Message to Stakeholders from the Minister of Culture Regarding Budget 2013-14

Today the Government of Alberta presented Budget 2013, a budget that reflects the fiscal challenges our province faces as a result of international resource market pressures. Even as we take a proactive approach in addressing the challenges brought on by global economic reality, we also continue to take a balanced and responsible approach in making decisions on how best to invest tax dollars in core programs.

Budget 2013 and the Government of Alberta Strategic Plan 2013-2016 also speak to our government’s commitment to building a strong future for our cultural sector. We recognize the immense contribution of the thousands of people in our cultural industries, arts and heritage and nonprofit voluntary organizations in enhancing the quality of life for all Albertans. The conversations I’ve had with stakeholders in communities across Alberta have been invaluable as I continue to work with you to create awareness of the important role of culture as a means to diversify and support economic growth.

The current fiscal situation demands that we take action to reduce spending.  As Minister, I have worked hard to limit as much as possible the impacts upon our cultural sector. As a result, we have been able to maintain or slightly increase previous funding levels for the majority of our programs including arts, heritage, the Francophone Secretariat, the Community Facility Enhancement Program (CFEP) and the Alberta Multimedia Development Fund. Funding of Community Initiatives Program (CIP) project-based and operating grants to assist nonprofits at work in Alberta communities for the benefit of Albertans has also been maintained. Vital support services provided by ministry staff to assist nonprofits achieve their goals will be maintained at current levels.

Our success in maintaining funding in these areas has not come without hard decisions having to be made. The total ministry budget for 2013-14 is $219 million, that includes $166 million for programs and services. This represents an overall reduction of $35 million that includes a reduction in operational funding of $17 million, and a reduction in capital funding of $18 million.

This is a significant reduction, however through careful consideration of the needs of our cultural partners, reductions have been made mindful of the goal of long-term sustainability of the sector.  In order to achieve the required savings necessary to maintain core programs and services, the Community Spirit Program (CSP) donation grant has been eliminated. Grant application for 2012-13 are currently being assessed, and grants will be disbursed early in the new fiscal year.

I recognize that this will have a direct impact on our nonprofit sector, but as I indicated, difficult choices had to be made. This government has committed to a results-based budgeting process, to challenge every dollar we spend to ensure that we are achieving our intended outcomes. In the last two years, applications to CSP have not increased, indicating that perhaps the program had achieved its potential. By comparison, CFEP and CIP are consistently oversubscribed year to year, and have a longer history of producing tangible outcomes in Alberta communities.

We will retain one of the country’s highest charitable tax credits, recognizing that Albertans are among the most generous in the country, and to encourage continued support for local organizations.

We have retained $2.7 million in the Other Initiatives Program, which provides funding for projects outside the criteria of CFEP, CIP and other government grant programs.

While we will continue to support the work of Albertans engaged in humanitarian projects in developing countries, the International Development funding stream of the CIP has been reduced by $500,000 as we focus on building strong families and communities across the province.

Full details of the Culture budget are available on our website.

Let’s continue the conversation we’ve begun;  to share ideas and experiences and build upon the creativity, innovation and entrepreneurial spirit that has – and will – continue to drive the success of our cultural organizations. In doing so, we will discover new ways to maintain traditional avenues of support while creating new opportunities to engage the business community and individual Albertans in partnerships aimed at growing the sector.

Those efforts will be supported by my ministry and through the work of a revitalized Premier’s Council on Culture. With a renewed mandate and membership, the Council will lead the development of a long-term plan to build strength, growth and sustainability for Alberta’s culture sector.

We cannot lose the momentum that we have created to help develop and showcase our culture…to continue to provide the programs and services so vital to the well being of Albertans and the growth and prosperity of our province. As Minister, I am committed to working with  stakeholders to confront the challenges toward  building a strong, sustainable future for Alberta’s cultural community for the benefit of all Albertans.

Heather Klimchuk,

Minister, Culture

Alberta Craft Council