MacKinnon Report

The MacKinnon Report, officially titled Report and recommendations: Blue Ribbon Panel on Alberta’s Finances, is a report authored by a blue-ribbon panel, chaired by former Saskatchewan finance minister Janice MacKinnon, released on September 3, 2019.[1]

The report was commissioned by Premier Jason Kenney shortly after his United Conservative Party (UCP) won the April 16, 2019 Alberta general election. Kenney had promised to balance the budget by the fiscal year 2022–23. The MacKinnon report said that in order to achieve that, there should be "no increases in government spending for four years and a reduction in operating costs by at least $600 million, as well as cuts in capital spending." The report sets out 26 recommendations which include "sweeping reviews of health care and education".[2]

Findings

In general, the MacKinnon report recommended policies to lower Alberta's per capita spending to be more comparable to other provinces, mostly in healthcare. As the report noted "Alberta’s annual expenditures would be $10.4 billion less if its per capita spending simply matched the average of spending in Canada’s three largest provinces: British Columbia, Ontario and Quebec – and we would not have a deficit."

Per capita Health Care Expenditure in Alberta compared to the National Average, in 1997 constant dollars, 1975 to 2019[3]

Response

The MacKinnon report said that "implementing or raising taxes isn’t the solution"—the problem with Alberta's finances is that the provincial "government is overspending". A report by University of Calgary's School of Public Policy's economics professor, Ken McKenzie, entitled Altering the Tax Min in Alberta, said that a 5% provincial sales tax (PST) —which would still be the lowest sales tax in Canada—"could generate $5 billion in revenue" for Alberta.[4]

McKenzie's report, which was released on September 5, also recommends keeping corporate tax cuts and the "progressive tax rate instead of going back to the flat rate."[5]

A September 4 article compared the report to the rhetoric and political arguments used by Ralph Klein, who was premier of Alberta from 1992 to 2006, and who eliminated the deficit by implementing "massive cuts to government spending and services" at the "expense of hospitals, roads, light rail transit lines, and investing in better health-care services or education."[6] Political analyst David Taras of Mount Royal University, who admired Klein's "fiscal achievements early in his career", in a 2013 article, questioned Klein's elimination of the provincial deficit in the "midst of a booming economy in 2004" when interest charges were relatively low.[7]

References
  1. MacKinnon, Janice; Mike Percy; Kim Henderson; Bev Dahlby; Dave Mowat; Jay Ramotar (August 2019). MacKinnon Report on Alberta's Finances (PDF) (Report). Treasury Board and Finance. p. 82. Retrieved September 7, 2019. An independent panel of experts reviewed Alberta’s finances and provided recommendations to bring the budget back to balance.
  2. Graveland, Bill (September 3, 2019). "Alberta panel says savings to be found in health, education changes". Global News via Canadian Press. Retrieved September 7, 2019.
  3. "National Health Expenditure Trends". Canadian Institute for Health Information.
  4. MacVicar, Adam (September 5, 2019). "Sales tax needed to help balance Alberta's budget". Global News via Canadian Press. Retrieved September 7, 2019.
  5. Mason, Kenny (September 5, 2019). "Alberta should bring in a PST: report". City News. Calgary. Retrieved September 7, 2019.
  6. Thomson, Graham (September 4, 2019). "MacKinnon report gives Kenney roadmap for Klein-style cuts". CBC News. Retrieved September 7, 2019.
  7. Martin, Sandra (April 5, 2013). "Ralph Klein, 70: The man who ruled Alberta". Globe and Mail. Retrieved September 27, 2014.
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