Finance minister Colin Hansen released his much-anticipated deficit budget on Tuesday, trying to put on a brave face in the midst of an economic downturn and a looming provincial election in May.
According to Hansen, the forecast for the 2008/09 fiscal year is a surplus of $50 million, unchanged from the forecast in the 2008 budget. But as announced by Premier Gordon Camp-bell in January, B.C. will run a temporary deficit for the next two fiscal years. The deficit is forecast to be $495 million in 2009/10 and $245 million in 2010/11, returning to a balanced budget in 2011/12. Amended provincial legislation requires government to use any increases in cash as of 2011/12 to eliminate direct operating debt.The fiscal plan includes contingencies of $385 million in 2009/10, $300 million in 2010/11 and $250 million in 2011/12 to help ensure fiscal targets are met, according to Hansen.
"Budget 2009 builds on B.C.'s economic plan to help families, communities and business alleviate the effects of the economic slowdown," said Hansen. "Despite unprecedented global economic turmoil, we are improving public services and making critical investments to create tens of thousands of jobs and position British Columbia as a leader in the coming economic recovery."
The budget invests almost $14 billion in infrastructure projects in every region of the province. The government plans to move forward on its capital plan and partner with the federal government and municipalities to build and upgrade housing, hospitals, schools and roads. These new and accelerated investments will generate as many as 88,000 jobs across B.C. It is not known yet what projects will be earmarked for the Sunshine Coast.
Over the next three years, health-care funding will increase by $4.8 billion. By 2011/12, total provincial health spending will be $17.5 billion, an increase of 65 per cent since 2001. The budget maintains funding for kindergarten to Grade 12 education, resulting in per-student funding of $8,242, the highest level in B.C. history. The budget invests $228 million over three years in post-secondary education to enhance access to institutions, expand health education programs and fulfil the commitment to increase the number of trained physicians in B.C. The budget also invests $351 million to support income assistance, programs for adults with developmental disabilities and funding for healthy child and family development.
"There is no doubt that volatile commodity prices, instability in financial markets and weaker global economies have had a detrimental effect on our revenues," said Hansen.
But not everyone was pleased with what the budget contained.
Powell River-Sunshine Coast New Democrat MLA Nicholas Simons, who is also the children and family critic, said the budget does little for the less vulnerable.
"My reaction is mixed - partially disappointed and partially incredulous," Simons said. "From a critic perspective, this is disastrous for child care. We could see the loss of more than 100 social workers. It's just concerning."
Simons said he would have liked to see money spent in social housing and infrastructure projects like affordable housing.
"Affordable housing creates construction jobs just like any other infrastructure project. We desperately need social and affordable housing, yet that appears to not be a priority," he said. "For us in Vancouver Coastal Health, we have seen them running a deficit budget. Sure the money in health care is OK, but there is nothing in the budget for home support, residential care - things that should not be left behind in times like these."
Simons also would have liked to see more for the forest industry.
"The forest industry has been hit hard for a long time, long before we have had this financial crisis. The government's response has been next to nothing," Simons said. "This is a pre-election budget, so there are a lot of big promises. Will they live up to those promises? I don't think so."
Liberal riding candidate Dawn Miller called this budget "responsible for the tough economic times that we are in."
"There is good protection for health care and education," said Miller. "I was encouraged to see the accelerated infrastructure projects because that will help all the communities in the province with providing more jobs in these difficult times."
