Here’s how the B.C. budget will affect you

The pool of red ink has dried up substantially on British Columbia’s book, with a financial rebound of sorts helping to stabilize provincial coffers.

After initially forecasting a deficit of $9.7 billion in 2021/22, the province has revised this to just $483 million.

However, the rosy picture is short lived, as the buoyed books come courtesy of a windfall of pandemic-related cash. The finance department is forecasting a deficit of $5.46 billion for 22/23, and $4.18 billion the following fiscal year.

“We all know what we are fighting against, be it COVID-19, climate change or a poisoned drug supply, we cannot lose sight of who or what we are fighting for,” Finance Minister Selina Robinson said. “We will reach those better days ahead by continuing to build on today’s strengths.”

The boon for B.C.’s finances is also aided by record high home prices. Property tax transfers are expected to end the fiscal year at $3.25 billion, surging well past the projection of just $2.5 billion.

In 2019/20, that number was just $1.9 billion.

Another $1.2 billion came from ICBC, courtesy of higher investment earnings, fewer claims, and lower operating costs. Higher than expected corporate tax and natural resource revenues also helped smooth the bottom line.

The boosted income has allowed the province to direct money towards several priorities, including climate change, housing, and childcare.

Climate Change

To make the B.C. Wildfire Service more proactive and less reactive, the government has earmarked $145 million to make the service year-round. More permanent staff will be dedicated to fire prevention, preparedness, response, and recovery.

Additional resources at Emergency Management B.C. will improve the public alert system for wildfires and better support people and communities during climate-related events.

There is $83 million to begin implementing a new Climate Preparedness and Adaption Strategy. This includes expanding climate monitoring networks, developing an extreme heat response framework, and working with local governments on climate resilience initiatives.

Another $210 million will go towards supporting community and Indigenous-led climate-change preparedness and emergency management.

The final price tag for rebuilding highways damaged in November’s string of atmospheric rivers is not yet known. But on top of the $5 billion from Ottawa to rebuild, another $1.5 billion is being set aside to fix destroyed infrastructure and help impacted people and communities over the next three years.

The budget also removes PST on used zero emission vehicles (ZEVs) and increases the luxury tax threshold on new ZEVs to $75,000.

Childcare

The budget invests $284 million in childcare. Thanks to a federal partnership, full-day fees for infants and toddlers should fall to about $20 a day by the end of 2022.

Preschool and before- and after-school care costs should fall to under $20 a day for the 2023/24 school year. The government has also committed to create 130 more early childhood educator training seats in post-secondary institutions.

It plans to add 30,000 new childcare spaces for children under six within five years, and 40,000 within seven.

Housing

The province is dedicating $100 million in 22/23 for non-profit housing providers to speed the construction of mixed-income housing through the Community Housing Fund.

The budget also adds $166 million to the province’s commitment to build 114,000 affordable housing units in British Columbia over 10 years. This will bring the level of housing investment and homelessness support to over $1.2 billion per year by 2024/25.

The books also set aside $633 million to shift homelessness plans from reactive to proactive. Starting in fiscal 22/23, temporary housing and support arrangements provided in 2020 will be made permanent, and a new $600-a-month rent supplement will be introduced.

The province also plans to support the up to 3,000 people who were temporarily housed in leased or purchased hotel and other spaces during the pandemic through a transition to permanent housing.