If Alberta spent as much on government programs as other provinces did, there would be plenty of room for tax cuts in Budget 2002-03. There would be no need to increase health care premiums - or any other tax - if Alberta's spending in the past three years had increased only to keep pace with inflation and population growth.

Alberta Finance Minister Pat Nelson continues to say that revenues are "down."

It's true that revenues from oil and gas for 2001-02, now forecast at $5.9 billion, are "down" from the $7.5 billion forecast in April's budget. What is also true - and much more relevant - is that revenues from oil and gas, at $5.9 billion, are "up" (way up!) over their historic average.

From 1986 to 1999, the Alberta government took in an average of $3.3 billion per year from oil and gas (converted into 2001 constant dollars). When you factor in oil and gas revenues of $4.7 billion in 1999-2000 and $10.6 billion in 2000-01, the historic average is $3.9 billion (converted into 2001 dollars). Whether the historic average is $3.3 billion or $3.9 billion, either way this year's $5.9 billion is far, far higher.

Revenues are very much "up", not "down."

So what's causing Ralph Klein to talk about increasing taxes

"This government has a spending problem," said Premier Klein ten years ago. It's true again today. From 1996 to 2001 Alberta's population grew 10%, inflation was 14%, and government spending on programs grew 57%. Total spending on all government programs (health care, education, infrastructure, transportation, social services etc.) rose from $4,591 per person in 1996 to $6,527 per person in 2001. Adjusting for inflation, this works out to an increase of 25% in real terms.

Not only is Alberta's spending high compared to previous years, but also when compared to other provinces. This fiscal year of 2001-02, the ten provinces together are spending a total of $169.7 billion on health, infrastructure, education and other provincial government programs. With Canada's population at 30.9 million, this works out to $5,477 per person. But Alberta spends $6,527 per person - 19% higher than the Canadian provincial average.

Why are other provinces able to run their schools, hospitals, universities and social programs by spending 84% as much, per person, as Alberta does That's a question which Government MLAs, who go through each ministry's budget and vote on specific spending items, have to answer. Setting spending priorities is done by MLAs behind closed doors, in the Standing Policy Committees.

If Alberta reduced its spending to the Canadian provincial average, Budget 2002-03 would see total program spending of $17.5 billion on health, education, infrastructure, transportation and other programs. That is roughly the same level of spending as in 1998-99, adjusting for inflation and population growth. If other provinces can do it, and if Alberta was doing it only three years ago, why not focus $17.5 billion on high priority areas Why not let taxpayers keep the rest of the money which they earn And why are Alberta's politicians even talking about increasing our taxes