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

Just Posted

Chilliwack’s Jordyn Huitema, a member of the Canadian national women’s soccer squad.
Another scoreless draw for Chilliwack’s Jordyn Huitema and Canadian national women’s soccer squad

Canada played Brazil to a 0-0 tie days after doing the same in a friendly against the Czech Republic

FVRD surveyed public opinion on cannabis production and processing in the electoral areas. Odour and distance from residential areas were the top concerns. (Black Press file)
Cannabis production and processing rules being drafted by Fraser Valley Regional District

Data from public opinion survey will be used to guide cannabis-related land use

Robert Nelson, 35, died after being stabbed at a homeless camp in Abbotsford on April 7 of this year.
Mom pleads for information about son’s killing at Abbotsford homeless camp

Robert Nelson, 35, described as ‘man who stood for justice, honour, respect’

Chilliwack firefighters watch as an O’Connor Towing operator removes a stolen Volkswagen station wagon from the Fraser River off Cannor Road in west Chilliwack on June 13, 2021. (William Snow photo)
PHOTOS: Stolen vehicle dumped in Fraser River in Chilliwack Sunday

Search and Rescue determined there was no one inside the car found upside down off Cannor Road

Police arrest the suspect in an attempted armed bank robbery on June 2 at the Scotiabank at Gladwin Road and South Fraser Way in Abbotsford. (Photo by Garry Amyot)
Abbotsford bank robbery suspect who was stopped by customers faces more charges

Neil Simpson now faces total of eight charges, up from the initial two

Canadian Prime Minister Justin Trudeau participates in a plenary session at the G7 Summit in Carbis Bay, England on Friday June 11, 2021. THE CANADIAN PRESS/Adrian Wyld
Canada donating 13M surplus COVID-19 vaccine doses to poor countries

Trudeau says the government will pay for 87 million shots to be distributed to poor countries

Kelowna-Lake Country MLA Norm Letnick, assistant deputy speaker at the B.C. legislature, presides over committee discussions. The legislature is completing its delayed spring session this week, with most MLAs participating by video conference. (Hansard TV)
B.C.’s daily COVID-19 infections dip below 100 over weekend

Only 68 new cases recorded Monday, four additional deaths

The BC Ferries website went down for a short while Monday morning following a provincial announcement that recreational travel between health authorities can resume Tuesday. (Black Press Media file photo)
BC Ferries’ website crashes in wake of provincial reopening announcement

Website back up now, recreational travel between health regions to resume as of Tuesday

The Kamloops Indian Residential School is photographed using a drone in Kamloops, B.C., Monday, June, 14, 2021. The remains of 215 children were discovered buried near the former school earlier this month. THE CANADIAN PRESS/Jonathan Hayward
Communities grapple with what to do with former residential and day schools

Some tear them down as a tool to help healing, others repurpose them as tools for moving forward

Cannabis bought in British Columbia (Ashley Wadhwani/Black Press Media)
Is it time to start thinking about greener ways to package cannabis?

Packaging suppliers are still figuring eco-friendly and affordable packaging options that fit the mandates of Cannabis Regulations

FILE – Provincial health officer Dr. Bonnie Henry talks about B.C.’s plan to restart the province during a press conference at Legislature in Victoria, Tuesday, May 25, 2021. THE CANADIAN PRESS/Chad Hipolito
B.C. watching U.K.’s COVID struggles but don’t think province will see similar pitfalls

Studies show that one dose of vaccine is only 33 per cent effective in preventing B.1.617.2 spread

RCMP Const. Shelby Patton is shown in this undated handout photo. RCMP say that Patton was hit by an allegedly stolen truck that he had pulled over on Saturday morning in Wolseley, east of Regina. THE CANADIAN PRESS/HO, RCMP
Pair charged in Saskatchewan Mountie’s death make first court appearance

Const. Shelby Patton was hit by an allegedly stolen truck that he had pulled over Saturday morning

David and Collet Stephan leave for a break during an appeal hearing in Calgary on Thursday, March 9, 2017. THE CANADIAN PRESS/Todd Korol
Appeal Court rejects stay for Alberta couple facing third trial in son’s death

Pair accused in their earlier trials of not seeking medical attention for their son sooner

Highway notices like this come down effective June 14. Public health restrictions on non-essential travel and commercial operation have hit local businesses in every corner of B.C. (B.C. government)
Province-wide travel back on in B.C.’s COVID-19 restart plan

Gathering changes include up to 50 people for outdoor events

Most Read