By Surbhi Gogia
The newly elected BC Liberals leader Kevin Falcon has compared the 2022-23BC budget with a pie that is being offered to so many people, but no one is thinking about growing that pie bigger. He said similarly the current BC government wants to give some share from the budget to every sector, but the budget lacks big ideas and long-term planning to address issues that are currently gripping British Columbians especially rising cost of living and housing affordability. “At a time when affordability and the costs of living are higher than ever, this NDP budget doesn’t say anything that’s going to improve everyday affordability for British Columbians,” he said.
He said as the former finance minister things that were most concerning to him like government spending which isat 7 percent and revenues are 3 percent. “A government which is exploding in size,all this would have made sense if we had seen $10 a day child care, streets getting safer, decrease in overdose deaths or major projects getting done.”
Selina Robinson, BC Minister of Finance and opposition leader Falcon, both held a South Asian media roundtable to discuss the 2022-23 budget. In both the discussions, South Asian media representativesraised questions about how proposed budget will address rising cost of living, housing crisis, rising gas prices, drug overdose crisis, struggling health care system, and regarding Surrey’s infrastructure especially the new hospital in Surrey.
Minister Robinson pointed in her opening remarks that the budgetary allocations have been done while keeping in mind all the current problems.“Budget 2022 supports bold actions to fight climate change and to protect people and communities from climate-related disasters. In addition, the budget helps with the cost of living by reducing child care costs, delivers a comprehensive approach to respond to and prevent homelessness, makes investments needed to close the digital divide and grow an inclusive and sustainable economy, and continues to strengthen the public services British Columbians rely on.”
She said thatthe ongoing pandemic to the devastating effects of climate-related disasters require government leadership and collective action. “That is why we are investing in BC’s economic, environmental and social strengths.”The budget, she said is putting people first.
The highlights of the budget included decrease in budget deficit. Budget 2022 included updated forecast budget deficit of $483 million for 2021-22, less than $9.7 billion projected in 2021. “This decrease is mainly because of higher revenues, including significant one-time revenues and federal transfers, as well as higher natural resource and tax revenues as a result of stronger economic growth,” she said. BC is also expecting $2.5 billion in revenue from the property transfer tax in 2022-23 and $327 million from ICBC. “Despite significant Covid 19 and climate related destructions, BC’s economy expanded by an estimated 5% in 2021 and is forecast to expand by 4% in 2022 and 2.5% in 2023,” she said.
The budget received a mixed response from various organizations and BC municipalities. BC government was applauded for making it inclusive, reducing child care cost and investing in climate change. “We are pleased to see the Province invest $164 million in complex care housing and supports, with the promise of 20 new sites across British Columbia,” said Kelowna Mayor Colin Basran, Co-Chair of BC Urban Mayors’ Caucus. “This funding signals the Province’s commitment to supporting our most vulnerable.”
Affordability
Minister Robinson highlighted that when it comes to making life more affordable, Budget 2022 brings B.C. closer than ever to government’s planned $10-a-day child care. Through a new agreement with the federal government, fees for full-day infant and toddler care will be reduced by 50% to an average of approximately $20 a day by the end of 2022.She also mentioned government’s continuous efforts to put money back into the pockets of people by eliminating MSP costs, reducing ICBC costs and getting rid of tolls on the Port Mann and Golden Ears bridge.
Healthcare
When it comes to healthcare, the budget invests $3.2 billion in additional funding over the fiscal plan to improve the health-care services that includes reducing wait time for surgeries, investing in paramedics services, improving support workers wages and work conditions and expanding mental health care, Robinson informed. Falcon, however, asked the government about long-term planning to invest in doctors and ‘real hospitals’ especially for the fastest growing city like Surrey.
“A $1.66 billion is provided for the new Surrey Hospital and Cancer Care Centre with groundbreaking slated for 2023 with an opening expected in 2027. Land has been acquired and $2 million has already been spent on preliminary work. It will include 168 in-patient beds, emergency department, medical imaging department, five operating rooms, and state-of-the-art Cancer Centre,” informed Robinson.
Falcon while explaining the $2 million allocation said that the new Surrey hospital is “not a real hospital but an urgent care centre with 168 beds.” He said real hospital is the Surrey Memorial hospital with full services like maternity etc. Also, the government has allocated only $2 million dollars in this budget for the new Surrey hospital. “The 1.66 billion dollars is the estimated cost once the hospital is completed in 2027.”
Also, when it comes to training doctors in British Columbia, the budget offers nothing, according to Falcon. He thought the biggest problems with filling doctors’ shortage is lack of medical schools and red tape. “British Columbians educated in finest schools cannot practice in BC. We need a medical school in Surrey because I want to make sure that our kids have a local doctor or a family doctor.”
Mental health
Along with Covid 19 pandemic, BC has been going through the pandemic of drug overdose that needs immediate action from the government. The government wants to build a strong workforce but on the other hand, the workforce that is the youth and people between 20 to 50 years of age are becoming victim to drug overdose crisis. When asked about Budget allocation to stop this drug over dose death, Minister Robinson said that whenNDP came to power in 2017 all there was a “hotch-potch and no coordinated program to deal with mental health and addiction.
“We faced difficult challenges. We stared to draw a framework and find gaps in services. We have been doing it for the last 5 years.” She said“We have Pathway to Hope plan to expand mental health and addictions care, supported with significant Budget 2021 investments that bring increased annual expenditures since 2017 to over $375 million annually. Also, in this budget we are expanding the first-of-its-kind Complex Care housing model to at least 20 more sites throughout B.C. through an investment of $164 million over three years, with plans to support up to 500 people with severe mental health, substance-use issues, or traumatic and acquired brain injuries who are currently homeless or unstably housed.”
Housing
One of the most discussed topics during the discussion was housing affordability.
The provincial government has promised accelerating investments to build more affordable and mixed-income housing projects faster. It is sticking to the 10 year housing plan with a goal of delivering 114,000 affordable homes in British Columbia, with an additional $166 million over the fiscal plan. This brings the annual level of housing investments to over $1.2 billion by 2024-25.
This funding provides $100 million in 2022-23 to non-profit housing providers to accelerate the construction of mixed-income housing through the Community Housing Fund. It also adds additional resources for the HousingHub at BC Housing to keep up with growing demand for the $2 billion in low-cost financing announced in Budget 2021.
Falcon said all these investments look good on papers but there are no immediate steps taken to address middle-class home buyers dream to afford a house. “There is no relief on the horizon for people trying to buy a home, as prices skyrocket — in fact, the NDP are profiting from the housing market, collecting more than $3 billion in revenue from home sales last year,” he said.
Disaster recovery
When it comes to disaster recovery, Budget 2022 earmarks more than $1.5 billion over the fiscal plan to help communities build back better from recent and future climate-related disasters, including floods and wildfires. This includes: $400 million for Emergency Management B.C. to support ongoing disaster response and recovery costs, including debris removal and clean-up.$1.1 billion in general programs contingencies to cover additional costs.In addition, $100 million is provided for capital costs to repair damage to provincial public-sector buildings.These allocations are in addition to the $5 billion in spending allocated by the Government of Canada to help disaster response and recovery efforts in B.C.
Businesses
Small businesses were hoping to see measures to reduce costs and help with recovery, said the Canadian Federation of Independent Business (CFIB). CFIB appreciates the BC government did not introduce new tax increases, however, small businesses are still feeling cost increases in the form of employer-paid sick days, rising property taxes, the employers’ health tax, carbon tax increases and inflation.
“CFIB recognizes the province has managed the pandemic well by allowing businesses to keep open as much as possible, but small businesses are still very much in survival mode,” said Annie Dormuth, CFIB provincial affairs director. “We are coming up to two years of the pandemic and only 35% of BC small businesses are back to normal sales and have accumulated $129,000 in COVID-19 related debt. The budget was a missed opportunity to help businesses through the immediate and current crisis with cost relief measures and a plan to help them to recover in the long-term.”
Greg D’Avignon, President and CEO, Business Council of British Columbia on the other hand called the budget a missed opportunity. “We are at a pivotal point of a very difficult two years, both economically and socially. The Government continues to increase spending while taking for granted sources of recent economic growth, like surging natural resource exports, rebounding consumer spending and buoyant housing markets without a solid plan for the longer-term. In an increasingly complex world where many other jurisdictions are stepping up efforts to attract productive private sector investment, B.C. must do more to get the economic foundations right — or future generations will bear the costs of our inaction.”
Today’s Budget estimates a $483 million deficit for 2021/22, which is a very different picture from the $9.7 billion shortfall projected a year ago. Although the smaller operating deficit is a positive development, it reflects booming exports, red hot housing markets, rock bottom interest rates, and an unusual double-digit increase in “nominal” GDP as the economy rebounded from the 2020 downturn amid higher inflation. “The 36% jump in the value of B.C.’s merchandise exports in 2021 played a key role in moving the economy out the COVID slump. The bulk of this export gain was due to the rising value of B.C.’s natural resource exports.Over the next three years, the Government will continue to run substantial operating deficits and also borrow more to fund capital projects. As a result, the province’s overall debt load is set to increase by 37%. The Business Council is disappointed the Budget didn’t outline a plan to balance the operating budget over the next three years.”
“When examining the overall debt to GDP ratio, BC is still better off than other provinces and territories affected by the pandemic,” said Anita Huberman, President & CEO, Surrey Board of Trade. “However, we need to ensure that supply chains are fortified, that infrastructure investments are made now to create sustainable jobs, and that any transportation planning that takes effect in the next 3-4 years continues and is enhanced. Today’s BC Budget did not commit to a review of BC’s tax system, which is long overdue.”
Provincial government’s commitment to climate change, homelessness, affordable child care, were very wellwelcomed but many were left still looking for solutions to solve current problems like housing affordability for middle class, record breaking gas prices $1.82 per litre in Vancouver: the most expensive gasoline in North America and increase in grocery prices.
