Calgary Construction Association Reacts to Government of Alberta's Budget 2024

On February 29, 2024, the Government of Alberta released Budget 2024. As city builders, the Calgary Construction Association is pleased to see significant infrastructure spending in the Calgary region that will promote jobs and economic activity in the construction industry.

Moreover, as Calgary experiences record population growth and increased demand for labour, we note the funding allocated by the Government of Alberta to address the skilled-labour shortage. We are interested in innovative ideas such as the expansion of the Alberta at Work program, which seeks to expand apprenticeship training.

The following is a summary of the potential impacts on Calgary’s local construction industry.

Funding to address the skilled labour shortage

The looming skill shortage is one of the biggest challenges facing the construction industry and its effects are being felt already. Baby Boomers with over forty years of work experience are retiring, and Generation X and Millennials are seeking to step up in their roles. Greater emphasis should be placed on attracting and retaining skilled workers to fill the looming labour gaps in the local industry.

The issue of the labour shortage is felt acutely in Calgary. According to data by Statistics Canada and analyzed by Alberta Jobs, Economy and Trade, it is estimated in Q3 2023 there were 7,560 construction and construction management job vacancies in the Calgary Economic Region – or roughly one-fourth of all job vacancies (30,500 total).

Budget 2024 emphasizes skilled trades that align with previous years' direction. Notably, the Government of Alberta has allocated $10 million for workers through the Alberta is Calling attraction bonus, which provides a $5,000 refundable tax credit to attract out-of-province workers in the skilled trades.

Other key investments Budget 2024 makes include:

• $123 million in capital funding over 3 years for collegiate school programs and public charter schools to enhance school spaces for special programs like Career and Technology labs

• $43 million in capital funding for planning of NAIT’s trades and technology learning facility

• An increase of $102 million over the next 3 years to support 3,200 additional seats and curriculum updates to apprenticeship programs

Housing

As the Government of Alberta endeavours to attract skilled workers, housing market conditions continue to cause concern. The Government of Alberta acknowledges that shelter costs are still rising for the average Alberta because of housing supply issues – predicting that in the near term, upward pressures on rents and housing prices will continue. To address the issue, Budget 2024 allocates:

• $717 million in capital grants over 3 years to advance Alberta’s Affordable Housing Strategy this includes $254 million in new funding to help build about 3,300 new affordable housing units and complete 1,800 units already underway
• $257 million in 2024-25 for the Seniors Lodge, Social Housing, Specialized Housing, Affordable Housing Strategy and Rental Assistance programs will: support high-quality services in lodges and social housing, so that seniors and people in need have homes that keep them safe and secure expand the rental assistance program to support another 550 households in need, for a total of 12,700 renter households

New capital projects in the Calgary region:

As City builders, we understand the importance of creating spaces for Calgarians to thrive – by investing in the community and in areas to live, work and play.

Budget 2024 offers millions of dollars in new funding capital spending on projects across the Calgary region that include:

• $89M to build the Calgary Court of Appeal, and $39M in capital funding for the Calgary Office of the Chief Medical Examiner
• $43M for extensions for Blue Line LRT to the future 88 Street NE station – which is the next step in an eventual CTrain link to YYC International Airport.
• $7.8M on the Arts Commons and Olympic Plaza transformation
• Maintained funding for the Event Centre and community rink.
• $100 million for continued construction of the Springbank Off-stream Reservoir this year.
• $25 million toward the revitalization of Glenbow Museum.
• ?$6 million for the MNP Community Sport Centre.
• $4 million for Telus Spark Science Centre.
• ?$2 million to assess the feasibility of a rail link between downtown and the airport.

For more information, contact:

Frano Cavar

Director of Public Affairs and External Relations, Calgary Construction Association

[email protected]