B.C. BUDGET ANALYSIS 2018/19 - Responsible investments in our province and people - cloudfront.net
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B.C. BUDGET ANALYSIS 2018/19
Responsible investments in our province and people
Overview
Last week, the BC NDP delivered their first full estimate to 3.4 per cent from 2.9 per cent. Exports
provincial budget and fiscal plan. After 16 years of have grown considerably, retail performance remains
austerity and retrenchment under the BC Liberals, the exceptionally strong, and unemployment is still the
new government took its first steps toward rebuilding lowest in Canada at 5.1 per cent (2017 average).
core public services in the September 2017 Update,
But the government admits our economy is not doing
and laid important pathways for the introduction of
enough for many British Columbians, and so this
expansive new strategies and programs to come.
budget takes significant steps toward implementing
Budget 2018 formally announces these significant several core programs, social investments, and
investments—namely, housing and child care—and service improvements that are needed for creating a
supplies much-needed funding and resources to more people-centred, inclusive and affordable B.C.
other vital areas of public service delivery. This
Some of the highlights include:
balanced budget also spends on infrastructure, takes
strides toward tax fairness, and significantly improves • Laying the foundation for a universal, affordable
the government’s fiscal position for long term, sus- child care system
tainable public investment. • Introducing a 30-point plan to address housing
affordability and harmful market speculation
• Supporting programs for women and children
In a noticeable change of tone affected by violence
from the previous government, • Investing in seniors care, including staffing for
both residential care facilities and home care
Finance Minister Carole James services
explained that, “budgets are
• Reducing the costs of prescription drugs for those
with lower incomes
not only about the bottom line, • Providing additional funding for mental health
they should be about people.”
and addictions services
• Increasing funding for court sheriffs, staffing for
court services, legal aid service delivery, as well
In a noticeable change of tone from the previous as expanded access to justice services for people
government, Finance Minister Carole James living in rural and remote communities
explained that, “budgets are not only about the • Expanding funding and resources for the employ-
bottom line, they should be about people.” She ment standards branch to improve fairness for
cautioned that the financial and fiscal planning vulnerable workers
of government should never be removed from the • Creating a program to preserve and revitalize
context in which it applies. That context is made up Indigenous languages
of people, families, workers and communities—all of • Expanding tuition waivers for former youth in
whom depend on quality services, basic affordability, care and increasing funding for Agreements with
good jobs and a share in our prosperity. Young Adults
• Investing in support programs for newcomers
Budget 2018 reveals that the provincial economy and immigration settlement services
remains strong under the BC NDP’s early leadership, • Supporting Indigenous reconciliation work
with an upward revision to the 2017 real GDP• Investing in wildfire recovery activities and Over the three years of the fiscal plan, total expected
improving wildfire resiliency in communities revenue growth will average 4.1 per cent per year
• Hiring additional conservation officers and approaching 2020/21, which exactly matches
providing new resources for environmental the average Ministry of Finance forecast for GDP
programs and natural resource management (nominal) growth over the same period. This reflects
• Establishing a new Wildlife Management Strategy government revenue capture that is on pace with
• Eliminating Medical Service Plan premiums by expansion in the provincial economy. It edges
Jan. 1, 2020, and introducing a new Employer up total revenue as a proportion of GDP to 18.6
Health Tax per cent for the upcoming fiscal year—consistent
• Raising the corporate income tax rate with the ratio exercised under the previous Liberal
• Addressing service delivery demands with new government.
funding for staffing in income and disability
The new NDP government’s fiscal planning retains
assistance
prudence and responsibility, but now generates
• Making significant capital investments in
public revenue that is more in line with our econo-
schools, new and upgraded health facilities, sup-
my’s “ability to pay.” This was deliberately forgone
portive housing, and transportation infrastructure
under the previous government, which resulted in
Budget 2018 is not perfect. But it is bold, well-mea- critical shortages for core programs and services, and
sured and conscientious in what it offers to British significant impacts for workers in the public sector,
Columbians. It represents a landmark shift in the for families and communities—and especially for the
culture and tone of government. Most significantly, province’s most vulnerable.
it reconsiders how government positions public
In 2018/19, total direct tax revenue is projected
finance alongside the larger social objectives
to increase by $2.4 billion (+8.4%), helping to
we seek through a healthy, vibrant and inclusive
offset a continuing decline in natural resource
economy.
rents, royalties, and other fees by -$177 million
The BC Government and Service Employees’ Union (-6.7%)—which is expected to worsen over the
(BCGEU) has reviewed the provincial budget, minis- course of the three-year plan. Promising growth in
try by ministry, to help understand how government’s provincial tax revenue is seen from many sources,
choices in the fiscal year of 2018/19 will affect the including most significantly, personal incomes. This
work our members do and the services our province is both a result of reinstating the top marginal rate at
relies on. It identifies areas where progress has been 16.8 per cent in the Budget 2017/18 update, as well
made and where more is still needed. At the end of as the continuation of larger-than-expected receipts
this document, Budget 2018’s child care and housing from reported earnings (a reflection of strong labour
plans are outlined in detail, so BCGEU members market performance).
have more comprehensive information about these
Other revenue improvements are found in continu-
two new affordability initiatives that our union has
ing retail sector performance (and associated returns
been actively campaigning on.
on sales tax), scheduled rate increases to the BC
Revenue Carbon Tax (now revenue-positive, as recommended
by the BCGEU and others), and a slight uptick in
The budget projects that total revenue for the coming property transfer tax revenue. Budget 2018 also
year (2018/19) will grow significantly above the introduces a one-percentage point increase to the
updated forecast for 2017/18, by as much as $2.1 general corporate income tax rate, thereby restoring
billion (+4.1%). This is followed by expected year- the previous 2013 rate of 12 per cent—another
over year increases of $3.4 billion (6.3%) in 2019/20 longstanding recommendation made by the BCGEU
and $1.1 billion (+1.9%) in 2020/21. in its annual pre-budget consultation submissions to
government.
BCGEU BUDGET ANALYSIS 2018/19 2Following the 50 per cent reduction in MSP premi- Combined, the tax measures introduced in Budget
ums announced in September 2017, Budget 2018 2018 will create an additional $793 million in
introduces a widely-anticipated Employer Health Tax new public revenue for the upcoming fiscal year,
(EHT) as part of government’s revenue replacement followed by an additional $2.1 billion in 2019/20.
strategy. In 2018/19, the tax will generate $463 As a significant component of the broader revenue
million, followed by approximately $1.8 billion improvements noted above, these actions reflect the
annually thereafter. considered judgement of a government dedicated
to sustainably financing both needed improvements
The payroll tax will apply to medium and large-size
to core programs and services, and a larger social
businesses at progressively increasing rates, and
commitment to British Columbians.
will capture and replace the current employer-paid
portion of MSP premiums. It will also generate new This favourable and conscientiously improved
contributions from businesses that do not currently revenue position demonstrates continued prudence
make payments for their employees, thereby and fiscal responsibility on the part of the new
introducing universality to the payment structure. government, while at the same time providing
It is expected that personal income tax surcharges improvements to equity and efficiency. Moreover,
will also be introduced in a future budget, again on the NDP’s first full budget shows quite clearly that
a progressive basis, which will cover the individual the BC Liberals do not possess a monopoly on sound
portion of MSP revenue replacement. Together, economic and fiscal management. Solid macroeco-
these measures will vastly improve the equity and nomic growth can be maintained in this province
efficiency of revenue generation for health services, while also translating a fair share of our prosperity
bringing B.C. into line with other provinces. into financing services and programs that benefit all
British Columbians.
As part of the government’s new 30-Point Plan for
Housing Affordability, the fiscal plan imposes a These choices will serve the government and the
progressive increase to the property transfer tax on province well as significant investments in housing
high-end residential properties (above $3 million), and affordable child care are made in the months
and raises the foreign buyers tax from 15 to 20 per (and fiscal years) ahead.
cent. These new targeted measures are intended
to discourage speculative activity in the province’s
dangerously overheated real estate market and will
Public service
generate an additional $356 million in 2018/19 and In 2017/18, 960 (+3.4%) new FTEs were added to
2019/20. the public service, bringing the total to 28,900. This
was the most growth the public service has seen in
a decade, although government staffing levels still
Solid macroeconomic growth remain almost 10 per cent below what they were in
the early 2000s. Budget 2018 predicts that total FTEs
can be maintained in this for the public service will continue to grow, but not
province while also translating as quickly. In 2018/19, 500 (+1.7%) FTEs will be
added to total of 29,400, with another 100 (0.3%)
a fair share of our prosperity FTEs coming in 2019/20.
into financing services and The forecasted staffing increases are due mainly to
programs that benefit all British
increased staffing requirements to implement govern-
ment’s new child care and housing initiatives, as well
Columbians. as for front-line service positions including sheriffs,
court services staff, staff to deliver social assistance
services, and conservation officers.
BCGEU BUDGET ANALYSIS 2018/19 3There will also be new staff to support activities However, there will be no immediate action to
related to cannabis legalization, enhanced support eliminate interest on student loans, or to reduce
for workers and employers in matters related to tuition fees for students. Rather, the ministry’s service
WorkSafeBC, wildfire recovery efforts, land use plan indicates that it will maintain the two per cent
planning and environmental management. cap on tuition fee increases. The ministry will also
“work towards” both eliminating interest on student
Finally, the 2018 fiscal plan notes that ministries
loans and establishing a completion grant program.
were provided funding increases totaling $241
million for wage increases as a result of the eco- Budget 2018 builds on capital spending increases
nomic stability dividend. The document also explains included in last year’s budget, adding more than
that provincial public sector employers’ associations $259 million in provincial funding for student
will begin negotiations with public sector unions in housing at public post-secondary institutions.
2018/19 “under a new compensation mandate,” but Including contributions from the federal government
no further details were provided. and other sources, capital spending will total more
than $2.6 billion over three years. Major projects
Ministries include construction of the Sustainable Energy
and Environmental Engineering Building at SFU’s
Ministry of Advanced Education, Skills Surrey campus and a new Industrial Training and
and Training Technology Centre at Thompson Rivers University
in Kamloops. Also, new health sciences centres will
Budget 2018 adds $58 million to the ministry’s
be built at Camosun College and Vancouver Island
operating budget in 2018/19, bringing it to a total
University.
of $2.2 billion. $48 million of the new funding is
allocated for post-secondary institutions (+2.5%), Industry Training Authority
while the remaining $10 million is to continue the
The new government moved the Industry Training
Indigenous Skills Training Development Fund. The
Authority (ITA) from the past Minister of Jobs,
budget for student services programs will be reduced
Tourism and Skills Training to the authority of the
by $1.7 million (-2.3%) to $70.4 million in 2018/19,
new Minister of Advanced Education, Skills and
and then frozen for the remainder of the budget plan.
Training. However, the new government did not alter
Similarly, funding for the oversight of private training
the BC Liberals’ 2017 budget for the ITA. As planned
institutions ($1 million/year) and ministry executive
by the previous government last February, this year
and support services ($20.6 million/year) is frozen
the ITA will see a very small increase over last year
for the next three years.
(+$705,000/ +0.7%), and then the organization’s
This year’s new funding is for initiatives that will budget will be frozen for the remainder of the three-
increase access to post-secondary education, includ- year budget plan.
ing tuition-free adult basic education and English
In contrast to its stagnant budget, the ITA’s service
language learning. As well, the budget allocates $30
plan indicates that some significant and long-over-
million over three years for both tuition waivers and
due changes are in the works for the trades training
wraparound supports for young adults aging out
system in B.C. To start, the ITA will help government
of care to attend post-secondary programs. There
implement apprentice ratios on public infrastructure
is also new funding to significantly increase the
projects. The service plan also reflects a heightened
number of early childhood education (ECE) training
focus on removing barriers to entry into the trades for
seats at public post-secondary training institutions.
equity groups.
Government allocated $7.4 million for this purpose
in 2018/19. In each of the following two years of the Most significantly, the ITA will be working with
budget plan, almost $60 million/year is available to government to review aspects of training delivery
support training for ECEs. and governance.
BCGEU BUDGET ANALYSIS 2018/19 4It will also look at the merits of compulsory certifi- benefits for its staff in 2018/19. This is a limited, but
cation for some trades. From the service plan, these welcome initial investment in rebuilding staff capac-
initiatives include working closely with government ity and expertise within the Ministry of Agriculture.
and stakeholders to:
• Review how the ITA funds and accredits the Ministry of Attorney General
delivery of technical training;
While it will take time and further significant
• Review and update the mandates and member-
investments to undo the damage done to our courts
ships of the ITA’s sector advisory groups; and
and justice system by 16 years of staff and budget
• Complete a review of whether or not compulsory
cuts under the previous government, Budget 2018
designation could be used to improve worker
marks an important change in direction. The total
health and safety, consumer protection and
budget for the Ministry of Attorney General (AG)
environmental safety for certain trades occupa-
will increase $47.2 million (+8.8%) in 2018/19 and
tions in B.C.
a further 0.8 per cent in 2019/20 to reach $587.9
The upcoming reviews outlined in the ITA’s service million. Expenditures will remain at that level for
plan have the potential to lead to concrete, meaning- 2020/21.
ful improvements to trades training in B.C.
The ministry’s expenditure on salaries and benefits
Ministry of Agriculture is expected to rise from $422.4 million in 2017/18
to $457.8 million in 2018/19, an increase of $35.4
Budget 2018 adds $29 million over three years to
million (+8.4%).
the Ministry of Agriculture’s budget. Focused on the
agriculture science and policy and business man- These spending increases are concentrated in areas
agement budget lines, the plan includes a $7 million where the BCGEU has long been advocating for
increase in 2018/19, and $11 million in the last two investments, improvements and restored funding.
years of the budget. This new money represents a Expenditures highlighted in the budget include:
nine per cent increase to the ministry’s overall budget
• $15 million to increase the number of court sher-
in 2018/19, and a 14 per cent boost by 2020/21.
iffs and increase staffing of the Court Services
The new funding is aimed at delivering a number Branch to address court delays;
of initiatives under the broad headings “Grow BC,” • $10 million for AG initiatives related to family
“Feed BC” and “Buy BC.” Providing start-up loans for dispute resolution services and increasing digital
new farmers, using more B.C. food in schools and access to justice services, especially for people
hospitals, giving support to the fruit and nut industry, living in rural and remote communities; and
and developing new “food innovation centres” to • $26 million to the Legal Services Society for the
help small scale processors move to commercializa- expansion of legal aid service delivery, including
tion are among the initiatives outlined in the min- Indigenous, family law and duty counsel
istry’s service plan. Outside of the budget increases services.
for these programs, however, funding for the Farm
According to the AG service plan estimates, Justice
Industry Review Board (FIRB), the Agricultural Land
Services expenditures will increase by $13.1 million
Reserve (ALR) and executive and support services is
in 2018/19 (+11.6%), while Prosecution Services
frozen for all three years of the Budget 2018 plan.
will increase by $12.3 million (+9.6%), then a further
The ministry will deliver its new initiatives primarily $9.9 million (+7.1%) in 2019/20. Court Services will
through transfers to other organizations or to farmers. see $6.6 million in new funding in 2018/19 (+6.4
However, detailed information contained in the %), while Legal Services expenditures will increase
budget estimates shows the ministry plans to spend by $6.0 million – a 27.3 per cent increase.
an additional $1.1 million (+3%) on salaries and
BCGEU BUDGET ANALYSIS 2018/19 5Legal Services Society Liquor Distribution Branch
“Access to justice in Canada remains a serious The Liquor Distribution Branch (LDB) had another
problem that imperils the public’s confidence in the very successful year in 2016/17 bringing in a net
justice system.” income of $1.08 billion. Revenues are expected
to continue to grow over the next three years to a
Former Chief Justice Beverley McLachlin,
2020/21 target of $1.13 billion. The LDB’s service
Supreme Court of Canada, 2018
plan notes that the introduction of grocery store
Legal aid services in B.C., provided largely through liquor stores has made the retail environment
the Legal Services Society (LSS), suffered drastic cuts more competitive. However, the impact of grocery
imposed and maintained by BC Liberal governments store sales was not deemed significant enough to
since 2001. Funding for legal aid was reduced by 40 be included in the agency’s forecast assumptions
per cent overall and 60 per cent for family law cases. because the number of grocery stores selling liquor
As such, family, immigrant and refugee services in “remains relatively small.”
particular have suffered tremendously. Inadequate
This summer, the LDB will move its Vancouver
family law legal aid is currently the subject of a
Distribution Centre to a new leased facility in Delta.
suit brought against the government and LSS by
The significant cost of relocating to the new, larger
the Single Mothers’ Alliance and two individual
location is estimated at $57.1 million, and will
plaintiffs.
include new warehouse management software.
This year, however, the Legal Services Society is
On the heels of the union’s successful and influential
receiving a material increase to its budget. Compared
Responsible Retail campaign with ABLE BC, the
to the September 2017 budget update, for 2018/19
LDB’s 2018/19 service plan notes that it is now pre-
there will be an additional $8.8 million (+10.8%)
paring its operations for the anticipated legalization
in funding, as well as $8.9 million in 2019/20 and
of non-medical cannabis this summer. The LDB will
2020/21, for a total of just over $26 million over
be the wholesale distributor of non-medical can-
three years. A total of $11 million of this funding
nabis for the province, and participate in cannabis
will help expand the Parents Legal Centre to more
retailing. However, there is no preliminary costing
communities. The new money in this year’s budget
for a cannabis warehouse, cannabis retail outlets, or
is the most significant increase in legal aid funding
forecasts for new cannabis revenue.
since 2002, and it will improve access to justice for
many British Columbians. Research on the experiences of other jurisdictions
indicates that the profitability of legal non-medical
However, more investment in legal aid is needed to
cannabis sales is both gradual and somewhat slow
ensure services for all qualifying individuals, to pay
to develop over the first several years of implemen-
legal aid lawyers more fairly, and to grow the system.
tation. The BCGEU will be monitoring the public
The province is currently finalizing a new five-year
revenue returns in subsequent public budgets and
legal aid agreement with the federal government, so
financial cycles. In the meantime, the union will
more funding for criminal, immigration and refugee
also be investing in education and public safety
legal aid could be arriving soon. However, the B.C.
campaigns regarding consumption.
branch of the Canadian Bar Association estimated
last year that an additional $36.4 million annually
was needed to improve and expand legal aid in B.C. Ministry of Children and Family
As such, Budget 2018’s investment in legal aid, while Development (MCFD)
significant, only partially meets what is actually Total expenditures in MCFD for 2018/19 are esti-
needed. mated at $1.8 billion – up $203 million (+12.8%)
over last year. Total MCFD expenditures are expected
to increase again to $1.97 billion in 2019/20 (+10%
BCGEU BUDGET ANALYSIS 2018/19 6over 2018/19) and then to $2.1 billion in 2020/21 and benefit expenditures will increase an estimated
(+5.5% over 2019/20). Total MCFD expenditures $36.7 million (+10.4%) in 2018/19.
in 2020/21 will be $492 million higher than in
Budget 2018 reflects government’s continuing
2017/18, an overall increase of about 31 per cent.
reinvestment in critical child and family services, as
Under the BC Liberals, spending on children and well as new hiring to increase front-line staff. Despite
families was cut significantly and then essentially these efforts, including the restoration of desperately
frozen for many years. In 2012/13 the ministry bud- needed funding, the BCGEU remains deeply con-
get remained stagnant at $1.3 billion. The BCGEU’s cerned about reports of persistent workload issues,
extensive advocacy and reporting through its Choose negative morale and discouragement among workers
Children and Closing the Circle reports brought in the ministry. The union will continue to work
focused attention to the tragic costs for children, to address unresolved recruitment and retention
families, workers and communities that resulted from issues in the ministry, and to ensure that these new
these cuts. Thankfully, Budget 2018 not only restores resources lead to meaningful improvements for
MCFD funding to 2001 levels, it extends govern- vulnerable children, families, communities and the
ment’s investments in this area much further. workers who serve them.
Most of the 2018/19 increase is due to growth in BCGEU’s continuing advocacy work under Choose
child care expenditures tied to the new provincial Children has resulted in many important successes,
Child Care BC program. MCFD spending on Early but further commitments are needed from govern-
Childhood Development and Child Care Services ment to improve working conditions for front-line
will go up $158 million to $444 million in 2018/19 staff.
– a 55 per cent increase over the previous year.
Expenditures will increase again by 38 per cent in Ministry of Citizens’ Services
2019/20 and by a further 18 per cent to $1.1 billion
There is a minor increase in funding for this ministry
in 2020/21, reflecting the gradual implementation
compared to the September 2017 budget update. The
of the new child care plan. All the details about
2018/19 budget will now total $524 million, up from
the child care plan are included at the end of this
$506 million (+4%). The real property budget line,
document.
which covers property and real estate services for the
While this accounts for the bulk of new ministry provincial government and its agencies will increase
spending, expenditures in Child Safety, Family by $8.7 million, bringing this budget area to $305
Support and Children in Care will also go up by million in 2018/19 (+3.0%).
$25 million (+4.1%) in 2018/19. With further small
This ministry is smaller and more focused than
increases over the following two years, funding will
under the previous government. In the new service
have increased 5.3 per cent by 2020/21.
plan, the purpose of the ministry has been revised
Expenditures in Services for Children and Youth with to include “the provision of timely and meaningful
Special Needs will increase by $6.9 million (+2.0%) responses to Freedom of Information requests,”
in 2018/19 and by 2.5 per cent in total over three plus a new emphasis on providing opportunities for
years. Child and Youth Mental Health Services will First Nations, Indigenous and rural communities.
also see a $2 million expenditure increase (+2.1%) in The service plan also includes a commitment to
2018/19, and 2.8 per cent in total over three years. make it easier for smaller, local businesses to access
Service Delivery Support, Youth Justice Services and government procurements, but no metrics or money
Executive and Support Services will all see minor are attached to this initiative.
spending increases, while Adoption Services spend-
ing will remain more or less flat. MCFD’s total salary
BCGEU BUDGET ANALYSIS 2018/19 7Ministry of Education
Budget 2018 includes $72 million in new funding to new performance measures going forward. For
hire more teachers, bringing the total number of new example, one of the ministry’s previous goals was
teachers added under the classroom enhancement to build “a globally competitive mining sector,”
fund to 3,700. Total ministry spending will reach with success measured by the number of new and
$6.3 billion in 2018/19, $238 million higher than in expanded mines in the province. In contrast, the
2017/18. Public K-12 schools across the province new, combined ministry is aiming for a “sustainable
will also see an additional $2.3 billion over three and responsible mining sector that creates lasting
years in capital spending. jobs.” The corresponding performance measure is the
number of permits coordinated by the Major Mine
The budget does not include any meaningful imme-
Permitting Office. As well, supporting B.C.’s efforts
diate increases for core ministry staff. The 2018/19
towards reconciliation with First Nations is now
budget for salaries and benefits for the ministry’s staff
included as one of the ministry’s four main goals.
is $520,000 (+2.0%) higher than last year’s estimates,
bringing it to $25.8 million. There are also notable new initiatives in the ministry
service plan. First, an independent mining oversight
Budget 2018 was not specific on issues like funding
unit will be established. Although this will impact
for implementing the new curriculum, waitlists for
the ministry’s organization going forward, no specific
students with special needs, or supports for teachers
plans for the new unit have been provided yet. The
to enhance Indigenous content in classrooms.
ministry will also be conducting a comprehensive
Advocates are expecting more details on these items
review of BC Hydro, creating a BC Mining Jobs Task
in March, when school district operating grants
Force, and establishing a scientific panel to review
are finalized. However, the new funding increases
the practice of hydraulic fracturing in B.C.
for the coming school year will surely help school
districts hire more specialists and better meet the
Oil and Gas Commission
needs of students.
Funded by levies and fees from the oil and gas
Ministry of Energy, Mines and industry, revenues for the Oil and Gas Commission
Petroleum Resources (OGC) are forecast to increase over the three years
of the fiscal plan. A revenue increase of $1.3 million
This year’s budget reflects the amalgamation of the
(+3.0%) to $58.8 million is forecast for 2018/2019,
former Ministry of Natural Gas Development with
with revenues expected to remain fairly steady
the Ministry of Energy and Mines. Over the three
through 2020/21. These forecasts are significantly
years of the budget plan, ministry funding is set to
higher (+17%) than those in the OGC’s plan from
increase by just over six per cent, from $57 million
last February, which expected revenues in the range
in 2017/18 to $61 million by 2020/21. The increase
of $49 million per year between 2017/18 and
is aimed at supporting mining oversight ($2 million
2019/20. The revenue improvements are likely tied
over three years to meet regulatory requirements
to increased overall production volumes, decreased
at several tailings storage facilities at abandoned
utilization of royalty program credits, and higher
mines), and to develop an “Energy Roadmap” to
prices for natural gas and natural gas liquids.
assist large carbon emitters to adjust to a low carbon
future ($4 million over three years). Operating expenses for the Oil and Gas Commission
are also budgeted to increase. Expenses will go up
The ministry’s 2018 service plan is a departure from
by $473,000 for 2018/2019 to $51 million. Then,
past versions, reflecting the NDP government’s new
another $1.9 million is added to the operating
and very different approach on both the mining and
budget over the following two years.
energy files. The organization’s goals and objectives
have been revamped, and the ministry is adopting
BCGEU BUDGET ANALYSIS 2018/19 8Budget 2018 plans for steady growth in staffing at the There are no details yet about where the new officers
OGC, with an additional $2 million (+7.5%) in place will be located or how many administrative staff will
for salaries and benefits by 2020/21. For 2018/19, be hired to support them. Certainly, more officers
the organization plans to spend an additional are still needed to meet the demands of a growing
$900,000 (+3.4%) on salaries and benefits over population and increasingly complex work, but for
2017/18. Another $500,000 on staff expenditures now the BCGEU celebrates our new government’s
is planned for 2019/20, plus $600,000 more in investment in monitoring and protecting B.C.’s
2020/21, bringing the total salaries and benefits environment.
expenditure at the OGC to $28.5 million. On this,
For BC Parks, there is not as much to celebrate.
the service plan notes the challenge of recruiting and
Budget 2018 builds on the $8 million added to the
keeping technical staff in the organization: “While
Parks operating budget in 2017, and adds another
the Commission has the capacity to meet its man-
$809,000 (+2.0%), bringing it to $40.5 million for
date, attracting and retaining the required expertise
2018/19.
remains a challenge, as the Commission competes
with industry (private sector). The Commission has
The second and third years of the budget plan
highly trained experts that are sought out by industry,
include similarly small increases, bringing the BC
which is often able to offer compensation packages
Parks budget to $41.2 million by 2020/21. The
that are significantly more competitive.”
additional funding, amounting to $2.9 million over
For each year of the fiscal plan, the OGC expects to three years, is earmarked to support BC Parks’ camp-
register an operating surplus. However, these funds site expansion project.
are to be allocated to support the Orphaned Sites
The budget also includes an extra $8 million
Reclamation Fund (OSRF), which pays for orphaned
available in each year of the plan from the Park
assets (oil and gas facilities, wells, pipelines or
Enhancement Fund, in part due to added revenues
impacted lands that are left behind when companies
from license plate sales. The fund supports worth-
are insolvent or unable to be located) to be decom-
while initiatives in our parks, but it does not form
missioned, remediated and restored. The OGC’s
part of BC Parks base operating budget. While it is
service plan expects a $7.8 million deficit in the
important to acknowledge this incremental invest-
OSRF in 2018/19 due to three orphan site restoration
ment in our parks, it does not yet bring the agency’s
projects, with somewhat smaller deficits coming in
funding to the levels seen in 2001 before the BC
the following two years.
Liberals made deep cuts. Accounting for inflation,
restoring the BC Parks budget to 2001 levels would
Ministry of Environment and Climate
require an additional $14 million this year, to $54.6
Change Strategy
million overall.
Budget 2018 adds $6 million (+3.7%) to the
Beyond these areas, $271,000 (+2.4%) is added to
ministry’s budget over 2017/18, increasing it to
Environmental Protection in 2018/19, then frozen for
$179 million. However, this increase will be rolled
the next two years. Environmental Sustainability sees
back by $2 million in 2019/20 and $1.5 million in
an extra $1.2 million (+10.8%) for 2018/19, bringing
2020/21.
its budget to $24 million for the next three years. The
Most significantly, $9 million was added to the Environmental Assessment Office’s budget is frozen
budget of the Conservation Officer Service (COS) at about $11.8 million for the duration of the fiscal
over three years to hire 20 new conservation officers plan. Finally, the ministry’s budget for climate action
(+16%) and to enhance the WildSafe BC program. was reduced by $1 million for 2018/19 (-5.7%),
The new hires will finally restore the number of to $15.6 million, and another $1.8 million will be
officers to about the same level as in 2002, when cut in 2019/20, bringing the budget down to $13.8
deep cuts were made to COS staff by the BC Liberals. million (-16.4% compared to 2017/18).
BCGEU BUDGET ANALYSIS 2018/19 9The service plan outlines a number of new and Base fire management funding is increased by
important initiatives the ministry will undertake in $700,000 (+1.1%) above the amount allocated by
the coming years. Most notably, the ministry plans the BC Liberals in February 2017 to $64 million for
to: 2018/19, 2019/20, and 2020/21. Continuing with
the Liberals’ past practice, this amount has not been
• Advance co-management relationships with First
meaningfully increased over the past five years,
Nations;
despite the fact that every year actual firefighting
• Build a more diverse workforce within the
costs have far outstripped the fire management
ministry;
budget, including $506 million spent fighting fires
• Establish a B.C. legislative framework for species
last summer.
at risk;
• Explore options to reduce GHG emissions from In 2016, the BC Liberal government established the
B.C.’s oil and gas sector and slash burning; Forest Enhancement Society of BC (FESBC) to fund
• Support the work of the Climate Solutions and forest rehabilitation initiatives. An allocation of $235
Clean Growth Advisory Council to develop million was provided to support fuel management
climate action plans; projects, restore damaged or low value forests,
• Revitalize the environmental assessment process; improve habitat for wildlife, and support the use
and of fibre from damaged and low value forests. The
• Defend B.C.’s interests in relation to the expan- BCGEU pushed for these initiatives to be delivered
sion of the Kinder Morgan pipeline. in-house through ministry programs, but the new
government has chosen to maintain the independent
Ministry of Forests, Lands, Natural organization. Last June, the NDP government moved
Resource Operations and Rural to make the non-profit society a service delivery
Development (FLNRORD) Crown corporation, but its board, chaired by a
In this year’s budget, operating funding for former West Fraser Timber Company executive,
FLNRORD is increased by about $29 million remains essentially the same.
(+4.1%) for 2018/19 to $734 million. FLRNRORD’s
The agency’s 2018 mandate letter from the ministry
budget will increase further in the final years of
directs the FESBC to focus on wildfire recovery,
the three-year plan, bringing it to $761 million by
wildfire risk reduction and supporting the provincial
2020/21 (+8.0% above 2017/18).
forest carbon initiative. According to its service plan,
Over the three years of the fiscal plan, the increases the agency will also deliver significantly more fund-
include $50 million for community wildfire pre- ing over the next three years, likely exhausting the
vention, preparedness and research, $22 million for initial $235 million allocated to the FESBC. Last year,
wildfire recovery activities, $16 million to modernize $28.6 million was spent. Budget 2018 plans for the
land use planning, and $14 million to develop and FESBC to distribute $40 million in 2018/19, $66.5
implement a new wildlife management strategy. million in 2019/20, and $81 million in 2020/21.
While it appears funds for staffing will remain Overall, Budget 2018’s investments in renewing land
basically frozen in BC Timber Sales and the Wildfire use planning, wildlife management and the ministry’s
Service this year, budget documents show that operations are appreciated and much needed. But
spending on salaries and benefits for other ministry the reality is that after such deep staff and funding
staff is expected to grow by $12.6 million (+4.8%) cuts under the previous government, much more will
in 2018/19. This additional spending is a welcome be needed to make significant progress on reforesta-
investment in FLNRORD’s human resources. tion, improve research and forest inventory work,
Certainly, more will be needed to restore ministry and strengthen public oversight of activities on B.C.’s
staffing going forward. land base.
BCGEU BUDGET ANALYSIS 2018/19 10Ministry of Health
For 2018/19, the overall budget for health will in the Budget 2017 update to respond to the opioid
increase by $846 million (+4.5%) over 2017/18, overdose emergency is continued through 2018/19.
bringing this year’s planned health care spending The BCGEU was active in calling for this new fund-
to a total of $19.8 billion. This plan keeps fairly ing and support through its public fentanyl campaign
close pace with last year’s increase, which was in 2017.
$875 million (+4.9%). Beyond 2018/19, additional
Budget 2018 includes $3.1 billion in capital spend-
increases of $870 million in 2019/20 and $670
ing in the health sector over the next three years.
million in 2020/21 are planned. Health authorities
Key investments are the Royal Columbian Hospital
will receive the bulk of the increase (+$552 million/
Redevelopment, which incorporates a new 75-bed
+4.3%). Funding increases for the administration
mental health and substance use centre, a 348-bed
of programs like MSP and Pharmacare (+$950,000/
acute care tower, an expanded emergency depart-
+2.0%), and for ministry staff (+$3.1 million/ +1.2%)
ment, and new operating rooms. New patient care
are much smaller.
towers are being built in Penticton and Kamloops.
Budget 2018 sets new priorities for the Ministry of In addition, the replacement of the Burnaby Centre
Health. A total of $548 million over three years is for Mental Health and Addictions (CMHA), located
provided to improve services for seniors across the on the Riverview lands in Coquitlam, is slated to be
continuum of care, including investments in primary completed in late 2019.
care, home and community care, residential care,
and assisted living. This funding is over and above Ministry of Indigenous Relations and
the new allocation of $85 million per year in federal Reconciliation
funding for home care. A particular focus for the In 2018/19 the ministry’s funding will increase by
new funding will be to meet the goal of increasing $8.6 million (+9.4%) to $99.5 million. Accounting
care hours in residential care facilities to an average for most of this increase is an additional $2.6
of 3.36 direct care hours per resident per day. The million (+13.6%) for the Strategic Partnerships &
new government’s seniors’ care announcements in Initiatives Division, and an increase of $5.4 million
Budget 2018 effectively replace and re-envision the (+13.2%) to Treaty & Other Agreements Funding.
$500 million “Seniors’ Care Action Plan” announced Finally, as part of $5 million in funding over three
under the BC Liberals in March 2017. The BCGEU’s years to develop a “cross-government vision of
Senior’s Deserve Better campaign throughout reconciliation,” $1.7 million is allocated to a new
2016-17 was instrumental in securing these new “Reconciliation Transformation and Strategies
investments for staffing and services. Division.”
A second priority is to expand team-based primary Renewed investment in treaty negotiations and
care, and $150 million over three years is allocated strategic partnerships highlights the ministry’s focus
for this purpose. The ministry’s service plan includes on revenue sharing with Indigenous communities.
establishing urgent family-care centres, improving Plans for many new opportunities and initiatives will
access to comprehensive primary care services, now be tracked by enhanced performance measures
and establishing Primary Care Networks (PCNs) for aimed at strengthening relationships. In contrast to
individuals and families. last year’s service plan, LNG-related activities and
training were not mentioned as areas of focus for the
The service plan also reflects a focus on actions to
ministry.
support reconciliation with Indigenous peoples,
including working with health authorities to ensure The BCGEU is pleased to see its recommendation for
culturally safe health services. Finally, the $290 increased funding and support for Aboriginal friend-
million in health funding over three years announced ship centres across B.C. reflected in the budget in the
BCGEU BUDGET ANALYSIS 2018/19 11amount of $6 million over three years, as well as $11 participation in the economy, strengthen commu-
million to support the expansion of the Parents Legal nities and increase economic diversification. The
Centre (as recommended by the Grand Chief Ed ministry will also promote local economic benefits
John’s Report on Indigenous Child Welfare). and the potential of technology and innovation
through a Smart Communities initiative.
Other welcome investments include $50 million in
2017/18 to support the revitalization of Indigenous Finally, the ministry will create a Small Business Task
languages, $155 million to develop 1,750 new units Force as a special initiative of the Small Business
of supportive housing for Indigenous peoples, and Roundtable to advise government on how to
$16 million to support mental health and wellness strengthen the small business sector, creating addi-
in Indigenous communities. As well, $10 million in tional jobs in B.C. In concert with the Small Business
federal funding will go to expanding culturally-based Task Force and Roundtable, they will support youth
Indigenous child care. and Indigenous entrepreneurship initiatives.
First Nations or Indigenous peoples are mentioned
throughout all of the budget 2018 documents,
Ministry of Municipal Affairs and
a noticeable reflection of the new government’s
Housing
commitment to developing integrated and compre- Overall funding for the Ministry of Municipal Affairs
hensive approach to the process of reconciliation. and Housing (MAH) for 2018/19 is $674.2 million
–down by $15.7 million (-2.3%) from 2017/18.
Ministry of Jobs, Trade and Technology This is a result of the ministry’s local government
expenditures for 2018/19 declining 20 per cent
Budget 2018 includes an overall spending decrease
from the previous year, due largely to increased
of $15.5 million (-12.9%) this fiscal year for the
external recoveries of revenue rather than decreased
Ministry of Jobs, Trade and Technology. This reduc-
spending.
tion reflects last year’s one-time investments of $10
million in the North Island-Coast Development The ministry’s operating expenditures for housing
Initiative Trust, and $13.5 million for the BC Tech will actually rise $31.9 million (+7.5%) to $454
Co-op Grants Program and the BC Innovation Skills million in 2018/19. Total MAH expenditures will
Initiative. subsequently increase to $698 million (+54%) in
2019/20 and then rise to $839 million (+20.2%) in
A $5.7 million boost to Workforce, Immigration and
2020/21. MAH’s total salary and benefits expenditure
Major investments will provide added settlement and
will increase by $3 million (+10.6%) in 2018/19.
integration support for newcomers, including the
creation of a Centre for Newcomers. Other than housing, MAH operating expenditures
are expected to remain relatively stable over the next
According to the service plan, the ministry will
three years.
develop a coordinated manufacturing sector strategy
for the province. It will establish an Emerging The full details of Budget 2018’s housing plan are
Economy Task Force to address the changing nature included at the end of this document.
of business and provide recommendations to inform
the development of a provincial economic strategy. TransLink Funding
There will be an Innovation Commission to support
Except for the pre-budget announcement that the
investment and business development in B.C.’s
provincial government will assume ownership and
technology sector.
the full $1.4 billion cost of replacing the Pattullo
Further, the service plan commits the ministry to Bridge, specific provincial funding commitments for
continuing to foster partnerships between Indigenous projects in the Metro Vancouver mayors’ council ten-
peoples and industry to increase Indigenous year transit and transportation plan are not addressed
in Budget 2018.
BCGEU BUDGET ANALYSIS 2018/19 12However, budget documents do re-state that the Provincial funding for 2018/19 includes $779 million
province “has committed to funding 40 per cent of provided directly by the provincial government to
the costs of the plan.” In addition, budget documents BC Housing, $283 million from the Housing Priority
say the province will “continue to work with Initiatives Special Account in the Ministry of Finance,
TransLink and local governments in Metro Vancouver $13 million from the Housing Endowment Fund,
to secure appropriate levels of density, rental supply and $16.9 million from other partnering ministries/
and affordability along new transit corridors.” agencies. Other revenue from tenant rent, builder
licensing fees, etc. is forecast to remain in the range
The mayors’ council itself commented in social
of $48 million per year.
media that Budget 2018 “provides a $1B+ down
payment towards the phase two plan, and paves the Total expenditures are expected to balance with
way to reach a longer-term funding agreement soon revenue, and will grow significantly as the govern-
with the province on the remaining funding required ment moves ahead with new housing construction
to move ahead with the subway, light rail transit, and other measures in its affordable homes plan.
more bus service and other phase two projects.” Spending growth is concentrated on increased
Presumably this is in reference to unspecified housing subsidies, which are expected to grow by
transit capital spending listed in the Ministry of 74 per cent to $995 million in 2018/19, just under
Transportation and Infrastructure budget, amounting $1 billion in 2019/20 and then to $1.3 billion in
to $1.2 billion over three years. 2020/21 (+26.1% over 2019/20).
TransLink and media sources have suggested that This funding includes subsidies provided to non-
a funding agreement between the province and profit societies as well as one-time capital grants for
TransLink may be completed in March 2018. new construction or renovation of subsidized hous-
ing. BC Housing says the increases are tied to new
BC Housing commitments under the government’s housing plan,
including the construction of 2,000 units of modular
BC Housing’s operating funding and expenditures
supportive housing, 1,000 units of permanent sup-
will both increase substantially between 2018/19
portive housing for individuals experiencing or at risk
and 2020/21 as the province rolls out major mea-
of homelessness and/or substance abuse challenges,
sures in its new affordable housing plan. Much of the
800 units of transition housing for women and
funding allocated in the plan will be administered
children fleeing abuse, and 9,200 units of affordable
through BC Housing. New funding is also included
rental housing for singles, families, seniors, and
in the 2018 service plan for additional BC Housing
Indigenous peoples.
staff to deliver and administer new and expanded
programs. Rental assistance spending will increase to $147
million (+25%) in 2018/19, $175 million (+19%)
Total BC Housing revenue for 2018/19 is more
in 2019/20, and $180 million (+2.9%) in 2020/21.
than $1.3 billion, up $460 million (+56%) from
According the service plan, these increases are pri-
2017/18. The provincial share of revenue increased
marily due to increases to the monthly benefits and
dramatically to $1.1 billion, up by $558 million
eligibility enhancements to the Shelter Aid for Elderly
(+104 %) from the previous year, while the federal
Renters (SAFER) program and the Rental Assistance
share dropped 38 per cent to $140 million, as grant
Program (RAP), as outlined in the new housing plan.
funding allocated under the Canada/BC Investment
in Affordable Housing agreement extension and the BC Housing salaries and benefits costs are expected
Social Infrastructure Fund agreement winds down. to rise $9.3 million (+15.9%) in 2018/19 to $68
The expiration of operating agreements for projects million, and be $70.54 million (+2.7%) in 2020/21.
under older federally funded programs also contrib- These costs are for additional staffing required to
utes to the reduction in federal contributions. deliver and administer new projects and programs.
BCGEU BUDGET ANALYSIS 2018/19 13Interest costs, presumably tied to borrowing for new an immediate response to the province’s opioid
projects, are expected to rise from $49 million in 2017/18 overdose public health emergency. Second, the
to $625 million annually over the next three years. ministry will work on developing policy initiatives to
strengthen those social supports that are determinants
All other budget lines in BC Housing remain at
of mental health and well-being—such as housing,
approximately the same level as in 2017/18 until the
employment, income, education, and child care.
last year of the budget plan in 2020/21.
The ministry received a sizeable budgetary increase
Ministry of Labour of $5 million dollars (+102%) over the September
2017 budget update. The Policy Development,
Ministry of Labour funding will increase by $1.1
Research, Monitoring and Evaluation budget line was
million (+11%) to $11.1 million in 2018/19. Annual
increased by $4.1 million (+110.7%), with Executive
funding will drop to $10.9 million for the subsequent
and Support Services making up the difference with
two years of the fiscal plan, although it will remain
an increase of $941,000 (+75.9%). Overall, the
8.8 per cent above 2017/18 levels. Spending on
total ministry budget for 2018/19 is just under $10
ministry salaries and benefits will rise from $31.6
million, and will remain frozen there until 2020/21.
million in 2017/18 to just under $34.2 million in
2018/19, an increase of 8.2 per cent. This ministry will be tracking the implementation
of one of the key recommendations that came from
Budget 2018 describes this investment as a “total
BCGEU members on the front-lines of the crisis:
of $3 million over three years…provided to support
increasing access to and distribution of public-
initiatives that will result in better compliance and
ly-funded Naloxone kits. The ministry’s target is to
enforcement, improve protections for vulnerable
distribute an additional 4,323 naloxone kits (+10%)
workers, and support fair and balanced treatment of
over the total distributed in 2017. Additionally, the
workers and employers in B.C.”
ministry is aiming to increase the number of people
However, analysis from the B.C. Employment on opioid agonist treatment by 10,000 (+33.3%), as
Standards Coalition (BCESC) argues that the govern- well as improve access to this treatment by growing
ment should be moving more quickly and decisively the number of providers that prescribe the treatment
to make much needed improvements to employment by 200 (+13.4%).
standards and provide increased resources to the
As well, in the coming year the ministry will be
Employment Standards Branch itself. The BCESC
developing and implementing a Mental Health and
notes that even after this year’s increase, total fund-
Addictions Action plan that focuses on prevention
ing for the Employment Standards Branch in 2018/19
and early intervention, and on children, youth and
is only $8.7 million. It is an improvement over last
Indigenous peoples. The new ministry plans to work
year, but much less than the $11.4 million that was
across government and in partnership with other First
budgeted for the Branch in 2008/09.
Nations and Indigenous people through this process.
While increases to the ministry budget in 2018 are
As this is the first service plan for the ministry, it will
a step in the right direction, BCGEU will continue
be important to review the goals, and key objectives
to advocate for employment standards reform and
in the service plans of related ministries such as
increased resources for the Ministry of Labour,
Health, Jobs, Housing, and Children and Youth as
especially the Employment Standards Branch.
they move to incorporate the policy recommenda-
tions made by the ministry of Mental Health and
Ministry of Mental Health and
Addictions through investments like the new Centre
Addictions
for Mental Health and Addictions, increases to
The new Ministry of Mental Health and Addictions
income security, and funding for quality affordable
has a very clear and focused mandate for fiscal
housing.
year 2018/19. First, it is tasked with coordinating
BCGEU BUDGET ANALYSIS 2018/19 14Ministry of Public Safety and Solicitor Ministry of Social Development and
General Poverty Reduction (MSDPR)
Overall, there is little noteworthy change to the Spending in MSDPR will rise to $3.1 billion in
Ministry of Public Safety and Solicitor General’s 2018/19, about $259 million (+8.3%) more than in
(PSSG) budget. Excluding Emergency Program 2017/18. It will rise a further $78 million in 2019/20
Act spending related to last summer’s wildfires, and another $40 million to $3.5 billion in 2020/21.
total PSSG spending was about $779.4 million in In total, annual expenditures are expected to be up
2017/18. This year’s budget adds just $7.1 million $377 million (+12.1%) in 2020/21 compared to
(+0.9%), bringing the ministry budget to $786.5 2017/18.
million.
MSDPR’s total salaries and benefits expenditures will
Building on the $32 million for PSSG to address the increase by $7.6 million (+5.6%) in 2018/19.
opioid crisis in Budget 2017, Budget 2018 continues
Most of this expenditure growth will be in Income
the $3 million for Naloxone training and public
Assistance. Income Assistance spending will increase
safety and outreach efforts. Corrections will see small
$196 million (+9.2%) to reach $2.3 billion in
increase of $2.5 million (+ 0.9%) in 2018/19, an
2018/19. Smaller increases over the subsequent two
amount that is not adequate to address the escalating
years will see Income Assistance expenditure reach
violence in B.C.’s correctional centres. Victim
$2.4 billion in 2020/21, for an increase of $265
Services and Crime Prevention also gets a moderate
million (+12.5%) over 2017/18 levels.
boost of $7 million (+ 15%) in 2018/19. Previously
housed within the former Ministry of Transportation Income Assistance increases in 2018/19 are mainly
and Infrastructure, Emergency Management BC from a more than $100 million planned increase
returns to the ministry with a $16.7 million budget to Disability Assistance and around $80 million
for 2018/19. This base amount is $1.1 million higher more for Supplementary Assistance. Much smaller
than in 2017/18 (+7.2%). increases are also budgeted for Temporary Assistance
and Program Management.
For the remainder of the fiscal plan, the budget
will remain virtually unchanged, at $787 million The budget’s emphasis on affordability is generally
in 2019/20 and $790 million in 2020/21. In short, welcome news for persons with disabilities. With the
funding for PSSG remains status quo. announcements last year of an increase to provincial
Persons with Disabilities (PwD) social assistance
For several years, and especially over the last two
rates, and an effective restoration of the transit pass
years with our Prison Safety Now campaign, the
program, progress is being made on addressing the
BCGEU has been calling for new resources for adult
precarious economic security of this community.
corrections to address severe health and safety
problems in addition to recruitment and retention On a deeper dive though, the news is somewhat
issues, and investments in community corrections mixed. In pre-budget consultations, advocates had
to address high workloads. Budget 2018 did not renewed a call for a portable rental subsidy for PwDs
deliver these investments. Outside of the nominal similar to the SAFER program for seniors. There was
increase to Corrections, there was nothing in the no movement on this front. As well, PwD rates are
budget to address the dangerous staff-to-inmate still inadequate. A more comprehensive response
ratios, overcrowding and escalating violence in B.C.’s may not come until government rolls out its poverty
jails, or the challenges faced by staff in community reduction strategy.
corrections.
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