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- calendar_today November 3, 2026
CAEP Announces Dissolution After 28 Years
The Central Alberta Economic Partnership (CAEP), a regional economic development alliance formed in 1998, is preparing to dissolve after nearly three decades of service. The decision follows significant changes and reductions in provincial operational funding.
Consortium Spanning 45 Municipalities Faces Closure
CAEP consists of approximately 45 municipalities and organizations that have worked together to drive regional economic growth in central Alberta. Its mandate has included investor attraction, workforce initiatives, and the development of tools such as regional economic data dashboards.
Funding Cuts Prompt Difficult Decisions
CAEP board chair and Innisfail Mayor Jean Barclay stated that the partnership relied on around $150,000 in annual operational support from the province until five or six years ago. More recently, provincial grants dropped to between $75,000 and $125,000, and beginning next year, this funding will shift entirely to a project-based grant model rather than operational support. To cover budget gaps, member communities would have faced more than a doubling of their membership dues.
“We just looked at the future of CAEP and we thought, this is probably a good time to end it,” Barclay noted. Over the next weeks, the board will finalize the dissolution process and send a resolution to member councils for a final vote.
Impact on Regional Economic Development
Paul Salvatore, CAEP’s executive director, described the funding cut as “a tough pill to swallow for a lot of the municipalities.” He highlighted that many communities are now forced to choose among funding for economic development, essential infrastructure, and community services. With REDAs like CAEP considered a cost-effective means for regional collaboration and business attraction, Salvatore warned that more alliances may be at risk.
“It’s very likely that more will fail in the future,” Salvatore said, emphasizing that the outcome depends on each REDA’s funding model.
Provincial Response to Funding Shift
In response to questions about the funding transition, Hunter Baril, press secretary for the Ministry of Jobs, Economy, Trade and Immigration, said the move to project-based grants is intended to “level the playing field, ensuring all of Alberta’s regional economic development organizations have equal access to economic development funding.” Baril noted that Alberta’s government will provide CAEP with $125,000 annually from 2024-25 through 2026-27 and continue consultant support during the transition.
Reactions from Municipal Leaders and Membership Changes
Luci Henry, mayor of Clive in central Alberta, expressed disappointment, highlighting CAEP’s value in providing regional data to aid municipal decision-making. Clive’s council has yet to vote on the resolution, but Henry noted the unsustainability of doubling fees. Meanwhile, both Olds and Red Deer County have voted to withdraw from CAEP, citing concerns over rising fees and uncertain provincial funding. With more municipalities developing their own in-house economic development teams and facing tight budgets, maintaining regional partnership memberships has become increasingly difficult.
Looking Forward: The Future of Regional Economic Partnerships
Lars Hallstrom, a political science professor at the University of Lethbridge, suggested CAEP may be the first of several such alliances in Alberta to fold amid shrinking operational funding. Board chair Barclay reflected on the evolving landscape, stating, “Maybe something else will come out of this that is better suited to today’s realities.”
Source: cbc.ca.
