B.C. BUDGET ANALYSIS 2018/19 - Responsible investments in our province and people - cloudfront.net

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B.C. BUDGET ANALYSIS 2018/19
Responsible investments in our province and people

Overview
Last week, the BC NDP delivered their first full          estimate to 3.4 per cent from 2.9 per cent. Exports
provincial budget and fiscal plan. After 16 years of      have grown considerably, retail performance remains
austerity and retrenchment under the BC Liberals, the     exceptionally strong, and unemployment is still the
new government took its first steps toward rebuilding     lowest in Canada at 5.1 per cent (2017 average).
core public services in the September 2017 Update,
                                                          But the government admits our economy is not doing
and laid important pathways for the introduction of
                                                          enough for many British Columbians, and so this
expansive new strategies and programs to come.
                                                          budget takes significant steps toward implementing
Budget 2018 formally announces these significant          several core programs, social investments, and
investments—namely, housing and child care—and            service improvements that are needed for creating a
supplies much-needed funding and resources to             more people-centred, inclusive and affordable B.C.
other vital areas of public service delivery. This
                                                          Some of the highlights include:
balanced budget also spends on infrastructure, takes
strides toward tax fairness, and significantly improves    • Laying the foundation for a universal, affordable
the government’s fiscal position for long term, sus-         child care system
tainable public investment.                                • Introducing a 30-point plan to address housing
                                                             affordability and harmful market speculation
                                                           • Supporting programs for women and children
 In a noticeable change of tone                              affected by violence

 from the previous government,                             • Investing in seniors care, including staffing for
                                                             both residential care facilities and home care
 Finance Minister Carole James                               services

 explained that, “budgets are
                                                           • Reducing the costs of prescription drugs for those
                                                             with lower incomes
 not only about the bottom line,                           • Providing additional funding for mental health

 they should be about people.”
                                                             and addictions services
                                                           • Increasing funding for court sheriffs, staffing for
                                                             court services, legal aid service delivery, as well
In a noticeable change of tone from the previous             as expanded access to justice services for people
government, Finance Minister Carole James                    living in rural and remote communities
explained that, “budgets are not only about the            • Expanding funding and resources for the employ-
bottom line, they should be about people.” She               ment standards branch to improve fairness for
cautioned that the financial and fiscal planning             vulnerable workers
of government should never be removed from the             • Creating a program to preserve and revitalize
context in which it applies. That context is made up         Indigenous languages
of people, families, workers and communities—all of        • Expanding tuition waivers for former youth in
whom depend on quality services, basic affordability,        care and increasing funding for Agreements with
good jobs and a share in our prosperity.                     Young Adults
                                                           • Investing in support programs for newcomers
Budget 2018 reveals that the provincial economy              and immigration settlement services
remains strong under the BC NDP’s early leadership,        • Supporting Indigenous reconciliation work
with an upward revision to the 2017 real GDP
• Investing in wildfire recovery activities and         Over the three years of the fiscal plan, total expected
   improving wildfire resiliency in communities          revenue growth will average 4.1 per cent per year
 • Hiring additional conservation officers and           approaching 2020/21, which exactly matches
   providing new resources for environmental             the average Ministry of Finance forecast for GDP
   programs and natural resource management              (nominal) growth over the same period. This reflects
 • Establishing a new Wildlife Management Strategy       government revenue capture that is on pace with
 • Eliminating Medical Service Plan premiums by          expansion in the provincial economy. It edges
   Jan. 1, 2020, and introducing a new Employer          up total revenue as a proportion of GDP to 18.6
   Health Tax                                            per cent for the upcoming fiscal year—consistent
 • Raising the corporate income tax rate                 with the ratio exercised under the previous Liberal
 • Addressing service delivery demands with new          government.
   funding for staffing in income and disability
                                                         The new NDP government’s fiscal planning retains
   assistance
                                                         prudence and responsibility, but now generates
 • Making significant capital investments in
                                                         public revenue that is more in line with our econo-
   schools, new and upgraded health facilities, sup-
                                                         my’s “ability to pay.” This was deliberately forgone
   portive housing, and transportation infrastructure
                                                         under the previous government, which resulted in
Budget 2018 is not perfect. But it is bold, well-mea-    critical shortages for core programs and services, and
sured and conscientious in what it offers to British     significant impacts for workers in the public sector,
Columbians. It represents a landmark shift in the        for families and communities—and especially for the
culture and tone of government. Most significantly,      province’s most vulnerable.
it reconsiders how government positions public
                                                         In 2018/19, total direct tax revenue is projected
finance alongside the larger social objectives
                                                         to increase by $2.4 billion (+8.4%), helping to
we seek through a healthy, vibrant and inclusive
                                                         offset a continuing decline in natural resource
economy.
                                                         rents, royalties, and other fees by -$177 million
The BC Government and Service Employees’ Union           (-6.7%)—which is expected to worsen over the
(BCGEU) has reviewed the provincial budget, minis-       course of the three-year plan. Promising growth in
try by ministry, to help understand how government’s     provincial tax revenue is seen from many sources,
choices in the fiscal year of 2018/19 will affect the    including most significantly, personal incomes. This
work our members do and the services our province        is both a result of reinstating the top marginal rate at
relies on. It identifies areas where progress has been   16.8 per cent in the Budget 2017/18 update, as well
made and where more is still needed. At the end of       as the continuation of larger-than-expected receipts
this document, Budget 2018’s child care and housing      from reported earnings (a reflection of strong labour
plans are outlined in detail, so BCGEU members           market performance).
have more comprehensive information about these
                                                         Other revenue improvements are found in continu-
two new affordability initiatives that our union has
                                                         ing retail sector performance (and associated returns
been actively campaigning on.
                                                         on sales tax), scheduled rate increases to the BC
Revenue                                                  Carbon Tax (now revenue-positive, as recommended
                                                         by the BCGEU and others), and a slight uptick in
The budget projects that total revenue for the coming    property transfer tax revenue. Budget 2018 also
year (2018/19) will grow significantly above the         introduces a one-percentage point increase to the
updated forecast for 2017/18, by as much as $2.1         general corporate income tax rate, thereby restoring
billion (+4.1%). This is followed by expected year-      the previous 2013 rate of 12 per cent—another
over year increases of $3.4 billion (6.3%) in 2019/20    longstanding recommendation made by the BCGEU
and $1.1 billion (+1.9%) in 2020/21.                     in its annual pre-budget consultation submissions to
                                                         government.

            BCGEU BUDGET ANALYSIS 2018/19                                                                       2
Following the 50 per cent reduction in MSP premi-       Combined, the tax measures introduced in Budget
ums announced in September 2017, Budget 2018            2018 will create an additional $793 million in
introduces a widely-anticipated Employer Health Tax     new public revenue for the upcoming fiscal year,
(EHT) as part of government’s revenue replacement       followed by an additional $2.1 billion in 2019/20.
strategy. In 2018/19, the tax will generate $463        As a significant component of the broader revenue
million, followed by approximately $1.8 billion         improvements noted above, these actions reflect the
annually thereafter.                                    considered judgement of a government dedicated
                                                        to sustainably financing both needed improvements
The payroll tax will apply to medium and large-size
                                                        to core programs and services, and a larger social
businesses at progressively increasing rates, and
                                                        commitment to British Columbians.
will capture and replace the current employer-paid
portion of MSP premiums. It will also generate new      This favourable and conscientiously improved
contributions from businesses that do not currently     revenue position demonstrates continued prudence
make payments for their employees, thereby              and fiscal responsibility on the part of the new
introducing universality to the payment structure.      government, while at the same time providing
It is expected that personal income tax surcharges      improvements to equity and efficiency. Moreover,
will also be introduced in a future budget, again on    the NDP’s first full budget shows quite clearly that
a progressive basis, which will cover the individual    the BC Liberals do not possess a monopoly on sound
portion of MSP revenue replacement. Together,           economic and fiscal management. Solid macroeco-
these measures will vastly improve the equity and       nomic growth can be maintained in this province
efficiency of revenue generation for health services,   while also translating a fair share of our prosperity
bringing B.C. into line with other provinces.           into financing services and programs that benefit all
                                                        British Columbians.
As part of the government’s new 30-Point Plan for
Housing Affordability, the fiscal plan imposes a        These choices will serve the government and the
progressive increase to the property transfer tax on    province well as significant investments in housing
high-end residential properties (above $3 million),     and affordable child care are made in the months
and raises the foreign buyers tax from 15 to 20 per     (and fiscal years) ahead.
cent. These new targeted measures are intended
to discourage speculative activity in the province’s
dangerously overheated real estate market and will
                                                        Public service
generate an additional $356 million in 2018/19 and      In 2017/18, 960 (+3.4%) new FTEs were added to
2019/20.                                                the public service, bringing the total to 28,900. This
                                                        was the most growth the public service has seen in
                                                        a decade, although government staffing levels still
 Solid macroeconomic growth                             remain almost 10 per cent below what they were in
                                                        the early 2000s. Budget 2018 predicts that total FTEs
 can be maintained in this                              for the public service will continue to grow, but not
 province while also translating                        as quickly. In 2018/19, 500 (+1.7%) FTEs will be
                                                        added to total of 29,400, with another 100 (0.3%)
 a fair share of our prosperity                         FTEs coming in 2019/20.

 into financing services and                            The forecasted staffing increases are due mainly to

 programs that benefit all British
                                                        increased staffing requirements to implement govern-
                                                        ment’s new child care and housing initiatives, as well
 Columbians.                                            as for front-line service positions including sheriffs,
                                                        court services staff, staff to deliver social assistance
                                                        services, and conservation officers.

            BCGEU BUDGET ANALYSIS 2018/19                                                                     3
There will also be new staff to support activities         However, there will be no immediate action to
related to cannabis legalization, enhanced support         eliminate interest on student loans, or to reduce
for workers and employers in matters related to            tuition fees for students. Rather, the ministry’s service
WorkSafeBC, wildfire recovery efforts, land use            plan indicates that it will maintain the two per cent
planning and environmental management.                     cap on tuition fee increases. The ministry will also
                                                           “work towards” both eliminating interest on student
Finally, the 2018 fiscal plan notes that ministries
                                                           loans and establishing a completion grant program.
were provided funding increases totaling $241
million for wage increases as a result of the eco-         Budget 2018 builds on capital spending increases
nomic stability dividend. The document also explains       included in last year’s budget, adding more than
that provincial public sector employers’ associations      $259 million in provincial funding for student
will begin negotiations with public sector unions in       housing at public post-secondary institutions.
2018/19 “under a new compensation mandate,” but            Including contributions from the federal government
no further details were provided.                          and other sources, capital spending will total more
                                                           than $2.6 billion over three years. Major projects
Ministries                                                 include construction of the Sustainable Energy
                                                           and Environmental Engineering Building at SFU’s
Ministry of Advanced Education, Skills                     Surrey campus and a new Industrial Training and
and Training                                               Technology Centre at Thompson Rivers University
                                                           in Kamloops. Also, new health sciences centres will
Budget 2018 adds $58 million to the ministry’s
                                                           be built at Camosun College and Vancouver Island
operating budget in 2018/19, bringing it to a total
                                                           University.
of $2.2 billion. $48 million of the new funding is
allocated for post-secondary institutions (+2.5%),         Industry Training Authority
while the remaining $10 million is to continue the
                                                           The new government moved the Industry Training
Indigenous Skills Training Development Fund. The
                                                           Authority (ITA) from the past Minister of Jobs,
budget for student services programs will be reduced
                                                           Tourism and Skills Training to the authority of the
by $1.7 million (-2.3%) to $70.4 million in 2018/19,
                                                           new Minister of Advanced Education, Skills and
and then frozen for the remainder of the budget plan.
                                                           Training. However, the new government did not alter
Similarly, funding for the oversight of private training
                                                           the BC Liberals’ 2017 budget for the ITA. As planned
institutions ($1 million/year) and ministry executive
                                                           by the previous government last February, this year
and support services ($20.6 million/year) is frozen
                                                           the ITA will see a very small increase over last year
for the next three years.
                                                           (+$705,000/ +0.7%), and then the organization’s
This year’s new funding is for initiatives that will       budget will be frozen for the remainder of the three-
increase access to post-secondary education, includ-       year budget plan.
ing tuition-free adult basic education and English
                                                           In contrast to its stagnant budget, the ITA’s service
language learning. As well, the budget allocates $30
                                                           plan indicates that some significant and long-over-
million over three years for both tuition waivers and
                                                           due changes are in the works for the trades training
wraparound supports for young adults aging out
                                                           system in B.C. To start, the ITA will help government
of care to attend post-secondary programs. There
                                                           implement apprentice ratios on public infrastructure
is also new funding to significantly increase the
                                                           projects. The service plan also reflects a heightened
number of early childhood education (ECE) training
                                                           focus on removing barriers to entry into the trades for
seats at public post-secondary training institutions.
                                                           equity groups.
Government allocated $7.4 million for this purpose
in 2018/19. In each of the following two years of the      Most significantly, the ITA will be working with
budget plan, almost $60 million/year is available to       government to review aspects of training delivery
support training for ECEs.                                 and governance.

            BCGEU BUDGET ANALYSIS 2018/19                                                                         4
It will also look at the merits of compulsory certifi-     benefits for its staff in 2018/19. This is a limited, but
cation for some trades. From the service plan, these       welcome initial investment in rebuilding staff capac-
initiatives include working closely with government        ity and expertise within the Ministry of Agriculture.
and stakeholders to:
 • Review how the ITA funds and accredits the              Ministry of Attorney General
   delivery of technical training;
                                                           While it will take time and further significant
 • Review and update the mandates and member-
                                                           investments to undo the damage done to our courts
   ships of the ITA’s sector advisory groups; and
                                                           and justice system by 16 years of staff and budget
 • Complete a review of whether or not compulsory
                                                           cuts under the previous government, Budget 2018
   designation could be used to improve worker
                                                           marks an important change in direction. The total
   health and safety, consumer protection and
                                                           budget for the Ministry of Attorney General (AG)
   environmental safety for certain trades occupa-
                                                           will increase $47.2 million (+8.8%) in 2018/19 and
   tions in B.C.
                                                           a further 0.8 per cent in 2019/20 to reach $587.9
The upcoming reviews outlined in the ITA’s service         million. Expenditures will remain at that level for
plan have the potential to lead to concrete, meaning-      2020/21.
ful improvements to trades training in B.C.
                                                           The ministry’s expenditure on salaries and benefits
Ministry of Agriculture                                    is expected to rise from $422.4 million in 2017/18
                                                           to $457.8 million in 2018/19, an increase of $35.4
Budget 2018 adds $29 million over three years to
                                                           million (+8.4%).
the Ministry of Agriculture’s budget. Focused on the
agriculture science and policy and business man-           These spending increases are concentrated in areas
agement budget lines, the plan includes a $7 million       where the BCGEU has long been advocating for
increase in 2018/19, and $11 million in the last two       investments, improvements and restored funding.
years of the budget. This new money represents a           Expenditures highlighted in the budget include:
nine per cent increase to the ministry’s overall budget
                                                            • $15 million to increase the number of court sher-
in 2018/19, and a 14 per cent boost by 2020/21.
                                                              iffs and increase staffing of the Court Services
The new funding is aimed at delivering a number               Branch to address court delays;
of initiatives under the broad headings “Grow BC,”          • $10 million for AG initiatives related to family
“Feed BC” and “Buy BC.” Providing start-up loans for          dispute resolution services and increasing digital
new farmers, using more B.C. food in schools and              access to justice services, especially for people
hospitals, giving support to the fruit and nut industry,      living in rural and remote communities; and
and developing new “food innovation centres” to             • $26 million to the Legal Services Society for the
help small scale processors move to commercializa-            expansion of legal aid service delivery, including
tion are among the initiatives outlined in the min-           Indigenous, family law and duty counsel
istry’s service plan. Outside of the budget increases         services.
for these programs, however, funding for the Farm
                                                           According to the AG service plan estimates, Justice
Industry Review Board (FIRB), the Agricultural Land
                                                           Services expenditures will increase by $13.1 million
Reserve (ALR) and executive and support services is
                                                           in 2018/19 (+11.6%), while Prosecution Services
frozen for all three years of the Budget 2018 plan.
                                                           will increase by $12.3 million (+9.6%), then a further
The ministry will deliver its new initiatives primarily    $9.9 million (+7.1%) in 2019/20. Court Services will
through transfers to other organizations or to farmers.    see $6.6 million in new funding in 2018/19 (+6.4
However, detailed information contained in the             %), while Legal Services expenditures will increase
budget estimates shows the ministry plans to spend         by $6.0 million – a 27.3 per cent increase.
an additional $1.1 million (+3%) on salaries and

            BCGEU BUDGET ANALYSIS 2018/19                                                                         5
Legal Services Society                                    Liquor Distribution Branch
“Access to justice in Canada remains a serious            The Liquor Distribution Branch (LDB) had another
problem that imperils the public’s confidence in the      very successful year in 2016/17 bringing in a net
justice system.”                                          income of $1.08 billion. Revenues are expected
                                                          to continue to grow over the next three years to a
   Former Chief Justice Beverley McLachlin,
                                                          2020/21 target of $1.13 billion. The LDB’s service
   Supreme Court of Canada, 2018
                                                          plan notes that the introduction of grocery store
Legal aid services in B.C., provided largely through      liquor stores has made the retail environment
the Legal Services Society (LSS), suffered drastic cuts   more competitive. However, the impact of grocery
imposed and maintained by BC Liberal governments          store sales was not deemed significant enough to
since 2001. Funding for legal aid was reduced by 40       be included in the agency’s forecast assumptions
per cent overall and 60 per cent for family law cases.    because the number of grocery stores selling liquor
As such, family, immigrant and refugee services in        “remains relatively small.”
particular have suffered tremendously. Inadequate
                                                          This summer, the LDB will move its Vancouver
family law legal aid is currently the subject of a
                                                          Distribution Centre to a new leased facility in Delta.
suit brought against the government and LSS by
                                                          The significant cost of relocating to the new, larger
the Single Mothers’ Alliance and two individual
                                                          location is estimated at $57.1 million, and will
plaintiffs.
                                                          include new warehouse management software.
This year, however, the Legal Services Society is
                                                          On the heels of the union’s successful and influential
receiving a material increase to its budget. Compared
                                                          Responsible Retail campaign with ABLE BC, the
to the September 2017 budget update, for 2018/19
                                                          LDB’s 2018/19 service plan notes that it is now pre-
there will be an additional $8.8 million (+10.8%)
                                                          paring its operations for the anticipated legalization
in funding, as well as $8.9 million in 2019/20 and
                                                          of non-medical cannabis this summer. The LDB will
2020/21, for a total of just over $26 million over
                                                          be the wholesale distributor of non-medical can-
three years. A total of $11 million of this funding
                                                          nabis for the province, and participate in cannabis
will help expand the Parents Legal Centre to more
                                                          retailing. However, there is no preliminary costing
communities. The new money in this year’s budget
                                                          for a cannabis warehouse, cannabis retail outlets, or
is the most significant increase in legal aid funding
                                                          forecasts for new cannabis revenue.
since 2002, and it will improve access to justice for
many British Columbians.                                  Research on the experiences of other jurisdictions
                                                          indicates that the profitability of legal non-medical
However, more investment in legal aid is needed to
                                                          cannabis sales is both gradual and somewhat slow
ensure services for all qualifying individuals, to pay
                                                          to develop over the first several years of implemen-
legal aid lawyers more fairly, and to grow the system.
                                                          tation. The BCGEU will be monitoring the public
The province is currently finalizing a new five-year
                                                          revenue returns in subsequent public budgets and
legal aid agreement with the federal government, so
                                                          financial cycles. In the meantime, the union will
more funding for criminal, immigration and refugee
                                                          also be investing in education and public safety
legal aid could be arriving soon. However, the B.C.
                                                          campaigns regarding consumption.
branch of the Canadian Bar Association estimated
last year that an additional $36.4 million annually
was needed to improve and expand legal aid in B.C.        Ministry of Children and Family
As such, Budget 2018’s investment in legal aid, while     Development (MCFD)
significant, only partially meets what is actually        Total expenditures in MCFD for 2018/19 are esti-
needed.                                                   mated at $1.8 billion – up $203 million (+12.8%)
                                                          over last year. Total MCFD expenditures are expected
                                                          to increase again to $1.97 billion in 2019/20 (+10%

            BCGEU BUDGET ANALYSIS 2018/19                                                                         6
over 2018/19) and then to $2.1 billion in 2020/21        and benefit expenditures will increase an estimated
(+5.5% over 2019/20). Total MCFD expenditures            $36.7 million (+10.4%) in 2018/19.
in 2020/21 will be $492 million higher than in
                                                         Budget 2018 reflects government’s continuing
2017/18, an overall increase of about 31 per cent.
                                                         reinvestment in critical child and family services, as
Under the BC Liberals, spending on children and          well as new hiring to increase front-line staff. Despite
families was cut significantly and then essentially      these efforts, including the restoration of desperately
frozen for many years. In 2012/13 the ministry bud-      needed funding, the BCGEU remains deeply con-
get remained stagnant at $1.3 billion. The BCGEU’s       cerned about reports of persistent workload issues,
extensive advocacy and reporting through its Choose      negative morale and discouragement among workers
Children and Closing the Circle reports brought          in the ministry. The union will continue to work
focused attention to the tragic costs for children,      to address unresolved recruitment and retention
families, workers and communities that resulted from     issues in the ministry, and to ensure that these new
these cuts. Thankfully, Budget 2018 not only restores    resources lead to meaningful improvements for
MCFD funding to 2001 levels, it extends govern-          vulnerable children, families, communities and the
ment’s investments in this area much further.            workers who serve them.
Most of the 2018/19 increase is due to growth in         BCGEU’s continuing advocacy work under Choose
child care expenditures tied to the new provincial       Children has resulted in many important successes,
Child Care BC program. MCFD spending on Early            but further commitments are needed from govern-
Childhood Development and Child Care Services            ment to improve working conditions for front-line
will go up $158 million to $444 million in 2018/19       staff.
– a 55 per cent increase over the previous year.
Expenditures will increase again by 38 per cent in       Ministry of Citizens’ Services
2019/20 and by a further 18 per cent to $1.1 billion
                                                         There is a minor increase in funding for this ministry
in 2020/21, reflecting the gradual implementation
                                                         compared to the September 2017 budget update. The
of the new child care plan. All the details about
                                                         2018/19 budget will now total $524 million, up from
the child care plan are included at the end of this
                                                         $506 million (+4%). The real property budget line,
document.
                                                         which covers property and real estate services for the
While this accounts for the bulk of new ministry         provincial government and its agencies will increase
spending, expenditures in Child Safety, Family           by $8.7 million, bringing this budget area to $305
Support and Children in Care will also go up by          million in 2018/19 (+3.0%).
$25 million (+4.1%) in 2018/19. With further small
                                                         This ministry is smaller and more focused than
increases over the following two years, funding will
                                                         under the previous government. In the new service
have increased 5.3 per cent by 2020/21.
                                                         plan, the purpose of the ministry has been revised
Expenditures in Services for Children and Youth with     to include “the provision of timely and meaningful
Special Needs will increase by $6.9 million (+2.0%)      responses to Freedom of Information requests,”
in 2018/19 and by 2.5 per cent in total over three       plus a new emphasis on providing opportunities for
years. Child and Youth Mental Health Services will       First Nations, Indigenous and rural communities.
also see a $2 million expenditure increase (+2.1%) in    The service plan also includes a commitment to
2018/19, and 2.8 per cent in total over three years.     make it easier for smaller, local businesses to access
Service Delivery Support, Youth Justice Services and     government procurements, but no metrics or money
Executive and Support Services will all see minor        are attached to this initiative.
spending increases, while Adoption Services spend-
ing will remain more or less flat. MCFD’s total salary

            BCGEU BUDGET ANALYSIS 2018/19                                                                      7
Ministry of Education
Budget 2018 includes $72 million in new funding to          new performance measures going forward. For
hire more teachers, bringing the total number of new        example, one of the ministry’s previous goals was
teachers added under the classroom enhancement              to build “a globally competitive mining sector,”
fund to 3,700. Total ministry spending will reach           with success measured by the number of new and
$6.3 billion in 2018/19, $238 million higher than in        expanded mines in the province. In contrast, the
2017/18. Public K-12 schools across the province            new, combined ministry is aiming for a “sustainable
will also see an additional $2.3 billion over three         and responsible mining sector that creates lasting
years in capital spending.                                  jobs.” The corresponding performance measure is the
                                                            number of permits coordinated by the Major Mine
The budget does not include any meaningful imme-
                                                            Permitting Office. As well, supporting B.C.’s efforts
diate increases for core ministry staff. The 2018/19
                                                            towards reconciliation with First Nations is now
budget for salaries and benefits for the ministry’s staff
                                                            included as one of the ministry’s four main goals.
is $520,000 (+2.0%) higher than last year’s estimates,
bringing it to $25.8 million.                               There are also notable new initiatives in the ministry
                                                            service plan. First, an independent mining oversight
Budget 2018 was not specific on issues like funding
                                                            unit will be established. Although this will impact
for implementing the new curriculum, waitlists for
                                                            the ministry’s organization going forward, no specific
students with special needs, or supports for teachers
                                                            plans for the new unit have been provided yet. The
to enhance Indigenous content in classrooms.
                                                            ministry will also be conducting a comprehensive
Advocates are expecting more details on these items
                                                            review of BC Hydro, creating a BC Mining Jobs Task
in March, when school district operating grants
                                                            Force, and establishing a scientific panel to review
are finalized. However, the new funding increases
                                                            the practice of hydraulic fracturing in B.C.
for the coming school year will surely help school
districts hire more specialists and better meet the
                                                            Oil and Gas Commission
needs of students.
                                                            Funded by levies and fees from the oil and gas
Ministry of Energy, Mines and                               industry, revenues for the Oil and Gas Commission
Petroleum Resources                                         (OGC) are forecast to increase over the three years
                                                            of the fiscal plan. A revenue increase of $1.3 million
This year’s budget reflects the amalgamation of the
                                                            (+3.0%) to $58.8 million is forecast for 2018/2019,
former Ministry of Natural Gas Development with
                                                            with revenues expected to remain fairly steady
the Ministry of Energy and Mines. Over the three
                                                            through 2020/21. These forecasts are significantly
years of the budget plan, ministry funding is set to
                                                            higher (+17%) than those in the OGC’s plan from
increase by just over six per cent, from $57 million
                                                            last February, which expected revenues in the range
in 2017/18 to $61 million by 2020/21. The increase
                                                            of $49 million per year between 2017/18 and
is aimed at supporting mining oversight ($2 million
                                                            2019/20. The revenue improvements are likely tied
over three years to meet regulatory requirements
                                                            to increased overall production volumes, decreased
at several tailings storage facilities at abandoned
                                                            utilization of royalty program credits, and higher
mines), and to develop an “Energy Roadmap” to
                                                            prices for natural gas and natural gas liquids.
assist large carbon emitters to adjust to a low carbon
future ($4 million over three years).                       Operating expenses for the Oil and Gas Commission
                                                            are also budgeted to increase. Expenses will go up
The ministry’s 2018 service plan is a departure from
                                                            by $473,000 for 2018/2019 to $51 million. Then,
past versions, reflecting the NDP government’s new
                                                            another $1.9 million is added to the operating
and very different approach on both the mining and
                                                            budget over the following two years.
energy files. The organization’s goals and objectives
have been revamped, and the ministry is adopting

             BCGEU BUDGET ANALYSIS 2018/19                                                                       8
Budget 2018 plans for steady growth in staffing at the    There are no details yet about where the new officers
OGC, with an additional $2 million (+7.5%) in place       will be located or how many administrative staff will
for salaries and benefits by 2020/21. For 2018/19,        be hired to support them. Certainly, more officers
the organization plans to spend an additional             are still needed to meet the demands of a growing
$900,000 (+3.4%) on salaries and benefits over            population and increasingly complex work, but for
2017/18. Another $500,000 on staff expenditures           now the BCGEU celebrates our new government’s
is planned for 2019/20, plus $600,000 more in             investment in monitoring and protecting B.C.’s
2020/21, bringing the total salaries and benefits         environment.
expenditure at the OGC to $28.5 million. On this,
                                                          For BC Parks, there is not as much to celebrate.
the service plan notes the challenge of recruiting and
                                                          Budget 2018 builds on the $8 million added to the
keeping technical staff in the organization: “While
                                                          Parks operating budget in 2017, and adds another
the Commission has the capacity to meet its man-
                                                          $809,000 (+2.0%), bringing it to $40.5 million for
date, attracting and retaining the required expertise
                                                          2018/19.
remains a challenge, as the Commission competes
with industry (private sector). The Commission has
                                                          The second and third years of the budget plan
highly trained experts that are sought out by industry,
                                                          include similarly small increases, bringing the BC
which is often able to offer compensation packages
                                                          Parks budget to $41.2 million by 2020/21. The
that are significantly more competitive.”
                                                          additional funding, amounting to $2.9 million over
For each year of the fiscal plan, the OGC expects to      three years, is earmarked to support BC Parks’ camp-
register an operating surplus. However, these funds       site expansion project.
are to be allocated to support the Orphaned Sites
                                                          The budget also includes an extra $8 million
Reclamation Fund (OSRF), which pays for orphaned
                                                          available in each year of the plan from the Park
assets (oil and gas facilities, wells, pipelines or
                                                          Enhancement Fund, in part due to added revenues
impacted lands that are left behind when companies
                                                          from license plate sales. The fund supports worth-
are insolvent or unable to be located) to be decom-
                                                          while initiatives in our parks, but it does not form
missioned, remediated and restored. The OGC’s
                                                          part of BC Parks base operating budget. While it is
service plan expects a $7.8 million deficit in the
                                                          important to acknowledge this incremental invest-
OSRF in 2018/19 due to three orphan site restoration
                                                          ment in our parks, it does not yet bring the agency’s
projects, with somewhat smaller deficits coming in
                                                          funding to the levels seen in 2001 before the BC
the following two years.
                                                          Liberals made deep cuts. Accounting for inflation,
                                                          restoring the BC Parks budget to 2001 levels would
Ministry of Environment and Climate
                                                          require an additional $14 million this year, to $54.6
Change Strategy
                                                          million overall.
Budget 2018 adds $6 million (+3.7%) to the
                                                          Beyond these areas, $271,000 (+2.4%) is added to
ministry’s budget over 2017/18, increasing it to
                                                          Environmental Protection in 2018/19, then frozen for
$179 million. However, this increase will be rolled
                                                          the next two years. Environmental Sustainability sees
back by $2 million in 2019/20 and $1.5 million in
                                                          an extra $1.2 million (+10.8%) for 2018/19, bringing
2020/21.
                                                          its budget to $24 million for the next three years. The
Most significantly, $9 million was added to the           Environmental Assessment Office’s budget is frozen
budget of the Conservation Officer Service (COS)          at about $11.8 million for the duration of the fiscal
over three years to hire 20 new conservation officers     plan. Finally, the ministry’s budget for climate action
(+16%) and to enhance the WildSafe BC program.            was reduced by $1 million for 2018/19 (-5.7%),
The new hires will finally restore the number of          to $15.6 million, and another $1.8 million will be
officers to about the same level as in 2002, when         cut in 2019/20, bringing the budget down to $13.8
deep cuts were made to COS staff by the BC Liberals.      million (-16.4% compared to 2017/18).

            BCGEU BUDGET ANALYSIS 2018/19                                                                      9
The service plan outlines a number of new and            Base fire management funding is increased by
important initiatives the ministry will undertake in     $700,000 (+1.1%) above the amount allocated by
the coming years. Most notably, the ministry plans       the BC Liberals in February 2017 to $64 million for
to:                                                      2018/19, 2019/20, and 2020/21. Continuing with
                                                         the Liberals’ past practice, this amount has not been
 • Advance co-management relationships with First
                                                         meaningfully increased over the past five years,
   Nations;
                                                         despite the fact that every year actual firefighting
 • Build a more diverse workforce within the
                                                         costs have far outstripped the fire management
   ministry;
                                                         budget, including $506 million spent fighting fires
 • Establish a B.C. legislative framework for species
                                                         last summer.
   at risk;
 • Explore options to reduce GHG emissions from          In 2016, the BC Liberal government established the
   B.C.’s oil and gas sector and slash burning;          Forest Enhancement Society of BC (FESBC) to fund
 • Support the work of the Climate Solutions and         forest rehabilitation initiatives. An allocation of $235
   Clean Growth Advisory Council to develop              million was provided to support fuel management
   climate action plans;                                 projects, restore damaged or low value forests,
 • Revitalize the environmental assessment process;      improve habitat for wildlife, and support the use
   and                                                   of fibre from damaged and low value forests. The
 • Defend B.C.’s interests in relation to the expan-     BCGEU pushed for these initiatives to be delivered
   sion of the Kinder Morgan pipeline.                   in-house through ministry programs, but the new
                                                         government has chosen to maintain the independent
Ministry of Forests, Lands, Natural                      organization. Last June, the NDP government moved
Resource Operations and Rural                            to make the non-profit society a service delivery
Development (FLNRORD)                                    Crown corporation, but its board, chaired by a
In this year’s budget, operating funding for             former West Fraser Timber Company executive,
FLNRORD is increased by about $29 million                remains essentially the same.
(+4.1%) for 2018/19 to $734 million. FLRNRORD’s
                                                         The agency’s 2018 mandate letter from the ministry
budget will increase further in the final years of
                                                         directs the FESBC to focus on wildfire recovery,
the three-year plan, bringing it to $761 million by
                                                         wildfire risk reduction and supporting the provincial
2020/21 (+8.0% above 2017/18).
                                                         forest carbon initiative. According to its service plan,
Over the three years of the fiscal plan, the increases   the agency will also deliver significantly more fund-
include $50 million for community wildfire pre-          ing over the next three years, likely exhausting the
vention, preparedness and research, $22 million for      initial $235 million allocated to the FESBC. Last year,
wildfire recovery activities, $16 million to modernize   $28.6 million was spent. Budget 2018 plans for the
land use planning, and $14 million to develop and        FESBC to distribute $40 million in 2018/19, $66.5
implement a new wildlife management strategy.            million in 2019/20, and $81 million in 2020/21.
While it appears funds for staffing will remain          Overall, Budget 2018’s investments in renewing land
basically frozen in BC Timber Sales and the Wildfire     use planning, wildlife management and the ministry’s
Service this year, budget documents show that            operations are appreciated and much needed. But
spending on salaries and benefits for other ministry     the reality is that after such deep staff and funding
staff is expected to grow by $12.6 million (+4.8%)       cuts under the previous government, much more will
in 2018/19. This additional spending is a welcome        be needed to make significant progress on reforesta-
investment in FLNRORD’s human resources.                 tion, improve research and forest inventory work,
Certainly, more will be needed to restore ministry       and strengthen public oversight of activities on B.C.’s
staffing going forward.                                  land base.

            BCGEU BUDGET ANALYSIS 2018/19                                                                     10
Ministry of Health
For 2018/19, the overall budget for health will           in the Budget 2017 update to respond to the opioid
increase by $846 million (+4.5%) over 2017/18,            overdose emergency is continued through 2018/19.
bringing this year’s planned health care spending         The BCGEU was active in calling for this new fund-
to a total of $19.8 billion. This plan keeps fairly       ing and support through its public fentanyl campaign
close pace with last year’s increase, which was           in 2017.
$875 million (+4.9%). Beyond 2018/19, additional
                                                          Budget 2018 includes $3.1 billion in capital spend-
increases of $870 million in 2019/20 and $670
                                                          ing in the health sector over the next three years.
million in 2020/21 are planned. Health authorities
                                                          Key investments are the Royal Columbian Hospital
will receive the bulk of the increase (+$552 million/
                                                          Redevelopment, which incorporates a new 75-bed
+4.3%). Funding increases for the administration
                                                          mental health and substance use centre, a 348-bed
of programs like MSP and Pharmacare (+$950,000/
                                                          acute care tower, an expanded emergency depart-
+2.0%), and for ministry staff (+$3.1 million/ +1.2%)
                                                          ment, and new operating rooms. New patient care
are much smaller.
                                                          towers are being built in Penticton and Kamloops.
Budget 2018 sets new priorities for the Ministry of       In addition, the replacement of the Burnaby Centre
Health. A total of $548 million over three years is       for Mental Health and Addictions (CMHA), located
provided to improve services for seniors across the       on the Riverview lands in Coquitlam, is slated to be
continuum of care, including investments in primary       completed in late 2019.
care, home and community care, residential care,
and assisted living. This funding is over and above       Ministry of Indigenous Relations and
the new allocation of $85 million per year in federal     Reconciliation
funding for home care. A particular focus for the         In 2018/19 the ministry’s funding will increase by
new funding will be to meet the goal of increasing        $8.6 million (+9.4%) to $99.5 million. Accounting
care hours in residential care facilities to an average   for most of this increase is an additional $2.6
of 3.36 direct care hours per resident per day. The       million (+13.6%) for the Strategic Partnerships &
new government’s seniors’ care announcements in           Initiatives Division, and an increase of $5.4 million
Budget 2018 effectively replace and re-envision the       (+13.2%) to Treaty & Other Agreements Funding.
$500 million “Seniors’ Care Action Plan” announced        Finally, as part of $5 million in funding over three
under the BC Liberals in March 2017. The BCGEU’s          years to develop a “cross-government vision of
Senior’s Deserve Better campaign throughout               reconciliation,” $1.7 million is allocated to a new
2016-17 was instrumental in securing these new            “Reconciliation Transformation and Strategies
investments for staffing and services.                    Division.”
A second priority is to expand team-based primary         Renewed investment in treaty negotiations and
care, and $150 million over three years is allocated      strategic partnerships highlights the ministry’s focus
for this purpose. The ministry’s service plan includes    on revenue sharing with Indigenous communities.
establishing urgent family-care centres, improving        Plans for many new opportunities and initiatives will
access to comprehensive primary care services,            now be tracked by enhanced performance measures
and establishing Primary Care Networks (PCNs) for         aimed at strengthening relationships. In contrast to
individuals and families.                                 last year’s service plan, LNG-related activities and
                                                          training were not mentioned as areas of focus for the
The service plan also reflects a focus on actions to
                                                          ministry.
support reconciliation with Indigenous peoples,
including working with health authorities to ensure       The BCGEU is pleased to see its recommendation for
culturally safe health services. Finally, the $290        increased funding and support for Aboriginal friend-
million in health funding over three years announced      ship centres across B.C. reflected in the budget in the

            BCGEU BUDGET ANALYSIS 2018/19                                                                     11
amount of $6 million over three years, as well as $11   participation in the economy, strengthen commu-
million to support the expansion of the Parents Legal   nities and increase economic diversification. The
Centre (as recommended by the Grand Chief Ed            ministry will also promote local economic benefits
John’s Report on Indigenous Child Welfare).             and the potential of technology and innovation
                                                        through a Smart Communities initiative.
Other welcome investments include $50 million in
2017/18 to support the revitalization of Indigenous     Finally, the ministry will create a Small Business Task
languages, $155 million to develop 1,750 new units      Force as a special initiative of the Small Business
of supportive housing for Indigenous peoples, and       Roundtable to advise government on how to
$16 million to support mental health and wellness       strengthen the small business sector, creating addi-
in Indigenous communities. As well, $10 million in      tional jobs in B.C. In concert with the Small Business
federal funding will go to expanding culturally-based   Task Force and Roundtable, they will support youth
Indigenous child care.                                  and Indigenous entrepreneurship initiatives.
First Nations or Indigenous peoples are mentioned
throughout all of the budget 2018 documents,
                                                        Ministry of Municipal Affairs and
a noticeable reflection of the new government’s
                                                        Housing
commitment to developing integrated and compre-         Overall funding for the Ministry of Municipal Affairs
hensive approach to the process of reconciliation.      and Housing (MAH) for 2018/19 is $674.2 million
                                                        –down by $15.7 million (-2.3%) from 2017/18.
Ministry of Jobs, Trade and Technology                  This is a result of the ministry’s local government
                                                        expenditures for 2018/19 declining 20 per cent
Budget 2018 includes an overall spending decrease
                                                        from the previous year, due largely to increased
of $15.5 million (-12.9%) this fiscal year for the
                                                        external recoveries of revenue rather than decreased
Ministry of Jobs, Trade and Technology. This reduc-
                                                        spending.
tion reflects last year’s one-time investments of $10
million in the North Island-Coast Development           The ministry’s operating expenditures for housing
Initiative Trust, and $13.5 million for the BC Tech     will actually rise $31.9 million (+7.5%) to $454
Co-op Grants Program and the BC Innovation Skills       million in 2018/19. Total MAH expenditures will
Initiative.                                             subsequently increase to $698 million (+54%) in
                                                        2019/20 and then rise to $839 million (+20.2%) in
A $5.7 million boost to Workforce, Immigration and
                                                        2020/21. MAH’s total salary and benefits expenditure
Major investments will provide added settlement and
                                                        will increase by $3 million (+10.6%) in 2018/19.
integration support for newcomers, including the
creation of a Centre for Newcomers.                     Other than housing, MAH operating expenditures
                                                        are expected to remain relatively stable over the next
According to the service plan, the ministry will
                                                        three years.
develop a coordinated manufacturing sector strategy
for the province. It will establish an Emerging         The full details of Budget 2018’s housing plan are
Economy Task Force to address the changing nature       included at the end of this document.
of business and provide recommendations to inform
the development of a provincial economic strategy.      TransLink Funding
There will be an Innovation Commission to support
                                                        Except for the pre-budget announcement that the
investment and business development in B.C.’s
                                                        provincial government will assume ownership and
technology sector.
                                                        the full $1.4 billion cost of replacing the Pattullo
Further, the service plan commits the ministry to       Bridge, specific provincial funding commitments for
continuing to foster partnerships between Indigenous    projects in the Metro Vancouver mayors’ council ten-
peoples and industry to increase Indigenous             year transit and transportation plan are not addressed
                                                        in Budget 2018.

            BCGEU BUDGET ANALYSIS 2018/19                                                                    12
However, budget documents do re-state that the           Provincial funding for 2018/19 includes $779 million
province “has committed to funding 40 per cent of        provided directly by the provincial government to
the costs of the plan.” In addition, budget documents    BC Housing, $283 million from the Housing Priority
say the province will “continue to work with             Initiatives Special Account in the Ministry of Finance,
TransLink and local governments in Metro Vancouver       $13 million from the Housing Endowment Fund,
to secure appropriate levels of density, rental supply   and $16.9 million from other partnering ministries/
and affordability along new transit corridors.”          agencies. Other revenue from tenant rent, builder
                                                         licensing fees, etc. is forecast to remain in the range
The mayors’ council itself commented in social
                                                         of $48 million per year.
media that Budget 2018 “provides a $1B+ down
payment towards the phase two plan, and paves the        Total expenditures are expected to balance with
way to reach a longer-term funding agreement soon        revenue, and will grow significantly as the govern-
with the province on the remaining funding required      ment moves ahead with new housing construction
to move ahead with the subway, light rail transit,       and other measures in its affordable homes plan.
more bus service and other phase two projects.”          Spending growth is concentrated on increased
Presumably this is in reference to unspecified           housing subsidies, which are expected to grow by
transit capital spending listed in the Ministry of       74 per cent to $995 million in 2018/19, just under
Transportation and Infrastructure budget, amounting      $1 billion in 2019/20 and then to $1.3 billion in
to $1.2 billion over three years.                        2020/21 (+26.1% over 2019/20).
TransLink and media sources have suggested that          This funding includes subsidies provided to non-
a funding agreement between the province and             profit societies as well as one-time capital grants for
TransLink may be completed in March 2018.                new construction or renovation of subsidized hous-
                                                         ing. BC Housing says the increases are tied to new
BC Housing                                               commitments under the government’s housing plan,
                                                         including the construction of 2,000 units of modular
BC Housing’s operating funding and expenditures
                                                         supportive housing, 1,000 units of permanent sup-
will both increase substantially between 2018/19
                                                         portive housing for individuals experiencing or at risk
and 2020/21 as the province rolls out major mea-
                                                         of homelessness and/or substance abuse challenges,
sures in its new affordable housing plan. Much of the
                                                         800 units of transition housing for women and
funding allocated in the plan will be administered
                                                         children fleeing abuse, and 9,200 units of affordable
through BC Housing. New funding is also included
                                                         rental housing for singles, families, seniors, and
in the 2018 service plan for additional BC Housing
                                                         Indigenous peoples.
staff to deliver and administer new and expanded
programs.                                                Rental assistance spending will increase to $147
                                                         million (+25%) in 2018/19, $175 million (+19%)
Total BC Housing revenue for 2018/19 is more
                                                         in 2019/20, and $180 million (+2.9%) in 2020/21.
than $1.3 billion, up $460 million (+56%) from
                                                         According the service plan, these increases are pri-
2017/18. The provincial share of revenue increased
                                                         marily due to increases to the monthly benefits and
dramatically to $1.1 billion, up by $558 million
                                                         eligibility enhancements to the Shelter Aid for Elderly
(+104 %) from the previous year, while the federal
                                                         Renters (SAFER) program and the Rental Assistance
share dropped 38 per cent to $140 million, as grant
                                                         Program (RAP), as outlined in the new housing plan.
funding allocated under the Canada/BC Investment
in Affordable Housing agreement extension and the        BC Housing salaries and benefits costs are expected
Social Infrastructure Fund agreement winds down.         to rise $9.3 million (+15.9%) in 2018/19 to $68
The expiration of operating agreements for projects      million, and be $70.54 million (+2.7%) in 2020/21.
under older federally funded programs also contrib-      These costs are for additional staffing required to
utes to the reduction in federal contributions.          deliver and administer new projects and programs.

            BCGEU BUDGET ANALYSIS 2018/19                                                                      13
Interest costs, presumably tied to borrowing for new         an immediate response to the province’s opioid
projects, are expected to rise from $49 million in 2017/18   overdose public health emergency. Second, the
to $625 million annually over the next three years.          ministry will work on developing policy initiatives to
                                                             strengthen those social supports that are determinants
All other budget lines in BC Housing remain at
                                                             of mental health and well-being—such as housing,
approximately the same level as in 2017/18 until the
                                                             employment, income, education, and child care.
last year of the budget plan in 2020/21.
                                                             The ministry received a sizeable budgetary increase
Ministry of Labour                                           of $5 million dollars (+102%) over the September
                                                             2017 budget update. The Policy Development,
Ministry of Labour funding will increase by $1.1
                                                             Research, Monitoring and Evaluation budget line was
million (+11%) to $11.1 million in 2018/19. Annual
                                                             increased by $4.1 million (+110.7%), with Executive
funding will drop to $10.9 million for the subsequent
                                                             and Support Services making up the difference with
two years of the fiscal plan, although it will remain
                                                             an increase of $941,000 (+75.9%). Overall, the
8.8 per cent above 2017/18 levels. Spending on
                                                             total ministry budget for 2018/19 is just under $10
ministry salaries and benefits will rise from $31.6
                                                             million, and will remain frozen there until 2020/21.
million in 2017/18 to just under $34.2 million in
2018/19, an increase of 8.2 per cent.                        This ministry will be tracking the implementation
                                                             of one of the key recommendations that came from
Budget 2018 describes this investment as a “total
                                                             BCGEU members on the front-lines of the crisis:
of $3 million over three years…provided to support
                                                             increasing access to and distribution of public-
initiatives that will result in better compliance and
                                                             ly-funded Naloxone kits. The ministry’s target is to
enforcement, improve protections for vulnerable
                                                             distribute an additional 4,323 naloxone kits (+10%)
workers, and support fair and balanced treatment of
                                                             over the total distributed in 2017. Additionally, the
workers and employers in B.C.”
                                                             ministry is aiming to increase the number of people
However, analysis from the B.C. Employment                   on opioid agonist treatment by 10,000 (+33.3%), as
Standards Coalition (BCESC) argues that the govern-          well as improve access to this treatment by growing
ment should be moving more quickly and decisively            the number of providers that prescribe the treatment
to make much needed improvements to employment               by 200 (+13.4%).
standards and provide increased resources to the
                                                             As well, in the coming year the ministry will be
Employment Standards Branch itself. The BCESC
                                                             developing and implementing a Mental Health and
notes that even after this year’s increase, total fund-
                                                             Addictions Action plan that focuses on prevention
ing for the Employment Standards Branch in 2018/19
                                                             and early intervention, and on children, youth and
is only $8.7 million. It is an improvement over last
                                                             Indigenous peoples. The new ministry plans to work
year, but much less than the $11.4 million that was
                                                             across government and in partnership with other First
budgeted for the Branch in 2008/09.
                                                             Nations and Indigenous people through this process.
While increases to the ministry budget in 2018 are
                                                             As this is the first service plan for the ministry, it will
a step in the right direction, BCGEU will continue
                                                             be important to review the goals, and key objectives
to advocate for employment standards reform and
                                                             in the service plans of related ministries such as
increased resources for the Ministry of Labour,
                                                             Health, Jobs, Housing, and Children and Youth as
especially the Employment Standards Branch.
                                                             they move to incorporate the policy recommenda-
                                                             tions made by the ministry of Mental Health and
Ministry of Mental Health and
                                                             Addictions through investments like the new Centre
Addictions
                                                             for Mental Health and Addictions, increases to
The new Ministry of Mental Health and Addictions
                                                             income security, and funding for quality affordable
has a very clear and focused mandate for fiscal
                                                             housing.
year 2018/19. First, it is tasked with coordinating

             BCGEU BUDGET ANALYSIS 2018/19                                                                            14
Ministry of Public Safety and Solicitor                   Ministry of Social Development and
General                                                   Poverty Reduction (MSDPR)
Overall, there is little noteworthy change to the         Spending in MSDPR will rise to $3.1 billion in
Ministry of Public Safety and Solicitor General’s         2018/19, about $259 million (+8.3%) more than in
(PSSG) budget. Excluding Emergency Program                2017/18. It will rise a further $78 million in 2019/20
Act spending related to last summer’s wildfires,          and another $40 million to $3.5 billion in 2020/21.
total PSSG spending was about $779.4 million in           In total, annual expenditures are expected to be up
2017/18. This year’s budget adds just $7.1 million        $377 million (+12.1%) in 2020/21 compared to
(+0.9%), bringing the ministry budget to $786.5           2017/18.
million.
                                                          MSDPR’s total salaries and benefits expenditures will
Building on the $32 million for PSSG to address the       increase by $7.6 million (+5.6%) in 2018/19.
opioid crisis in Budget 2017, Budget 2018 continues
                                                          Most of this expenditure growth will be in Income
the $3 million for Naloxone training and public
                                                          Assistance. Income Assistance spending will increase
safety and outreach efforts. Corrections will see small
                                                          $196 million (+9.2%) to reach $2.3 billion in
increase of $2.5 million (+ 0.9%) in 2018/19, an
                                                          2018/19. Smaller increases over the subsequent two
amount that is not adequate to address the escalating
                                                          years will see Income Assistance expenditure reach
violence in B.C.’s correctional centres. Victim
                                                          $2.4 billion in 2020/21, for an increase of $265
Services and Crime Prevention also gets a moderate
                                                          million (+12.5%) over 2017/18 levels.
boost of $7 million (+ 15%) in 2018/19. Previously
housed within the former Ministry of Transportation       Income Assistance increases in 2018/19 are mainly
and Infrastructure, Emergency Management BC               from a more than $100 million planned increase
returns to the ministry with a $16.7 million budget       to Disability Assistance and around $80 million
for 2018/19. This base amount is $1.1 million higher      more for Supplementary Assistance. Much smaller
than in 2017/18 (+7.2%).                                  increases are also budgeted for Temporary Assistance
                                                          and Program Management.
For the remainder of the fiscal plan, the budget
will remain virtually unchanged, at $787 million          The budget’s emphasis on affordability is generally
in 2019/20 and $790 million in 2020/21. In short,         welcome news for persons with disabilities. With the
funding for PSSG remains status quo.                      announcements last year of an increase to provincial
                                                          Persons with Disabilities (PwD) social assistance
For several years, and especially over the last two
                                                          rates, and an effective restoration of the transit pass
years with our Prison Safety Now campaign, the
                                                          program, progress is being made on addressing the
BCGEU has been calling for new resources for adult
                                                          precarious economic security of this community.
corrections to address severe health and safety
problems in addition to recruitment and retention         On a deeper dive though, the news is somewhat
issues, and investments in community corrections          mixed. In pre-budget consultations, advocates had
to address high workloads. Budget 2018 did not            renewed a call for a portable rental subsidy for PwDs
deliver these investments. Outside of the nominal         similar to the SAFER program for seniors. There was
increase to Corrections, there was nothing in the         no movement on this front. As well, PwD rates are
budget to address the dangerous staff-to-inmate           still inadequate. A more comprehensive response
ratios, overcrowding and escalating violence in B.C.’s    may not come until government rolls out its poverty
jails, or the challenges faced by staff in community      reduction strategy.
corrections.

            BCGEU BUDGET ANALYSIS 2018/19                                                                     15
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