Science & technology fails to reap benefits of bulging Alberta Budget surplus

It was the year of the Old Economy as this year’s Alberta Budget distributed the spoils of surges oil and gas revenues into education, health care and debt and tax reduction but failed to introduce any new S&T initiatives to bolster the impressive achievements of recent years. Armed with a groaning Budget surplus, the newly elected Progressive Conservative government continued to trumpet the Alberta Advantage, aiming towards the day in 2004 when the province will be debt free and boast the lowest corporate tax rates in Canada.

Funds allocated to the Ministry of Innovation and Science (MIS) showed a steep increase due chiefly to the implementation of Alberta SUPERNET, the province’s initiative to extend high-speed broadband access throughout the province. But that project was announced last October and the $50 million allocated in the Budget largely represents the purchase of existing fibre infrastructure from Telus Corp (R$, November 29/00).

“On the research side it’s basically status quo,” says Blake Bartlett, MIS manager of financial planning. “The Alberta Science and Research Authority (ASRA) had $95-100 million last year and roughly the same amount this year.”

The only agency to show a marked increase within the ASRA funding envelope is the Alberta Research Council (ARC). Its FY01-02 budget has increased $10.5 million or 18.3% to $68 million as a result of increased contract research revenue.

“ARC is much more involved in contract research for other agencies and businesses,” says Bartlett. “If you’re able to bring in money from the private sector, you can increase your spending to offset that.”

This FY also marks the first year to see substantial funds flow to the Alberta Heritage Foundation for Science and Engineering Research (AHFSER), the highlight of last year’s provincial Budget (R$, March 17/00).

Budget documents show $7 million transferred to AHFSER coffers, although the amount pales beside the $63 million being transferred to the more established Alberta Heritage Foundation for Medical Research.

Bartlett says it’s still early days for the arm’s length agency and that the amount transferred next year will likely be “four or five times that amount”. He adds that the plan to add $100 million annually for the next five years to the AHFSER endowment is still on track with a decision expected before the summer.

Missing from the Budget was an announcement of the Alberta government’s agreement with Inno-Centre Canada, to establish a mentoring and commercialization initiative in the province. Alberta has committed $1 million to the project with the bulk of the funds expected to flow next FY.

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