Our cost of living is skyrocketing at a pace not seen in more than 20 years, draining our spending power, leaving many more without the means to pay for food or monthly household bills.
The Consumer Price Index (CPI) rose 5.1 per cent on a year-over-year basis in January, up from a 4.8-per-cent rise in December. Excluding gasoline, the CPI rose 4.3 per cent year over year, "the fastest pace since the introduction of the index in 1999," according to Statistics Canada.
Inflation isn't unique to St. Albert, where many households are struggling to cover spiking utility bills and through-the-roof gasoline prices are forcing drivers to trickle in $20 at a time at the pumps instead of having the means to fill up.
Inflation is systemic, across the province and the country, and with our pandemic-worn economy, likely won't let up soon.
What's key is that, as Canadians are forced to trim back spending or take on extra work to make ends meet, government at all levels must follow suit.
While most of us finely tune our savings radar, many struggle with the daily costs of living.
Each household is responsible for the revenue and expense sides of its ledgers. This concept is largely lost on government at every level. It is all too easy to spend other people's money. Taxation is the instrument government uses to satisfy its spending habits, and its appetite knows no bounds.
St. Albertans no longer have such an appetite. Most telling from a local perspective was the release of the City's biannual community satisfaction survey results in February.
Now, it seems, residents are willing to sacrifice to keep taxes down. The latest City satisfaction survey revealed 51 per cent of respondents would prefer a reduction in service levels to avoid a tax increase — a change to the 51 per cent in 2019 and the 57 per cent in 2017 who said they would be willing to shoulder tax increases to maintain services.
St. Albertans, it appears, are ready and willing to accept a St. Albert that is completely different from years past — one with fewer services, trims in spending on the nice-to-haves, and a council equipped with a more frugal lens.
St. Albert’s operating budget is north of $100 million per year. Through the lens of a spend-thrift, what is the potential for austerity?
Such a question challenges our elected officials. We are coming through a pandemic that has wreaked havoc on businesses and families. Many people are displaced, underemployed, and unemployed. For many, making ends meet is the priority in this inflationary landscape. The concept of further taxation is incomprehensible.
Council, particularly over the last four years, has talked about additional revenue streams to fund the body politic. St. Albertans are challenging this notion. It’s time to manage within our diminished means. After all, the City just spent $1 million with Ernst & Young looking for these very sorts of savings.
Editorials are the consensus view of the St. Albert Gazette’s editorial board.
