Finance Minister Carole James (Black Press)

Finance Minister Carole James (Black Press)

Surplus decreased as B.C. wildfire, ICBC costs rise

Finance Minister Carole James promises balanced budget

B.C. Finance Minister Carole James released the province’s second quarter financial update Tuesday, downgrading the forecast surplus for the current year and using the bulk of the government’s forecast allowance to keep the books out of the red.

The projection at the halfway point of the 2017-18 fiscal year is a surplus of $190 million, down $56 million from the first-quarter projection. The biggest jump in provincial spending was $152 million to cover costs of the summer forest fire season. Forest fire efforts also accounted for most of a jump of 267 full-time equivalent B.C. government jobs in the summer.

On the revenue side, the biggest change was a reduction of $643 million in anticipated income tax revenues. James said that was based on the federal government’s update of personal and corporate income taxes collected during 2016, down from the previous forecast.

Another revenue drop of $109 million from earlier forecasts came in commercial Crown corporation revenue. That is mostly due to a downgrade of revenues from ICBC, which continues to struggle with increased claims and legal costs.

RELATED: Report warns of more ICBC rate increases

Other revenues continued at a healthy pace in the quarter from July to September, including property transfer tax, which has been the province’s cash cow during the hot real estate market in recent years. Expected revenues from that tax for the current year were increased by $175 million.

Retail sales also continued to rise in the second quarter, resulting in an upward adjustment of $51 million.

Another bright spot was forest revenues, with the provincial revenue forecast up $55 million, due mostly to higher timber tenure stumpage rates. B.C. lumber prices are near record highs, with high demand from the U.S. despite 20 per cent countervail and anti-dumping duties imposed by the U.S. government at the Canadian border.

B.C. Liberal finance critic Shirley Bond said the strong economic growth is a result of the previous government’s policies.

“Although the NDP inherited a $2.7 billion surplus, they have already managed to dip into British Columbia’s savings and they haven’t even fulfilled most of their major campaign spending promises, including $10-a-day daycare and a $400 renter subsidy,” Bond said.

James said the NDP’s child care and housing pledges are over 10 years, and can be achieved as long as B.C. continues to have strong economic growth.


@tomfletcherbc
tfletcher@blackpress.ca

Like us on Facebook and follow us on Twitter.

BC legislaturebc wildfires

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

Vancouver Island University organizations are raising awareness about gender-based violence during 16 Days of Activism, which includes the Red Dress Project hosted by VIUSU that aims to honour the memory of Canada’s missing and murdered indigenous women and girls. (Vancouver Island University photo)
City proclamation calls on Nanaimo to unite to end violence against women

16 Days of Activism campaign started Nov. 25, continues to Dec. 10

The Nanaimo Rona location. (News Bulletin photo)
Rona home improvement store in Nanaimo advises customers that worker has COVID-19

Store re-opened Sunday after being closed for cleaning Saturday

Environment Canada has issued a special weather statement forecasting windy weather Sunday and Monday. (News Bulletin file photo)
More windy weather on the way for Vancouver Island

Environment Canada issues special weather statement for Victoria, east coast of Island, north Island

Const. Joshua Waltman brings knowledge gained from working with people experiencing homelessness in Surrey to his new role as the RCMP’s mental health liaison officer in Nanaimo where he will work with people from across society who find themselves struggling with mental health crisis. (Chris Bush/News Bulletin)
Nanaimo RCMP’s mental health liaison says his role will take persistence and resilience

Const. Joshua Waltman talks about limiting anxiety and gaining trust of people in mental crises

Two drivers were taken to hospital with unknown injuries after a hatchback and a convertible collided on the old Island Highway at Oliver Road on Saturday afternoon. (Karl Yu/News Bulletin)
Drivers taken to hospital after T-bone crash on the old Island Highway in Nanaimo

Convertible and hatchback collided at Oliver Road on Saturday afternoon, impacting traffic

Local poet and VIU professor Sonnet L’Abbé wrote and performed a song as part of the city’s Reimagine Nanaimo campaign. (Photo courtesy City of Nanaimo/Port Theatre)
Poet pens song as part of city’s Reimagine Nanaimo campaign

Sonnet L’Abbé encourages a friend to move to the city in ‘Nazaneen: A Song for Nanaimo’

Janice Perrino, Nanaimo and District Hospital Foundation CEO, holds information brochures for the Light the Trees campaign, part of an effort to raise $5 million for the new intensive care unit at Nanaimo Regional General Hospital. (Chris Bush/News Bulletin)
Million-dollar donation has Light the Trees campaign off to a bright start in Nanaimo

Windsor Plywood Foundation supports Nanaimo and District Hospital Foundation

A B.C. Ambulance Service paramedic wearing a face mask to curb the spread of COVID-19 moves a stretcher outside an ambulance at Royal Columbia Hospital, in New Westminster, B.C., on Sunday, November 29, 2020. THE CANADIAN PRESS/Darryl Dyck
Top doctor urges Canadians to limit gatherings as ‘deeply concerning’ outbreaks continue

Canada’s active cases currently stand at 63,835, compared to 53,907 a week prior

Black Press Media and BraveFace have come together to support children facing life-threatening conditions. Net proceeds from these washable, reusable, three-layer masks go to Make-A-Wish Foundation BC & Yukon.
Put on a BraveFace: Help make children’s wishes come true

Black Press Media, BraveFace host mask fundraiser for Make-A-Wish Foundation

A airport worker is pictured at Vancouver International Airport in Richmond, B.C. Wednesday, March 18, 2020. THE CANADIAN PRESS/Jonathan Hayward
Canada extends COVID restrictions for non-U.S. travellers until Jan. 21 amid second wave

This ban is separate from the one restricting non-essential U.S. travel

A Canadian Pacific freight train travels around Morant’s Curve near Lake Louise, Alta., on Monday, Dec. 1, 2014. A study looking at 646 wildlife deaths along the railway tracks in Banff and Yoho national parks in Alberta and British Columbia has found that train speed is one of the biggest factors. THE CANADIAN PRESS/Frank Gunn
Study finds train speed a top factor in wildlife deaths in Banff, Yoho national parks

Research concludes effective mitigation could address train speed and ability of wildlife to see trains

A small crash in the water south of Courtenay Saturday afternoon. Two men had to be rescued, but reports indicate there were no serious injuries. Photo by Mike Chouinard
Small plane crash in Comox Valley waters Saturday afternoon

Two rescued from plane that had flipped in water; no serious injuries reported

A rendering of a restaurant building making up part of a development permit application for 113 and 161 Island Highway in Parksville. (IAG Developments image)
Development application delayed for high-profile Parksville property

Council refers restaurant/RV campground application to staff for further improvements

Most Read