Finance Minister Mike de Jong shows chart of B.C. operating deficits and surpluses in recent years.

Economic growth means raises for unions

B.C. economy grew more than independent forecast, triggering pay increase next year as surplus 10 times forecast

The B.C. government exceeded its financial targets for the last fiscal year, and the economy grew enough that unions that signed on to the government’s growth sharing formula will likely see a small pay increase in 2016.

Finance Minister Mike de Jong presented the province’s audited public accounts Wednesday, with a surplus of $1.68 billion, almost 10 times the size it was forecast to be. That was due mainly to higher personal, corporate and sales tax revenue in the later part of the fiscal year that ended in March.

Gross domestic product growth came in at 2.6 per cent for the year, ahead of the finance ministry’s economic forecast council figure of 2.3 per cent. Public service union contracts signed last year included a formula to distribute half of any gain above that independent forecast, translating to a 0.15 per cent additional raise on top of negotiated increases.

De Jong said the GDP numbers must still be finalized by Statistics Canada, and the adjustment to pay levels for employees in the health, education and other public services who signed on will be made in 2016.

De Jong said he is tracking the steeply rising cost of the current forest fire season, and there is a contingency fund to cover whatever is needed. That uncertainty and international instability in Asia and Europe mean the government will not assume higher revenues will continue this year, he said.

Sales tax revenue exceeded budget forecasts by $322 million, and corporate tax revenue was up $208 million. Property transfer tax was up $128 million, and all other taxes brought in $254 million more than forecast.

Natural resource revenue decreased by $18 million from 2013-14, despite an increase in forest revenue of $35 million due to economic recovery. Less rainfall and snowpack led to a decrease of $74 million in power production.

 

Just Posted

Cycle of Life Tour seeks donations for hospice society

Riders will cycle 200 km to help keep hospice care in motion

Regional trails closed due to fire hazard

The Regional District of Nanaimo is closing trails within its jurisdictions effective… Continue reading

Qualicum Beach to ban all open burning

Prohibition takes effect at noon, Wednesday

Campfire ban coming into effect across West Coast

The Coastal Fire Centre says bans will begin on Wednesday

Parksville fun park celebrating 30 years after starting with mini-golf course

Managers share what the view has been like from the castle

VIDEO: Skydivers land at Beach Day in Qualicum Beach

Sandy arrival one of various attractions at annual event July 15

Wildfires erupt in B.C. Okanagan forcing evacuation orders and a highway closure

Check out a list of up-to-date information on blazes happening within the Kamloops Wildfire Centre.

‘Amazing Race Canada’ competitors face B.C. challenge

They drove Corvettes, mastered falconry basics, and ate blueberry pie in the Cowichan Valley

Grizzly bear jumps in river, chases B.C. kayaker

The bear got a bit too close for comfort along the Elaho River near Squamish

Island man convicted of 1999 sex assault at Fraser Valley music festival

James Allen Redden, formerly of Nanaimo, was found guilty of three charges

Parks Canada looks to shine light on cloudy future for historic sites

A plan is in place to produce 10-year plans designed to turn around sagging attendance figures

B.C. poet shines a bright light on struggle with homelessness

Book launch for John La Greca’s Homeless Memorial is at Vernon’s Gallery Vertigo July 21.

Ontario police say attack on Muslim man was motivated by hate

Two men, aged 27 and 19, have been charged with assault in the incident

Canadian Tire delivers toys to ease kids’ street play pain in B.C. neighbourhood

It’s like Christmas for 11 kids who are supposed to be confined to their yards by strata bylaw

Most Read