EDMONTON - Alberta is on track to record the second-largest budget surplus in the province's history, but even with $7 billion in extra cash, Finance Minister Lyle Oberg says he can't promise any tax cuts.
"Will there come a day where that can occur? Maybe, but not for a while,'' said Oberg, adding there will be no repeat of the $400 prosperity cheques paid out a year ago when Ralph Klein was premier.
Most Albertans want the Tory government to use the surplus to catch up on building projects, he told a news conference Monday.
"If you ask anybody in Calgary or Edmonton what they would like their dollars to be put toward, I think that a lot of them would not necessarily say taxes,'' he said. "But they would say roads, schools and hospitals.''
However, Scott Hennig of the Canadian Taxpayers Federation said the province should be able to afford some type of tax cut, starting with the elimination of health-care premiums.
Alberta is one of only three provinces still charging health-care premiums. Families pay $88 a month, while individuals pay $44.
"There's no reason they can't cut $900 million of health-care premiums when we're looking at such a large surplus,'' said Hennig. "It's $1,066 a year for a family and that's a big chunk of change for some families.''
The third-quarter fiscal update shows projected revenues have increased by $1.5 billion since the second quarter, while spending has decreased by $40 million over the same period.
The third-quarter revenue boost is mainly from higher-than-expected investment income, corporate income tax and resource royalties.
The money is being added to the Sustainability Fund, which now stands at $7.1 billion. This fund was set up a couple of years ago as a cushion if there's a major drop in revenues or a costly disaster.
Revenues flowing into the Heritage Savings Trust Fund has increased by nearly $450 million since the second quarter, which will bring the estimated value of the fund to roughly $16.6 billion by the end of the fiscal year.
The Liberal Opposition says the province should be pumping more money in the heritage fund before Alberta's energy reserves are depleted.
"The writing is on the wall, resource revenues are declining and will continue to decline,'' said Liberal finance critic Rick Miller. "If you do not adopt this (savings) plan, we're in danger of either tax hikes, service cuts or going into debt.''
Oberg said he'll announce a new surplus policy with the provincial budget in April that will outline how the government will handle extra cash in the future.
The plan will spell out what percentage of any future surplus will be designated for various savings plans, including the heritage fund.
"There will be a formula so everyone will know on a quarterly basis what exactly the dollars will be going for,'' he said. "That will have full debate in the legislative assembly with the budget.''
The NDP said the government may be awash in cash, but many Albertans are not seeing the benefit, including seniors, college students and low-income families.
"We need a public debate on how this huge boom translates when it comes to ordinary Albertans paying their bills,'' said New Democrat Raj Pannu. "We need a plan that translates into prosperity in every household in this province.''
Alberta's total projected revenues now stand at $36.6 billion, while spending is pegged at $29.6 billion. The largest revenue source is resources, including royalties, which are estimated at $11.7 billion, followed by income tax revenues projected to reach $10.7 billion.
