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

Police use tear gas to apprehend Saanich woman threatening neighbours, police

Woman facing possible criminal charges after standoff with police

Victoria woman loses $2,500 to scammer spoofing VicPD phone number

VicPD warns against sharing personal information, sending money to strangers

Esquimalt splash pad back in action

Esquimalt Adventure Park reopens July 6

Investigation launched after sudden death of Saanich inmate

B.C. Corrections, B.C. Coroners Service investigating cause, circumstances surrounding death

Police issue warning after baby comes across suspected drugs in Kamloops park

The 11-month-old girl’s mother posted photos on social media showing a small plastic bag containing a purple substance

Collision results in train derailment just east of Golden

The derailment occurred Sunday night, according to a statement from CP

Lower Mainland woman says llama farming neighbour shot her 11-month-old pup

Young dog was on owner’s Maple Ridge property when it was killed on June 21

B.C. records 31 new cases, six deaths over three days due to COVID-19

There are 166 active cases in B.C., 16 people in hospital

B.C. highway widening job reduced, costs still up $61 million

Union-only project scales back work to widen Trans-Canada

BC Wildfire Service to conduct night vision trials for helicopters in South Okanagan

This technology could assist with future firefighting operations

Victoria man dies after skydiving incident on Vancouver Island

34-year-old had made more than 1,000 jumps

Most Read