Our Work
Provincial Budget 2010
A Mixed Result for the Voluntary Sector
While the Provincial government prepared Albertans for major cuts across the board in 2010-2011, the budget released February 9, was not as drastic as many feared. Government decisions such as borrowing from the Sustainability Fund to run a deficit budget this year, and paying down the Alberta Health Services (AHS) deficit, mitigated some of the expected funding cuts. The following is our initial assessment of the impact on the voluntary sector. Over the coming weeks CCVO will continue to work with other organizations to develop a deeper understanding of the impact on the sector and the communities it serves.
Budget Overview
The budget offers mixed results for the nonprofit/voluntary sector (NPVS). There were deep cuts in some areas, but in many other program areas the government seems to have maintained funding levels or introduced minimal reductions. [1]
Funding was maintained at much the same level for the following areas, many of which provide services to vulnerable populations:
- Family and Community Support Services (FCSS)
- Support to Persons with Developmental Disabilities (PDD)
- Seniors Benefit
- Women’s Shelters
- Assured Income for the Severely Handicapped (AISH)
- Family Support for Children with Disabilities (FSCD)
- Library Services
- Community Facilities Enhancement Program (CFEP)
- Seniors Dental & Optical Assistance.
It should be noted that even in areas where budget allocations are maintained, there may still be funding pressures and reduced capacity in voluntary organizations, as, due to increasing costs and increasing service demands, the same level of funding is not adequate to meet this year’s needs. In addition, the details of how the funding will be allocated, such as which smaller programs and organizations will receive what amounts, are not yet known.
In the health sector, the government paying down the AHS deficit is seen to be positive for health organizations and long-term care facilities, as they will not see their funding reduced in order to absorb the AHS deficit.
At this point, there has been no reference to the government paying down 2009-2010 budget shortfalls for the regional Child & Family Service Authorities or the regional PDD Boards. It is not clear whether organizations in these sectors will receive lower amounts of funding than last year in order to balance the books.
In regard to housing and homelessness, Alberta has led the country in developing, and funding, a coordinated province-wide strategy. While there are reductions in some of these programs, there are also some increases. The current budget continues to allocate significant funding to end homelessness. As with other areas, monitoring will continue over the next weeks to further clarify the implications of the 2010-2011 budget.
While some programs have been maintained or given a slight increase, there are clear reductions in certain programs that are cause for concern:
- Ministry of Children and Youth Services
- Overall 3% cut ($34 million)
- Child Care is reduced by $7.5 million – a 3.6% cut
- Cut to Child Intervention Services of over $26 million or 6.5%
- Ministry of Culture and Community Spirit
- Program expenses were cut by $35 million (15%)
- At the same time there is a one-time injection of $30 million in capital funding for four projects:
- Canada Sports Hall of Fame (Calgary)
- Mount Royal Conservatory of Music (Calgary)
- The Citadel Theatre (Edmonton)
- GO Community Centre (Edmonton)
- Arts & Culture funding was significantly reduced, including a $5.6 million (15%) cut to the Alberta Foundation for the Arts
- Reductions to grant programs for nonprofits and charities: Community Initiatives Program (CIP) cut by $1.7 million (6%); and Community Spirit Donation Program cut by $3.8 million (19%)
- Ministry of Employment and Immigration
- Immigration programs cut by $8.7 million (12%)
- Employment and Training programs reduced by $15 million (8%)
- Ministry of Tourism, Parks and Recreation
- Reduction to Alberta Sport, Recreation, Parks and Wildlife Foundation of over $1 million (5%)
- Elimination of the Recreation & Sports Facilities Grants ($9 million)
[1] Please note that in identifying maintained or reduced funding, we are comparing the government’s 2010-2011 estimates to the 2009-2010 forecast (as opposed to the 2009-2010 budget). The forecast is the updated estimate and reflects in-year changes (both increases and reductions). For example, in some areas the government made significant reductions during the year, and so the forecast reflects those reductions. This may account for any discrepancies between our figures and those of nonprofit organizations or the media.
Budget Summary
This budget continues to reduce capital funding specifically available to enhance community facilities. In 2009, the Major Community Facilities Program was closed – a reduction of $149 million per year. This budget removes another $9 million with the elimination of the Recreation & Sports Facilities grants. These reductions create a significant loss of opportunity for community improvements, particularly because this funding was typically leveraged by substantial community fundraising.
CCVO is concerned about a continued erosion of funding support available to nonprofit and voluntary organizations. The elimination of the Wild Rose Foundation (WRF) last year, combined with current reductions in the CIP and the Community Spirit program, represent more than the loss of program funding. These programs were designed to have greater flexibility than many other funding programs in allocating grants. Their reduction shrinks the money available for organizations that are less high-profile or do not easily fall into prescribed funding programs, including organizations in smaller communities that do not have the array of funding options available in urban centres. Based on the CCVO economic impact survey, we know that organizations have seen reductions in all funding streams, including individual and corporate donations. This trend, combined with government cuts in areas such as arts, culture, sports and recreation, means that the funds no longer available from CIP, Community Spirit program and WRF will not be easily replaced.
As we continue examining the budget, we are concerned about the potential repercussion of cuts to training programs, student grants, Alberta Works, child care and housing. If these changes make it more difficult for disadvantaged Albertans to support themselves and to access training, education and housing, there will be implications, both in terms of increasing disparity among Alberta’ s citizens and of increases in future demand for services from the voluntary sector.
Related Information
Government news releases, charts and graphs
Ministry of Culture & Community Spirit
Sector Response
NonProfit/Voluntary Sector Table
Calgary Chamber of Voluntary Organizations
Edmonton Chamber of Voluntary Organizations