$5.9B provincial deficit prediction worries Calgary city councillor

A citycouncilloris wondering what the provincial deficit could mean for infrastructure projects in Calgary.

• Alberta deficit forecast at $5.9B as province feels impact of low oil prices

According to the province's first-quarter update released Monday, Rachel Notley's NDP government is preparing to end the year with a $5.9-billion deficit.

That forecast is $814 million more than the tally in the March 2015 budget, which was introduced but never passed by the previous Progressive Conservative government.

Ward 1 Coun. Ward Sutherland says he is concerned what the bleak financial picture could mean for Calgary.

"We have some major projects like the ring road, which they've committed to, and now we have the green LRT and we've had no commitment for matching funds at this point," he said.

Finance Minister Joe Ceci ruled out a provincial sales tax or significant cuts to essential services.

But he warned the deficit could climb to $6.5 billion "if current conditions continue," referring to sliding energy revenues.

Paige MacPherson, Alberta director of the Canadian Taxpayers Federation, says she was encouraged to hear Ceci talk about re-examining spending.

"One positive thing that I did hear from the finance minister is that they are going to go to every department and see where they can cut a little bit of spending, that's a really positive development," she said.

"It's really the first time that we're starting to hear the government talk seriously about cutting spending."

About 139,000 Albertans will be out of work in 2015, 28,000 more than in 2014, the fiscal update forecasts.

The government plans to table a budget after the legislature resumes on Oct. 26.