Liberals back down from charity funding cuts

CTV.ca Wed Sep. 02 2009 14:17:56

The B.C. government has reversed a decision to chop millions of dollars in funding from charity groups just one day after announcing the cuts in its updated budget.Finance Minister Colin Hansen says the government now realizes it made many written commitments to organizations that it must honour. Hansen says that extra $20 million in promised grants will come from the government's contingency fund.The news comes shortly after the B.C. Association of Charitable Gaming threatened to launch a class-action lawsuit on behalf of those charities that had signed agreements with the government guaranteeing annual funding.

The cuts were part of the government's three-year plan to slash $1.5 billion in discretionary spending. Hansen made the announcement after telling the Greater Victoria Chamber of Commerce the government produced a budget for tough times which will allow the B.C. economy to rebound quickly.