St. Albert to receive $11.6 million in MSI grants

The debate over how the province funds municipalities moved to centre stage this week, as the province rolled out its plans for 2012, while suggestions of partisanship created political controversy.

After the government announced a slight boost to the province's municipal sustainability initiative (MSI) in the budget, Municipal Affairs Minister Doug Griffiths announced how the money would break down to communities Thursday afternoon.

St. Albert will receive $11.6 million in 2012, a slight uptick from the $11.5 the city received in 2011. Morinville is set to receive $1.47 million and Sturgeon County will receive $4.3 million.

MSI is doled out based on a community's population, education tax and the kilometres of roads. In 2011 St. Albert intends to use the funds for road upgrades and asphalt overlays in some residential neighbourhoods, as well as potentially the south park and ride facility.

Griffiths announced the funding, while admitting he hopes to look at potential changes to the system.

"We are going to continue to work on a relationship with municipalities to make sure that levels of government work to advance and provide the services for people within Alberta."

With a growing economy, Griffiths contended there would be heavy demands on municipalities in the province, but he said there is ultimately only so much money.

"I know that it is probably not enough to meet every single demand we have, but there is never enough money to meet every single demand."

St. Albert mayor Nolan Crouse said the funding has not been the same as what was initially promised when former Premier Ed Stelmach announced the program in 2007, noting under the initial promise the city would have received more than $20 million this year. He said it has been relatively stable over the last few years, which is helpful in planning.

Crouse said he welcomes Griffiths' call for a renewed look at funding.

"I would like to see something different, but honestly I don't have a solution. So it is hard for me to complain one minute about it when I don't have a better solution," he said. "I am not hopeful that there is a silver bullet out there, but on the other hand that is what our job is, to brainstorm ideas."

Hot button issue

Edmonton City Coun. Linda Sloan, who is also president of the Alberta Urban Municipalities Association (AUMA) suggested following the budget, that there were still some problems with municipal funding and that it was subject to partisan distribution.

In response Griffiths told Sloan he and other government MLAs would boycott the organization's annual breakfast Thursday.

The government provides a total of $2.1 billion to municipalities, with roughly $900 million as part of the MSI program. The remaining funds are handed out based on a variety of criteria.

While stressing the MSI program is handed out fairly, she said there are still problems with some of the other grants the province gives municipalities, which make up more than half of the funding.

"The grant system has been subject to reduction and change and to partisan influence and that is why we have had a problem with it and that is why it needs fixing," she said. "I didn't expect it to become the flashpoint that it was and I regret that it became the story."

Griffiths backed off the boycott after Sloan suggested some of her comments had been taken out of context. In his speech to the breakfast, Griffiths said disputes like this one are unhelpful.

"Debating things in the media doesn't do anything, and the media is here, but to get more people to watch TV and sell more papers and our job is not to help them. Our job is to help the people in our community."

Opposition cries foul

Opposition party leaders who were also on hand took the opportunity to slam the government and offer their own plans for municipal finance.

NDP leader Brian Mason promised municipalities would not have to answer to him, if he was premier.

"Municipal government should be accountable to its voters and not to other orders of government."

Liberal leader Raj Sherman, also said the relationship needs a reset that recognizes both sides as equal.

"We need a new relationship, a mature relationship, a stable relationship and that relationship needs to be rooted in respect."

Danielle Smith touted the Wildrose proposal to give municipalities 10 per cent of provincial tax revenues and surpluses automatically and also promised her party would not boycott events over disagreements.

"Never will I or anyone associated with the government that I will lead stoop to the thug tactics that we saw from the premier's office this week."

Alberta Party leader Glenn Taylor praised Sloan for her stance and said there was need for more respect.

For his part, Crouse he can't think of any instances where St. Albert lost out because of partisan influence

He said a government MLA usually has more insight into the government's direction, which can help them be a better advocate for local projects or to explain why those projects can't receive funding in a given year.

"When you are dealing with an insider like Doug Horner it is easy for you to understand what is happening."

Crouse he said he doesn't see it as partisanship, but simply the nature of politics.