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

Tour de Rock ride kicks off in the North Island

I would ride all day in the rain if it means raising money to help these kids”

2019 FEDERAL ELECTION: North Island-Powell River candidates discuss marine traffic and ocean protection

In an effort to inform the North Island-Powell River riding constituents, we… Continue reading

Promising filmmaker Micah Estlin documents North Island communities

Estlin took on the challenging 2-month summer work experience filming the project.

North Island Rising: A very powerful voter

There is another non-voter though that I would love to see back in the voting booth.

Town of Port McNeill’s financial statements are in, and the numbers might surprise you

One resident asked why CIBC bank charges (Fiscal Expense) were $15,000 higher than the previous year

VIDEO: ‘Thrones,’ ‘Fleabag’ top Emmys

Billy Porter makes history as first openly gay black man to win best drama-series acting Emmy

‘This is savage’: Strip club owner suspects arson in Williams Lake fire

Investigators on scene to determine cause of fire that destroyed at least two businesses

B.C. VIEWS: School officials join fact-free ‘climate strike’

Students, public get distorted picture of greenhouse gases

Judge rules cops did not coerce statement from B.C. man accused of assaulting sex worker

Defence wanted Vernon’s Curtis Sagmoen’s video interview with police deemed inadmissible

GRAPHIC: Tortured cat found with string around its neck in Kelowna alleyway

City crews have been contacted and are on the way to pick up the dead feline.

Firefighters may be needed for paramedic apartment access, experts say

Better coordination recommended in urban B.C. 9-1-1 calls

B.C. police chief to speak to Liberal candidate after second ad appears featuring photo of officer

Jati Sidhu had said an ad with the same photo posted last Friday was ‘not appropriate’

Three B.C. moms to launch CBD-infused water

Three friends say benefits may include anxiety relief, pain management

B.C. students empowered to ‘shift the vote’ this election

B.C. Federation of Students launches ‘Our Time is Now’ campaign

Most Read