Alberta premier tells municipalities there's no funding for new projects

EDMONTON – Alberta’s premier is warning municipalities that the cash-strapped province is going to have to refuse a lot of funding requests.

Rachel Notley has told delegates at the Alberta Urban Municipalities Association that they need to lower their expectations.

She says it’s great if municipalities want innovative, new projects, but that they’ll have to decide what other funding can be pulled to pay for them.

Notley says that with a $10.9-billion deficit, the province will keep spending growth to about two per cent, with priority given to health and education.

Alberta is being hammered by low oil prices, and unemployment and office vacancy rates are rising.

The province’s estimated debt is expected to climb to $58 billion by 2019.