Strategic Transportation Infrastructure Program Funding

Date:

November 2023

Expiry Date:

December 2026

Current Status:

Intent Not Met

Sponsors:

Thorhild County

District:

3 – Pembina River

Year:

2019

Convention:

Fall

Category:

Transportation and Infrastructure

Status:

Intent Not Met

Vote Results:

Carried

Preamble:

WHEREAS municipally-maintained roads and bridges are vital for the transportation of goods and services related to the continuation of Alberta’s strong economy; and

WHEREAS Alberta continues to experience growth requiring constant improvement and new construction of aging municipally-controlled bridges; and

WHEREAS the cost to construct or replace roads and bridges form a significant portion of rural municipal infrastructure deficits, ranging from $500,000 to $1 million per kilometer of road or bridge structure; and

WHEREAS the Local Road Bridge Program stream of the Strategic Transportation Infrastructure Program may be utilized to upgrade municipal bridges;

Operative Clause:

THEREFORE, BE IT RESOLVED that the Rural Municipalities of Alberta advocate to the Government of Alberta to substantially increase the funding available for the Local Road Bridge Program stream in the Strategic Transportation Infrastructure Program.

Member Background:

Rural roads and bridges are not only vital to local communities but serve as important arteries to help Alberta’s economy grow by connecting natural resources to national and international transportation corridors. Rural municipalities manage the majority of Alberta’s roads (77% or 173,226km) and bridges/culverts (61% or 8,468 km). At a cost of between $500,000 and $1 million to construct one kilometer of road and a similar cost to construct a bridge or culvert, the costs of managing transportation infrastructure form a significant portion of rural municipal expenses. Many of these bridges are currently beyond their useful life.

Resource roads, local road bridges and community airports are critical to the viability of rural communities and Alberta’s industrial and resource development. The Strategic Transportation Infrastructure Program (STIP) provides rural municipalities with a dedicated funding source for this infrastructure and should remain adequately funded and accessible to rural municipalities. While the 2023-2024 provincial budget included a modest increase in the STIP program from $35 to $43 million, it still falls well short of the need for rural bridge and infrastructure funding. The Local Road Bridge Program stream of the STIP grant program averaged $15.5 million in the previous two years.

Many rural municipalities work to properly monitor the age and condition of infrastructure and develop a long-term asset management plan for maintenance and replacement. To support continued long-term asset management practices and necessary infrastructure investment, appropriate provincial funding to enable rural municipalities to continue to manage and maintain infrastructure that supports the transportation network that keep Alberta’s economy and people moving. Given Alberta’s recent economic growth and the role of rural roads and bridges in supporting resource industries, STIP funding should be increased so that municipalities can continue to care for the majority of Alberta’s infrastructure, without increasing the financial burden on rural areas.

 

RMA Background:

RMA has no active resolutions directly related to this issue.

Government Response:

Alberta Transportation and Economic Corridors

Budget 2023 maintained our commitment for Strategic Transportation Infrastructure Program (STIP), with a total of $93.2 million in funding over three years. The department approved $37.5 million in STIP grants, which supports 69 local road, bridge, and community airport projects across the province, 58 of which were local Road Bridge projects totaling $28.3 million. It is important to note that STIP is oversubscribed due to aging infrastructure, and we expect demand to continue. TEC recognizes that increasing STIP funding is critical to fulfilling the department’s mandate to work with municipalities to assess and improve strategic infrastructure, including bridges. We continue to advocate for additional funding under STIP for local transportation infrastructure. Any funding decisions as part of Budget 2024 will be communicated in early 2024.

Development:

The Government of Alberta response speaks to the funding allocated and approved projects in 2023 through the Strategic Transportation Infrastructure Program. In Budget 2024, STIP funding increased slightly from $43 million to $43.5 million; In Budget 2025, STIP funding decreased slightly to $42.3 million (or $127 million over three years beginning in 2025). The STIP program remains heavily oversubscribed throughout 2025, and rural municipalities still need additional funding streams in order to maintain crucial infrastructure.

Rural infrastructure funding needs will continue to grow. RMA’s Infrastructure Deficit Report, released in November 2024, quantified Alberta’s overall rural municipal infrastructure deficit at $17.25 billion. The report projects that the deficit will grow to $40.71 billion in 2028 based on current provincial funding available for rural municipal infrastructure projects. The report also found that a one-time investment to return the portfolio to good condition would have a return on investment of approximately 3.3 years due to the lower annual maintenance costs required to maintain the network at an optimal condition level.

RMA has engaged with the Minster of Transportation and Economic Corridors to review STIP funding criteria to identify areas of improvement to align with infrastructure and economic development goals. Substantial STIP funding increases are necessary to avoid the worst results of from a crumbling infrastructure. Failure to adequately provide for repair or replacement of infrastructure across Alberta poses a significant risk to industry and communities alike.  As a result, this resolution’s status remains as Intent Not Met and will be re-evaluated based on 2025 funding allocations. RMA will continue to advocate and work with the GOA for better funding solutions for infrastructure repair and replacement moving forward.

Provincial Ministries:

Transportation and Economic Corridors

Provincial Boards and Organizations:

None reported.
Federal Ministries and Bodies:
None reported.

Internal Notes:

None reported.