B.C. budget 2022-23: Province's books improving, but still in the red

B.C.’s NDP government is projecting deficits for the next several years, due to the ongoing impact of the pandemic, while the forecast shortfall for the current budget year has dropped by more than $9 billion.

Due to better than expected economic growth, fueled by an astonishing turnaround by the Insurance Corporation of British Columbia and a sizzling real estate industry, the 2021-22 budget is forecast to end with a deficit of $483 million, down from a projection of $9.698 billion last year. The 2022-23 budget is expected to have a deficit of $5.461 billion. In addition, billions of dollars are set aside in contingencies.

The government is expecting $2.5 billion in revenue from the property transfer tax in 2022-23 and $327 million from ICBC.

Finance Minister Selina Robinson laid out Budget 2022-23 with a theme of "Stronger Together," which promises supports for child care, funding for health care, to address climate change, and supports for those at risk of homelessness and for sexual assault survivors.

Robinson told reporters Tuesday during the budget lockup that parents can expect to pay about $20 per day on average for child care by the end of 2022. She said the province planned to create 40,000 more child-care spaces over the next seven years, and would also fund more inspectors to make sure the spaces were up to standard.

She said $100 million is being provided to reduce surgical and diagnostic wait times. In addition, there’s a vow to create 10 more urgent and primary care centres, plus an additional 15 specifically for those from First Nations. As reports of understaffing and long wait times continue to plague emergency response agencies, the province said it also planned to hire 125 paramedics and 30 dispatchers to make up for the shortage. Another $30 million is set aside for cancer care.

The province is providing $2.1 billion for fire and flood prevention and recovery. $1.5 billion is set aside to rebuild from 2021’s devastating fire and flood seasons. Another $600 million is for prevention, including funding staff at the B.C. Wildfire Service year-round.

Another $1 billion is set aside in new funding for CleanBC, the province’s climate action plan. That includes funding to remove the PST on used zero-emission vehicles and rebates for ZEV chargers and vehicles.

The finance minister also outlined a number of supports to “prevent” homelessness. Those currently housed in hotels are being promised rent subsidies to move into more permanent housing, and money is being pledged to help youth aging out of care avoid being out on the streets.

The province claims more than 32,000 homes are underway as part of its 2018 promise to build 114,000 new affordable rental homes. Of those, 6,300 are complete, with another 4,500 expected to be built by the end of the fiscal year.

For the first time since 2002, sexual assault centres will be provided operational funding.

Another $25 million is set aside to help the tourism industry with pandemic-related impacts.

The province has also pledged to set up a secretariat that will ensure government policies are in line with the UN Declaration on the Rights of Indigenous People.

A record $27.4 billion is allocated over the next three years for capital projects including expanding the SkyTrain from Surrey to Langley.

The third quarterly forecast shows ICBC is expected to bring in $1.9 billion in revenue for the 2021-22 year. That’s a $1.2 billion increase from the initial projection. Just years ago, the auto insurer’s finances were described as a “dumpster fire” and taxpayers footed a $1 billion bailout.

Property transfer taxes from home sales are also four times more than what was expected at the beginning of the year. Government is raking in $3.25 billion from above-average sale volume that is up more than 30 per cent.