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

Hometown girl returns to Hope as doctor-for-hire

Growing up locally, naturopath Sarah Sjovold is back and wants to help build a healthier community

They’re coming!

Communities in Bloom judges return to see if Hope has what it takes for another 5 Blossom year

Getting a new ‘Gig’ easier with new innovative program in Chilliwack

Program will take 12 young adults and help them prepare for their career path

Search continues for missing elderly woman in Chilliwack

RCMP, Chilliwack Search and Rescue and community members combing area for Grace Baranyk

VIDEO: Elderly woman with severe dementia missing in Chilliwack

Woman now missing more than 24 hours and missing her daily medications

VIDEO: Bloodhounds join the search for missing Chilliwack woman with dementia

Petsearchers Canada arrive in town Monday afternoon to help out

B.C. Ferries cancels two sailings Monday due to mechanical issues

Tsawwassen to Swartz Bay run affected in order to repair Queen of New Westminster

RCMP investigating alleged ‘sexual misconduct’ by cyclist on BCIT campus

BCIT said they were reviewing video evidence of the incident

New home cost dips in B.C.’s large urban centres

Victoria, Kelowna, Vancouver prices decline from last year

Graphic suicide scene edited out of ‘13 Reasons Why’ finale

Suicide prevention groups support the decision

Nine kittens and cats rescued after being locked in bins in northern B.C.: SPCA

SPCA says cats were starving, and matted with feces and urine

Woman grabbed, followed on trail near SFU campus: Burnaby RCMP

The woman told police a man was following and tried to talk to her

ICBC insurance renewals get more complicated this year

Crash history, driver risk prompt more reporting requirements

High-speed rail link would run from Vancouver to Seattle in under 1 hour: study

Annual ridership is projected to exceed three million

Most Read