EDMONTON - Alberta Premier Alison Redford is dropping more hints about a tough budget, but no hard facts on where the axe might fall.
Redford said Monday the recent drop in oil prices is costing her government $75 million in expected revenue each day.
"We know, as Albertans, that we go through volatile times, and this is certainly one of them," she said following a meeting with her government caucus.
"The work that we’re doing right now with caucus, really productive meetings today, is to talk about what some of those tough choices might be."
Redford said Albertans want the government to live within its means while maintaining communities, health, education and infrastructure.
With those areas making up the lion's share of government spending, Redford isn't saying where the cost savings might come from.
But she said there will not be across-the-board spending cuts.
There is no word on when the government will deliver its budget.
Redford's warnings have some of the opposition parties speculating about what is to come.
Alberta Liberal Laurie Blakeman said the government may have to break or delay making good on its promise to increase Municipal Sustainability Initiative funding.
“The Tories have a long history of promising municipalities everything under the sun, and then failing to deliver,” said Blakeman.
New Democrat finance critic Dave Eggen said instead of cutting spending the government should look at increasing revenue.
He said the government could easily do this by raising energy royalties, hiking corporate taxes and replacing the 10 per cent flat personal income tax with a progressive system where wealthy people pay more.
"The point is the government has failed to manage its projected revenues in an honest way," Eggen said.
"They have painted themselves into a corner here and the people who will suffer will be regular Albertans who will see program cuts."
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Here's a breakdown of how the Alberta government parceled out spending last year. Information provided is <a href="http://finance.alberta.ca/business/budget/2012-13-Expense-by-Function.pdf">Expense by Function estimates</a> provided by the Alberta government.
7.1 per cent of the budget went to General Government - Includes a broad range of additional services including funding for parks and recreation, cultural activities, housing initiatives, economic development, costs to run government and debt servicing expenses (interest payments).
1 per cent of the budget went to Environmental funding - Provides for environmental monitoring and protection, including pollution control, water supply management, air quality control, garbage collection and waste disposal and a host of other environmental programs and initiatives.
Regional Planning and Development
2.7 per cent of the budget went to Regional Planning and Development - Includes amounts for planning and regional development and a portion of the grants made directly to municipalities, including the Municipal Sustainability Initiative.
Protections of Persons and Property
3.9 per cent of the budget went to Protections of Persons and Property - Includes amounts for the protection of persons and property, including amounts for policing and security, the provincial court system, correctional and rehabilitation services, firefighting, labour relations and a host of other regulatory measures.
Transportation, Communications and Utilities
4. 6 per cent of the budget went to Transportation, Communications and Utilities - Includes amounts related to road, rail and air transport and maintenance, public transit grants, as well as pipelines, utilities and telecommunications networks.
Agriculture, Resource Management and Economic Development
5.4 per cent of the budget went to Agriculture, Resource Management and Economic Development - Includes amounts for farming support programs, food supply quality monitoring and protection, weed and pest control, crop insurance programs, natural resource management, economic and rural development, irrigation and veterinary care.
11.5 of the budget went to Social Services - Includes social assistance (e.g. AISH), pension benefits, and care for children, seniors and other vulnerable Albertans.
22.9 per cent of the budget went to Education - Includes Early Childhood Services to Grade 12, as well as post-secondary education, skills training and the construction and maintenance of educational facilities.
40.9 per cent of the budget went to Health - Consists of expenses incurred to ensure necessary health services are available to Albertans and includes funding for hospitals, medical and preventative care and the construction and maintenance of provincial health facilities.