priorities, needs, and the future of their city in an era of provincial plenty.
