Last week was a busy one in Victoria with many different events unfolding including the introduction of the B.C. budget.
As it is expected that a new premier and cabinet will potentially bring in a new budget there was not a significant amount of discussion over last week’s budget 2011.
As many of you may be aware, over the past few weeks I have touched on the B.C. budget with an overview as to how our roughly $39 billion annually is collected and also where that roughly $40 billion is spent and pointing out that in fact there is a current budget deficit in excess of $1 billion for this past year.
The good news in last week’s budget is that the revised revenue forecast indicates the budget deficit for 2011 to 2012 will be reduced to just over $500 million if you exclude a $350 million forecast allowance.
The bad news is that British Columbia’s total debt is forecast to hit roughly $53 billion.
Ten years ago our provincial debt stood at roughly $37 billion and 20 years ago B.C. debt was $17 billion.
In other words we have been adding roughly $15 to 17 billion per decade over the past two 10-year periods.
There are many ways to try and downplay the debt we have here in British Columbia but ultimately we must recognize that in spite of claims of government cuts and underfunding, spending in British Columbia continues to rise and largely outpace revenue.
This is a practice that is not sustainable long term.
As for increased spending in last week’s budget the vast majority will again be primarily allocated to health care and education.
Health care will again see the largest single increase in the budget with a nearly $1 billion increase in funding up to $15.7 billion.
The total education budget will be increased to just over $5.2 billion although the majority of this increase will be towards all day Kindergarten and previously negotiated wage increases. Other cost increases will continue to present challenges for local school districts.
The only other ministries receiving an increase in funding will be transportation and infrastructure in large part to fund projects already committed to, and advanced education will see a very slight increase as well.
There will be roughly 16 remaining ministries in areas such as forestry, environment, tourism and agriculture among others that will be looking at either status quo or reduced budgets going forward.
From a revenue perspective British Columbia is anticipating roughly $1.4 billion in increased funds for 2011 with taxation leading the way with close to a $1 increase in anticipated revenues.
Natural resource royalties are also forecasted to increase as are other user pay premiums helping to offset a decline in federal government transfers, largely as a result of the expected completion of major infrastructure programs. Total revenue is forecast to rise up to $41.3 billion over last year’s revenue figures.
For further information on the budget do not hesitate to contact my office.
Finally this week I would like to comment on the potential for provincial proposals for a new correctional facility here in the Okanagan.
While I do not intend on personally engaging in local government discussion I can pass on that our Solicitor General has confirmed with me that any and all communities in the South Okanagan, including First Nations, will be given serious consideration for a location if a suitable site is identified and supported.
There have been some suggestions that only a site north of Kelowna would be preferentially considered and I would like to re-affirm that all potential locations south of Kelowna will be given serious consideration.
Bill Barisoff is the MLA for Penticton.