Alberta’s United Conservative Party government says it is considering the unprecedented step of allowing cities throughout the province to run deficits as they battle the COVID-19 pandemic and its subsequent financial impact.
As it now stands, Alberta’s Municipal Government Act doesn’t allow municipalities to budget for a deficit. In some cases, cities may still run deficits when something unexpected happens to increase expenditures or reduce revenues, but they aren’t allowed to intentionally plan for one.
In a statement to Global News on Monday evening, Minister of Municipal Affairs Kaycee Madu said the government is considering whether greater flexibility in budgeting for deficits is needed. “Our government is continuing to work with our