B.C. Finance Minister Mike de Jong.

Budget surplus hits $2.24 billion, but B.C. braces for schools settlement

Finance minister Mike de Jong won't say how much of a hit is expected from teachers' court win

B.C.’s projected budget surplus has climbed further to an estimated $2.24 billion.

Finance Minister Mike de Jong released that number as part of a generally upbeat second quarter financial update Tuesday.

He cautioned B.C. is bracing for significantly higher education budget costs in the wake of a Supreme Court of Canada ruling in favour of the B.C. Teachers Federation on classroom size and composition requirements.

De Jong declined to provide an estimate.

“It would be presumptive on my part and the government’s part to lay out our figure or unilaterally state what we believe that figure will be,” he said.

“The fiscal plan is healthy and we are in a position to accommodate the results of the negotiation that is now underway.”

Asked if the improved budget could allow B.C. to further raise social assistance rates, de Jong said that will be a priority, but cautioned there’s no certainty a large government surplus will repeat each year.

“The landscape is littered with the carcasses of governments past and the deficits they incurred because assumptions were made that a present set of circumstances would repeat in perpetuity.”

He also noted that public sector workers will be receiving nearly one per cent more pay over and above their contractual wage increases under B.C.’s economic stability mandate dividend, because the province’s growth has exceeded benchmarks. The latest 0.35 per cent dividend, resulting from 3.3 per cent economic growth for B.C. in 2015, takes effect in February and is on top of a 0.45 per cent bump a year earlier.

B.C. has seen an increase of 71,400 jobs so far this year, up 3.1 per cent as of October.

De Jong was also asked to respond to the potential that U.S. president-elect Donald Trump’s administration may start a trade war.

More protectionist policy from American leaders would also hurt the U.S. at a time when that country needs more B.C. lumber to accommodate growth projections, de Jong said.

No advertising campaign is contemplated at this time, he said, but he did not rule out strenuous lobbying by B.C.

“We are going to have to ramp up in a strategic way to ensure that Americans themselves understand there’s a price to be paid for protectionism and that it is not just a price you inflict upon others.”

He noted the U.S. forest industry has already fired the first shot against B.C. softwood lumber imports, with a petition that could lead to an initial ruling as early as spring.

Just Posted

Sooke volunteers work to save salmon and whales

A half million fish will be released

Sooke refugee group edges closer to sponsorship

Family of five has sheltered in Cairo since 2014

Oak Bay Sgt. struggles through emotional testimony in double murder trial

Andrew Berry is charged with second-degree murder in deaths of daughters Chloe (6) and Aubrey (4)

Car fire backs up traffic southbound on Highway 1

View Royal Fire Rescue douses fire, no injuries reported

Royal Roads University to commemorate the 75th anniversary of the sinking of HMCS Athabaskan

Ceremony on April 29 to mark the largest loss of life in the Royal Canadian Navy

VIDEO: Killer whales hunt for seals in Vancouver harbour

Bigg’s killer whales feed on marine mammals like seals, sea lions, dolphins and even other whales

Island-born Snowbirds pilot enjoying homecoming in skies over Comox

Logan Reid once stood clinging onto the fence outside the Comox Air… Continue reading

Attack on student in Courtenay ‘way more than bullying’, says mom

A Comox Valley mother said “it was way more than bullying” at… Continue reading

Vancouver man, 19, charged in human trafficking case involving teen girl

The 16-year-old girl was reported missing and later discovered in Vancouver

Amber alert issued for 5-year-old Ontario boy

Ethan Montes is believed to be in the company of his mother, 47-year-old Juliet Mohammed

Blaine, Wash. inn owner, charged with smuggling people into B.C., granted bail

Robert Joseph Boule ordered to turn away anyone indicating a plan to enter Canada illegally

CURATOR’S COLUMN: Dressing up exhibits at the museum

Montana Stanley | Contributed While looking for culture material to supplement the… Continue reading

Most Read