FOR IMMEDIATE RELEASE: February 12, 1998
Budget fails to fix problems caused by four years of brutal cuts
Public services still under-funded, says AFL
EDMONTON -- Premier Klein and his ministers have spent a lot of time over the past six months talking about the importance of "re-investment," says Audrey Cormack, president of the Alberta Federation of Labour. But the budget that was released this afternoon in the Legislature proves that "the Tories have not abandoned their damaging obession with debt." "Obviously, the government wants Albertans to believe that the damage caused by four years for brutal cuts is being fixed," said Cormack after the budget was introduced. "But the truth is that the funding increases announced over the past few weeks and repeated in today's budget barely keep up with inflation and population growth. As a result, the situation for things like health care and education may not get much worse -- but it's certainly not going to get any better." Cormack admits that the funding increases outlined in the Budget sound impressive. But she says the real value of those funds -- which are spread out over a period of three years -- will be eroded by inflation, population growth and rising enrollment in Alberta schools, colleges and universities. "As it stands right now, we spend less per capita on health care than any other province in Canada -- including places like Newfoundland," says Cormack. "Even with the new funding that has been promised for health care, we'll still be at or near the bottom of the pile. Albertans deserve better." Cormack says that the inadequacy of the government's so-called "funding increases" can be seen by comparing current government funding and staffing levels with the levels from 1992-93 -- the year before Premier Klein declared war on public spending. "Even with the funding increases outlined in the budget we are still spending 20% per cent less on government programs after inflation than we did in 1992," says Cormack. "And we'll still have staff shortages in our hospitals, schools and justice system. We also won't have an adequate number of people to enforce employment, health and safety or environmental regulations." Cormack says that the budget proves the Tories are commited to shrinking government and cutting back on public services even though the provincial treasury is overflowing with surplus cash. "What this budget tells me is that the Tories have not changed their stingy ways and that under-funded services are here to stay," says Cormack. "That a shame for all the people who work in the public sector as well as all the people who rely on the services they provide."
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