Carbon tax impacting school divisions in northern Alberta, says joint letter

Some northern municipalities have documented their reservations about the carbon tax and its impacts on their school divisions. The Peace River council recently approved a letter from Mayor Elaine Manzer to Ministers Rebecca Schulz and Adriana LaGrange in March to relay their grievances.

Representatives from Peace River, Municipal District of Peace No. 135, Northern Sunrise County, County of Northern Lights, Grimshaw, Berwyn, Manning, Nampa, Clear Hills County, M.D. of Fairview, M.D. of Opportunity, and Fairview met in February to discuss options and decided a joint effort would be prudent.

Manzer said the carbon tax levy for 2023 is $200,000, estimated at $680,000 by 2030. 

“This is a big chunk of money when there’s no reimbursement or mitigating things that they get–They’re not necessarily getting other funds to compensate.”

While rebates are available to households, housing boards, school divisions, municipalities, and similar organizations don’t have the same measures available, said Manzer.

“These costs must then be passed on to our already overburdened ratepayers in the form of higher property taxes and educational requisitions.”

On the carbon tax, the Peace River mayor said, “It’s possibly affecting school programs.” The tax is added to multiple areas in a school division, such as transportation and heating. 

“We adjust our programming levels or service levels to various things, but there’s only so much you can do on that aspect,” said Manzer.

She added this also burdens municipalities. 

“Given current inflation rates, the increasing costs of vehicles, materials and contracted services and provincial funding fluctuations, municipalities and school divisions are already facing tight budgets and limited funding options.”

“We have serious concerns about the cost that the carbon tax is increasingly having on our northern municipalities and local school divisions and its impact on our ability to provide vital services to our communities,” wrote Manzer. 

In 2016, the former Alberta NDP government introduced a provincial carbon tax. In 2019, UCP Premier Jason Kenney removed the provincial carbon tax once in power; however, the federal government directed all provinces to add a carbon tax, or Ottawa would impose a federal one.

In 2019, the federal government introduced a price on carbon pollution, starting at $20 per tonne, increasing to $50 per tonne in 2022. The carbon tax is included in the pump price for gasoline, adding roughly three cents per litre as of April 2022.

This April, Ottawa is increasing the tax to $65 per tonne with successive increases until 2030, reaching $170 per tonne. According to the Parliamentary Budget Officer, the cost of gas will amount to nearly 40 cents per litre.

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