The Government of Alberta’s 2025 budget, presented by Finance Minister Nate Horner, offers significant insights and investments aimed at addressing the province's pressing needs across various sectors, especially health care and education. Despite these allocations, the budget forecasts considerable deficits, primarily driven by anticipated drops in non-renewable resource revenues and increased costs associated with delivering public services.
Tabled on February 27, 2025, the budget outlines total expenses estimated at $79.3 billion — up $4.4 billion from the previous fiscal year — along with projected deficits of $5.2 billion for 2025-26, $2.4 billion for 2026-27, and $2 billion for 2027-28. These figures represent challenges for the Alberta government as it strives to maintain economic stability amid fluctuated oil prices and potential trade conflicts with the U.S. The finance minister emphasized, “This budget is about tough but measured choices.”
Health care in Calgary will see significant funding boosts. The budget allocates $66 million over the next three years to upgrade the neonatal intensive care unit at Foothills Medical Centre, along with $34 million for redeveloping the emergency department at Peter Lougheed Centre, and $25 million for improvements at the Rockyview General Hospital’s intensive care unit. Other key health projects include allocations for the new Arthur J.E. Child Comprehensive Cancer Centre, which opened last fall following previous funded support.
Health care funding isn’t limited to Calgary. Across Alberta, numerous facilities will benefit, reflecting the government’s commitment to support healthcare access amid rising demands. Interestingly, some initiatives still await provincial cash, highlighting the balancing act of prioritization within the budget.
Education funding is another centerpiece of the 2025 budget. With increased enrollment pressures and staffing shortages, Alberta Education will receive a 4.5 per cent increase, totaling $9.9 billion. The budget not only allows for the retention of existing educational staff but plans to hire over 4,000 new educators, educational assistants, and support personnel over the next three years, as emphasized by Horner: “We’re having to fund education in a major way.”
Recognizing the shifts needed to accommodate growing student populations, the province will implement changes to its funding formula, focusing more on recent enrollment data. The move from three to two years of enrollment statistics aims to confer more responsive budgeting capabilities to meet immediate needs without sacrificing quality.
Despite advancing education funding, the budget reflects increases to the education property tax requisition from municipalities, which will see rates rise to 31.6 per cent this year and 33 per cent by 2026. This adjustment means Calgary homeowners can expect additional financial burdens, with estimates indicating median household taxes could rise by $239 annually.
Simultaneously, Alberta residents dependent on public services like the Assured Income for the Severely Handicapped (AISH) program will find concerning cuts. The program’s funding will see reductions of $49 million, resulting from anticipated growth pressures and federal contributions through the forthcoming Canada Disability Benefit, which could mitigate recipients' net losses.
The budget also touches upon the priorities of the Alberta government for infrastructure investment. The province will allocate $255 million this year for local government infrastructure, which is $31 million more than prior allocations. Major projects like the Green Line transit expansion and the Springbank off-stream reservoir flood mitigation scheme will significantly benefit from this funding.
Minister Horner underlined the importance of infrastructure investment, stating, “Alberta is growing as many families choose this as their home. Budget 2025 will help meet the growing demands of the province.” Nonetheless, the absence of contributions toward Calgary’s proposed $380 million fieldhouse project raises questions about future funding priorities.
Many stakeholders have expressed concerns surrounding the sustainability of funding levels for public post-secondary institutions (PSIs). Operating grants remain stagnant from previous years, creating pressure particularly for the University of Alberta, which has faced cuts amounting to $222 million since 2019. Though the budget supports several capital projects, the base grants not adjusting for inflation pose challenges for future planning and financial viability.
The University of Alberta received approval for $100 million to commence the redevelopment of the Biological Sciences building, highlighting the province's acknowledgment of the need for modernized educational spaces. Other PSIs like Mount Royal University and MacEwan University also received project-specific funding to address growth challenges.
While the budget presents opportunities for enhancing educational resources and health care facilities, it also indicates continuing challenges with rising costs, particularly concerning property taxes. The increasing requisition rates will inevitably impact homeowners across Alberta, leading to potential pushback from taxpayers struggling to manage these growing expenses amid broader economic uncertainties.
Despite the clarity of the fiscal plan laid out, Albertans should prepare for impending changes, as the forecast suggests potential turbulence. With underlying issues like fluctuated oil revenues affecting the foundational income of the province, the government will have to navigate carefully to maintain balance between public service support and fiscal responsibility.
Horner reassured reporters about the government’s strategic vision, stating confidently, “We are positioning ourselves to meet challenges head-on and find ways to serve Albertans effectively.” With a looming trade war, fluctuated commodity prices, and changing population dynamics, effective governance will be pivotal for Alberta as it adjusts to these new realities.