According to the province, baseline capital funding for municipalities is set at $722 million for the 2024-25 fiscal year, with $382 million reserved for Calgary. (Photo: S Jones | LNN)

By Sarah Jones

Alberta Government to invest two billion into municipal funding over next three years

Mar 21, 2023 | 3:11 PM

EDMONTON, AB – The Alberta Budget 2023 will be making an investment into the Local Government Fiscal Framework (LGFF).

According to the province, baseline capital funding for municipalities is set at $722 million for the 2024-25 fiscal year, with $382 million reserved for Calgary and Edmonton and the remaining $340 million divided between other Alberta municipalities.

The increase to the LGFF Revenue Index Factor from 50 per cent to 100 per cent will mean that annual capital funding for municipalities will rise or fall by the same percentage as provincial revenues from three years prior.

This change will result in the LGFF funding increasing to $813 million in 2025-26, for a three-year total of $2 billion.

Alberta Minister of Municipal Affairs, Rebecca Schulz said, “The 50 per cent revenue index factor was meant to provide stability in municipal funding in a resource-based economy. However, municipalities said that they wanted full partnership – in good times and in bad – and we’ve listened. This will mean a 12.6 per cent increase in funding for the second year of the new formula.”

Meaningful Mementos

Remembering Someone You've Lost at Christmas

Dec 03, 2024

Seasonal Sorrow

How Do You Get Through The Holidays When You're Grieving?

Nov 01, 2024

Upcoming Events at Oliver's

Grief & Loss and Estate Planning Seminars

Oct 02, 2024

In addition to the investment into the LGFF, Budget 2023 doubled operating funding to $60 million under the Municipal Sustainability Initiative (MSI) which supplements the $485 million in capital funding also provided under the MSI in 2023-24.

Over the last three years 2021-22 to 2023-24, Alberta’s government has provided municipalities with an average of $722 million per year in MSI capital funding.

Read more at LethbridgeNewsNow.com