The BC government is facing a rising number of crises it desperately needs money to tackle — from homelessness to street violence, ER closures, healthcare staffing shortages, climate change and worsening affordability caused by inflation.
So why then is the NDP on track to blow almost $2 billion from a recent revenue windfall into, of all things, debt repayment, rather than trying to solve the many problems on the minds of British Columbians?
Or put another way: why is the government letting unspent money pile up when serious problems that need money are piling up even faster?
It’s a question Finance Minister Selina Robinson is increasingly asked at her public events. And neither she nor Premier John Horgan, seem to have a very good answer.
BC Premier John Horgan with Finance Minister Selina Robinson/BC Gov Flickr
It wasn’t that long ago that Horgan’s first finance minister, Carole James, pledged to devote any extra money left in the BC budget toward helping people afford everyday life, by cutting taxes and tolls and offering financial aid for those who need it most.
“A budget and a surplus belong to the people of British Columbia,” James declared just two months after the NDP won power in 2017.
The promise from New Democrats was simple: if the government had more money leftover at the end of the year than it needed, it’d find a way to help people, or return the cash back to them in a way that improved affordability.
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Doing otherwise, as the NDP put it, would build a surplus off the backs of working British Columbians.
New Democrats sneered at the previous BC Liberal government, which had nickeled-and-dimed some of the most vulnerable, including clawing back bus passes for the disabled while racking up billions of dollars in annual surpluses it refused to spend because it was worried about cautious forecasting, planning for emergencies, paying down debt, and maintaining a AAA credit rating. Then-finance minister Mike de Jong often referred to it as fiscal “prudence.”
But now New Democrats find themselves in the uncomfortable position of being the penny-pinchers that hoard cash instead of spending it.
Two weeks ago, Robinson announced BC’s economy had roared back from the pandemic, turning a projected $9.7 billion deficit into a $1.3 billion surplus.
Any number of people and programs that could have desperately used that money.
Think of how many ERs could have been kept open with $1.3 billion for new healthcare workers. Or how many addiction and mental health beds could have been opened for those being rousted out of their tents in Vancouver’s Downtown Eastside. Or how many taxes and fees could have been cut to give people a break during record-high inflation and record-high interest rates.
The list of major files needing major funding from this government grows seemingly larger every day. Horgan could even have used it to triple his $600 million cost-of-living affordability rebates for low-income British Columbians, perhaps even achieving a more meaningful amount of financial relief.
Instead, the NDP let the books close on the province’s fiscal year without spending that $1.3 billion. So, by law, it automatically went on to — you guessed it — the same debt repayment plan to maintain a AAA credit rating that New Democrats used to so openly mock.
This week, Robinson revealed a similar story is playing out in real time this year.
BC’s hot economy is again dumping billions in unexpected revenue into the provincial treasury in the current fiscal year. Instead of a $5.5 billion deficit, BC is on track this year to post a $706 million surplus.
So, why not start tapping into some of that fiscal room right now, to help hire more doctors, nurses, addictions counsellors and teachers? Why not make a meaningful dent in the biggest problems facing actual people?
Not so fast, said Robinson.
“We need to continue to make thoughtful decisions, which is why we have built prudence into our fiscal plan,” she said.
Caution. Prudence. Debt repayment. Credit ratings. All the terms the BC NDP used to hate in opposition, while people struggled, the party now regurgitates in power… while people struggle under different circumstances. Meanwhile, almost $2 billion in two years is either out the door, or projected out the door, without being spent.
Robinson insisted Monday that with global economic uncertainty on the horizon, the only prudent thing to do is to be cautious about spending.
“We still have a significant year ahead of us,” she said. “And if there’s anything that I’ve learned in my time as a finance minister, it’s that stuff happens throughout the year.”
True. But BC’s books don’t close until March 31, 2023. Many people are crying out for help now.
Accumulating cash in the event of an emergency that may not arise is definitely prudent, especially after a historic global pandemic. But it was also prudent under the Liberals, who weathered a historic global recession. It doesn’t make it any more palatable to taxpayers, getting hammered by everyday expenses on top of their taxes.
Back in 2017, the NDP had a different plan.
“We’re going to focus on allocating the province’s finances in a much more equitable way,” said James. “The people of our province should see the benefit of any strong economy we have.”
Instead, it looks like the New Democrats have fallen into the same budgeting practices they used to hate.
Rob is Daily Hive’s Political Columnist, tackling the biggest political stories in BC. You can catch him on CHEK News as their on-air Political Correspondent.
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