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Across Canada, towns and cities desperately need more revenue to keep existing infrastructure running safely and smoothly.

In Alberta, where the population expanded by 204,000 people in 2024, local mayors and reeves offer urgent warnings about the quality of life and economic impacts of failing to maintain our essential infrastructure. Without sustainable solutions, the outlook is dire: our communities will become more unaffordable and subject to intermittent failures of essential systems like water pipes and bridges, costing millions in emergency repairs.

For decades, the Alberta Roadbuilders and Heavy Construction Association (ARHCA) has seen firsthand the infrastructure deficit plaguing Alberta’s communities. Our deteriorating road networks are a harbinger of worse things to come. The need for more predictable, reliable investment in Alberta’s road infrastructure has never been more critical.

A recent report by the Rural Municipalities of Alberta highlighted the dire situation in rural Alberta, where road conditions are declining sharply. It suggests without substantial new investments, the current $12 billion deficit in road maintenance will soar to $30 billion by 2028.

A simple premise drives these costs: replacing a road is more expensive than preventing its loss through regular maintenance. Reconstruction costs five to seven times more than regular repaving and deferring it will only lead to further budget shortfalls and severe disruptions.

A report from the City of Calgary is just as troubling. That city’s assessment shows only 38 per cent of roads are in “good” condition, with 26 per cent rated “poor” and some 544 kilometres falling below acceptable standards​. That’s what Calgarians get for an annual road surfacing budget of $40 million. The report admits annual funding needs would increase to $88 million just to maintain the road network in its current state.

Returning 60 per cent of Calgary’s roads to good condition​ would require $132 million.

Calgary City Council has responded positively to the report, allocating nearly $35 million more to the 2025 road budget, bringing the total road resurfacing budget to $75 million for next year. The administration hopes to see another injection of new investment in 2026.

These decisions recognize that Calgary’s road system needs more sustainable funding. This investment will stall deterioration, but the city must demonstrate bold leadership to reverse the declining roadways trend.

This problem isn’t unique to Calgary. The provincial road infrastructure funding model is inadequate. Since 2010, Alberta’s population has grown by 31 per cent, while budgets for municipal grants from Alberta Transportation and Municipal Affairs have been cut by 31 per cent. 

Local leaders across Alberta have raised alarms about municipal grant reductions, which strain municipalities’ ability to keep up with maintenance demands. As seen in Calgary, lower funding levels mean municipalities must either raise taxes or defer repairs. The longer we wait to address these issues, the more expensive they become. And it’s not like the cuts to municipal grants have been redirected to repair provincial highways and bridges. Rehabilitation and expansion have not kept up with population growth, either. 

It’s clear Alberta needs a policy shift that creates predictable, reliable and adequate long-term investment in our transportation system, which is critical to Albertans and the Alberta industry. Solutions are within our grasp if we are bold enough to lead.

ARHCA has drawn attention to this issue over several years through its annual Fix Our Roads campaign and by presenting our idea for a long-term policy solution that can smooth out the wrinkles and uncertainty of road funding: the Alberta Highway Trust Co.

The Trust Co. operates independently of government and will allocate predictable and consistent funding for roads where needed most. Most importantly, it is independent of government and helps diminish the stop-start cycle of infrastructure funding often tied to elected officials’ four-year terms.

ARHCA’s proposal for the Alberta Highway Trust Co. offers a solution for our provincial highway challenge. Our industry is committed to partnering with governments of all levels to help develop solutions that keep Albertans moving safely and efficiently.

Rural and urban municipalities also need provincial investment in their roads, which serve as part of the provincial system and are local community assets. However, without long-term, predictable funding, the negative impacts on Alberta’s communities and taxpayers will be severe.

Good roads cost less.

Ron Glen is the CEO of the Alberta Roadbuilders and Heavy Construction Association. Send Industry Perspectives Op-Ed comments and column ideas to editor@journalofcommerce.com.