Signs of Hope Are Hard to Find

In 279 BC, Pyrrhus, the king of Epirus, defeated a Roman army. However, so many of his men had been killed and wounded in the battle that he said "Another such victory and I shall be ruined."

That's how British Columbians are feeling about Gary Collins's balanced budget. After three years of record deficits, caused in large part by the Campbell government's $2.1 billion in tax cuts in 2001, the budget is finally balanced-as it was under the NDP government in 1999 and 2000, before Mr. Collins got his hands on the books.

However, while the Liberal government congratulates itself on getting the books balanced, most British Columbians don't feel like celebrating. Balanced budgets are good; government has to live within its means. But the cost of Mr. Collins' approach to balancing the books has been high: increased taxes, privatization schemes and slashed services, and an overburdened middle-class.

How have we paid?

British Columbians have paid for Mr. Collins' balanced budget with increased taxes and fees. Big business and the very well off still have plenty of money left in their pockets from the 2001 tax cuts. Everyone else is paying more taxes now-sales taxes, Medical Service Plan premiums, fuel taxes, tobacco and liquor taxes, school property taxes. And fees have soared on everything from drivers' licenses to firewood at campgrounds.  This year the increase in taxes and fees for individuals is $110 million. That's a cost of the Liberal approach to balancing the budget.

Then there's the wasted tax dollars from last year: $6 million for the bone-headed scheme to sell the Coquihalla highway; over $16 million for the premier's pet project-a website that was never built; $2.3 million in fish farm handouts; half a million dollars in untendered contracts for Liberal insider Doug Walls. Sadly, the list goes on. And we know there will be more this year.

When our children go to school, they find fewer teachers and less learning resources. Ninety-two schools have been closed and nearly 3,000 teaching jobs have been cut in the last two years. That's a cost of the Liberal approach to balancing the budget. This year's budget includes a 1.7 percent increase to school budgets. That won't even cover the cost of inflation, let alone restore needed services.

And contrary to hints in the Throne Speech, the budget provides no new funding for post-secondary education. In fact the budget for student financial assistance is being cut by $29 million; bursaries for students in need are being eliminated. Not only will high school graduates heading off to college or university pay tuition that is between 60 and 100 percent higher than it was two years ago, but they'll have less financial assistance, and they'll graduate with record levels of debt.

Children are at risk

Those British Columbians most in need of government assistance have paid a very heavy price. Even though the Ministry of Children and Family Development is in chaos, this year's budget cuts a further $70 million. Children at risk have less protection and far fewer services since the Liberal government took power. That's a cost of the Liberal approach to balancing the budget.

The situation is even worse in health care. This year's budget for health has increased, thanks to a bump in transfers from the federal government. But more health services are cut every week in communities around the province. The promised 5,000 new long-term care beds for some of our eldest and most frail seniors haven't materialized. Drug costs have soared; FairPharmacare isn't. Waitlists for surgery are way up. Entire hospitals are shut down. The only growing sector of health care is the private, for-profit clinics that Mr. Campbell wants to protect. That's a cost of the Liberal approach to balancing the budget.

Education and health were services the Liberals pledged to protect. The budget situation is much worse for other crucial government services. Environmental protection has been slashed by 31 percent in three years. In spite of concerns about the influence of organized crime, the budget for the Solicitor General will fall by $34 million this year.

Where's our recovery?

Maybe all this pain would have been worth it if at least the government's fiscal strategy had really kick-started the economy as Mr. Campbell promised it would. However, after three years of trailing the nation, B.C.'s economy is projected to grow only at a very modest 2.8 percent. That may well be overly optimistic; last year Mr. Collins estimated economic growth of 2.4 percent, but GDP actually increased by only 1.5 percent.

Signs of hope are hard to find. Like last week's Throne Speech, this week's budget continually points to the 2010 Olympics as the economic salvation of the province. The NDP initiated the 2010 Olympic bid. All British Columbians are proud that the world will come to B.C. in 2010, but the province can't wait six years for good economic news.

This budget has nothing in it for British Columbia's communities, nothing for our environment, nothing for our economy. After blowing a huge hole in the government's finances with rash tax cuts in 2001, Mr. Collins has finally filled the hole-with tax increases and with cuts to services. He may see it as a magnificent victory, but British Columbia can't afford another such victory.

BC NDP leader Carole James' budget analysis also appeared in the Vancouver Sun.