Friday, August 05, 2011

Look back into History re Local Property Taxpayers financing Hospital Capital Projects except in the lower mainland.

This posting was occasioned by a question from a blog-reader about who pays for the capital costs of the new $179 million Local Tower of care. As you can see from the article posted to the left it appears $67.4 million (40%) of the capital costs are borne by the Okanagan Columbia Shuwap Regional Hospital District Taxpayer. (Read local property tax payer).  This would indicate a total cost of $168.5 million. This apparently includes the capital costs for the 2 shelled-in floors for future inpatient beds.
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Back in 2005 I was in the process of finding out about the capital costs for new hospitals and discovered that since 1998 the capital costs for new hospitals in the lower mainland was financed 100% by the Provincial government. (Read provincial taxpayers).
 
This is some of the background postings about Lower Mainland Hospital Capital costs being 100% financed by Provincial taxpayer
http://vernonblog.blogspot.com/2007/07/response-from-george-abbott-about.html
http://vernonblog.blogspot.com/2006/12/minister-of-health-replies-to-don.html
http://vernonblog.blogspot.com/2006/10/say-no-to-hand-in-your-pocket.html   


There were 2 attempts to have this addressed by pursuing resolutions at UBCM in 2007 and 2008 but both were turned down and never came to the floor for a vote. The Editorial by Scott Neufeld of the local Vernon Courier in 2006 says it best:
'What’s interesting to note is that municipalities within the Greater Vancouver Regional District do not charge their citizens a property tax.Instead the province has assumed their hospital debt. In plain terms, the provincial government collects money from all B.C. taxpayers to pay for Lower Mainland hospitals. But when it comes paying for hospitals in the rest of B.C., the message seems to be that if you want something – you’re going to have to pay for a lot of it yourself. This payment formula sounds a little bit like a fundraiser only this one doesn’t come with an income tax refund for your donation and you have no option to say no to the collector. The potential impact of soaring hospital costs on Vernon taxpayers could be felt for decades. It’s time for the provincial government to stop legislating double-dipping from our pockets and start paying for 100 per cent of capital hospital costs. Failing that, stop siphoning cash from the wallets of Interior residents to build hospitals in the Lower Mainland that most people outside of Greater Vancouver will never see.'
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July 7,2007 Editorial except:
The editor of the local paper said it best in an Editorial on June 13: "Speaking of Beardsell, he’s on the hot list this week for proposing to push the issue of hospital funding to the next Union of B.C. Municipalities meeting. Often a critic of the group, Beardsell appears to have found a good avenue to raise the contentious issue. Beardsell should consider attending the gathering to really drive the issue home."
The Two resolutions are:
HOSPITAL CAPITAL COST FINANCING : THEREFORE BE IT RESOLVED that the Provincial Government assume 100% responsibility of capital hospital expenditures for all municipalities in British Columbia and eliminate the hospital property tax imposed on taxpayers outside the Greater Vancouver Regional District area.
BUSINESS TAX EXEMPTION : THEREFORE BE IT RESOLVED that the Provincial Government review the Business Class exemption for Class 6 assessments and consider a significant increase in the statutory property exemption, in order to provide small businesses, in the Province of British Columbia, a fair exemption for their increased assessed property value.


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