While the B.C. Liberals are projecting a balanced budget for 2013, the NDP believes it's a "bogus" budget that's based on unrealistic expectations.
The B.C. Liberals' 2013 provincial budget, which passed in the legislature March 5 in a 45 to 38 vote, is promising a balanced budget by controlling spending, targeting tax increases, and selling surplus government properties and assets. The budget include a new early childhood tax benefit (starting in 2015), a new Early Years Strategy that will invest $76 million over three years to support the creation of new child care spaces and the improvement of quality child care and early years services, and a new training and education saving grant that provides a one-time $1,200 grant toward B.C. residents' Registered Education Savings Plan for their children.
"They are calling it a balanced budget," said New Westminster NDP MLA Dawn Black. "The fact is they are putting in revenue in this budget that we will never see."
The provincial government is projecting to raise $625 million over the next two years through the sale of surplus property and assets. The government stated that sales agreement are in place for five properties, negotiations are underway for eight properties and four more are in the market, with another 65 properties being prepared for market this year.
Black said it's risky to include revenue in the budget from the sale of assets, noting those kinds of sales don't always happen quickly. She said the budget is also "shaky" in that it underestimates the expenditures needed to maintain services like health care.
While there is "nothing" in the budget regarding skills training or reinvesting in the province's lands and forests, Black said she is extremely concerned that it contained no provisions for dealing with climate change.
The budget includes funds aimed at increasing youth participation in the arts, policing and services for problem gaming. It also includes a four per cent increase to Medical Services Plan premiums, a temporary two-year increase on the personal income tax rate for people who earn more than $150,000 and an increase in the general corporate income tax rate from 10 to 11 per cent.
"They are taking the ideas we have put forward and incorporating them into this budget," Black said about the corporate tax hike, noting it was something the Liberals opposed when put forward by the NDP. "They said it would kill all investment in the province - now they have gone and done it."
New Westminster Liberal candidate Hector Bremner has a far different view of the budget.
"I think the budget was prudent, it made sense," he said. "It was a balanced approach in a lot of different ways."
Bremner said B.C. Liberals are committed to maintaining services that are important, holding the line on spending and taking steps that won't leverage children's futures for short-term gain.
Bremner said the budget is about more than balancing the numbers financially, as it's also about striking a balance among British Columbians. He said that's reflected in the "modest" one per cent increase to the general corporate income tax rate.
"They are still in the most competitive tax regime in Canada and one of the most competitive tax regions in North America," he said of the rates.
With Black set to retire when the election is called, Judy Darcy will be running for the NDP in New Westminster in May's provincial election. She said it's dangerous to rely on the sale of government assets as a way of balancing the budget because there's no way of knowing how much money will be raised.
"I don't think anybody knows. They don't either," she said. "That is why we are saying it is a bogus budget. . You can't take that money to the bank."
Darcy said the budget is reminiscent of 2009, when the B.C. Liberals brought in a budget projecting a deficit of $495,000 but soon found it had quadrupled.
Bremner said he finds it troubling that the NDP would classify the budget as bogus, without presenting a credible alternative.
"I don't take their criticism very seriously," he said. "Our economic management has been exceptional."
According to Bremner, the B.C. Liberals have hit their budget targets 80 per cent of the time. He noted that the 2009 budget came at a time of a global economic crisis.
"This is a particularly shameful thing to keep repeating it," he said. "Fair enough - we missed it in 2009."
Since 2009, he said B.C. has been able to backstop major losses and keep the GDP ratio at a level that's the envy of the western world.
"We have absolutely nothing to be ashamed of," he said. "British Columbians have a lot to be proud of what we have achieved together."
While the B.C. Liberals have set out a "really clear plan for B.C.'s future," Bremner said the NDP is refusing to say what the party would do if elected.
"Adrian (Dix) hasn't made a lot of financial commitments," Darcy said of her party's leader. "He wanted to see what the books looked like."
Darcy said Dix has "put out a fair bit more than other leaders do" prior to an election, including a commitment to restore the nonrefundable student grant program that was in place until 2004.
Darcy, who was attending an event at Douglas College when the budget was released, said students were disappointed that the budget doesn't address the affordability of post-secondary education. Some expressed concern that the new B.C. training and education savings grant would only benefit children whose families were financially able to contribute to Registered Education Savings Plans.
Although the budget claims to protect frontline services in British Columbia, Darcy said it's based on "false pretenses".
"When you lowball expenditures for things like health care and seniors care, it will mean cuts to frontline services that affect vulnerable people."
Paul Forseth, who is the B.C. Conservative Party candidate in New Westminster, said the Liberals presented "a last-gasp, election-year budget" that includes tax increases, service cuts and asset sales. He's concerned about the decision to increase corporate income tax rates.
"We have to grow the economy," he said. "By increasing the tax burden on the business sector, that perhaps hurts."
Forseth said the increases to the business community defy logic at a time when jobs are supposed to be everyone's number-one priority.
"The business sector will face a hike to 11 per cent in the corporate income tax rate, while light commercial industry will lose a valuable school-property tax credit," he said. "It simply is not helpful for job creation."
