There will be job losses in British Columbia's already lean public service and wide cuts to most ministries to fund increased spending in health and education, according to the budget Finance Minister Colin Hansen presented today.
There will be 4,142 fewer people working for the government by 2013 than there were in 2008, according to the budget documents. That's a shrinking of 13 percent, and at least some of the decrease will come from lay-offs.
As the document puts it, “Despite expected natural attrition, some involuntary staff reductions will likely be necessary in 2010/11 and 2011/12 to ensure government manages within annual budget targets and achieves a balanced budget by 2013/14.”
The province has laid off five hundred since September with another 1,000 to come over the next few years, a staff member told reporters on background, though Hansen later said it's impossible to put a figure on it. The “overwhelming majority” of staff reductions have been through attrition, he said. For people in jobs that are cut, he added, “We will work very hard to help them find another alternative position in the public service . . . Our goal is to keep the number of absolute layoffs to an absolute minimum.”
The job cuts are part of the government's efforts to balance revenues and expenses by fiscal 2013-2014. The documents show a deficit of $1.715 billion in 2010-2011, which is in line with what was projected in September.
While revenues have dropped off during the economic downturn, something frequently mentioned by Hansen and premier Gordon Campbell, spending has continued to increase, though Hansen pointed out in his speech that the rate of growth has slowed.
Even since the September budget update, corporate income tax is off by a further $252 million, natural gas royalties by $190 million and HST rebates have added another $227 million expense. On the plus side the province is picking up $311 million more in transfers from the federal government and this fiscal year will include $395 million of the $1.6 billion in federal compensation for adopting the HST.
The documents also show that the province received $250 million of that compensation in 2009-2010, instead of the planned $750 million. The shift was because of the federal government's cash flow, said Hansen. “It's not something we have unilateral say over.”
At the same time expenses have grown by $460 million, including a further $105 million for school districts, $31 million for post-secondary institutions and $34 million for health authorities and hospital societies.
The budget adds in $35 million to the LiveSmart program and $100 million for what the documents describe as clean energy initiatives.
It also increases the forecast allowance for the year to $300 million. That's more than the $250 million previously planned and much more than the zero allocated in last February's pre-election budget, at a time of great economic volatility, but still much lower than the $750 million that was standard a few years ago.
Ministries receiving cuts include agriculture and lands, citizens' services, energy, mines and petroleum resources, finance, forests and range and labour. The healthy living and sport ministry also sees a cut, much of which appears to be the winding down of the 2010 Olympic and Paralympic Games secretariat.
The province will move $320 million from the resource ministries into health and education, Hansen said. Some of the savings in the resource ministries will come from consolidating some services, he said.
Hansen also released more details on the propety tax deferral for families announced in the throne speech three weeks ago. Starting in July people who own at least 15 percent of the equity in their home and who have children under 18 years old living at home will be able to defer their property taxes. The province will pay municipalities for the deferred taxes and will charge the home owner interest at the prime rate, he said.
The Housing and Social Development ministry's budget showed a decrease in spending on housing and employment programs, despite an increase in the amounts spent on disability and income assistance.
The Crown agency B.C. Housing, however, has seen its budget go up to $900 million from $627 million last year, with a provincial contribution four times what it was a few years ago.
Andrew MacLeod is The Tyee’s Legislative Bureau Chief in Victoria. Reach him here.
15
Login or register to post comments
Ed Seedhouse
2 years ago
The party's over. Enjoy the
The party's over. Enjoy the hangover.
BC Boy
2 years ago
Pass the coffee
Pass the coffee.
Welcome to the hangover, kids.
Skywalker
2 years ago
It was a fun party.
But was it worth all the pain to come? Way to go Liberals I thought it couldn't be any worse. You amazed me again. The money spent on Fast Ferries is looking pretty good about now.
BC Boy
2 years ago
Fast Ferries are still being paid for
Luke sez:
"But was it worth all the pain to come? Way to go Liberals I thought it couldn't be any worse. You amazed me again. The money spent on Fast Ferries is looking pretty good about now."
Considering that we're almost done paying for those ferries (adding in the capitalisation of the loans and the costs of the entire project, not just the three ferries themselves).
wcullen
2 years ago
Funding not steady on education
Sorry folks, but with the $110 Million cuts to the Annual Facilities Grant and the rising educational costs, this budget, in no way, keeps us at parity.
What, in fact, is occurring, on the one hand, is a steady downloading of costs and workload onto teachers without compensation and, on the other hand, the budget not taking into account rising costs and the loss of funding (like the AFG). What this ends with is less money for education--even if you don't see specific cuts in this budget.
What they are counting on is for people to not look too close. How they add to this is to fund day-care. They don't have a choice in this--its not out of good grace, its mandate.
Furthermore, what this manages to do is split parents between those who can afford to look after their children without day-care (e.g. those who have maternity leave options or the income to do so) and those who are under incredible financial stress already (due in large part to the Liberal cuts of the past). To these latter folks ANY relief of stress seems like a good idea, but it is a poltical ploy to divide and conquer as well as a means to distract you from seeing the actual facts held within these bedugets.
In the end, students and, thus, the future of BC is suffering by this Liberal sleight of hand.
If we can fund athletes for the Olympics--certaily an elite crew--why aren't we demanding the same for the general population and student body?
Do we care more about athletes..? I have more faith in the people of BC, Mr Hansen!
circle A
2 years ago
Pity the poor...
victim who gets on the hook for property taxes where these vicious prick liberals can sqeeze you, even by proxy.While i`m on the subject has anyone else noticed how much sucking up to money and power our previous minister of finance paul ramsey is doing these days,caught his act on cbc at noon today. never a discouraging word towards campbell & co. Must be up for some type of reward? at least he`ll have company. nobody with any access to a large audience has the balls to call these lying fakes we call govt. to account for any the scandalous nonsense these sellouts dream up.
jim1966
2 years ago
The BC Budget
This budget to say the least was just fizzle and no pop. Gordon Campbell has a serious problem. The vast majority of British Columbians don't like or want him anymore. Thus putting the BC Liberals into choppy waters. The HST tax is a stinger and the Liberals know it, they problem is that they have the majority and they assume that they know better, when clearly the polls show a general distaste for this gov't. I think that this gov't should have invested more time and thought into the budget, if you got something positive from this "fizzler" then more power to you. For the vast majority of British Columbians the party was over a long time ago for Gordo and his gang.
crankypants
2 years ago
Can we assume
Can we assume that the next round of layoffs will reduce the Public Affairs Bureau from approximately 200 to a more reasonable level of say around 20? Seeing as this budget increased their funding, one can assume not. What is wrong with this picture?
Ayla
2 years ago
Why be so upset?
Vancouver hosted the world, and all that the left can do is complain?
Why?
The spinoffs will more than pay for themselves.
It's time that Communists and Socialists understand that Government's duty is to legislate and ensure that the economy is run to the best interests of private enterprise; Government's duty is not to ensure the survival and fitness of the hopeless "members" of society that refuse to provide for their own survival.
Redistribution of wealth, with socialism in general, died with the collapse of the Soviet Union in 1991!
Frank
2 years ago
Ayla
I hate to tell you this but the concept of redistribution did not die with the collapse of the Soviet Union in 1991 any more than your government and business coalition philosophy died in a Berlin bunker in 1945.
You said : "It's time that Communists and Socialists understand that Government's duty is to legislate and ensure that the economy is run to the best interests of private enterprise;"
We're already aware that that is indeed the case but that doesn't mean we should lie back and accept it.
We will continue to work to see a government that legislates and ensures that the economy works on behalf of the people, not private enterprise.
Skywalker
2 years ago
Let's make a deal Ayla
If you are wrong, you pay my share of Olympic costs. If you are right, I will give you my share of Olympic benefit. O.K.?
wcullen
2 years ago
Ayla's ignorance
First, the USSR was communist, not Socialist. The "socialist" in the title was not, by the way, reminiscent of any form of actual 'socialism' anymore than the USSR was actually communist: it was a totalitarian state.
Second, the type of government you're suggesting is an authoritarian plutocracy, where we live in a democracy. Therefore, if our government redistributes based upon corporate/private interests, it is only the ignorant and apathetic, like yourself, that allow said enterprises to do so. In effect, such a system is in conflict with democracy. And, as such, a democracy requires an involved and informed citizenry--otherwise powerful interests undermine it. This is why DeTouqueville was so concerned about what he witnessed in America.
Third, redistribution of wealth occurs anywhere there is a monetary system or trade.
Before making such inane and assinine comments, at least inform yourself with a basic understanding of political systems.
G West
2 years ago
@ wcullen
Good points...Citibank actually calls the current system - the one Ayla seems to prefer - a Plutonomy
You might enjoy reading their thoughts on the subject of the way things are tending...
http://www.scribd.com/doc/6674229/Citigroup-Mar-5-2006-Plutonomy-Report-Part-2
zalm
2 years ago
Hang on a minnit...
Exactly what is ***ayla*** doing here? L'il green footballs might be a better home.
freebear
2 years ago
Thieves, thieves, drunks and thieves!
When does the BC Railgate trial start?
So why is it that so called journalists, save a few on limited audience media, do not have the balls, or ovaries, to challenge this b.s.