Deficit drives tough budget

Richard Rolke - Vernon Morning Star Published: September 01, 2009 7:00 PM

Extreme measures are required to keep the province from bleeding even more red ink, insist the North Okanagan’s two MLAs.The Liberal government presented a budget Tuesday that calls for a $2.8 billion deficit this year, and a series of cuts to some services as well as higher Medical Services Plan premiums.

“It’s a tough document,” said Eric Foster, Vernon-Monashee MLA.“It’s a tough, tough day when you have to go in the hole.”With economic growth expectations falling by the way side, Shuswap MLA George Abbott maintains some reductions in spending are necessary to protect core services.“Health care is the top priority and it will see a 20 per cent increase in the budget over three years and there is growth in the education budget,” he said.

However, the budget has also given way to opposition.“It’s typical of the Liberals to use the downturn to make cuts,” said Robert Pettit, Vernon-Monashee NDP president.“I don’t believe for a moment that the cuts will be restored once the economy picks up.” Pettit is particularly upset that MSP fees will increase six per cent for the next three years, starting Jan. 1.“They don’t support public health care so they are jacking up the premiums,” he said.

Other items in the budget include raising the small business income tax threshold to $500,000 from $400,000 starting Jan. 1.And for individual residents, the basic personal income tax credit is being increased to $11,000 from $9,373.“They’ve tried to do the best with everyone,” said Dave Fletcher, Greater Vernon Chamber of Commerce president.The thrust of the budget came as no surprise to Fletcher.“It was somewhat expected given the downturn in revenue,” he said.“If your household was down 20 to 25 per cent in income, you would need to change your spending habits,” he said.However, Fletcher says he would have liked to have seen a phased-in approach to aspects of the harmonized sales tax, and that it be expanded to include children who wear adult clothing.

Foster is pleased that there will be a full HST rebate on residential heating costs.“That’s a big one for homeowners,” he said.

Most cultural organizations have already received notice that they will not receive gaming funds this year, with many of them saying that could lead to programs being discontinued.Most cultural organizations have already received notice that they will not receive gaming funds this year, with many of them saying that could lead to programs being discontinued.Foster says he is aware of the challenges facing arts groups, but there was a need to preserve what revenue the government has.“The reality of budgeting became apparent and he (Finance Minster Colin Hansen) had to make some tough decisions,” said Foster.“Money had to go to programs for children and people in need.”