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.

BC legislature

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

Police closed McNeill Avenue after a workplace death Oct. 20, 2020. (Nina Grossman/News Staff)
Tree-pruning community gathers in Oak Bay after tragic death

Crews met in solidarity at site of Tuesday incident

A bear similar to this black bear was spotted on Elk Lake Drive again on Oct. 21 and is believed responsible for killing a llama in Saanich on Oct. 19. (Black Press Media file photo)
Search continues for bear wandering through Saanich

Bear spotted eating garbage near Elk Lake Wednesday, B.C. Conservation says

Some 30 people including a dozen youth participated in North Saanich’s first ever Fridays for Future protest outside of municipal hall on Mills Road Friday, according to organizers. (Anne-Marie Daniel/Submitted)
Fridays for Future plans second event for North Saanich after inaugural protest

Some 30 people attended first protest on Oct. 9 with a second one scheduled for Oct. 23

Royal Bay students are among the list of SD62 schools that will be trained by Pacific FC coaches and staff in a new soccer academy partnership. (Aaron Guillen/News Staff)
Pacific FC partners with Sooke School District soccer academies

Royal Bay, EMCS and Dunsmuir Middle students to receive professional training

Provincial health officer Dr. Bonnie Henry presents modelling of COVID-19 spread in B.C., March 25, 2020. (B.C. government photo)
B.C. sets another COVID-19 record with 203 new cases

up to 1,766 active cases in B.C., two more deaths

Advance polls are open from Oct. 15 to 21 with election day on Oct. 24. (Black Press Media file photo)
RCMP. (Phil McLachlan - Black Press Media)
British Columbia man dies during ski trip near glacier west of Calgary

Kananaskis Public Safety and Alpine Helicopters responded around 2:30 p.m.

Prime Minister Justin Trudeau arrives on Parliament Hill in Ottawa on Monday, Oct. 19, 2020, following a week-long break for the House of Commons. THE CANADIAN PRESS/Sean Kilpatrick
One crisis after another for Trudeau since last federal election one year ago

It has been a year of unprecedented calamity and crisis

Members of the Sipekne’katik First Nation load lobster traps on the wharf in Saulnierville, N.S., after launching its own self-regulated fishery on Thursday, Sept. 17, 2020. THE CANADIAN PRESS/Andrew Vaughan
Vancouver Island First Nations back Nova Scotia’s Indigenous lobster fishermen

Nuu-chah-nulth Tribal Council calls for action before lives are lost

Skiers line up to start the Royal LePage Comox Valley Snow to Surf Adventure Relay Race. Photo by Tim Penney
Popular Comox Valley adventure race cancelled for 2021

COVID forces Comox Valley Royal LePage Snow to Surf Adventure Relay Race cancellation again

Rio Tinto Alcan’s aluminum smelter at Kitimat competes against producers in the Middle East and Russia that have no carbon tax. (Rio Tinto)
B.C. carbon tax highest in Canada, export industries unprotected

B.C. NDP, B.C. Liberals say they’re looking at exemptions

(Pixabay)
Vancouver teacher suspended after swearing, touching students and complimenting underwear

McCabe touched students, including rubbing their backs and necks, touching their hair and hugging them

Most Read