Guessing the Budget in PSE
As memory serves me, it has been an extensive period of time since I actually had a smile on my face while pumping gasoline into the car. Never being one to be overly supportive of the Oil and Gas boys’ revenues, it somehow felt deserving that this consumer was a least getting a bang for his buck. Choosing between 2 or 3 gas station prices was an exercise that I had not been accustomed to for quite a while. Granted that the Oil and Gas revenues have an immense impact on Alberta’s economy, however, Calgarians appear to be taking the slump in their stride.
The more illuminating problem on the minds of Alberta families is the role out of the Provincial Budget. Confidence in the Provincial Conservative party is predictably unstable. The demise of the opposition parties and the crossing of the floor by Danielle Smith has caused more than a few hearts to miss some beats in those Wild Rose ridings, and leaves a distinctive aura of dissonance among the electoral pundits. Moreover, the Gurus in the Education environments are sweating bullets and have already adorned the battle helmets. Although Alberta went through massive education cuts 3 years ago, the propensity is as citizens that we would like to believe that the Educational facilities have been re-configuring, re-strategizing and balancing the books at least a year ago in the anticipation of a disparaging budget. In this unstable Alberta market re-positioning your financial budgets for those unpredictable times is sound managerial practice and shows good fiscal responsibility to the communities these Institutions serve.
While the national Consumer Price Index (CPI) rose 2.4 % in twelve months to October 2014, Alberta experienced the largest increase in natural gas prices, at 30.7 %. Food costs were affected by increased meat prices (12.4%). Although as Albertans we are experiencing a decline in gasoline prices, there is no indication of when it will end. If the trend continues it could have an impact on the CPI in the months to come. We can expect some severe tightening of the belt by the Provincial Government, lay-offs in the Government work section –spending cuts – a freeze on hiring –cuts to health programs – infrastructure projects shelved and educational funding significantly reduced.
For the most part the Conservatives are wading in the Austerity pool, giving a condescending nod to the rumor of a flat tax or the dreaded Provincial sales tax, which is another government ploy to plant uncertainty in the minds of the tax payer. To say that SAIT’s Management are ready to push the panic button – in my estimation is a somewhat premature. Financially they appear to be positioned adequately to deal with a condensed operating budget.
Applications to Programs at the Institution are already remarkable high, and with the introduction of the February Open House, applications are expected to excel beyond the target figures. This encouraging news provides reassurance to the employees at SAIT that although operationally we need to be cognizant of our expenditures, we are still guaranteed a place to hang our hats.
James McWilliams
SAFA President