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The original was posted on /r/edmonton by /u/aaronpaquette- on 2024-09-19 15:41:21+00:00.

I’ve noticed a lot of confusion—and sometimes even intentional misleading—about who’s responsible for key issues in our city. Whether it’s housing, transit, or infrastructure, it can be tough to know which level of government is accountable. Let’s break it down in a simplified and clear fashion so we can cut through the noise and get to the facts.

The federal government handles, on top of obviously many more responsibilities, immigration policies, housing strategies, and infrastructure funding. They provide funding and policy direction but don’t manage local services directly.

The province controls education, infrastructure funding, and housing, among other major services. When the province makes funding cuts, the impact is felt locally in a big way.

The province is also in charge of health care, addictions management and treatment, and shelters. All the folks in the street? Edmonton has no way to effectively or even adequately handle the growing situation. It is literally all provincial through their own legislation and the Charter.

Here are the major areas where Edmonton is taking the hit:

1. Infrastructure Funding: In 2011, Edmonton received about $424 per capita for infrastructure. By 2024, that figure has dropped to $154 per capita, meaning Edmonton is now losing around $297 million annually due to the transition from the Municipal Sustainability Initiative (MSI) to the Local Government Fiscal Framework (LGFF).
2. Grants in Place of Taxes (GIPOT): The province isn’t paying its full share of property taxes for provincial buildings, leaving Edmonton short by $90 million as an accumulated total. This is funding that could help cover basic services but is now a growing gap.
3. Other Provincial Cuts: The province has talked about reduced support in areas like public transit initiatives, and there are ongoing delays in leveraging federal funding that could otherwise be helping the city’s bottom line.
4. Other Downloads: The City often is forced to step up when the province reneges on their responsibility. This is not exclusively an Edmonton problem, it affects most municipalities. From animal welfare, to underfunding social services, to shelters, and so on. For example, the city provides low income passes to recreation centres despite the fact that social services are provincial and the city has no way to assess income tax returns for such a program. The province has asked the city to stay in our lane which is fair and is something the City would absolutely like to do. The problem is that by vacating these lanes there are serious gaps left behind. Do we abandon the social support aspect of pricing of public service amenities? The reason that is a concern is that there are knock on effects from such choices that lead to greater issues that are even more difficult to manage.

On top of that, the province’s Alberta is Calling campaign is driving massive population growth to cities like Edmonton. But here’s the problem: there’s been little to no increased provincial support to help the city manage the sudden surge in residents, which is putting more strain on housing, infrastructure, and transit, and other services.

Edmonton manages transit, roads, and other local services, but it depends heavily on provincial funding. Cities like Edmonton cannot run deficits like the province can, so when provincial support dries up, the city’s only options are to raise property taxes or cut essential services.

Here’s where the politics come in. The province quietly cuts funding and rolls out campaigns like Alberta is Calling, encouraging people to move to cities like Edmonton without providing the necessary financial support to handle the population surge. When City Administration proposes a 13.5% property tax increase for 2025, it’s easy for the province to sit back and let the city take the blame, even though much of this increase is tied directly to provincial shortfalls.

Without these cuts, the proposed increase could drop to around 5.23%.

Council will surely be knocking that double digit proposed tax rate down, but that means serious cuts and falling further behind. Provincial governments are supposed to work with their municipalities to ensure stability and manage growth. That’s how it was designed.

Municipalities cannot cover their own costs and never have. If the province would like that to change, they must change the taxation legislation as property taxes are not an adequate or ultimately fair revenue source if the province doesn’t want to pay their bills.

Failing that, then we must find a third way to advance, and that’s why I am trying to develop a path to fiscal independence for our City.

What Can You Do?

1. Stay Informed: Understanding the responsibilities at each level of government helps you know where to direct your concerns. When the province cuts funding, it affects the services you rely on.
2. Speak Up: Contact your provincial representative or Minister and ask why cities like Edmonton aren’t receiving enough support despite the growing population. Let them know that the current funding gaps—like the $90 million shortfall in GIPOT—are directly impacting local services.
3. Engage Locally: Attend City Council Committee meetings or write in, and raise your voice about how these funding cuts are affecting your community. Your local government listens, but they need public input to make your case to higher levels of government.
4. Support Community Solutions: Join or support community groups working to address these challenges. Collective advocacy can send a powerful message to decision-makers.