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“These are going to be very difficult challenges . . . 2015 is going to be a pivotal year for our province.”

But opposition leaders said Prentice was launching a scare campaign to prepare the province for cuts likely to have the biggest impact on middle and working class Albertans.

NDP Leader Rachel Notley said Prentice had “descended into complete hyperbole.”

“He can run around with this chicken little routine all he wants but voters have seen this story before. They know it in their sleep. And they’re tired of it,” she said.

Liberal Leader Raj Sherman scoffed at the notion that the government is in worse shape than during the last decade’s recession, when oil fell to under $40 US a barrel.

“He wants to start cutting and he wants to start tightening the belt. He wants to do exactly what Wildrose wants to do,” he said.

However, both Notley and Sherman said the province does need to look at tax measures such as moving to a progressive income tax system or increasing the corporate tax rate.

Prentice reiterated his opposition to a sales tax but affirmed that other tax options — including moving away from the 10 per cent flat tax on personal income — will be looked at.

“We have to look at the revenue side of government and we’re certainly doing that,” he said.

“No decisions have been made on any of these fronts yet.”

The government’s fiscal woes have sprung from a dramatic drop in oil prices over the last three months. The government’s budget was based on $95.22 US a barrel but prices have dipped under the $60 level recently.