Holy oil revenues Batman! The Alberta government's first quarter budget update is in and the numbers indicate a real gusher of a surplus -- $5.8 billion dollars to be exact.

Surging oil prices have contributed to record resource royalties for the province this year of $8.5 billion (up from projections of $4.0 billion).

That can only be good news - right Well for the most part yes, it's good news. Treasurer Steve West plans to use the bulk of the money to pay down the province's debt. Applying $4.5 billion to the debt will bring our outstanding obligations down to $8 billion. No other province in the country is anywhere near Alberta in terms of debt reduction.

Most importantly, this debt payment will free up about $300 million a year in interest payments that will no longer disappear into thin air. That money can now be allocated to high priority items like, say, oh I don't know, TAX CUTS! Ah, but there's the rub.

Just because we've got a $5.8 billion surplus and declining interest payments don't expect to see any more money in your pocket. Dr. West failed to announce any new tax cut measures in this latest report, sticking to the same tired script Treasury has been reading from for several years now - "tax cuts are coming- just wait 'till next year."

While the Tories couldn't seem to find any money in the surplus for tax cuts, they did somehow manage to come up with $769 million to spend on a myriad of new programs. This is, of course, a recurring pattern of maddening behavior. Over the past five years program spending has increased by 37% while personal income tax rates have declined by only 1.5%.

There has simply been no balance struck between spending increases and tax cuts. Anything left over after debt payments has been spent - end of story.

Well, perhaps not quite. At the time of penning this diatribe leaks emanating from the legislature indicate that Albertans may be the recipients of some sort of pre-election "utility rebate". Information spewing from the rumor mill has it that every Albertan old enough to vote will receive two $150 cheques (one in the fall and one in the spring) to cover escalating power and heating costs.

Now after having spent the preceding paragraphs whining about a lack of tax cuts it's probably not my place to complain about a $300 utility rebate. And I'm not. We should be pleased about any direct dividend we receive.

Still, one has to question if this is the best way to deliver relief to Albertans. A uniform rebate does not take into account the fact that some people pay more for their utilities than do others. Some of us will end up paying the utility bills of others through this forced subsidization plan. And what about businesses They consume the majority of the power in the province but will they get a break on their bills I doubt it - businesses don't vote.

More importantly, how long will this rebate last - six months, one year, two years A better solution would be to cut the personal income tax rate thereby providing a predictable, equitable saving to taxpayers year after year.

Look, let's put an end to the spending spree and stop fooling around with politically motivated rebate schemes. Just give us a tax cut already! Yeesh.