Victoria/Surrey – The Surrey Board of Trade’s Policy & Research Manager, Jasroop Gosal, was in Victoria at the BC Budget lock up Tuesday morning to hear the BC Government release their 2022 Budget and Three-Year Fiscal Plan before it was released to the public.
https://news.gov.bc.ca/releases/2022FIN0005-000251
OBSERVATIONS
“When examining the overall debt to GDP ratio, BC is still better off than other provinces and territories affected by the pandemic,” said Anita Huberman, President & CEO, Surrey Board of Trade. “However, we need to ensure that supply chains are fortified, that infrastructure investments are made now to create sustainable jobs, and that any transportation planning that takes effect in the next 3-4 years continues and is enhanced. Today’s BC Budget did not commit to a review of BC’s tax system, which is long overdue.”
New Taxes
Companies that lease goods, services and software online will now pay the PST on those leases.
Education
We were especially disappointed with the lack of post-secondary investments in Surrey. Education, in addition to transportation, is the foundation of driving an economy. Today and tomorrow’s workforce challenges need commitments to innovative post-secondary investments in Surrey and the South Fraser economic region.
Debt
We observed that the provincial debt is forecasted to increase to $90.8 billion at the end of 2024/25.
Surrey Langley Skytrain
· Is there a dollar amount assigned? Not included in the budget, only when the business case is finalized. Commitment is still there.
· What is in there now is $589.5M over next 3 years for early road works
· Business case finalized this year
New Surrey Hospital
· The plan is 168 new beds, comparable to community hospitals but not to Surrey Memorial Hospital – this increased capacity is not enough for Surrey’s needs.
· There is potential for expansion further down the road, and also expansion of Surrey Memorial Hospital.
· Currently, the project is called the ‘New Surrey Hospital’ but hospital name will be determined during Surrey Hospitals Foundation and BC Cancer Foundation fundraising campaigns, potentially being named by a donor.
Childcare
· A 50% fee reduction for full-day infant and toddler care by the end of 2022 – will this be for not-for-profit childcare providers, public, or private sector?
2022/23 Update
Deficit: $5.461 billion
Total capital spending: $1.3653 billion
Total debt: $10.5431 billion
Real GDP growth: 4%
Nominal GDP growth: 5.8%
Debt-to-GDP ratio: 20%
Pandemic recovery contingencies: $2.0 billion ($195 million unallocated)
Taxpayer-supported capital spending: $27.4 billion over three years
Updated Forecast, Budget and Fiscal Plan
Updated Budget
Forecast Estimate Plan Plan
($ millions) 2021/22 2022/23 2023/24 2024/25
Revenue 70,220 68,552 70,177 72,325
Expenses (66,453) (71,013) (72,359) (74,506)
General Contingencies (1,000) (2,848) (3,412) (3,987)
Pandemic/Recovery Contingency (3,250) (2,000) (1,000) –
Forecast allowance (1,000) (1,000) (1,000) (1,000)
Deficit (483) (5,461) (4,182) (3,181)
Investments for a Strong Economy
| ($ millions) | 2021/22 | 2022/23 | 2023/24 | 2024/25 | Total |
| Stronger BC Economic Plan…………………… | – | 11 | 21 | 21 | 54 |
| Addressing the Housing Challenge………… | – | 111 | 12 | 43 | 166 |
| Enhancing Digital Connectivity………………. | – | 5 | 7 | 91 | 104 |
| Moving British Columbians and Goods….. | – | 26 | 26 | 26 | 78 |
| Old Growth Supports…………………………….. | – | 112 | 44 | 31 | 185 |
| Land, Water and Resource Stewardship… | – | 10 | 17 | 17 | 44 |
| Advancing Mining Opportunities…………… | – | 8 | 8 | 2 | 18 |
| Life Sciences Research…………………………… | 195 | – | – | – | 105 |
| Job Training and Skills Development……… | – | 39 | 14 | 14 | 67 |
| Declaration Act Secretariat……………………. | – | 4 | 4 | 4 | 12 |
| Total | 195 | 326 | 154 | 250 | 925 |
Highlights of the 2022 Budget include:
Childcare
· Through a federal government agreement, fees for full-day infant and toddler care were reduced by 50% to $20/day by the end of 2022.
· Average fees for preschool and before and after school care to be cut to less than $20/day for 2023-2024 year.
· Wage enhancement program to be expanded to ECEs.
Disaster Recovery
· $1.5 billion fund.
Skilled Trade Certification
· $21 million over three years to create trades training seats, expand programs and services to support uncertified workers to become apprentices – funding will be provided through Industry Training Authority.
Future Ready: Skills for the Jobs of Tomorrow
· $25 million for expanded training for health care assistants to address critical staffing shortages in long-term care, assisted living and home care sectors.
· $21 million for a Graduated Adult Program.
K-12 Education
· $664 million over the fiscal plan, $7.3B by 2024/25.
· $3.1 billion over next three years to build new schools.
· New Snokomish Elementary School coming to Surrey – 655 spaces.
New Surrey Hospital
· $1,660 million towards the integrated hospital and cancer centre in Surrey. Construction is planned for a summer 2023 opening with 168 inpatient beds by summer 2027.
Housing
· $166 million across the fiscal plan to build 114,000 affordable housing units in BC over 10 years.
Transportation
$8 billion over three years ($6.4 billion of provincial investment and $1.6 billion leveraged through federal cost sharing partnerships with private organizations, local governments and other agencies), which include:
· Eight-lane immersed tube Fraser River Tunnel to replace the George Massey Tunnel on Highway 99, toll-free.
· Pattullo Bridge replacement with a four-lane bridge (expandable to six-lanes).
· Moving ahead with the business plan for the Surrey-Langley SkyTrain project and Highway 1 widening from Langley to Whatcom Road in Abbotsford.
· Widening Highway 1 through Langley between 216th Street and 264th Street for new HOV lanes, and truck parking near Highways 1 and 17 for up to 150 commercial trucks and 45 passenger vehicles.
· Upgrading Highway 91 at the Nordel Interchange; Highway 91 Connector at the Nordel Way intersection; and Highway 17 at 80th Street intersection.
· Constructing an electric-ready ferry vessel for service in Kootenay Lake.
Flooding Recovery Contingency
· $1.55 billion over 3 years.
Forestry – Old Growth
· $185 million over three years for forest worker and contractor support. Connecting workers with short term employment opportunities and education and skills training
