Health care, schools and roads top capital spending as more bucks flow to Alberta’s regions

By George Lee, Local Journalism Initiative Reporter

Capital projects – the stuff you can see, touch, use repeatedly, walk through or even drive upon — will account for $26.1 billion in provincial spending over the next three years, the Alberta government estimates in a deficit budget released last Thursday.

For regions beyond the two major cities, the question is, How many of those dollars will the government scatter far and wide for roads, hospitals, schools and more?

Regional capital projects worth an estimated $1.74 billion over the next three years are in the budget. But the figure is only part of the story because it doesn’t include new school spending and new highways and bridge work.

Last year, the all-in number for the regions was about $30 million smaller at $1.71 billion.

Nearly half the total, or $819 million, is earmarked for projects in Central Alberta. The biggest ticket item there is $557 million to continue redeveloping Red Deer Regional Hospital Centre.

Another $22 million flows to the hospital for an interim cardiac catheterization lab in partnership with the Red Deer Regional Health Foundation.

Also in the three-year plan for central Alberta is spending worth $21 million to support expansion for Rocky Mountain Clean Fuels Inc. in the creation of synthetic diesel. The Canadian company currently operates a plant in Carseland.

Twinning of Highway 11 from Red Deer to Rocky Mountain House gets $208 million. And $11 million over two years will support the expansion of the Red Deer Regional Airport.

Some portion of $225 million over three years for school projects across Alberta will go towards the planning of an unnamed new school in central Alberta.

Northern Alberta’s share of that same $225-million pot will fund the planning and design of five new school projects. It also gets a share of $264 million in new funding for highways.

Paving the only access route to a trio of remote Alberta Indigenous communities — John D’Or Prairie, Fox Lake and Garden River — is in the budget. So are paving Highway 686 in the Municipal District of Opportunity between Peerless Lake and Trout Lake, and starting design work to extend the highway from Fort McMurray to Peerless Lake.

The province-wide envelope also includes detailed design work to improve safety on Highway 28, which serves Cold Lake’s oilsands and Canadian Forces Base Cold Lake.

Other northern spending is estimated at $723 million and includes $101 million over three years to twin Highway 63 north of Fort McMurray.

Keyano College in Fort McMurray gets $2 million in 2025-2026 for expansion and upgrades “to provide an enhanced learning environment for in-demand programs like nursing and paramedicine to help address labour needs in Alberta’s health care system,” budget documents say.

La Crete Bridge gets $87 million for upgrading and the La Crete Maternity and Community Health Centre gets $80 million. Replacement of the Beaverlodge Health Care Centre receives $189 million.

In the south, planning and design of three new school projects are included in cross-Alberta new spending.

Funding for the first stage of realignment and connection of Highways 2 and 3 near Fort Macleod is part of the cross-Alberta transportation package, representing a long-awaited announcement to help expand trade corridors, improve safety and access land for commercial development.

Twinning of Highway 3 between Taber and Burdett gets $106 million over two years, part of $198 million for southern Alberta that includes funding worth $25 million for Alberta’s new border security initiative. The border money is for equipment and patrol facilities.

The rest of the southern Alberta capital spending falls under health and higher education.

Those numbers are $39 million for the University of Lethbridge Rural Medical Teaching School to address doctor shortages in smaller communities; $22 million for renal dialysis at Chinook Regional Hospital in Lethbridge; $5 million over two years to build intensive care capacity in Medicine Hat and Lethbridge and add a catheterization lab at Chinook Regional Hospital; and $1 million to plan the replacement of Cardston Health Centre.

Overall, the province’s three-year capital plan rises by $1.1 billion to $26.1 billion.

Alberta’s budget anticipates a $5.2-billion deficit to allow spending of $74.1 billion, as the province attempts to weather economic uncertainty stemming from potential U.S. tariffs. The government forecasts deficit budgets for two more years.