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Deficit budgets planned for BC

The British Columbia government will run deficit budgets in each of the next two fiscal years, Premier Gordon Campbell and Finance Minister Colin Hansen said in a press conference today.

“As recently as two weeks ago I was still confident we could table a balanced budget without cutting health and education,” said Hansen. But the American and global economies are in such rough shape that's no longer possible, he said. “B.C. played no role in precipitating this international crisis, but we are certainly feeling its effects.”

Hansen said he could not say yet how deep the deficits would be, but he expects to return to a balanced budget for the 2001-2012 fiscal year. “The numbers continue to deteriorate for us,” he said.

“This is obviously a very difficult day for all of us,” said Campbell. “I hate deficits. I think they take away from future generations . . . I know I have supporters who will be disappointed. Some may even be angry.”

The averaged predictions of the 12 members of the province's economic forecast council in December put growth at 0.6 percent for B.C., but in January they downgraded their prediction to 0 percent. Campbell said there isn't agreement yet whether the province is experiencing flat growth or a recession.

“We're facing a situation we couldn't plan for,” he said. “Maybe we should have seen it coming.”

The Tyee reported in March, 2008, that there were clear signs the economy was weakening and the provincial government appeared unprepared despite the warnings.

B.C.'s Balanced Budget and Ministerial Accountability Act requires the government to prepare balanced budgets. Campbell said the legislature will be recalled a day early, on February 9, to begin making the necessary changes to the law.

Responding to questions from reporters, Campbell said 20 percent of cabinet ministers' salaries are held back. Ten percent of that is returned if they balance their ministries budgets, and the other 10 percent is for a balanced government-wide budget. Said Campbell, “Cabinet ministers will take a 10 percent reduction in their salaries if there's not a balanced budget.”

Andrew MacLeod is The Tyee’s Legislative Bureau Chief in Victoria. Reach him here.

33  Comments:

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  • Frank

    3 years ago

    Oh really?

    I thought that was against the law?

    Does this mean Campbell broke his own law and every minister has to take a pay cut?

    Ya sure, that'll happen.

  • quarry bay

    3 years ago

    Gordon Campbell......

    Was left a 1.4 billion dollar surplus by the NDP.

    The Ndp ran back to back surpluses,paid down some debt and left Campbell a huge surplus.

    Gordon Campbell,the PROVEN liar and LAW BREAKER has racked up 4 billion dollars in debt since 2002 and has racked up 70 plus billion in contractual debt.

    Campbell has paid towards BCs debt ZERO/ZIP/NADA/NOTHING/ NOT ONE PENNY

    So during record high commodity prices,a construction boom Gordon Campbell paid down nothing!

    So now Campbell has to rescind/cancel/squash his phoney balanced budget law,because as you know,Campbell and Hansen are going to tabling a 5 billion in deficit budgets over the next 2 years.

    So the Proven LAW BREAKER and LIAR Gordon Campbell is now,according to all economists,the BIGGEST DEBTOR in BC History!

    Even Stephen Harper managed to pay down SOME DEBT before racking up billions in DEBT.

    But not Campbell--Campbell`s DEBT CLOCK has run but one direction,ADDING DEBT--The Proven Liar and Law Breaker has only managed DEBT ACCUMALATION in his REIGN of TERROR.

    Like most her at the TYEE have known for years,Gordon Campbell`s Stories and Predictions,assessments,his WORD,his COMMITMENTS are nothing but ......

    BOLD FACED LYING/

  • IslandGirl

    3 years ago

    Get your facts straight!

    Actually Frank - Campbell and Co. are taking penalties - 10% of their pay will be deducted as a result - that's 15K the premier will be penalized.

  • Frank

    3 years ago

    IslandGirl

    Good to hear. Did you read the Vaughn Palmer article the other day about how in the last 8 years not a single minister ever had a pay cut? Because "adjustments" were always made.

  • bult

    3 years ago

    Ya, sure

    Campbell is the master of situational political ethics.

    Hey, it was his law in the first place. So, why the surprise?

    Folks, get real about politics. When most of us sit back and watch the Super Bowl, the world passes us by.

    TTFN

    bult :)

  • sunshine coast girl

    3 years ago

    I'd like to know what the freakin' point is

    in passing laws if you're just going to rescind them at your convenience. What a bunch of phonies! Don't hear much bragging about the economy now!

  • Luke Skywalker

    3 years ago

    Sunshine Girl...

    I agree... BC needs folk like you to march upon the BC legislature to demand that the budget law be enforced!

    Of course, that would likely mean that the health and education budgets will not receive their scheduled budget increases... but of course that's just a moot point. ;)

  • Frank

    3 years ago

    For some of us

    The first thing that comes to mind when needing to balance a budget isn't cutting health care. Those billions spent on the Olympics would look awfully good right now I bet, or that big tax cut for the wealthy that Campbell kicked off his first term with.

  • Frank

    3 years ago

    Island Girl

    Here's the Palmer column

    http://www2.canada.com/vancouversun/columnists/story.html?id=93179f39-87fb-4d15-b724-1a21566e7c2e

    and here's the relevant passage :

    "- Ministers who exceed their budgets to face a salary cut. Never enforced. Every time ministries were in danger of missing their targets, the government has exempted the ministers via legislation. When the premier faced an overrun on his office budget, the Liberals moved the offending programs to another part of the government."

  • quarry bay

    3 years ago

    Luke

    How does that "toe jam" taste

    Cheers

  • quarry bay

    3 years ago

    Any guesses as to the deficit.....

    Well,if we think about last years supplimental budget(to save the cabinet ministers pay) last years supplimental was ....

    1.30 billion dollars, that amount is how much more the Liberals spent then budgeted for.

    In other words,the goverment tabled a budget,and they spent 1.30 billion more than the budget they tabled.

    So this year is about the same,in other words there will be about a 3 billion dollar deficit.

    Gordon Campbell,no other goverment has added more combined debt(from contractual debt,P3s,energy agreements,budget debts) in the history of BC.....
    Another record for Campbell

    Campbell better start buying up ads before the gag law kicks in.

    Campbell thinks he can float away from these deficits as a popular move/WRONG.....The other political leaders weren`t stupid enough to put balanced budgets into a toothless law.

    Last point Luke,all public servants will now be voting against Campbell/ they all have contracts coming up,they have seen Campbell at play in the past,they don`t want to play his games in the future.

  • Luke Skywalker

    3 years ago

    Quarry Bay...

    Give it up. :)

    For all intent and purposes, based upon all of the tea leaves, the proverbial "fat lady" has already sung. It's already over from my perspective as well as others.

    Being familiar with the redistributed 85 seats (have been a political nerd in that vein since Grade 7), it looks roughly like a 60 - 25 Liberal win.

    Even Bernard Schulmann (from PublicEyeOnline) came out with another analysis today:

    Quote:
    At this point we can be certain of 43 Liberals and 21 New Democrats being elected. This means Gordon Campbell has won a third term already, the election is simply about how big a majority.

    Quote:
    At the end of the day I see the following result in the election:
    Liberals 59 +13
    NDP 25 -8
    Ind 1 +1

    http://bciconcoclast.blogspot.com/

    Now back to public policy matters. ;)

  • quarry bay

    3 years ago

    Well then Luke

    I guess we are going double or nothing on that 10.000.00 dollars you owe me from the bi-elections.

    Is that your prediction? 59 Liberal 25 NDP 1 independent

    I predict 1 independent 51 NDP 33 Liberal

    Rather than listen to a Hack`s prediction,more importantly long time Liberal supporter Gord Gibson has called the NDP as 2009 election winners.

    Funny with your prediction,so funny that Campbell PLEADED with Vicki Huntington to join the hapless Liberals,she snubbed him/smart girl.

    The NDP are motivated,The Liberal voters are staying home.

    Just wait until Campbell has to start answering questions in the legislature.

    The people of BC are angry,angry at Campbell,people are angry about Campbell`s and Hansen`s and Falcon`s lies.

  • Frank

    3 years ago

    Earls Cove

    Unfortunately the only way Gibson could be saying that with a straight face is because he's worried that a lot of Campbell's Reform Party types will think the election is in the bag and won't bother showing up.

    People hate Campbell in the same way they used to hate Social Credit, but they still vote for him.

    Because at the end of the day people are only interested in things like homelessness, child poverty and abuse when it gives them an entertaining read in the papers. Reform Party types would never vote on the basis of human rights, for them its only about the money.

    In 20 years you won't have a river left on the coast where you can fish and Campbell will still be premier.

  • quarry bay

    3 years ago

    your wrong Frank

    In the 2005 election,a mere swing of a few thousand votes and the NDP would of been goverment.
    This list of angry people is growing,even in my area,many liberals are saying they will either stay home or switch.

    Pay no attention to the last Mustel poll,the campaign is just heating up,remember,the liberals are going to have to face their constiuents.

    My relatives in Kamloops have kept me up on voter sentiment in that area,the 100hundreds of thousands who have lost their job will be thinking of 3 things at the polls.

    The Massive payraises for Campbell and his cronies/ 2 teir hydro rates? and finaly the Campbell GAS TAx

    Trust me,that trigger isn`t being pulled for Campbell.

    Burnaby will be a NDP sweep,so will Surrey/The island is going all NDP

    Seniors have had it with Campbell/females have had it with Campbell/

    Frank,remember,minimum wage earners,welfare recipients,public employees,everyone knows their contract comes up after the election,students(a low voter turn-out group)will vote NDP or Green,even my long time neighbor,a pure bred conservative has told me he and his wife won`t be voting for Campbell(that shocked me)he stated that no one lies to him and gets his vote.

    Luke was wrong on the Vancouver civic elections,he got blown away in the bi-elections,which was right after Campbell`s last 15 minute news conference.

    Last point,this upcoming budget deficit is going to be a whopper,Campbell and Hansen could hide a billion in their sleep,we are talking many billions in deficit.

  • Luke Skywalker

    3 years ago

    Quarry Bay...

    Instead of flippant remarks, it's always better to analyze a matter in further depth, n'est pas? :)

    Quote:
    Burnaby will be a NDP sweep

    Alright, over the last ~30 years, the Burnaby seats have been very close races. In 2005, the Liberals won by a 4% spread provincially over the NDP. The Liberals won 2 1/2 seats out of 3 1/2 in Burnaby. Under redistribution, Burnaby now has 4 full seats.

    Let's look at Burnaby-Willingdon (now Burnaby Deer Lake). In 2005 the Libs won the seat by a 2% margin (44% to 42%). Vote transposition shows that in 2005, the Libs would have won the seat by a 51% to 41% margin. Now a safe Lib seat.

    And if the 14% spread in favour of the Libs holds on election day, the NDP will lose its only Burnaby seat... Burnaby Edmonds.

    Quote:
    so will Surrey

    Surrey Whalley - yes NDP... poorest area outside of Van City's downtown eastside;

    Surrey Newton - yes NDP, large Indo-Canadian community, which votes NDP provincially and Liberal federally;

    Surrey Green Timbers - yes NDP - again, large Indo-Canadian community...

    But then we move to the wealthier small "c" conservative parts;

    Surrey Panorama Ridge - Lib, currently held by NDP MLA Jagrup Brar but he has abandoned riding due to boundary changes (1/2 of strong NDP polls north of 64th Ave. went to Surrey Newton and southern boundary moved into South Surrey White Rock);

    Surrey Tynehead - Lib, heavy upper income area north of hwy 1;

    Surrey Cloverdale - Lib, very small "c" conservative;

    Surrey White Rock - Lib, very high income demographics;

    Surrey Fleetwood - new riding, NDP would have won by 150 votes in 2005. NDP MLA Jagrup Brar has jumped over here. Lots of million dollar homes built during interim 4 years on eastern end; if Mustel's 14% holds on election day, Lib win;

    Quote:
    Luke was wrong on the Vancouver civic elections

    Vancouver Sun/SFU conducted an 800 sample size exit poll on election day. Mayoral results were bang on. Yet 30% of identified Liberal voters provincially votes for Vision Vancouver; Same poll showed Liberals ahead provincially in Vancouver, the NDP's core vote area in Metro Vancouver;

    Using that analogy, the Liberals would sweep Surrey's 8 seats because Liberal mayor Dianne Watts won 86% of the vote. Silly analogy.

    I was actually hoping to provide this insight in a future Will McMartin column on the election, but I digress. ;)

  • RickW

    3 years ago

    I like this zinger:

    Quote:
    “As recently as two weeks ago I was still confident we could table a balanced budget without cutting health and education,” said Hansen.

    It's like those are ONLY two departments that get funding from the government. He could have just as easily put put funding for some Olympic construction on hold, pleading the world-wide recession. Or he could have ceased the remainder of construction of the upgrade to the S-2-S. Or he could have put a halt to the Conventional centre, which has nothing to do with the Olympics. Or he could stop the construction on the RAV.

    But no, he instead fiddles with a little pre-election warmup, using healthcare and education.

  • crh

    3 years ago

    save money and get rid of

    save money and get rid of those paid media trolls!! how many of you are out there????

    Time to join the unemployment line boys....

  • zalm

    3 years ago

    Island girl

    "Actually Frank - Campbell and Co. are taking penalties - 10% of their pay will be deducted as a result - that's 15K the premier will be penalized."

    We'll see. Frank's already taken you to task, and I doubt that Gordo and the Fiberals will give up one dime of salary. I know personally how expensive it is to serve in government. But I saw your comment elsewhere that:

    "I didn't realize the Premier and ministers would be losing part of their pay - this is the second time the BC Libs have set the example - I bet no one remembers the BCL MLAs taking a pay rollback in 2003 and the NDP MLAs not participating but keeping it all?"

    You're right - no-one remembers, because it didn't happen. That was the deputy ministers - the bureaucrats - who were handed a 41% increase in 2003, and then had that rolled back. No question about the NDP MLAs keeping or returning anything - nobody did.

    However, there WAS all kinds of double-dealing in 2007 on raises and pensions. After abolishing MLA pensions, the Fiberals brought pensions back in, and gave MLAs a 29% raise to boot. The NDP protested, not so much about the pensions, which they remained in favour of, being of the kind who is not independently wealthy as a group, but against the raises. And so they donated their raises to charity, and continue to do so to this day.

    The BC Fiberals? Took the raises and continue to do so to this day. Not much honour among those thieves.

  • Frank

    3 years ago

    Egmont Rapids

    Don't worry, I'm not basing my thoughts on Mustel polls or other "analysis". After all, I've been saying Campbell will win the next election since the last one.

    Why I think he will win is we live in a very right-wing province that since WW2 has always voted right-wing. The only time the NDP could fluke out a victory was when right-wingers had more than one right-wing party to choose from.

    That's it. That's what my prediction is based on. Nothing else.

    I'll believe we live in a caring province when I see some actual evidence that people care about the bottom half of the population. Because as I said earler they don't. The Luke's, realisticmans, Elliots, Ron Erwins, NoLeftNutters, TaxCutter99s, WorkingMans, JIms, sdgreens, neocons et al are entertained by poverty and child abuse. Stories of it rolls off their back like water off a duck. On voting day they will do what this province has done for the last 60 years and that is vote based on the perception that the Right-most party is best for their wallets and to hell with everyone else.

  • G West

    3 years ago

    mmm

    Don't be too surprised if the terms of the Financial Accountability Act are amended...the House is starting the current sitting one day early - on Monday, instead of Tuesday of next week - to clear up THAT little problem.

  • Wilfred Laurier

    3 years ago

    Seat Projections

    Fact is, unless deficits are run, services will be cut and since health and education are the biggest slice of the pie, that is where they are going to come from.

    I think Luke's seat projections are very accurate. It is now a matter of how many seats Carole can keep. She has not been a particularly good opposition leader but for some reason the party keeps her. And I have no doubt that they'll keep her on after she loses this time.

    At least Campbell does things and says things. All Carole does is tell the converted that "Gordon Campbell is Lucifer" but there isn't anything else for voters to evaluate. The NDP keeps playing to the choir and telling itself the Green vote isn't coming from them, which it pretty obviously is.

    The voters will choose another Liberal government with an even bigger mandate and the usual suspects will blame all asunder except themselves. Business as usual, NDP style.

  • quarry bay

    3 years ago

    The budget deficit game.....

    that Campbell plays,well my friends,Campbell and Hansen can play the wounded duck routine,it will backfire.

    Here is why it will backfire,we are not talikng about a 300 million or a 600 million deficit,we are talking about a deficit of 4 TO 5 Billion dollars with another 4 billion dollars next year!

    When the public hears those numbers they will go into shock (when they get off the floor)and they will be angry,real angry,they will realize they have been hoodwinked by Campbell, a 5 BILLION DOLLAR deficit doesn`t appear overnight.

    And -people will figure out how can they call for a 3% uptick next year in the GDP and at the same time call another 4 billion dollar deficit/ the actions don`t reflect the predictions.

    So the public will be going nuts shortly,according to Campbell and Hansen (have you seen Hansen talking lately? He has liar/fibster/conman/yes man stickers all over him,veiwable to the public)we went from a ......1 billion surplus,to a 600 million surplus to a small surplus to a 5 BILLION DOLLAR DEFICIT in 2 weeks.

    I am not making up these numbers on the Campbell deficit.

    you can read it here

    http://www.theprovince.com/news/deficit+reach+billions+Campbell/1247275/story.html

  • G West

    3 years ago

    Wilfrid

    You may be correct...but I doubt it, I think the worm has turned and it's the Campbell government that's being eaten from the inside just now.

    Perhaps you missed this little gem.

    http://www.thelinkpaper.ca/index.php?subaction=showfull&id=1233603511&archive=&start_from=&ucat=3&cat=3

    Let me provide a couple of short passages:

    Singh, a longtime BC Liberal and local realtor who will be facing NDP’s incumbent MLA Jagrup Brar, got pounded with everything that is wrong with Premier Gordon Campbell’s Liberals and his government, which lacks transparency and accountability on everything from the Olympic venue over-runs to the ill-conceived transportation projects such as the Port Mann twinning and the failure of his party to move ahead with a much needed hospital for Surrey.
    ... ....

    Singh was not able to answer many of the criticisms, including running up massive provincial deficits for various pet projects, something that the party criticized the previous NDP government. The Campbell government has run up massive costs overruns on numerous projects, making the NDP’s fast ferries debacle look like chump change.

  • Luke Skywalker

    3 years ago

    Quarry Bay...

    Add on the $1.2 billion revenue shortfall from the NDP's promise to "Axe the Tax" and the deficit numbers grow considerably larger. If ya don't think that the deficit will be big enough then vote NDP. ;)

    As for the Surrey Link, it's is an Indo-Canadian NDP-friendly outlet. The NDP already has Surrey Whalley/Surrey Newton/Surrey Green Timbers in the bag, where the big Surrey Indo-Canadian vote resides.

    The referenced new riding of Surrey Fleetwood riding is already in the bag for the Libs in any event, based upon 2005 vote transposition, high-end subdivisions built since 2005 along its eastern boundary, as well as demographics. And that's with a province-wide spread of 4%, not Mustel's 14%.

  • quarry bay

    3 years ago

    Luke/Wilfred

    So you admit that the Gordy-Mandering was done to effect the election.

    Wilfred(here is a explanation on Gordy-Mandering) it is called Jerry mandering,it is when a political party changes the electoral districts to get an advantage with the voters.

    Luke How many times have you said that with the new electoral districts the Liberals will win handily?

    Why would the confident Campbell want to change the electoral districts.

    LLiberal motto "we only cheat when we can`t win"

    So Luke Skywalker has admitted that Campbell changed the districts to get an edge in the up-coming election.

    Luke,everyone knows that Campbell is running scared and having to change his underwear many times a day,imagine,a 600 million surplus to 9 BILLION DOLLARS IN DEFICITS IN 2 WEEKS

    I remind you of that poll question on Gordon Campbell.

    "do you think Gordon Campbell is honest and trustworthy"

    Answere 81% NO 10% yes 9% undecided

    I guess when that question gets asked again the number will be changing.

    So Luke,no one believed Campbell before,no one believes Campbell on anything.

    Campbell can saturate the airways,print,TV....bring it on,Campbell still doesn`t get it,no one wants to see him,hear him,smell him.

    Anyways,jerry mandering never works in BC, the only chance the BC Liberals have,is if Campbell and Hansen and Falcon resign.

    Cheers

  • Luke Skywalker

    3 years ago

    Quarry Bay...

    The BC Electoral Boundaries Commission is an independent body that was headed up by former BC Supreme Court Justice Bruce Cohen.

    And the final report was unanimously approved in the legislature last spring. And yes that includes the NDP.

    For your information, population growth (eg. Okanagan Valley, Fraser Valley) typically occurs in areas that tend to vote centre-right.

    Sounds more like you are just quarry-mandering. :)

  • quarry bay

    3 years ago

    Luke

    Don`t talk about what a NDP deficit might be,you are losing the last few crumbs of any credibility you have left.

    You Know and I know that 2 billion worth of the upcoming deficit is going to be DIRECTLY on the OLYMPICS(security,Vanoc operating budget,venue costs)

    That will expose more Campbells lies (600 million only for the olympics)

    Another 1/2 billion of the deficit will be for indirect olympic costs, Sea to sky/Canada line/convention center cash infusion/hundreds of millions for floating hotels.

    So when people hear that the billions in deficit is almost all olympic related costs,they have Campbell`s head.

    P.S. Frank, there is a choice on the right,true conservatives (Wilf Hanni,the Conservative party)

    They will be taking 5% to 7% of the BC Liberal vote,and there it is, 3% would be enough,people want to rid themselves of the shame they feel after voting for Campbell a second time,THERE WON`T BE A Third.

  • Frank

    3 years ago

    Wilf

    You live in a state where only a single party can form government unless it splits into two. If the NDP didn't exist Campbell would get the same numbers as the ruling party gets in Zimbabwe. Just accept reality because until you do you'll continue to spout nonsense blaming the existence of the NDP for everything wrong in your world.

  • Frank

    3 years ago

    Skookumchuk

    Wilf Hanni? Well, he would be the NDP's only chance so no doubt CanWest will make sure no one knows he exists.

  • quarry bay

    3 years ago

    Luke

    I don`t care about the Gordy Mandering,I don`t care who voted on it,when did the NDP voting or not voting on any issue matter?
    Campbell just rams it through anyways.

    People can see and smell fear and dishonesty.
    Campbell`s one man show is wobbly,who can Campbell send anywhere who is believed?

    Shirly Bond? Rich Coleman? Falcon? Hansen?

    StoneWally Oppal? Penner? Pat Bell? John Les? Ken Dobell? Jack Poole?

    Emerson? Patrick Kinsella? John Furlong?

    The BC Liberals are imploding by the minute,it will be fun,where O where to spend the 20G/You can run,but you can`t hide!

  • quarry bay

    3 years ago

    Frank

    With the intelligence of the average Campbell supporter,just the mention,the VISUAL word Conservative on the Ballot,is more than enough to confuse 7% of the remaining Campbell supporters.

    Remember Frank,the Campbell supporters don`t vote for vision,they vote for hate,they vote because they were told to!

  • Wilfred Laurier

    3 years ago

    Time Will Tell, Garth

    "You may be correct...but I doubt it, I think the worm has turned and it's the Campbell government that's being eaten from the inside just now."

    I stand by my prediction, Garth. It is a matter of the NDP coming to the realisation that what they are doing now is not working and fixing it. Basically, they are giving Campbell a walk to a bigger majority.

    • The discussion for this story is closed. No more comments can be added.

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    Premier Christy Clark's plan to build two liquified natural gas export facilities in B.C.? "Game changer."

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    All "game-changers," my friends.

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