Hwy 3 twinning money among regional mentions in budget

Posted on March 19, 2026 by Ryan Dahlman

By Zoe Mason
Southern Alberta Newspapers

The province will spend at least three more years in the red according to the 2026-27 budget released Feb. 26.

Budget 2026 features a $9.4 billion deficit – $4.2 billion more than last year’s shortfall and $4.5 billion more than should be allowed under the government’s own fiscal framework.

Finance Minister Nate Horner said the government will be looking to adjust the fiscal framework accordingly in the fall session of the legislature.

Horner says he anticipates some political fallout from the Feb. 26 budget.

“We created these rules, and I’m breaking them. It bothers nobody more than it does me,” said Horner.

Horner says the shortfall reflects his government’s commitment to maintaining and improving key services like education, health care and social supports.

“We want to be clear with Albertans that we won’t sacrifice public services to make our deficit disappear, and we aren’t raising personal income tax.”

Forecasts project deficits of $7.6 billion and $6.9 billion in the following two years.

The budget includes increases to several fees, including education property taxes, fees for seniors living in continuing care and registration costs for small businesses.

“All of these rising costs are despite years of extraordinary resource revenues and record production,” said Court Ellingson, the NDP Shadow Minister for Finance.

“Under these conditions, Albertans should be seeing economic stability, more jobs and better outcomes from the services they rely on, yet somehow this government can’t balance the books or deliver results.”

Under the Local Government Fiscal Framework, municipalities are getting less funding than previous years.

After receiving $820 million in 2025-26, municipalities across the province have been allocated $800 million in the 2026-27 budget.

The subsequent two years will see funding allocations jump up again, to $895 million for both 2027-28 and 2028-29.

Medicine Hat Regional Hospital is due to receive part of a $59-million investment over the next three years for enhancing intensive care unit capacity at that facility and at Chinook Regional Hospital in Lethbridge.

The budget sets aside $152 million for twinning the section of Highway 3 stretching from Seven Persons to Medicine Hat.

A further $2 million has been allocated for planning the Centre for Community Wellness at Medicine Hat College.