News from today’s provincial budget in Victoria focused on items that have been popular topics of discussions in B.C.
Housing prices. MSP premiums. Funding for the Ministry of Children and Family Development.
But there were also a number of other announcements the government made today that are noteworthy.
1. More money for people with disabilities — but no more subsidized transportation
The government will be raising the monthly disability assistance by $77/month per person, but that $77 will mean more in places of the province where there hasn’t been subsidized transportation options.
“Depending on where you live, you may or may not receive assistance for a basic need like transportation costs. Some get $52 for a bus pass. Others get a special transportation subsidy. Almost half of those on disability assistance, roughly 47,000 people, get nothing. We think that’s unfair, and we think all British Columbians…no matter where they live deserve to have their need to move about taken into account,” Finance Minister Mike De Jong said today.
“Rather than providing a transportation subsidy that only benefits some, effective Sept. 1, irrespective of where they live, those on disability assistance will be receiving an increase…and the freedom to make their own choice about how to meet their own unique transportation needs.”
It was a move that didn’t sit well with NDP leader John Horgan.
“It’s a shell game. If you were getting the transportation supplement, you’re getting that clawed back,” he said.
READ MORE: Winners and losers in Tuesday’s B.C. budget
“It’s a modest increase, and comes nowhere near addressing nine years of zero increases for people with disabilities. It’s a step, but it’s a very very modest step, and I’m fairly confident that if you find people living with disability pensions today, they’re not going to be over the moon over this.”
2. A new tax commission — but no HST
De Jong said the government would look to create a new group “to consider ways to modernize the existing tax structure, given the changing economy.”
And while he made it clear that the commission would be explicitly barred from considering a new harmonized sales tax, De Jong wouldn’t give specific ideas of what could happen.
“Within the broad parameters of our tax regime, I think there is room to manoeuvre, to modernize,” he said.
I’m going to leave it to the commission to…present their ideas to what they believe would enhance our competitiveness.
3. Lowering tax credits for Hollywood North
While film production in British Columbia has been booming — exemplified by the Vancouver-shot film Deadpool that is currently smashing box-office records for an R-rated movie—De Jong hinted that the government should get a larger share of the revenue going forward.
“Tax credits…are now estimated to be around half-a-billion dollars in 2015-2016,” he said.
De Jong added that Ontario, Quebec and New Brunswick have all reduced their tax credits for the film industry in recent years and that the government would reveal the results of consultations with the film industry in the weeks ahead.
4. Natural gas revenues plummeting
One large source of revenue for the provincial government this century has been from natural gas, and the tenure agreements resource companies pay for crown land.
But those funds are dwindling. Revenues from natural gas royalties are estimated to be just $128 million this year, down from $493 million in the 2014/2015 fiscal year.
And while the government is forecasting $633 million in revenue from crown land tenure this year, 90 per cent of that comes from deferred revenue saved from previous auctions — only $63 million is forecasted from fees and rentals.