Groups release spending cut recommendations to Calgary City Hall
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Summary
A City of Calgary Pre-Budgets Report by the Canadian Taxpayers Federation and the Institute for Public Sector Accountability and Save Calgary outlines 21 ways to cut council spending in 2021. The report was released on a windy day in Calgary on City Hall steps.
Transcript
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I'm chatting with Franco Terrizano, the Alberta Director of the Canadian Taxpayers Federation.
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Franco was out doing a press conference on a very windy, cold, miserable day on City Hall
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steps here in Calgary with a number of other groups with a number of proposals on how to get
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spending under control and back in order in City Hall. So Franco, could you tell us a little bit
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more about the other groups that joined you guys out there today?
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Yeah, absolutely. Well, Corey, thanks so much for having me on. And I was joined by
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our other co-producers of the report, including the fine folks from the Alberta Institute, Common
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Sense Calgary. We had the Institute for Public Sector Accountability and Save Calgary. And the
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report we put out today was a City of Calgary pre-budget report, which is coming ahead of their
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November budget deliberations. And it was titled 21 Ways to Cut Council Spending in 2021. And the
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whole point of the report is to show like, look, there is still a ton of fat that City
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Councillors need to cut at City Hall so that they can lower property taxes. Because what we've seen
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over the last five years is we've seen families and businesses tighten their belts, but we've seen
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spending increase at City Hall every single year since the downturn began at the end of 2014.
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Yeah, it was probably hard just to keep it down to 21 items, I imagine. Which ones stood out among
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those on the top? I mean, you know, you can hope that they'd attack all 21. But if they were going
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to take, say, even five of those recommendations, which ones really are big spending items that we
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need to examine Calgary now? Well, I think one of the most important things that we need City Council
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to do is we need them to start showing leadership and start acknowledging the real economic hardships
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that are facing Calgarians and that are facing their taxpayers. So we need to see leadership from
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the top. And that all starts with Mayor Nenshi. And that's why we're saying it's time finally for
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Mayor Nenshi to scrap his second pension. Along with that second pension, we're also calling for a
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scale back of the regular council platinum pension. We're talking about cutting councillors transition
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allowances, which they get when they retire. And of course, along with councillors pay, we're also
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looking at the golden perks that are just unfair that a lot of City of Calgary employees are getting.
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And I'm talking about the second and third pensions that a lot of Calgary City employees are receiving.
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And, you know, unfortunately, Calgary taxpayers were the only taxpayers in a major Canadian city that have
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the dubious honour of paying for a second pension for our mayor and paying for three pensions for
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some of our city employees. Yeah, it's kind of a bizarre layer on layer. I think not enough people
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realize just how much some of that spending is going. So as you're speaking, I'm gathering though,
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you're almost giving them some advice if you want to make those cuts, because the real big spending are
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the city employees out there on a number of levels, but you want to lead by example. I mean,
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we've got some very well compensated councillors and the mayor who could tighten their own belts
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before telling others to. Have you have any councillors or anybody in City Hall responded yet
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to your release? Well, I mean, our mayors and our councillors, they are making a significant
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amount of money and they do need to show leadership at the top before they can go to the bigger ticket
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item, which is the labour cost more broadly. Let's just look at Mayor Nenshi's salary. He's making
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about $200,000 in salary. And guess what? That's more money than the Premier of Alberta,
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Jason Kenney is bringing in. So clearly we need to see savings there on the salary and we need to
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see leadership because then they have to go to our city employees, to the unions and say, look,
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everyone is tightening their belts right now. We need government employees to start sharing in
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the tough times. And, you know, we found research from Second Street who did this research and they
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saw that it's been decades, at least decades with no pay cuts for our city unionized government
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employees. So far, you know, we haven't got any feedback yet from the councillors and the mayors.
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I'm sure we're going to be getting some feedback. But most importantly, we're putting out this
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information so that taxpayers, so that Calgarians can see that, look, there is still a ton of fat
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that our city councillors need to cut. And so that us taxpayers, us Calgarians can really hold their feet
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to the fire. Yeah. So we're entering into an election year and that's when our city councillors and
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mayor often suddenly discover fiscal responsibility, at least for six, seven months as they have to go
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to the polls. But it seems once they get elected, quite often they go right back to the old ways.
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Are there measures that could hopefully implement some spending restraint and responsibility that
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would be long lasting rather than just once every four years? Yeah, there's two accountability measures
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that we we've been pushing for. Now, they weren't in this report specifically because we're just
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looking at places for them to cut spending. But here's the two here's the two measures that that
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we would like to see on top of all the spending cuts. We'd like to see some actual spending limitations,
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right, so that it would actually limit the amount that councillors and the mayor can spend every single
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year. So that would be very key. And not only do you want to see that at the city of Calgary, but that
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would be great also at the provincial level and also at the federal level, too. And then on top of that,
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a great tool for accountability would be recall rules. And of course, that would that would come
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down at the provincial level. We've already heard Premier Kenney and his UCP. They've promised recall
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rules for their MLA's, but they've also promised to extend those recall rules to the local level.
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And that would give taxpayers and give us citizens the power to hold our elected officials accountable
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more than once every four years when the election rolls around. That would be a great way,
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because as I said, it seems to be that four year pattern of irresponsibility. And I guess
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some of it's up to voters to put the candidate's feet to the fire in this next 12 months to make
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sure that they commit to responsibility, but the budget deliberations are coming up right away. So this
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is a pretty prime time for yourself and those other groups to get that out there. So where could people
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find more information about the entire plan and the 21 items that you've laid out and where they can go from
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there? Yeah, well, you can you can find all of that information at taxpayer.com. Go to that website,
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click on our newsroom and you'll see the release there, which includes the report. And Corey,
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you know, one of the key recommendations was right off the top. We recommended City Council not only look
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for those specifics that we've been talking about, but also look at bringing spending back to 2014 levels
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of spending. That is that is the key, because since the downturn began in 2014, well, everyone's been
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tightening our belts. Well, everyone's been trying to find efficiencies. We've saw that City Calgary
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spending have increased by more than 400 million dollars. So we've seen large spending increases
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and that followed years of higher spending. So that's one of the key recommendations that I wanted
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to share with you. But please go on taxpayer.com, click on the newsroom and you'll be able to find the
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report there. Great. Well, thank you, Franco. Thanks for the good work, keeping these items up there for our
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aspiring councillors and mayors. And hopefully it has an impact on them in these budget deliberations.
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I'm sure we'll talk again soon to see how that campaign's been going for you.
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Well, perfect. Thank you so much for having me on, Corey.