VICTORIA — B.C.'s latest budget will allow poor single parents to keep more money from social assistance, but otherwise there are few new measures that will directly benefit families in the province.
Finance Minister Mike de Jong's latest budget once again forgoes splashy spending announcements in favour of balancing the books.
One of the few new measures in the budget is a plan to end the practice of clawing back child-support payments from income-assistance calculations, which will cost the government $32 million over the next three years.
The budget also includes more than $100 million in additional funding for Community Living B.C. over three years, as well as an additional $20 million for income assistance, largely to address the growth in disability payments.
Parents who already claim recreation fees will automatically receive a tax credit for their children's fitness equipment, but that will only translate to a maximum benefit of $12.65 per child.
Health-care premiums are also increasing by four per cent on Jan. 1, 2016, meaning a single person will pay $3 more each month, for a total of $75, and families will pay an extra $6, or $150 per month.
Highlights from B.C.'s 2015-2016 provincial budget
— Surpluses are forecast for the next three years: $284 million in 2015-2016; $376 million in 2016-2017; and $399 million in 2017-2018.
— The projected surplus for 2014-2015 is now $879 million, significantly higher than the $184-million surplus projected a year ago.
— B.C.'s economy is expected to grow by 2.3 per cent in 2015; 2.4 per cent in 2016; and 2.3 per cent in 2017.
— The budget includes no revenues from the liquefied natural gas industry, which B.C. Premier Christy Clark has promised will one day bring in billions of dollars.
— Declining natural gas prices are expected to cause royalties to fall by 36.5 per cent in 2015-2016, leaving the province with $344 million from the sector compared with $542 million in the current year.
— The province expects to end 2015-2016 with $66 billion in debt, growing to more than $70 billion by 2018.
— Child-support payments will no longer be factored into social-assistance calculations at a cost of $32 million for the next three years.
— Parents can claim $250 under a new children's fitness equipment tax credit, which translates to a maximum benefit of $12.65 per child.
— Teachers who participate in extracurricular coaching can claim a tax credit that will be worth $25 per year.
— Health-care premiums will increase by four per cent on Jan 1, 2016. Monthly rates for a single person will increase by $3 to $75 per month, while families will pay an extra $6 per month for a total of $150.
LNG boom nowhere to be seen
British Columbia's finance minister tabled a balanced budget Tuesday as he boasted that his province may be the only one in Canada to avoid falling into deficit amid plunging oil prices, but the long-anticipated liquefied natural gas industry has yet to produce one cent.
Finance Minister Mike de Jong's budget projects a surplus of $284 million for 2015-2016, marking the province's third-consecutive balanced budget.
"Through their hard work and perseverance, British Columbians have scored a fiscal hat trick," he said.
"For the third year in a row, British Columbia will have a balanced budget. We are the fiscally healthiest team in the league. Our bench is strong. In British Columbia, we've already got the most talented players in the league and more are on their way."
Quebec and Prince Edward Island have said they are aiming for balanced budgets for 2015-2016, but they have yet to release their fiscal plans for the coming year.
De Jong also said B.C. may be the only jurisdiction in Canada to post a surplus budget for the current 2014-2015 budget year with the possible exception of Saskatchewan. The province's current projected surplus for the current year is $879 million.
Business Council of B.C. vice-president Jock Finlayson applauded news of yet another balanced budget.
"There's no big surprises in here," he said. "For the business world, we don't want big surprises, especially on budget day."
De Jong toned down his locker-room pep talk when it came to liquefied natural gas. B.C. Premier Christy Clark won re-election in 2013 by promising a multibillion-dollar industry that would create 100,000 jobs and generate enough revenues to wipe out the provincial debt.
Last year, the provincial budget was focused on the introduction of income tax and environmental laws for the LNG industry, but so far no project has reached a final investment decision. There are 18 proponents considering building in B.C.
"So, we remain optimistic, but what we won't do is make budgetary assumptions until that first final investment decision is taken," de Jong said.
De Jong said B.C. is not completely immune to the energy revenue reductions hurting bottom lines in Alberta, Saskatchewan, Newfoundland and Labrador, and Ottawa, but he said the province's diversified economy buffered it from the worst of the impact.
Still, B.C.'s natural resource revenues are forecast to drop almost seven per cent in the next year. Natural gas royalties alone are expected to drop by 36.5 per cent in 2015-2016 before partially rebounding in subsequent years.
De Jong said the government forecasts "steady, moderate" economic growth to be 2.3 per cent this year, 2.4 per cent in 2016 and 2.3 per cent in 2017.
The finance minister announced the elimination of a social services clawback that drew protests at the legislature from single mothers who said the government was taking away their spousal benefits. He said the change will benefit about 5,400 children and 3,200 families receiving income and disability assistance.
Iglinka Ivanova, an economist with the Centre for Policy Alternatives, said the budget short changes low- and middle-income British Columbians. She said the government should have used more of its surplus money to fund social programs.
"Why are we not investing in our people?" she said. "The budget absolutely doesn't do enough."
He introduced minor tax credits for parents and teachers. Parents can claim a tax credit worth $12.65 a year per child for fitness equipment, while teachers who coach school teams can claim a credit worth $25.
Health-care premiums will increase by four per cent on Jan. 1, 2016.
De Jong said health-care costs continue to rise and the government has increased budget funding by almost $3 billion the next three years.
