Rebuild Heritage Fund now: Anderson

EDMONTON, AB (June 20, 2012): Wildrose Finance Critic Rob Anderson blasted the PC government for again refusing to rein in its runaway spending and start rebuilding Alberta’s neglected Heritage Fund.

At today’s meeting of the Legislature’s Standing Committee on the Alberta Heritage Savings and Trust Fund, PC members of the committee voted down a motion to invest a fixed portion of budget surpluses in the Fund.

“After years of irresponsibility and neglect, the Heritage Fund is worth less today – adjusted for inflation – than it was when it was first created in 1976,” Anderson said. “If we can ease off the spending accelerator and start saving for the future, we can ensure a strong Alberta Advantage can be enjoyed by current and future generations of Alberta families.”

Anderson reiterated the Wildrose proposal to invest half of all budget surpluses directly into the Heritage Fund in order for it to fulfill its original purpose: ending Alberta’s reliance on energy revenues.

Anderson said by limiting spending growth to inflation plus population growth and investing 50% of budget surpluses, the Heritage Fund would be worth $200 billion in 20 years.

“We are in a unique position to leverage our energy sector and translate it into low taxes and the best public services for our children and their children,” Anderson said. “But we won’t get there until we make a real effort to control spending and start rebuilding the Heritage Fund.”

Long-Term
Budget and Savings Forecast
(in $ millions)
2016-17 2017-18 2018-19 2019-20 2020-21 2021-22
REVENUE $51,106.00 $53,661.30 $56,344.37 $59,161.58 $62,119.66 $65,225.65
Increase 5.00% 5.00% 5.00% 5.00% 5.00% 5.00%
EXPENSES $45,096.00 $46,854.74 $48,682.08 $50,580.68 $52,553.33 $54,602.91
Increase 3.90% 3.90% 3.90% 3.90% 3.90% 3.90%
CASH SURPLUS $6,010.00 $6,806.56 $7,662.29 $8,580.90 $9,566.34 $10,622.74
Heritage Fund derivative $3,005.00 $3,403.28 $3,831.14 $4,290.45 $4,783.17 $5,311.37
Interest rate 5% 5% 5% 5% 5% 5%
Heritage Fund total $27,538.00 $32,318.18 $37,765.23 $43,943.94 $50,924.31 $58,781.89

 

2022-23 2023-24 2024-25 2025-26 2026-27 2027-28
REVENUE $68,486.93 $71,911.27 $75,506.84 $79,282.18 $83,246.29 $87,408.60
Increase 5.00% 5.00% 5.00% 5.00% 5.00% 5.00%
EXPENSES $56,732.42 $58,944.98 $61,243.84 $63,632.35 $66,114.01 $68,692.46
Increase 3.90% 3.90% 3.90% 3.90% 3.90% 3.90%
CASH SURPLUS $11,754.51 $12,966.29 $14,263.00 $15,649.83 $17,132.28 $18,716.15
Heritage Fund derivative $5,877.25 $6,483.15 $7,131.50 $7,824.92 $8,566.14 $9,358.07
Interest rate 5% 5% 5% 5% 5% 5%
Heritage Fund total $67,598.24 $77,461.30 $88,465.86 $100,714.07 $114,315.92 $129,389.79
2028-29 2029-30 2030-31 2031-32 2032-33 2033-34
REVENUE $91,779.03 $96,367.99 $101,186.38 $106,245.70 $111,557.99 $117,135.89
Increase 5.00% 5.00% 5.00% 5.00% 5.00% 5.00%
EXPENSES $71,371.46 $74,154.95 $77,046.99 $80,051.82 $83,173.85 $86,417.63
Increase 3.90% 3.90% 3.90% 3.90% 3.90% 3.90%
CASH SURPLUS $20,407.57 $22,213.04 $24,139.39 $26,193.88 $28,384.14 $30,718.26
Heritage Fund derivative $10,203.79 $11,106.52 $12,069.70 $13,096.94 $14,192.07 $15,359.13
Interest rate 5% 5% 5% 5% 5% 5%
Heritage Fund total $146,063.06 $164,472.73 $184,766.06 $207,101.31 $231,648.44 $258,590.00