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Province, feds at funding impasse

Morinville Mayor Lloyd Bertschi took a plane to Ottawa last week to try and smooth out a wrinkle that could cost Alberta municipalities millions of dollars.

Morinville Mayor Lloyd Bertschi took a plane to Ottawa last week to try and smooth out a wrinkle that could cost Alberta municipalities millions of dollars.

Bertschi went as president of the Alberta Urban Municipalities Association to meet with federal politicians to help work out a small debate between the federal and provincial governments.

As part of their stimulus budget, the federal government announced billions for infrastructure projects but the grants require the province and municipalities to contribute up to a third of the costs as well.

The governments Bertschi said, have hit an impasse because Ottawa is insisting the money be on top of funds the province has already committed, but Alberta wants them to consider the funding they already have in place.

Bertschi said Alberta municipalities just want to make sure the cash flows and he hoped they could work out the details.

“We thought perhaps we could, not necessarily broker a deal, but assist with the conversation.”

Bertschi told federal politicians Alberta was already doing a lot to support municipalities with infrastructure problems, referring to existing grant programs like the Municipal Sustainability Initiative.

“We need some flexibility in Alberta because of the huge amount of money that has already been invested,” he said. “Why should our province be held to the same standard as another province, which may not have contributed anything?”

The Alberta Treasury Board is the department trying to solve the issue with the federal government.

Gerald Kastendieck, a spokesperson for the Treasury Board, said they don’t want to squander an opportunity, but they have to think about the best interest of Alberta taxpayers.

“We want to take advantage of any federal dollars that are on the table as long as they are going to benefit Albertans,” he said. “If we are running a deficit already how do we take new money and add it to our already significant capital plan.”

Bertschi said they had a good meeting with MP Rob Merrifield, the Parliamentary secretary for the transport minister, and he believes the two sides might find a middle ground.

He said the federal government is trying to implement one deal with every province, but he told Merrifield not all provinces are the same.

“Why does one size have to fit all when there are varying levels of contribution being made?”

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