Alberta on track for $2.4B surplus despite wildfires, lower oil prices, fiscal update shows

The Alberta government says it’s on track for a $2.4 billion surplus by the end of the fiscal year despite slightly lower oil prices and wildfires that have burned through most of its contingency fund.

The figures were released in the government’s first-quarter fiscal update Thursday in Calgary, but that projected surplus doesn’t account for the purchase of medical lab service provider DynaLife.

“I am afraid I can’t give you much on that today. That deal will not be finalized till hopefully the end of the year. I potentially could have an update for you at second quarter,” said Alberta finance minister Nate Horner in a news conference.

The government’s failed DynaLife deal saw the province take over lab services after cutting short a 25-year deal with the private provider.

Related Stories:

• DynaLIFE out as Alberta’s lab services provider after long delays, wait times

• Alberta government in talks to buy out DynaLIFE lab services: NDP

• Alberta wildfires continue to burn, favourable for some ecosystems

Alberta NDP finance critic Samir Kayande says the unknown cost of that deal may mean the surplus is lower than calculated.

“There are very likely termination provisions in the contract. They can probably estimate how much this stuff will cost. And they’ve done none of that,” he said in Calgary.

Wildfires have consumed nearly $1 billion so far this fiscal year.

Other events have taken up about three-quarters of the money the United Conservative government has set aside for emergencies.

And when it comes to the rising cost of living and increasing inflation, the Finance Minister was asked if Alberta is losing its affordability advantage.

“Yeah, I think … that was … inevitable,” he said. “We had an Alberta is Calling campaign. We tried to really leverage our affordability to encourage people to come make a home in Alberta. And over time that will change, no doubt. They’re good, good challenges, looks like a great opportunity in the housing sector.”

WATCH: Alberta ditches DynaLIFE as lab service provider

Officials say the government is looking at increasing that fund in coming years as extreme weather events are not expected to let up.

Besides debt and principal payments, the Finance Minister says the budget surplus could be used to reintroduce affordability. The Minister also shared some details about Calgary’s Event Centre budget.

“I believe its $39 million in change — but that’s the only number you’ll find in this report regarding the rivers district monies. We’ve had discussions at Treasury Board, but that’s all I can give you this time,” Horner said

“I think the premier will probably speak to it.”

Elsewhere, a population boom of 4.4 per cent has helped boost tax revenues.

Oil royalties have shrunk due to lower-than-forecast prices.

But that impact has been softened by a smaller discount oilsands producers receive for their product compared to conventional oil.