Finance Minister Mike de Jong shows chart of B.C. operating deficits and surpluses in recent years.

Economic growth means raises for unions

B.C. economy grew more than independent forecast, triggering pay increase next year as surplus 10 times forecast

The B.C. government exceeded its financial targets for the last fiscal year, and the economy grew enough that unions that signed on to the government’s growth sharing formula will likely see a small pay increase in 2016.

Finance Minister Mike de Jong presented the province’s audited public accounts Wednesday, with a surplus of $1.68 billion, almost 10 times the size it was forecast to be. That was due mainly to higher personal, corporate and sales tax revenue in the later part of the fiscal year that ended in March.

Gross domestic product growth came in at 2.6 per cent for the year, ahead of the finance ministry’s economic forecast council figure of 2.3 per cent. Public service union contracts signed last year included a formula to distribute half of any gain above that independent forecast, translating to a 0.15 per cent additional raise on top of negotiated increases.

De Jong said the GDP numbers must still be finalized by Statistics Canada, and the adjustment to pay levels for employees in the health, education and other public services who signed on will be made in 2016.

De Jong said he is tracking the steeply rising cost of the current forest fire season, and there is a contingency fund to cover whatever is needed. That uncertainty and international instability in Asia and Europe mean the government will not assume higher revenues will continue this year, he said.

Sales tax revenue exceeded budget forecasts by $322 million, and corporate tax revenue was up $208 million. Property transfer tax was up $128 million, and all other taxes brought in $254 million more than forecast.

Natural resource revenue decreased by $18 million from 2013-14, despite an increase in forest revenue of $35 million due to economic recovery. Less rainfall and snowpack led to a decrease of $74 million in power production.

 

Just Posted

CPR month promotes hands-on approach to life-saving measure

PulsePoint Respond App alerts people if there is a victim of a cardiac arrest within 400 metres

Saanich firefighters save Remembrance Day ceremony at retirement home

The flag cord broke and crews worked to get it back up in time for the ceremony

Christian minister accused of transphobia draws small audience, protesters in Sidney

Art Lucier is ‘100 per cent’ sure would-be audience stayed away because of perceived controversy

Christmas lights appear on Oak Bay Avenue

Installation marks the countdown to the annual Christmas Light Up

Rain throughout the day for Tuesday

Plus a look ahead at the week

Petition to ‘bring back Don Cherry’ goes viral after immigrant poppy rant

Cherry was fired from his co-hosting role for the Coach’s Corner segment on Nov. 11.

VIDEO: Don Cherry says he was fired, not sorry for ‘Coach’s Corner’ poppy rant

Cherry denies he was singling out visible minorities with his comments

Woman airlifted with serious injuries after being struck by car in Nanaimo

Woman, hit in crosswalk, suffers life-threatening injuries; driver co-operating with police

B.C. teacher suspended for incessantly messaging student, writing friendship letter

Female teacher pursued Grade 12 student for friendship even after being rebuked

Vancouver Island substitute teacher said he wanted a student to ‘whack’ two others on Grade 8 field trip

Campbell River teacher-on-call suspended three weeks after November 2018 incident

Disney Plus streaming service hits Canada with tech hurdles

Service costs $8.99 per month, or $89.99 per year, in Canada

Trudeau’s opponents: One gives him an earful, another seeks common ground

PM meets with Conservative leader Andrew Scheer and Saskatchewan Premier Scott Moe

Rona’s ‘truly Canadian’ ads are inaccurate, watchdog says

Ads Standards points out U.S.-based Lowe’s acquired Rona in 2016

Most Read