Municipal Affairs Minister Ric McIver is defending his government's education property tax hike, saying the rising cost of education necessitates the increase.
He noted municipalities facing cost increases from on-off threats of tariffs from U.S. President Donald Trump are still able to raise property taxes to cover their expenses and added the taxes collected by the education property tax cover just short of a third of the province's total education bill.
"If they think they need to put in a property tax, that's their decision to make, and I hope they're responsible about the way they do it," he said. "With the education property tax, we have increased costs, we've got a lot of new kids here. We've committed to $8.5 billion worth of school construction. That money has to come with somewhere.
"You can't reasonably expect teachers and other staff at schools to show up without getting paid. As we hire more teachers and staff for the schools we're building, those costs will go up. So I think it's completely responsible to reflect that in the property tax levy. Albertans know they pay for 100 per cent of education, 31 per cent on property taxes and the rest on other taxes they pay.
"I think it would be less responsible to say to the schools and school boards that we're going to lay this on your shoulders. I'm not apologizing for funding education."
McIver was at the ABMuni Spring 2025 Municipal Leaders' Caucus on March 6 to speak about the United Conservative Party rolling back a 50 per cent cut to Grants in Lieu of Taxes, or GIPOT funding. The longstanding municipal funding model, which a representative from ABmunis told the Pipestone Flyer has been used in every province except Newfoundland going back several decades, was cut in half as part of the 2019 budget. The 2025 budget brings it back to 75 per cent with promises to return it to 100 per cent next year.
Municipalities have been clamouring to get it back and McIver said the government listened.
ABmunis president Tyler Gandam said the organization was hoping to have a similar discussion with the province about the education property tax, specifically getting the province to stop requiring municipalities to collect it on their behalf.
"This is is the province's tax, the province should be collecting that," he said. "I think we could find better ways to raise taxes and support the education piece.
"The minister is right, things do cost more money —staff, teachers, (educational) assistants — they all deserve to have raises as well. But I think there is a more transparent way to bring money into the program rather than property taxes with municipalities."
NDP shadow critic for municipalities Kyle Kasawkski said there were a lot of 'pet projects' like the Calgary Flames practice arena in Calgary and the Ice District Events centre in Edmonton in the Municipal Affairs capital budget that would be better served as a general fund.
He also noted had the UCP kept the city charters for Edmonton and Calgary in place, both municipalities would have more tools available to them to respond to the trade war.
"Raising property taxes in the education portion feels cruel, because we're in an election year," he said. "Municipalities are now going to have to defend this property tax increase that is being directed by the province.
"If we stood up municipalities and recognized they have a high capacity for governance and make good decisions for local people, we should look at the city charter as something giving municipalities the ability to navigate the situation like we're having with the tariffs."
Earlier in the day, McIver was asked by Chestermere Mayor Shannon Dean if the Alberta government would communicate with ratepayers that the education property tax is a provincial tax, not a municipal one, instead of requiring municipalities to inform property owners themselves.
McIver said he would instruct his ministry to draft a letter explaining that fact, which municipalities can use if they so choose.
Province-wide municipal elections are scheduled for this fall.
