The Central Alberta Economic Partnership (CAEP), a group of about 45 municipalities and other organizations focused on regional economic growth, is dissolving after 28 years following the loss of provincial operating funding.
Board chair Jean Barclay, who is also mayor of Innisfail, told CBC News the board will finalize the process in the coming weeks and send a resolution to member councils for a final vote. The partnership posted word of its decision on its website last week.
Created in 1998, CAEP is one of nine Regional Economic Development Alliances (REDAs) in Alberta. Its work covers attracting investors, developing the workforce and offering resources such as regional economic data dashboards.
Barclay said the province supplied roughly $150,000 a year in operating support until five or six years ago. Grants have since ranged between $75,000 and $125,000, and the province is replacing them entirely next year with grants awarded project by project. Covering the shortfall would have required members to more than double their dues.
"We just looked at the future of CAEP and we thought, this is probably a good time to end it," Barclay said.
Hunter Baril, press secretary for the Ministry of Jobs, Economy, Trade and Immigration, said in an email that phasing out annual funding for legacy REDAs was meant to "level the playing field, ensuring all of Alberta's regional economic development organizations have equal access to economic development funding." He said the province gave CAEP $125,000 a year from 2024-25 through 2026-27 and offered consultant support.
Executive director Paul Salvatore said the cut was hard on many municipalities, which are weighing economic development against costs such as roads, water systems and community services. He said he expects other REDAs to struggle as well. Lars Hallstrom, a political science professor at the University of Lethbridge, said CAEP may be the first of several to fold as base funding disappears.
Membership had already been shrinking. The Town of Olds and Red Deer County both voted in recent months to leave. Red Deer County Mayor Brent Ramsay said in an emailed statement that the county had raised concerns about reduced provincial funding and the prospect of higher fees. Barclay said many municipalities now have in-house economic development staff, which makes it harder to justify dues when budgets are tight.
Luci Henry, mayor of the Village of Clive, said CAEP's data dashboard helped councils with decisions on housing and social infrastructure. She said Clive's council has not yet voted on the resolution, that she believes doubling fees would not be sustainable, and that the village will lean on other partnerships such as Alberta Municipalities.
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