Finance Minister Carole James (Black Press)

Surplus decreased as B.C. wildfire, ICBC costs rise

Finance Minister Carole James promises balanced budget

B.C. Finance Minister Carole James released the province’s second quarter financial update Tuesday, downgrading the forecast surplus for the current year and using the bulk of the government’s forecast allowance to keep the books out of the red.

The projection at the halfway point of the 2017-18 fiscal year is a surplus of $190 million, down $56 million from the first-quarter projection. The biggest jump in provincial spending was $152 million to cover costs of the summer forest fire season. Forest fire efforts also accounted for most of a jump of 267 full-time equivalent B.C. government jobs in the summer.

On the revenue side, the biggest change was a reduction of $643 million in anticipated income tax revenues. James said that was based on the federal government’s update of personal and corporate income taxes collected during 2016, down from the previous forecast.

Another revenue drop of $109 million from earlier forecasts came in commercial Crown corporation revenue. That is mostly due to a downgrade of revenues from ICBC, which continues to struggle with increased claims and legal costs.

RELATED: Report warns of more ICBC rate increases

Other revenues continued at a healthy pace in the quarter from July to September, including property transfer tax, which has been the province’s cash cow during the hot real estate market in recent years. Expected revenues from that tax for the current year were increased by $175 million.

Retail sales also continued to rise in the second quarter, resulting in an upward adjustment of $51 million.

Another bright spot was forest revenues, with the provincial revenue forecast up $55 million, due mostly to higher timber tenure stumpage rates. B.C. lumber prices are near record highs, with high demand from the U.S. despite 20 per cent countervail and anti-dumping duties imposed by the U.S. government at the Canadian border.

B.C. Liberal finance critic Shirley Bond said the strong economic growth is a result of the previous government’s policies.

“Although the NDP inherited a $2.7 billion surplus, they have already managed to dip into British Columbia’s savings and they haven’t even fulfilled most of their major campaign spending promises, including $10-a-day daycare and a $400 renter subsidy,” Bond said.

James said the NDP’s child care and housing pledges are over 10 years, and can be achieved as long as B.C. continues to have strong economic growth.


@tomfletcherbc
tfletcher@blackpress.ca

Like us on Facebook and follow us on Twitter.

BC legislaturebc wildfires

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

Comments are closed

Just Posted

Stelly’s grads shocked after ‘anonymous friend’ pays for dinner

Friends took limo to Deep Cove Chalet to celebrate after graduation festivities cancelled

Victoria man in custody after shooting in 100-block of Gorge Road East

The man is facing recommended charges including assault with a weapon

Victoria Royals draft dynamic Danish forward for tentative fall season

Marcus Almquist drafted to Victoria after international tournaments

Undercover operation exposes prominent human trafficking problem in Greater Victoria

VicPD’s Operation No More took place in mid-June at a local hotel

Book stores in Victoria notice uptick in sales for anti-racism titles

White Fragility, How to be an Antiracist are among the best selling titles

‘This year is unlike any other’: Trudeau delivers Canada day address

Sophie Gregoire Trudeau and the Prime Minister release video celebrating the national holiday

Canadian engineer detained in Egypt released, needs treatment, family says

Yasser Albaz was detained at the Cairo airport after a business trip in February of 2019

RCMP arrest armed man on grounds near Trudeau residence

Officers descended on the sprawling estate Thursday morning.

Canada Day tractor incident kills three children, injures seven in Quebec

The tractor driver has been arrested following the accident

Longtime Vancouver Island fishing family hooks into local market over wholesale

Locally caught fish are scarce in fishing towns, an irony one Sointula family is working to change

Tsilhqot’in Nation demands meeting with feds on declining Fraser River chinook stocks

The Nation wants to partner with DFO to rebuild and recover the stocks

Gov. General honours Canadians for bravery, volunteer service

Five categories of winners presented on Canada Day

COVID-19: Should non-medical masks be mandatory in Canada?

New poll shows Canadians are divided on the rules around mandatory masks

Most Read