It's clear that Alberta is in an unique position in Canada. We have billions of dollars in one-time, non-renewable resource revenues. We run surplus budgets and are debt-free.

But things are not all sunshine and wild roses. Alberta is on its way to the same position it was back in 1993 when it realized it had a spending problem.

Government spending has increased by 37 per cent in the last three years alone, grossly outpacing a six-per-cent population growth and a nine-per-cent inflation rate during the same period. A decade ago, the Alberta government spent $5,034 each year per Albertan; now it spends $8,825 per Albertan.

This spending is being financed by one-time resource revenues. In fact, the vast majority of money brought in through the sale of oil and natural gas gets spent. The first $5.3 billion goes directly into program spending. The remainder flows through the Sustainability Fund into "emergency" funding, natural gas rebates and infrastructure spending. Only a fraction of this money is being socked away.

A few of the candidates vying to replace Premier Klein advocate a legislated savings plan and a cap on spending growth.

Jim Dinning recently announced he would save 30 per cent of all resource revenues, building the Heritage Fund up to $50 billion in 10 years. Ted Morton would save 30 per cent of all resource revenues, and "cap public sector spending growth."

However, one premier wannabe also came out recently with a detailed and fiscally conservative plan to not only save 30 per cent of resource revenues -building the Heritage Fund up to $120 billion - but to cap yearly spending at $8,500 per Albertan. This spending cap would restrict government to only increase program spending by the rate of population growth each year.

This candidate's plan trumps Dinning's plan, as he has not yet promised to cap spending, and matches Morton's plan.

But, the man pitching this plan isn't running for the leadership of the Alberta PC Party. In fact, he's already got a party. This "conservative" savings and spending cap plan has been pitched by none other than Alberta Liberal leader Kevin Taft.

Unfortunately for the Liberals, they still have a long way to go before Albertans are ready to believe they would deliver if elected.

Anyone who has listened to the Alberta legislature's question period over the past few years has heard an endless barrage of Liberal claims of "chronic underfunding" in everything from health care, to education, to children's services, to seniors and even the justice system. This obviously raises a question as to how a Liberal government would deal with these so-called "chronic underfunding" problems while still capping spending.

Regardless, the Liberals will have another chance come spring session to walk the talk. Before Albertans are ready to believe the Liberals would deliver on a savings and spending cap plan, they will first need to resist the temptation to kick the government (and their own credibility) by constantly arguing for more spending.

It's obvious Alberta cannot sustain yearly double-digit growth in government spending. If Progressive Conservative leadership candidates don't want to get out-flanked by Kevin Taft's "conservative" savings and spending cap plan, they've only got until the end of November to articulate a clear vision.

SCOTT HENNIG IS ALBERTA DIRECTOR OF
THE CANADIAN TAXPAYERS FEDERATION.