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.

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

John Horgan meets with candidates Pam Alexis and Preet Rai and local citizens in Abbotsford on Wednesday afternoon. (Submitted)
NDP Leader John Hordan campaigns in Abbotsford with local candidates

Horgan meets with hopefuls Pam Alexis and Preet Rai on Wednesday afternoon

fdf
Massive new six-building complex planned for development in Mission

Complex to bring 289 residential units, 11 commercial retail units and four new office spaces

The website Chigoby is among eight scam online retailers that have been identified by the Better Business Bureau. The site was fraudulently using an Abbotsford residential address, but has since switched to one in Poland.
Eight scam online-shopping websites fraudulently use Abbotsford address

Better Business Bureau says victims lost hundreds for non-existent or poor-quality products

Last year, the Mission Christmas Bureau celebrated its office opening with an open house. Covid-19 has forced the organization to switch to online registrations this year. / Kevin Mills File Photo
Registration for this year’s Mission Christmas Bureau will be completed online

Bureau gearing up to make Christmas possible for hundreds of local families and children in need

Barry Shantz in 2015 in front of a homeless camp at Gladys Avenue and Cyril Street. Abbotsford News file photo.
RCMP officers cleared in killing of Abbotsford homeless advocate

Barry Shantz was shot following a mental health crisis at his home on on Jan. 13, 2020,

Provincial health officer Dr. Bonnie Henry presents modelling of COVID-19 spread in B.C., March 25, 2020. (B.C. government photo)
B.C. sets another COVID-19 record with 203 new cases

up to 1,766 active cases in B.C., two more deaths

Rio Tinto Alcan’s aluminum smelter at Kitimat competes against producers in the Middle East and Russia that have no carbon tax. (Rio Tinto)
B.C. carbon tax highest in Canada, export industries unprotected

B.C. NDP, B.C. Liberals say they’re looking at exemptions

In this file photo, snow is seen falling along the Coquihalla Highway. (Liam Harrap/Revelstoke Review)
Weather statement issued for Coquihalla, Hwy 3, as arctic front approaches

The early season snowfall expected to hit Fraser Valley, Friday, Oct. 23

(Pixabay)
Vancouver teacher suspended after swearing, touching students and complimenting underwear

McCabe touched students, including rubbing their backs and necks, touching their hair and hugging them

The Surrey Eagles are currently seeking billet families for its players in advance of the 2020-‘21 BC Hockey League season. (Garrett James photo)
BCHL team in ‘desperate’ need of billet families for upcoming hockey season

COVID-19 pandemic has made finding homes for players difficult: billet co-ordinator

John Horgan brought the NDP campaign to Langley on Wednesday, Oct. 21, just three days before the B.C. vote (Matthew Claxton/Langley Advance Times)
Horgan brings NDP campaign to Langley

Predicts gains, says people are looking at the party ‘differently’ after three years

A glimpse of some of the 480 (approx) cars written off as a result of the acid spills along the Trail highway in 2018. Photo: Trail Times
2 years after huge highway acid spill, Kootenay Ford dealer’s frustration grows with ICBC

Trail AM Ford owner Dan Ashman says he just wants fair compensation from ICBC

Most Read