The province is forecasting a $4.6 billion surplus at the end of the 2024-2025 fiscal year, up from its most recent projection of $2.9 billion.
MLA for Drumheller-Stettler and President of Treasury Board and Minister of Finance, Nate Horner, delivered its second quarter fiscal update and economic statement. The forecast of the surplus is buoyed by non-renewable resource revenue and personal income taxes.
However, in a release it notes that given the current significant uncertainty in global geopolitics and energy markets, Alberta’s government must continue to make prudent choices to meet its responsibilities.
“These are challenging times, but I believe Alberta is up to the challenge. By being intentional with every dollar, we can boost our prosperity and quality of life now and in the future,” said Horner.
The province is feeling many pressures, including more than 450,000 people making Alberta its new home over the last three years. Midway through the fiscal year, the government invested to help support some of these pressures.
This involved adding $716 million to Health care for physician compensation and providing more services for an aging population, another $125 million to address growth pressures in education and $847 million for disaster and emergency assistance, especially as Jasper continues to rebuild after wildfires ripped through the community.
With this, the expense for 2024-2025 is forecast at $73.3 billion, up $143 million in 2024.
While the budget was supported by non-renewable energy, it is still volatile.
It says in a press release, “Looking forward, the province has adjusted its forecast for the price of oil to US$74 per barrel of West Texas Intermediate. It expects to earn more for its crude oil, with a narrowing of the light-heavy differential around US$14 per barrel, higher demand for heavier crude grades and a growing export capacity through the Trans Mountain pipeline. Despite these changes, Alberta still risks running a deficit in the coming fiscal year should oil prices continue to drop below $70 per barrel.”
“While our second quarter fiscal results remain positive, and we continue to forecast a surplus for 2024-2025, risks are on the rise, and we face mounting pressures,” said Horner. “Oil prices have dropped considerably, falling at times below $70 per barrel in the last couple of months. Forecasters are predicting downward pressure on crude oil prices based on uncertainty around the globe. We forecast it now to average $74 US per barrel this fiscal year, in line with the budget forecast, but down $2.50 from the first quarter. Each $1 in the WTI price carves about $630 million from our bottom line.”

Town of Drumheller council received an update on the flood mitigation program’s urban forest report and summary during a special council meeting on Thursday, November 21.
The flood mitigation program had previously committed to a 5:1 replacement ratio for replacing healthy trees which needed to be removed for construction of berms throughout the community, and in February 2024 Green Drop Tree Care. were contracted to implement urban reforestation and develop a management plan for the Town, which included looking at some of the challenges new trees may face in Drumheller.
“Some of the challenges and recommendations we identified in the Town was limited rainfall,” explained Matt Vinet of Green Drop during the special council meeting, though he noted this is not limited to just Drumheller area.
One unique challenge is the type of soil found within the Drumheller Valley. While it is similar to soil found in other parts of the province, Mr. Vinet noted what is found buried underneath the soil is unique. Another challenge he touched upon was damage to newly planted trees by wildlife, such as deer and beavers, due to the Town’s urban location.
Between July and mid-August a public consultation was held in which Green Drop received 94 online responses and three valid paper forms.
“We found during the public consultation that lots of people in Drumheller were interested in trees, where they go, and how many we’re going to put in,” Mr. Vinet shared.
He added, through the public consultation, there were several responses which mentioned trees along the Rails to Trails pathway system, as well at the X-Crossing disc golf area in the green space between Highway 10 and 7 Avenue East. The public consultation also presented some collaborative opportunities with local area schools and community associations.
Due to the low rainfall and soil type found within the Town, Mr. Vinet noted there were some recommendations for the species of trees which will thrive within the community. Most of the trees being recommended are native species to the area, with some exotic plants which have shown success in similar conditions.
Based on the report and public consultation, several areas were identified as priorities for planting. This includes the Rails to Trails network to provide shade to the newly developed pathway system, and the new 500-wing at the Sunshine Lodge.
There are several funding opportunities for this project which the Town can apply for to help alleviate costs for planting and purchase of new trees, and maintenance.