Hoping for a Christmas bonus this year How does $1,000 sound Now that would help with the holiday shopping bills.

Well, sorry. You could have had that $1,000 bonus, but Santa Klein and his elves in the provincial government have already spent the money on your behalf.

Of this year's $2.8 billion surplus 50% will go toward new spending initiatives, 49% will be devoted to debt reduction and less than 1% will be allocated for tax cuts. Had the province chosen to, it could have taken the $1.4 billion it never planned to spend in the first place and put that money back into taxpayers' stockings. A tax rebate of that size would have come out to around $1,000 per taxpayer.

"But all this new spending is needed!" scream the critics. "The system is about to collapse! Health care is in crisis! We can't cut taxes yet!" Oh really

Let's take a look at the facts:

The government of Alberta has a spending problem. Over the last five years, program spending has increased by 29%, almost double revenue growth for the same period.

The government of Alberta now spends more per capita than any other province in Canada.

This year the Klein administration will mark a record high in terms of per capita health care expenditures, rising from $1,581 in 1992-93 (at the height of the province's deficit financing) to $1,848 in the current fiscal year.

Obviously these massive new spending initiatives have slowed debt reduction and all but eliminated the possibility of substantial tax cuts.

So what can be done to rein in this out-of-control spending and give taxpayers the Christmas bonus they deserve

Here's the CTF's prescription for tax relief in the New Year:

The Alberta government should limit annual spending growth to the rate of inflation plus the percentage change in the province's population. The elves in Mr. Klein's workshop need to amend the Fiscal Responsibility Act so that spending is controlled and rises at a reasonable pace.

The Act should also be changed to include financial penalties for MLAs who vote for deficits or want to break prescribed spending limits. The most effective way to ensure that our politicians manage our money wisely is to cut their pay if they blow it.

Albertan's taxes should be cut by an additional $500 million for the 2000-2001 fiscal year. If we can control our spending next year we should be able to give every taxpayer in the province an additional $375 in tax relief.

The province should reduce the projected personal income tax rate from 11% to 10% of income. The next tax cut should be broad based, so that everyone, not just some special group or interest, receives a tax cut.

So while you may have to forego your bonus this year, there is hope for the future. The only trick here is letting Santa Klein know what it really is that you want for Christmas. Do you want most of the surplus to go to new spending or do you want some tax cuts too Write, fax, e-mail or call the man at the top and give him your wish list. He may just give you what you want.