It’s no secret – Alberta’s population is growing rapidly, and there are more people relying on municipal infrastructure such as recreation centres, roads and other public spaces than ever before. Being able to meet the needs of the province’s rapidly growing population is a top priority for Alberta’s government, and this work begins with ensuring municipalities are well-positioned to support their residents.
To strengthen municipalities’ ability to meet the needs of Alberta’s rapidly growing population, Budget 2025, if passed, increases capital funding through the Local Government Fiscal Framework (LGFF) by more than 13 per cent. This increase will provide municipalities with a predictable and reliable source of funding to help build, maintain and modernize the public infrastructure their residents depend on.
“Alberta’s municipalities are vital to our province’s identity and success so we’re supporting their growth and prosperity. This year’s allocation of LGFF funds was predictable and will ensure municipalities can plan and execute their local priority infrastructure needs. This will put our municipal partners in the best position to advance the public infrastructure that their residents require.”
Alberta’s government introduced LGFF to provide a more predictable, legislated municipal infrastructure funding model that is tied to provincial revenues, as municipalities had requested. This means when provincial revenues increase, municipal funding will also increase three years later. This change ensures that municipalities can predict how much funding they will receive through LGFF a year and a half in advance so they can plan their capital expenditures with certainty.
“We are pleased to see LGFF funding increase by $98 million in fiscal year 2025-26, in accordance with the agreed-upon formula. Our 264 member communities appreciate every dollar they receive from the provincial government for municipal infrastructure projects, especially as Alberta’s population continues to grow by leaps and bounds. We look forward to continuing our discussions with the Government of Alberta about how best to grow municipal infrastructure investments to meet the needs of our growing communities.”
In 2025, LGFF capital funding is increasing from $722 million to $820 million, providing municipalities across the province with more resources to advance their local priorities. In 2026, LGFF funding will decrease about 2.5 per cent to $800 million, and is projected to then increase again in 2027 to about $871 million.
“The Local Government Fiscal Framework is an important resource for mid-sized cities across the province in our capital planning, and we appreciate the Government of Alberta’s increase in LGFF in Budget 2025. Mid-sized cities look forward to continuing to work collaboratively with the government to address critical infrastructure needs in our growing communities.”
Budget 2025 is meeting the challenge faced by Alberta with continued investments in education and health, lower taxes for families and a focus on the economy.
Quick facts
- The Local Government Fiscal Framework Act was passed in the Alberta legislature in December 2019.
- The LGFF provides funding for local infrastructure priorities in cities, towns, villages, summer villages, municipal districts and counties, and Metis Settlements across Alberta.