B.C. finance minister Mike de Jong introduces the government's 2013 June Budget Update.

B.C. Budget: Province aims to hold line on union wage demands

Government revenues have fallen $900 million short of February's budget projections, finance minister Mike de Jong revealed.

VICTORIA – Government revenues have fallen $900 million short of February’s budget projections, and teachers and other government workers can expect no new money for wages, Finance Minister Mike de Jong said Thursday.

Bright spots for the B.C. economy include an expected recovery in natural gas prices from historic lows, and $500 million in savings on government operations, de Jong said in a post-election budget update.

B.C. is continuing an effective freeze on public sector wage growth that began in 2010. Since the government’s “cooperative gains” mandate in 2012, nearly three quarters of union members have signed contracts with average pay increases of one to two per cent, financed through savings in other areas of operations. Most are two-year deals, with some halfway through.

The projected surplus for this year is trimmed from $197 million in February to $153 million, and de Jong had to trim contingency funds to reach that.

Tax hikes are unchanged from February, including a two-year increase for personal income over $150,000 and a tobacco tax increase set for October.

The budget calls for $30 million in spending cuts this year, after last year’s reduction of $20 million in all ministries except health. The government’s “core review” of government operations is getting underway with a target of another $50 million in savings by the end of 2014, but no program targets are identified in the budget update.

The price for natural gas, the key commodity for the government’s debt reduction plan, is forecast to rise from $2.25 per gigajoule this year to $2.51 and $2.89 in the next two years. Exports of liquefied natural gas to Asia, where prices are currently far higher, can’t begin until well after 2015.

Lumber prices are forecast to decline, from a peak of US $348 per 1,000 board feet this year to $308 in 2014 and $300 in 2015.

De Jong said the government’s asset sales plan is about $8 million ahead of projections, with about half of the properties, bonds and other financial holdings sold or in negotiations to sell. The goal is to raise $475 million for next year’s budget.

Properties already sold include land on Tranquille Road in Kamloops, a school board office in Kelowna, surplus school land in Delta, vacant lots in Burnaby, Surrey and near Victoria General Hospital and former school sites in Surrey and North Vancouver.

Properties going on the market include a former school board office in Surrey, a vacant site north of Kelowna once planned for a provincial prison, former school sites in Central Saanich, Sidney and north central Vancouver Island and land for LNG development in Kitimat.

 

Just Posted

Donor of stolen Chief Dan George sculpture frustrated at middle school

Fraser River Lodge owner baffled how nobody missed it

Voters will have their say whether Mission becomes a city

Alternative approval process should begin at the end of August

Purple fentanyl among items seized in drug bust in Abbotsford

Youth being recruited as drivers for more-established drug dealers, police say

Meet Mission’s first Grand Inner Guard

Kari Senko is only the second woman elected to the Elks of Canada, grand executive

VIDEO: Daughter of slain Abbotsford Police officer speaks at charity dinner

Fay Davidson, daughter of Const. John Davidson, speaks at memorial scholarship event

Fashion Fridays: How to dress and feel powerful

Kim XO, helps to keep you looking good on Fashion Fridays on the Black Press Media Network

‘Easy Rider’ star Peter Fonda dies at 79

Actor and writer was nominated for an Oscar for co-writing the 1969 psychedelic road trip movie

Puppy rescued from smoky South Surrey condo

Fire alarms brought firefighters to the Morgan Crossing residences around 7 p.m.

B.C. daycare operator denies negligence in death of ‘Baby Mac’

Infant died in early 2017 after biting an electrical cord, according to a lawsuit filed by his mom

Bob Lenarduzzi out as Vancouver Whitecaps president

MLS team is at the bottom of the Western Conference standings

BC SPCA reopens animal cruelty investigation at Abbotsford pig farm

Additional alleged footage released from Excelsior Hog Farm sparks new investigation

A cappella country quintet Home Free to sing in Surrey

September concert date for Minnesota-based winners of NBC’s ‘The Sing Off’

Fatal overdoses in B.C. drop 30% during first half of year

A total of 538 people have died between January and June, BC Coroners Service reports

UPDATE: Arrest made in stabbing in South Surrey shopping district

Police said victim was found just after 3 a.m. and incident is ‘not believed random’

Most Read