Oil prices are slumping, teachers are striking and the province’s deficit is deepening.

These are uncertain times for the province — and for the finances of the Alberta government.

Finance Minister Nate Horner knows major challenges lie ahead.

The deficit, he estimates, could be much higher if today’s low oil prices persist.

The response in the next budget might include raising some fees or continuing to scour the existing $79-billion spending plan for cost savings.

“I probably shouldn’t speculate, but you could definitely see a range where (the deficit) was a couple-billion dollars higher, definitely,” Horner said Thursday, when asked about the effect of current oil prices continuing throughout this fiscal year.

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“We’re going to have to focus on what we can control, and that’s keeping a close eye on spending. We’re being very focused during this (upcoming) budget on the priorities of government, looking at potential for revenue options.

“I don’t see any big options on the table. It would be more nibbling at the edges around fees and the potential for user-pay. But I think those conversations will become more real during the actual budget process.”

Oil prices, put simply, are in the dumps.

Benchmark U.S. oil prices fell 85 cents to close at US$56.99 a barrel on Thursday. The U.S. Energy Information........

© Calgary Herald