Finance Minister Carole James (Black Press files)

B.C. budget surplus expected to keep growing, Carole James says

Economic growth, strong employment pushes surplus forecast to $669 million

Increased tax revenues and steady economic growth have tripled the size of B.C.’s budget forecast for 2018-19, as changes made by the NDP government begin to show their effects on the province’s books.

Finance Minister Carole James released the first quarter financial results for the province Friday, projecting a surplus that has jumped to $669 million for the fiscal year ending next March.

The red-hot urban B.C. real estate market is “moderating,” resulting in declining revenue to the province, James said. The revenue fell by $53 million during the first quarter, from April through June, resulting in a projected drop of $250 million for the entire year.

That was more than made up by a projected increase of more than $1 billion in income tax revenue. Natural resource revenue is also projected to be up $495 million, mainly due to record high lumber prices.

Projected expenses are also up more than $1 billion, led by forest fire costs now estimated to be $477 for the current year. Emergency efforts for flooding also rose $162 million compared to the forecasts in the February budget.

James said the province’s employment picture continues to be the strongest in the country, helping drive the increase in income tax revenue. The threat is that people can get jobs but can’t find a place to live.

“If we don’t have affordable housing, people won’t stay in the province,” James said.

B.C. Liberal leader Andrew Wilkinson said the first quarter results are looking backward, and looking forward things are not so good.

“The NDP inherited a $2.7 billion surplus and the strongest economy in Canada, and now they’re projecting a slowing of growth, a 20 per cent drop in housing starts, which is a formula for widespread unemployment,” Wilkinson said. “And since they took office, the only job growth has been in government, with 10,000 new public sector jobs, and in the meantime 25,000 people in the private sector have lost their jobs.”

Another worry is trade, with the U.S. government threatening to pull out of the North American Free Trade Agreement and uncertainty continuing over lumber and other exports to the U.S.

RELATED: Trump, Trudeau mull walking away from NAFTA

One of the NDP government’s measures that has not yet shown up on the books is the introduction of an employers’ health tax on public and private payrolls over $500,000.

RELATED: Payroll, speculation tax tops B.C. municipal agenda

James reiterated that municipalities will not be getting a break on the new tax, which comes on top of reduced employee Medical Services Plan fees for 2019, before MSP premiums are phased out.

“Yes, they have a challenge in 2019, but we believe the benefit … of eliminating medical services premiums far outweigh the one-year challenge that they face,” James said.


@tomfletcherbc
tfletcher@blackpress.ca

Like us on Facebook and follow us on Twitter.

Just Posted

Make a point of learning on Remembrance Day

Keyen looks over Bob Whipps’ medals on Remembrance Day at the Royal… Continue reading

B.C. boosts 2018 wildfire recovery aid by $10 million

The British Columbia government has allocated an additional $10 million in support… Continue reading

Burns Lake marks 100 years since Armistice

Burns Lake residents on Nov. 11 held a Remembrance Day ceremony at… Continue reading

B.C. Legions in need of young members to continue aiding veterans into the future

Lest we forget what thousands of men and women did to fight for Canada’s freedoms – but without new membership, many Legion chapters face dwindling numbers

North Coast figure skater to star in Dancing On Ice

Carlotta Edwards learned to skate in Prince Rupert, before becoming a star with millions of viewers

VIDEO: People with diabetes meet their alert dogs

A diabetic alert dog is trained to detect low blood sugar in people who have Type 1 diabetes

Ten-year sentence for man convicted of B.C. belt-strangling death

Shayne McGenn guilty of manslaughter in 2016 death of David Delaney, 63

Roy Clark, country singer, ‘Hee Haw’ star, has died

Guitar virtuoso died because of complications from pneumonia at home in Tulsa, Okla. He was 85.

Lack of funding, culture on campus biggest barriers for Indigenous students: report

Report based on nearly 300 responses found lack of support at post-secondary schools a big concern

Tinder sex assault suspect charged; additional alleged victims sought

Vincent Noseworthy of Alberta is accused of aggravated sexual assault, unlawful confinement and more

Drug-related deaths double for B.C. youth in care, advocate says

Teens say positive connections with adults key to recovery

Children’s strawberry-flavoured medicines recalled due to faulty safety cap

Three different acetaminophen syrups part of nationwide recall

Around the BCHL: Junior A cities to host World Junior tuneup games

Around the BCHL is a look at what’s happening in the league and around the junior A world.

International students hit hard by B.C. tuition fee hikes

Campaign seeks regulatory controls be imposed on post-secondary institutions

Most Read