B.C. Finance Minister Carole James announces changes to strata corporation laws at the B.C. legislature, June 23, 2020. (B.C. government)

COVID-19: B.C. moves to allow three years of budget deficits

Carole James and cabinet to take 10-per-cent pay cut

The B.C. government has moved to give itself room for up to three years of budget deficits, with $5 billion in extra spending already committed for the current year to deal with the effects of the COVID-19 pandemic.

Finance Minister Carole James introduced legislation June 24 that authorizes deficit spending that is a certainty for the current fiscal year and likely to extend further, with relief payments, rent supplements and deferred sales and other tax payments throwing the province’s budget deep into the red.

The legislation makes official a $1,000 one-time, tax-free payment to those who have lost work due to COVID-19 restrictions and qualified for employment insurance. It also extends eligibility to those who filed federal employment insurance claims between March 1 and March 15. Almost 600,000 B.C. residents have been approved for the B.C. payment since applications opened in May.

There is no change to the existing provision that running a deficit in any B.C. government ministry results in a pay cut of 10 per cent for the minister involved. That means James and the rest of cabinet will see a reduction in their salaries, which are currently $166,536.29 per year.

Basic compensation for MLAs is currently $111,024.19, with a 50 per cent premium for serving in cabinet or as Speaker. Premier John Horgan gets a 90 per cent premium on basic pay, bringing his current salary to $210,945.96.

FEB. 18: James tables balanced budget with new top tax bracket

APRIL 23: James prepares relief payments, rent subsidies

The new legislation, called the Economic Stabilization Act, formalizes moves the government has made since the pandemic began, including postponing commercial property tax payments until Oct. 1. Filing and paying employer health tax, provincial sales tax, hotel tax, carbon tax, motor fuel tax and tobacco tax has also been deferred to Sept. 30.


@tomfletcherbc
tfletcher@blackpress.ca

Like us on Facebook and follow us on Twitter.

BC legislatureCoronavirus

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Comments are closed

Just Posted

A LOOK BACK: Port Alberni’s fireboats

Delve into the city’s past with the Alberni Valley Museum’s online digital archives

Vancouver Island communities receive gov’t funding for infrastructure projects

Huu-ay-aht First Nations builds community with $1.8M grant, one among six on Island

Island poets take the mic at July’s virtual Words on Fire in Port Alberni

Jude Neale, Joe Lunchbucket bring distinctly different styles to Quite Determined Literary Road Trip

Summer never ends at Port Alberni’s DRAW Gallery

Exhibit showcases four new Ucluelet artists

B.C. Supreme Court dismisses claim against Island Corridor Foundation

Snaw-Naw-As (Nanoose) First Nation was seeking return of reserve land as railway sits unused

B.C. accommodators need phone lines to light up as in-province travel given green light

Travel restrictions during the COVID-19 pandemic have decimated the tourism and hospitality industries

300 Cache Creek residents on evacuation alert due to flood risk as river rises

Heavy rainfall on Canada Day has river rising steadily, threatening 175 properties

First glimpse of Canada’s true COVID-19 infection rate expected mid-July

At least 105,000 Canadians have tested positive for COVID-19 since the coronavirus was identified

Annual music event in Comox Valley celebrates online instead

Vancouver Island MusicFest holds virtual celebration set for July 10

Police ramp up efforts to get impaired drivers off B.C. roads this summer

July is dedicated to the Summer CounterAttack Impaired Driving Campaign

Migrant workers stage multi-city action for full status amid COVID-19 risks

‘COVID-19 has exacerbated an existing crisis’

Okanagan school drops ‘Rebels’ sports team name, citing links with U.S. Civil War

Name and formerly-used images “fly in the face” of the district’s human rights policy, says board chair

PHOTOS: B.C.’s top doc picks up personalized Fluevog shoes, tours mural exhibition

Murals of Gratitude exhibit includes at least one portrait of Henry alongside paintings of health-care workers

In troubled times: Independence Day in a land of confusion

Buffeted by invisible forces and just plain worn out, the United States of America celebrates its 244th birthday

Most Read