“It doesn’t paint a pretty picture,” says Horner of budget outlook

CALGARY- “It doesn't paint a pretty picture and to be honest it's not getting all that prettier.”

That’s how Alberta’s finance minister summed up the province’s financial future, as Doug Horner delivered the third quarter fiscal update on Tuesday afternoon.

The pessimism is a drastic difference from just nine months ago, when the budget was delivered with a forecasted deficit of just $886 million. Now, it stands at anywhere from $3.5 to $4 billion.

The so-called bitumen bubble is to blame, one that the government says it didn’t see coming.

“Nobody in other governments, in industry saw this as fast and as hard as it's coming,” Horner said.

To cope, 4,800 government managers will see their salaries frozen for three years, which will save $54 million. 10 per cent of them will also lose their job through attrition.

“Unfortunately, they don't go far enough,” says Wildrose leader Danielle Smith, of the impending cuts. “We know we have a manager-worker ration of one to four, this will take it to one in five. That’s not anywhere close to what you see in the private sector.”

“Simply put, we should budget more conservatively,” adds Liberal MLA Kent Hehr. “By that, I mean we should pay for what we use with corporate and personal income taxes.”

Horner says he isn’t ruling out more wage freezes, or cuts to civil service.

The budget will be unveiled on March 7.

With files from Vassy Kapelos