B.C. budget 2010: A tight budget for tight times?

In yesterday's provincial budget, the B.C. Liberal government promised to end the current deficits by the 2013-14 budget year. Toward this end, Finance Minister Colin Hansen announced a tight budget with effective freezes on all spending other than health care (set to grow by $750M this year) and education ($140M).

Also planned for the next three years is a 10% cut in the ranks of the civil service, to be achieved mostly through attrition. Said Hansen, "Unlike other provinces that, in these past few months have seen their budget deficits increase significantly, we have approached the development of this budget with the determination that we are going to get this province back out of the red ink at the earliest opportunity.”

The government anticipates that these measures, coupled with hoped-for economic growth will result in a balanced budget within the prescribed three year period.

“Business and consumer confidence are rising. In fact, they are amongst the highest levels in Canada. And B.C. is expected to be among the country’s leaders in economic growth in the year ahead."

The government anticipates a $1.7B deficit for the current year. Total B.C. debt is projected at $47B, and it is expected to rise to $56B by 2012.

Other significant aspects of the budget include the following:

• starting this year, families with children under the age of 18 will be able to defer their property taxes for as long as they own their homes;
• an additional $26 million for child care subsidies will be made available. These subsidies will offset the costs of child care for about 28,000 children every month;
• an allocation of $60 million will be made for a 2010 Sports and Arts Legacy. Half of the funding is targeted to enhancing youth participation in sports, and athlete and coach development. The other half is targeted to arts investments;
• full-day kindergarten will be provided for five-year-olds. The program is being phased in starting this September. When it becomes fully operational, annual funding will rise to $129 million by 2012;
• there is a promise to turn more of B.C.’s schools into Neighbourhood Learning Centres.