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

Okanagan-Shuswap Weather: Most long-weekend rain has already fallen

A mix of sun and cloud is expected for the last two days of the the Victoria Day weekend.

Update: Mother dead, youth in critical condition after carbon monoxide poisoning at Sandy Point Campground

The woman was found unresponsive insider her tent and the youth was taken via air ambulance to hospital

Penticton Indian Band councillor trying for federal seat

Joan Phillip acclaimed as NDP candidate for Central Okanagan-Similkameen-Nicola

Former Greyhound bus drivers gather in the Okanagan for one last hurrah

Bash kicks off Friday in Penticton and runs until Sunday

Some South Okanagan students are $1,000 richer

Million Dollar Bursary Program offers bursaries each year to Interior Savings’ young members

UPDATE: B.C. pilot killed in Honduras plane crash

The crash happened in the Roatan Islands area, according to officials

B.C. VIEWS: Reality of our plastic recycling routine exposed

Turns out dear old China wasn’t doing such a great job

Okanagan tattoo fundraiser draws tons of support

Lineup around the block in Vernon for start of Five Fathoms Tattoo event for Children’s Hospital

Carbon dioxide at highest levels for over 2.5 million years, expert warns of 100 years of disruption

CO2 levels rising rapidly, now higher than at any point in humanity’s history

Fundraising campaign for church shooting victim exceeds goal

A seperate campaign for the man killed in the April 14 shooting is nearing $25,000 raised.

Crews responding to car crash in West Kelowna

A collision has been reported at the intersection of Carrington Road and Butt Road.

Court decision prompts regional district to throw flood mitigation back at province

Public safety minister maintains Newsome Creek concerns in hands of local government

Woodworth purchased Summerland rink, created butcher operation

Giant’s Head Rink had been one of three facilities in Summerland

Get those flowers competition ready

Gardeners will come together June 29, for the 22nd Juried Flower Show

Most Read