Edmonton Social Planning Council

Category: Levels of Government: Alberta

  • Submission to the Government of Alberta’s Affordable Housing Review Panel

    Submission to the Government of Alberta’s Affordable Housing Review Panel

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    Note: this is a written submission the Edmonton Social Planning Council provided to the Government of Alberta’s Affordable Housing Review Panel. Submissions are being accepted until August 31, 2020. More information on the panel and how to contribute a submission is available on their website.

    August 13, 2020

    Mickey Amery, chair of the Affordable Housing Review Panel
    Affordable Housing Review Panel c/o
    Ministry of Seniors and Housing
    404 Legislature Building
    10800 – 97 Avenue
    Edmonton, AB T5K 2B6

    Dear Mickey Amery, chair of the Affordable Housing Review Panel:

    Reference:    Written Submission to the Affordable Housing Review Panel


    Thank you for the opportunity to contribute a submission to the Affordable Housing Review Panel. The Edmonton Social Planning Council is pleased to see this work being conducted by the provincial government. The Council has been operating in Edmonton for 80 years, and the issue of affordable housing has been a source of concern for our organization for much of our history.

    Since our work focuses on community research in the areas of low-income and poverty, access to affordable housing is indispensable towards building a community in which all people are full and valued participants. It is important that any approach governments take towards the affordable housing portfolio – be it municipal, provincial, and federal – prioritize a human rights-based approach where access to safe and stable housing is an integral component of providing an adequate standard of living to all Albertans.

    When it comes to affordable housing, our research has identified excessively long waits for affordable rental accommodation as one of the most intractable challenges facing low-income Edmonton households. These households are waiting to receive assistance for which they qualify for and are legally entitled to. Funding should be sufficient to allow all households who qualify based on their household income receive rental assistance on a timely basis, similar to what is currently the norm for existing programs like child benefits, retirement benefits, child care subsidies, and income support.

    Our recent report (which is also attached to our submission), The High Cost of Waiting: Tenant-Focused Solutions to Enhance Housing Affordability, provided comprehensive research on the subject by conducting a literature review, interviews with key informants with expertise in the affordable housing landscape in Alberta, as well as focus groups involving a number of households who were on these wait lists. The report also provides a number of recommendations governments can adopt to address this situation, which includes a number of measures for how a housing benefit can be designed, measured, and monitored to achieve the goals of making housing more affordable and accessible.

    Focus group participants (many of whom had been waiting for years) spoke candidly about the financial and emotional hardship the process has put them through and spoke of the real risk they could end up homeless without a roof over their heads.

    We found that strong support was expressed for a cost-matched federal/provincial housing benefit. The federal government’s proposed Canada Housing Benefit (which is a portable rent subsidy) was met with almost universal approval. This benefit would deliver an average of $2,500 per year to qualifying households, which would expand the number of Edmonton households receiving direct rent subsidies. A joint federal-provincial rent subsidy program with full and fair funding commitments from both orders of government could be set up so that all who apply and qualify for the benefit receive it on a timely basis. In order for it to be effective, it would need equal cost-matching by the provinces and the federal government delivering the benefit through the Canada Revenue Agency in single monthly payments to qualifying households.

    Portable housing benefits have been identified by major Canadian affordable housing organizations as an indispensable component of ending homelessness and addressing affordability challenges. Portability means basing rental assistance on household income, rather than tying it to a specific rental unit or a building. This enables prospective tenants to obtain rental accommodation more quickly rather than having to wait for affordable units to become available. It also provides renters greater choice with regards to location and building type based on their own needs and preferences. Our research going back as far as 2007 has shown many low-income renters have expressed a preference for receiving subsidies directly rather than having subsidies tied to specific units and buildings. Those who receive a portable housing benefit experience long-term improvements to their quality of life.

    A portable housing benefit would prevent eviction due to non-affordability of market rents and help those precariously housed to stay housed. This would need to be correctly applied to the Edmonton context to complement existing programs and approaches. Adequate and stable funding helps reduce waitlists for affordable housing and effectively prevents homelessness.

    When it comes to affordable housing, the ideal role of government is to provide a robust safety net, especially when it comes to supporting Albertans in need of housing. This requires full investments in affordable housing programs. Direct to rent subsidies in its current form have not been able to keep up with high demand and high need.

    While funding efforts to end homelessness has increased significantly over the last 10 years (this has enabled the development of an extensive province-wide infrastructure to deliver Housing First programs), funding for rental assistance for low-income households has been largely frozen for many years.

    Albertans who experience homelessness and poverty face a number of other challenges, which include mental illness, addictions, domestic violence, aging, physical and mental disabilities, and more. These struggles require targeted support to effectively rehouse participants. Supportive housing – where individuals can access services linked to their housing, such as job training, or mental health treatment lead to long-term socioeconomic improvements for participants – is integral to this. Vulnerable individuals who struggle to retain safe, adequate, affordable, and stable housing often end up interacting with other parts of the system, such as the justice system, emergency health services, law enforcement, and others. Governments investing in housing programs and their supports would see decreased costs and pressures on the health care and criminal justice system. In short, investing in affordable housing produces positive dividends which includes reduced costs in other areas of government spending. This measure is not only fiscally prudent but also brings us closer to fully realizing a more just and equitable society.

    While a portable housing benefit could solve a lot of affordability and accessibility issues, this also will need to be balanced with making sure the supply of affordable housing units continues to be made available. The utilization of vacant, surplus, or underutilized sites represents a significant opportunity to increase affordable housing supply and decrease waitlists. In the city of Edmonton alone, 850 additional units could be created on 5 large city-owned sites under current zoning. Vacant or underutilized buildings could be redeveloped or repurposed to increase the supply of affordable housing, providing beautification and activation of these spaces that can improve the neighbourhood as a whole.

    An example of such a program is the Raising the Roof’s Reside initiative in Toronto, which is a pilot program that provides individuals at-risk of homelessness with affordable and safe housing in a repurposed vacant home. This has been shown to be effective at decreasing affordable housing waitlists by using vacant homes for affordable housing. The project partners with the Building Up enterprise that trains youth to complete the renovations, helping them gain valuable skills. The renovated homes are leased to non-profit housing organizations to use as supportive or long-term housing. This model represents a significant opportunity to increase the quality and supply of affordable housing in a cost-effective manner.

    In closing, investing in affordable housing programs with a human-rights approach is not only a benefit to vulnerable individuals finding stable housing, but it benefits communities as a whole. The standard of living and quality of life improves markedly, helps to improve neighbourhoods, decreases the burden on health care and criminal justice systems, and reduces social disorder. The Edmonton Social Planning Council is hopeful that common-sense actions like these will help re-build Alberta after a challenging period of economic uncertainty associated with the decline in oil prices and the COVID-19 pandemic.

    Our office continues to be available should you wish to engage on this matter further.

    Regards,

     

    Susan Morrissey, Executive Director
    Edmonton Social Planning Council

     

    Attachment(s): Kolkman, John (2020). “The High Cost of Waiting: Tenant-Focused Solutions to Enhance Housing Affordability.” Edmonton Social Planning Council.

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  • fACT Sheet – 2020 Alberta Provincial Budget

    fACT Sheet – 2020 Alberta Provincial Budget

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    Introduction
    The 2020-21 Budget, titled A Blueprint for Jobs, covers the time period April 1, 2020 until March 31, 2021. It is largely based on the previous budget introduced in October 2019.

    The government fiscal plan details a 2.5% reduction in spending over the next three years, or $1.3 billion lower than 2018-19 levels. Since Alberta’s inflation and population growth is increasing 3.5% per year, in real terms this represents a spending reduction of over 12% over the next 3 years per Albertan.

    While alleged over-spending compared to other provinces is highlighted everywhere in the budget documents, buried in the fine print is the tax advantage Albertans have compared to their fellow Canadians. If Alberta had the same tax structure as the next lowest taxed province, an additional $14.4 billion in revenue would be generated in 2020-21. This would be a $1 billion increase from a year earlier.*

    Revenue Measures
    Revenue is forecast to decline from $50.9 billion in 2019-20 to $50.0 billion in 2020-21, and thereafter increase to $58.1 billion by 2022-23. This is due to an anticipated uptick in the Alberta economy.

    The repeal of the carbon levy will reduce provincial revenue by $1.3 billion. The corporate tax rate will decrease from 12% to 8% over a period of two and a half years. Conversely, personal income taxes will be going up due to exemptions and tax brackets no longer indexed for inflation.

    Child Benefits
    Previously, two programs were designed to support lower- and middle income working families—the Alberta Child Benefit and the Alberta Family Employment Tax Credit. In July 2020, they will be replaced with the new Alberta Child and Family Benefit program. While the base benefit for the lowest income families is being increased by 15%, the benefit will be phased out more quickly as income rises so fewer families will receive the benefit. That’s why the new single benefit will deliver about $40 million less to Alberta families than the two benefits delivered in past years. There is also no stated commitment to index the new combined benefit in future budget years.

    Child Care and Child Intervention
    The Child Care Subsidy has been allocated at $180 million to subsidize child care costs for families in need of licensed or approved child care services. These families must be in low income. An additional $10 million is provided in support of families in licensed child care programs for children with unique and specialized needs. There is no mention of the future of the Early Learning and Child Care pilot (also known as the $25 a day child care program). Total funding for Child Care Subsidy and Supports is expected to decrease by $14 million.

    The provincial government is working to encourage the creation of additional child care spaces by reviewing the Child Care Licensing Act.

    Funding for Child Intervention is being maintained from previous years, with the exception of Kinship and Foster Care Support which will receive an additional $14 million. The budget identifies prioritizing kinship care as a cost-effective intervention with better developmental outcomes for the child.

    Affordable Housing and Homelessness
    Operational funding for affordable housing and homelessness programs (which fund adult and women’s emergency shelters, and Housing First programs) is being reduced from $197.1 million in 2019-20 to $195.9 million in the 2020-21 budget year. This can be considered a shortfall, as according to the Non-Market Housing Provider Working Group, an additional $1.1 billion was required for Edmonton alone in order to meet targets of building 5,000 affordable housing units over five years.

    A planned 24% reduction to the Rental Assistance Program and a 3.5% reduction in operating budgets for housing management bodies like Capital Region Housing seem to be going ahead. This is despite an ongoing provincial review of rental assistance, and the possibility of federal government contributions to what is supposed to be a cost-matched portable housing benefit.

    Employment and Income Support
    In keeping with the previous 2019 Budget, Assured Income for the Severely Handicapped (AISH), the Alberta Seniors Benefit, Income Support, and Special Needs Assistance programs continue to be de-indexed from the Consumer Price Index (CPI). This means benefits will not keep up with the rising cost of living.

    A full program review will be undertaken to address the rapid growth of costs for AISH, Persons with Developmental Disabilities, and Family Support for Children with Disabilities. A $232 million reduction in funding for Employment and Income Support (social assistance) is expected between now and fiscal year 2022-23 due to expected reductions in caseloads as a result of an improving economy.

    A series of programs, such as the Fairness for Newcomers Action Plan, will be designed to help immigrants with foreign credentials rapidly obtain employment that matches their skill levels. Other initiatives include a bridge to permanent residency through the Alberta Immigrant Nominee Program, and fast-tracked immigration for highly qualified students at post-secondary education institutions through the Foreign Graduate Entrepreneur Program.

    Addiction and Mental Health
    The budget commits an additional $100 million to a new Mental Health and Addictions Strategy and $40 million to respond to the opioid crisis over the next three years. This will provide up to 4,000 more publicly funded residential treatment spaces, and provide increased patient access to addiction counsellors and therapists at opioid dependency clinics. Details of this new addictions strategy and how the money will be allocated continue to be uncertain at this point

    Drug Program Funding
    The Biosimilar Initiative will expand the use of biosimilar drugs, transitioning patients from higher cost biologic medications to generic versions by July 1, 2020. The Seniors Drug Program will no longer cover spouses and dependents younger than 65 years of age as of March 1, 2020, and income tested deductibles will be introduced later this year for higher income beneficiaries.

    Community Supports and Family Safety
    (CSFS)
    Funding for Family and Community Support Services is being maintained at the same $100 million level as was budgeted in previous years. There is $135 million budgeted in 2020-21 for CSFS, which is an increase from $125 million from Budget 2019. This includes a new $7 million Civil Society Empowerment Fund to support non-profit organizations and charities to address pressing social challenges, and an additional $1.2 million for sexual assault services.

    If Alberta had the same tax structure as the next lowest taxed province, an additional $14.4 billion would be generated.

    The Edmonton Social Planning Council is an independent, non-profit, charitable organization focused on social research.
    This fACT Sheet, prepared by the Edmonton Social Planning Council, is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.
    Edmonton Social Planning Council
    #200, 10544 – 106 Street, Edmonton, Alberta, T5K 1C5

    www.edmontonsocialplanning.ca
    @edmontonspc
    *Government of Alberta. (2020). Fiscal Plan, 2020-23, pp. 169

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  • 2019 Alberta Provincial Budget Fact Sheet

    2019 Alberta Provincial Budget Fact Sheet

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    Download: 2019 Alberta Budget fACTsheet

    Introduction

    The 2019 budget, which runs until March 31, 2020, is titled A Plan for Jobs and the Economy. The main priorities it identifies is creating jobs and reducing the deficit. We are now almost 7 months into the 2019-20 budget year, so many of the big changes announced will not take effect until next spring’s budget covering the 2020-21 fiscal year which starts on April 1, 2020. The government fiscal plan will see a 2.8 per cent reduction in spending over the next four years or $1.3 billion lower than 2018-19 levels. Since Alberta’s inflation and population growth is going up about 3.5 per cent per year, in real per capita terms this represents a spending reduction of 17 per cent. To address this spending reduction, the size of the public service is expected to shrink by 7.7 per cent. The reductions will be achieved largely through attrition, although some layoffs will also occur.

    Revenue Measures

    Revenue is forecast to remain flat at $50 billion in 2019-20 and $50.1 billion in 2020-21 and will increase to $57.5 billion in 2022-23. A modest but realistic oil price outlook, along with market access issues, impede revenue growth over the next two years. In addition, the carbon levy from the previous NDP government was repealed as of May 30, 2019. The corporate tax rate will decrease from 12 per cent to eight per cent over a period of two and a half years. Conversely, personal income taxes will be going up due to exemptions and tax brackets no longer being indexed for inflation.

    Child Benefits

    The Alberta Child Benefit and the Alberta Family Employment Tax Credit, two programs designed to support lower- and middle-income working families will be replaced with a new Alberta Child and Family Benefit program starting in July 2020. While the base benefit for the lowest income families is being increased by 15 per cent, the benefit will be phased out more quickly as income rises so fewer families will receive the benefit. That’s why the new single benefit will deliver about $40 million less to Alberta families than the two benefits delivered by the previous government.

    Affordable Housing and Homelessness

    Funding for affordable housing and homelessness is being maintained for the balance of the 2019-20 fiscal year. Starting next year there will be a 24 per cent reduction to the Rental Assistance Program and a 3.5 per cent reduction in operating budgets for housing management bodies like Capital Region Housing. Partnerships will be pursued with housing management bodies and private sector to reduce the public costs of affordable housing. Eight million dollars is also being made available to the Hope Mission to build a new emergency shelter in Edmonton.

    Childcare and Child Intervention

    Funding for early intervention programs will be reduced to $91 million in the 2020-21 compared to $104 million this year.  Child intervention funding is being kept at the same level as this year’s funding for the following three years without adjustments for caseload growth or inflation.

    The Early Learning and Child Care centres (aka $25 per day child care) pilot project will continue until the end of their three-year terms and thereafter reviewed with no assurance that they will be continued or expanded.

    Employment and Income Support

    Assured Income for the Severely Handicapped (AISH), the Alberta Seniors Benefit, Income Support, and Special Needs Assistance programs are being kept at their current levels, however they are being de-indexed from the Consumer Price Index (CPI). This means they will not be kept up with the rising cost of living.

    A full program review will be undertaken to address the rapid growth of costs for AISH, Persons with Developmental Disabilities, and Family Support for Children with Disabilities. A $193 million reduction in funding for Employment and Income Support (social assistance) is expected between now and fiscal year 2022-23 due to expected reductions in caseloads due to an improving economy.

    The Summer Temporary Employment Program (STEP), which provides funding to employers to hire high school or post-secondary students for summer jobs, will be eliminated after the 2019 program year. This will have a detrimental impact on students seeking to build their job-related experiences and skillsets when pursuing careers in their field of study.

    Addiction and Mental Health

    Over the next four years, an additional $100 million will go towards a mental health and addiction strategy, $40 million for an opioid response, $20 million for palliative care, and $6 million for a new sexual assault hotline.

    Seniors Drug Coverage

    Coverage for non-senior dependents including spouses under seniors’ prescription drug coverage is being ended. Income testing may be introduced for seniors’ drug coverage.

    Community Supports and Family Safety (CSFC)

    There is $125 million budgeted for CSFC for fiscal year 2019-20 which will increase to $134 million in the next three years. The Family and Community Support Services (FCSS) budget has been maintained at the same level during this time.

    K-12 Education

    School nutrition programs will see a 20 per cent increase after earlier facing the threat of elimination. However, the school fee reduction program is instead being eliminated.

    An estimated additional 60,000 children are expected to enter the K-12 education system during the next four years.  However, education funding is being kept at the same $8.2 billion level. Neither inflation nor enrolment growth is being funded.

    Affordable Transportation

    The low income transit support pilot program, first introduced in 2017 in Edmonton and Calgary, will be extended to support Albertans in need of public transportation at $9.5 million per year. This enables economic participation and improves the quality of life for low-income Albertans. The government fiscal plan will see a 2.8 per cent reduction in spending over the next four years or $1.3 billion lower than 2018-19 levels. Since Alberta’s inflation and population growth is going up about 3.5 per cent per year, in real per capita terms this represents a spending reduction of 17 per cent. The Edmonton Social Planning Council is an independent, non-profit, charitable organization focused on social research. This fACT Sheet, prepared by the Edmonton Social Planning Council, is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License. Edmonton Social Planning Council #200, 10544 – 106 Street, Edmonton, Alberta, T5K 1C5 www.edmontonsocialplanning.ca @edmontonspc  [/et_pb_text][/et_pb_column][/et_pb_row][/et_pb_section]
  • fACT Sheet: Impact of Benefits on Low and Modest Income Edmontonians

    Living in low income poses significant challenges. Here is a list of a number of programs and benefits implemented by all three orders of government to assist individuals and families.

    ESPC Documents/PUBLICATIONS/A.06.B FACT SHEETS/fACT_Sheet_Impact_of_Benefits_August_2019.pdf

  • 2018 Provincial Budget fACT Sheet

    The 2018 budget is titled A Recovery Built to Last and prioritizes economic and job diversification, protection of vital public services, and returning government spending to balance by the 2023-24 fiscal year. Real GDP for the province has grown 4.5% since 2017 and is expected increase another 2.7% for 2018-19. The yearly deficit is $8.8 billion, down from $10.3 billion in 2017. The Net Debt to GDP ratio is 8.7% for Alberta and remains the lowest in Canada across all provinces. Given the volatility of Alberta’s revenue due to the price of oil, a risk adjustment of $500 million is included for 2018-19 and increases to $700 million in 2019-20 and $1 billion in 2020-21.

    ESPC Documents/Fact Sheets/2018 Provincial Budget.pdf

  • Child Benefit Enhancements Making a Difference for Low Income Families

    Child Benefit Enhancements Making a Difference for Low Income Families
    Prepared by John Kolkman
    Research Associate, Edmonton Social Planning Council

    ESPC Documents/PUBLICATIONS/A.06.G REPORTS/ESPC CHILD BENEFIT ENHANCEMENT 20170930.pdf