- Ralph Klein, Jan 29, 2002

Premier Klein made this promise during a televised address to Albertans before his 2001 re-election.

Now less than 15 months later, he will start taking more money out of taxpayers' pockets: $184 million more in health care premiums, plus $538 million more from school property taxes, traffic fines, various fees, alcohol and tobacco taxes, and other sources.

The bottom line of Budget 2002-03: $722 million in tax increases, minus $81 million in tax cuts for business, equals a $641 million betrayal.

Why this broken promise?

The government claims it was "necessary" to raise taxes because of lower revenues from oil and gas, and the rising cost of health care. Let's look at these two claims.

From 1986 to 1999, the Alberta government averaged $3.4 billion per year from oil and gas (in 2002 constant dollars).

Compare that $3.4 billion historic average to $5.9 billion in 2001-02 and $3.7 billion projected for 2002-03.

While oil and gas revenues may be "down" from the wild predictions contained in last year's budget, they are very much "up" over their historic average.

Health care's share of the provincial budget has risen from 24% of program spending in 1986, up to 37% in this new 2002-03 budget.

Health care could consume 50% of Alberta's budget by 2008, if the system itself is not changed.

This is the very reason why the Premier's Advisory Council on Health was formed in 2000 - to examine ways of improving the health care system, rather than simply pouring more and more tax dollars into it.

In his final report, Mazankowski states at page 54 that "increasing premiums would have no effect on moderating demand for health care services.

If decisions are made to increase health care premiums, there should be corresponding benefits to Albertans including more choice, better access, and more control over how they spend their health care investment."

So where are the "corresponding benefits" which Mazankowski says are necessary to justify a hike in premiums?

When Ralph Klein and Pat Nelson say "we need more tax dollars to be poured into health care," they are really saying "we have failed to restructure the system."

Health care premiums go into general revenues, just like fuel tax, liquor and tobacco taxes, business tax, etc.

If you don't pay your premiums, the government will seize your car, put a lien on your property, garnish your wages, go after your bank account - as if you had not paid your income tax.

Let's face it.

The extra $120 per year for individuals, and $240 per year for families, is just a tax grab, period.

Saying it's "for health care" is a sugar coating of political spin.

A portion of the $641 million in tax increases is also "for MLA pay increases of 17% over two years."

Until the government implements structural reforms to how health care is provided and paid for, a portion of health care premiums will be going to pay Premier Klein's $525,000 severance package, should he retire in 2005.

Premier Klein has broken his promise to taxpayers because his government has said 'yes' to too many spending demands.

From 1996-97 to this 2002-03 budget, total spending on government programs is up 45%, compared to only 12% population growth and 16% inflation during this same period.

There is simply no excuse for Klein's tax increases.

Klein's taxpayer-friendly revolution is over, and in reverse.