Re-post: Balanced Budget Realities

Originally published November 2012

If Christie Clark is actually serious about balancing the budget next year, come hell or high water, it is time to consider voting green or to run for the legislature as an independent.

The right always likes to trot out the bogyman of irresponsible NDP spending to scare voters as is currently happening in Ottawa.

And while Adrian Dix has demonstrated a worrisome lack of understanding of, or connection to, the financial realities of the province and its citizens Premier Clark’s promise to balance the budget next year borders on the insane.

Insane: utterly senseless: an insane plan.

Consider these givens: the 2012/13 budget called for expenditures of $43,869,000; the deficit for 2012/13 has been revised upwards to $1,470,000 which is 3.4% of the budget; the rise in the deficit is mainly a result of falling provincial revenues, revenues that are realistically not going to recover for the 2013/14 budget year; the promises Finance Minister Mike de Jong has made concerning the return to the PST means provincial sales tax revenues will suffer a significant reduction next year (on top of the $300 million HST repayment to Ottawa); the cost to provide the same services next year as were provided this year will be higher – particularly health costs which are rising faster than costs in other areas; the rationing of mental health services has already resulted in the deaths of British Columbians as a result of the lack of sufficient services; the increases in Justice costs (police, incarceration etc) will necessitate cutting more funds from the rest of the budget.     

Balancing the budget for 2013/14 will require cutting 3.4% (+) from next year’s budget.

Given the realities of the way the province spends its money most, if not all, of the cuts will have to come from healthcare and education.

Yes you could make cuts to social services, family services and related programs…..but the hard facts are that cuts in those areas do not result in any savings. Rather they result in higher costs to the government in other areas of the budget such as Justice.

Trying to avoid cuts to health and education by making cuts in other areas, areas that tempt politicians and the public because they seem ‘easier’ than cuts to healthcare and education, will inevitably force even deeper cuts to be made to education and health.

Given the level of wilful denial, of self imposed blindness, embraced by both voters and politicians in British Columbia –  Pray that Clark is Lying.

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