I think Nenshi asked some good questions, and I had a couple of points that I think highlights why costs are high on a per capita basis, as well as why the budget increased.
Alberta already has very high weekly earnings:
http://www.statcan.gc.ca/daily-quotidien/100826/t100826a1-eng.htm
Just to pick up on a few of the bigger provinces:
Province - $weekly earnings - City - Per officer cost - Per capita cost - Crime severity index - Police officers per 100,000
Alberta - $1004 - Calgary - $166,628 - $265 - 84.5 - 153
Ontario - $879 - Toronto - $163,820 -$348 - 81.5 - 178
BC - $815 - Vancouver - $150,693 - $346 - 141.3 - 155
Quebec - $798 - Montreal - $130,747 -$315 - 112.6 - 186
A lot of the high per capita cost could just be a reflection of the overall high level of wages in Alberta and cost of being competitive. During the boom, City of Calgary police had a hard time trying to recruit and had to go to England. What is the cost of retraining officers due to retention issues? Can City of Calgary outsource police work (lab work, call support staff) to PEI for the police where the pay is less? Can leases be modified or extend lifespan on police vehichles?
With respect to wage increases, 5.8%, 6.0%, and 3.0% respectively between 2007-2009, plus 11% increase in staffing would explain a 28% increase in budget. This compares against the actual increase in police budget of 23% that Nenshi cited in his news release.
http://www.finance.alberta.ca/aboutalberta/spotlights/2010-0305-wage-update.pdf
Overall, I agree that the budget needs to be looked at an item by item basis. CPS has dozens upon dozen of different divisions. Maybe there is an opportunity to consolidate some of these to meet changing crime patterns (any redundant or new needs?)...
Crime severity in Calgary is already in the lower quartile for major Canadian cities, and the per capita costs are less than average. To me, this indicates that the CPS is already operating with a high degree of efficiency.
Iincreasing the staffing levels was a smart thing during the boom, because booms tend to attract young people, and young people correlate with higher crime rates. As a side note, Canada's aging population is a reason why crime forecasters have and continue to predict declining crime rates. This demographic trend, plus that CPS seem to have finally got around to the point of being proactive instead of reactive is a good reason to keep up with police staffing, on trend with population growth. There's no reason for having a police state, or at the other extreme places that are open air drug dealing on a daily basis which was happening to a much larger degree only a few years ago.
A starting place for any sort of discussion about the police budget should start with the chief of police, and also be looking to what people are wanting from the police service as Sir Humphrey mentioned. Barb Higgins at least called the chief of police up and asked what was important to him for the next mayor, and he said that a lot could be improved simply by working more to improve communication so that more coordination could occur between social agencies.