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

Terrace Adult Hockey League raises $7,300 in memory of Curtis Billey

The money fundraised will be used towards a bursary in his name

City looks for consultant to market Industrial Park

250-acres of undeveloped land is still available, city says

Pacific Northwest Music Festival readies for their 54th year

Many entries this year in speech arts and public speaking

Terrace U14 Ringette team wins gold at BC Provincials

Coach says this season was an unexpected success for the players

Aussies buy majority stake in Red Chris mine

Company looks forward to relationship with Tahltan Nation

VIDEO: Can you believe it? This B.C. hill pulls cars backwards up a slope

Sir Isaac Newton had clearly never been to this Vernon anomaly when he discovered gravity

Canucks hang on for 7-4 win over Senators

Horvat nets 2 for Vancouver

European, Canadian regulators to do own review of Boeing jet

Air Canada plans to remove the Boeing 737 Max from its schedule at least through July 1

Prime minister defends Liberal budget measures as sales effort gets underway

Conservatives under Andrew Scheer say it’s a spree funded by borrowing against the future

Mayor meets with B.C. health minister on homeless taxi transfers

Two homeless people were discharged from Surrey Memorial and sent to a Chilliwack shelter

B.C. lottery winner being sued by co-workers

They claim he owes them $200,000 each, in a lawsuit filed in B.C. Supreme Court in Vancouver

Teacher reprimanded for conduct towards special needs student

Alan Stephen Berry told vice principal he did not have time to use positive strategies

‘Full worm super moon’ to illuminate B.C. skies on first day of spring

Spring has sprung, a moon named in honour of thawing soil marks final super moon until 2020

Having phone within sight while driving does not violate law: B.C. judge

The mere presence of a cell phone within sight of a driver is not enough for a conviction, judge says

Most Read