B.C. finance minister Mike de Jong introduces the government's 2013 June Budget Update.

B.C. Budget: Province aims to hold line on union wage demands

Government revenues have fallen $900 million short of February's budget projections, finance minister Mike de Jong revealed.

VICTORIA – Government revenues have fallen $900 million short of February’s budget projections, and teachers and other government workers can expect no new money for wages, Finance Minister Mike de Jong said Thursday.

Bright spots for the B.C. economy include an expected recovery in natural gas prices from historic lows, and $500 million in savings on government operations, de Jong said in a post-election budget update.

B.C. is continuing an effective freeze on public sector wage growth that began in 2010. Since the government’s “cooperative gains” mandate in 2012, nearly three quarters of union members have signed contracts with average pay increases of one to two per cent, financed through savings in other areas of operations. Most are two-year deals, with some halfway through.

The projected surplus for this year is trimmed from $197 million in February to $153 million, and de Jong had to trim contingency funds to reach that.

Tax hikes are unchanged from February, including a two-year increase for personal income over $150,000 and a tobacco tax increase set for October.

The budget calls for $30 million in spending cuts this year, after last year’s reduction of $20 million in all ministries except health. The government’s “core review” of government operations is getting underway with a target of another $50 million in savings by the end of 2014, but no program targets are identified in the budget update.

The price for natural gas, the key commodity for the government’s debt reduction plan, is forecast to rise from $2.25 per gigajoule this year to $2.51 and $2.89 in the next two years. Exports of liquefied natural gas to Asia, where prices are currently far higher, can’t begin until well after 2015.

Lumber prices are forecast to decline, from a peak of US $348 per 1,000 board feet this year to $308 in 2014 and $300 in 2015.

De Jong said the government’s asset sales plan is about $8 million ahead of projections, with about half of the properties, bonds and other financial holdings sold or in negotiations to sell. The goal is to raise $475 million for next year’s budget.

Properties already sold include land on Tranquille Road in Kamloops, a school board office in Kelowna, surplus school land in Delta, vacant lots in Burnaby, Surrey and near Victoria General Hospital and former school sites in Surrey and North Vancouver.

Properties going on the market include a former school board office in Surrey, a vacant site north of Kelowna once planned for a provincial prison, former school sites in Central Saanich, Sidney and north central Vancouver Island and land for LNG development in Kitimat.

 

Just Posted

Greater Victoria philanthropic food event raises funds for mental health

Oak Bay’s Vis-a-Vis one of 12 restaurants participating in Kitchens 4 Missions

B.C. SPCA Wild ARC seeking donations to replace roofs

Donations made to the roof campaign will be matched up to $10,000

Sidney town crier endorsement of mayor raises ire of resident

Local crier code doesn’t specify personal endorsement rules

Big Brothers Big Sisters seek mentors for kids who need a guiding light

September marks National Big Brothers Big Sisters of Canada Month

Indian and Western music combine at the Mary Winspear

Harry Manx and Emily Carr String Quartet play Sept. 23

Saanich homeless camp residents at a standstill, evicted, prohibited from local parks

‘Ultimate goal is to get people into shelters and longer-term housing,’ Ministry of Municipal Affairs and Housing

B.C. home to 1/3 of Canada’s overdose deaths in first 3 months of the year

There were 1,036 overdose deaths in the first three months of the year, with 94 per cent accidental

B.C. candidate moves from hospice care to council race

He beat terminal cancer twice and entered hospice when he decided to run for council.

Canadian tobacco exec pushes back against vaping health concerns

A warning from Interior Health about the unknown health risks of vaping is getting a partial rebuke

Ministry of Agriculture commits $300,000 to help B.C. farmers obtain land

B.C. Land Matching Program supports access to affordable farmland for young farmers

Canadian air force short 275 pilots

Attrition outpaces recruitment and training claims Air Force

Teacher suspended after physically shushing, saying ‘shut up’ to student

Grade 5 student reported feeling ‘confused and a little scared’

A B.C. society helps to reforest Crown land after wildfires

Forest Enhancement Society of BC focuses on wildfire mitigation and the reforestation

Most Read