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Budget good for RDC, not so much Red Deer businesses

College can apply for more tech spots, but minimum wage is still going up
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(Advocate file photo).

The Alberta 2018 budget gets a poor grade from the local business community, but high marks from Red Deer College.

Finance Minister Joe Ceci promised to “extend the benefits of the province’s recovery to all Albertans.” But he’s overlooked a key economic generator, said Reg Warkentin, policy and advocacy manager for the Red Deer Chamber of Commerce.

“Business is not feeling the economic benefit,” added Warkentin, since small gains made over the last year don’t come close to making up for the significant decline in profits since 2015.

Area businesses had hoped the province “would have thrown us a direct lifeline” during the slow economic recovery by delaying an increase to the carbon levy, and postponing the next increase in minimum wage (which goes up to $15 per hour in the fall).

Neither happened — nor was there much else to assist struggling businesses, said Warkentin.

Instead, the government “created the perfect storm,” maintains Warkentin, by also making changes to the Canadian Pension Plan, Employment Standards Code and corporate taxation that are disadvantageous for businesses.

“It’s not a rosy outlook,” he said, questioning Ceci’s decision to factor in optimistic forecasts for oil prices and pipeline projects into the province’s deficit repayment plan. The budget assumes pipelines will be built and prices will remain stable, but it’s “scary” to plan based on assumptions.

Red Deer College president Joel Ward praised the budget as being generally positive for post-secondary institutions, considering the necessary spending constraints when carrying a deficit.

Ward especially welcomed the 3,000 new technology spaces being created, saying RDC will “aggressively” go after this funding, since the college has “great” alternative energy programs.

He’s pleased the NDP government is continuing to provide stable funding to post-secondary by giving a two-per cent grant increase for the third year. The province also kicked in some of the money that RDC would have lost through another annual student tuition freeze.

“The $275,000 that we get in one-time funding isn’t a huge amount, but it helps.”

While Ward doesn’t expect to need more funds this year towards making the program changes that are necessary to become a university, he was glad to see money for student mental health and indigenous adult learning in the budget.



lmichelin@reddeeradvocate.com

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