B.C. Finance Minister Mike de Jong.

Budget surplus hits $2.24 billion, but B.C. braces for schools settlement

Finance minister Mike de Jong won't say how much of a hit is expected from teachers' court win

B.C.’s projected budget surplus has climbed further to an estimated $2.24 billion.

Finance Minister Mike de Jong released that number as part of a generally upbeat second quarter financial update Tuesday.

He cautioned B.C. is bracing for significantly higher education budget costs in the wake of a Supreme Court of Canada ruling in favour of the B.C. Teachers Federation on classroom size and composition requirements.

De Jong declined to provide an estimate.

“It would be presumptive on my part and the government’s part to lay out our figure or unilaterally state what we believe that figure will be,” he said.

“The fiscal plan is healthy and we are in a position to accommodate the results of the negotiation that is now underway.”

Asked if the improved budget could allow B.C. to further raise social assistance rates, de Jong said that will be a priority, but cautioned there’s no certainty a large government surplus will repeat each year.

“The landscape is littered with the carcasses of governments past and the deficits they incurred because assumptions were made that a present set of circumstances would repeat in perpetuity.”

He also noted that public sector workers will be receiving nearly one per cent more pay over and above their contractual wage increases under B.C.’s economic stability mandate dividend, because the province’s growth has exceeded benchmarks. The latest 0.35 per cent dividend, resulting from 3.3 per cent economic growth for B.C. in 2015, takes effect in February and is on top of a 0.45 per cent bump a year earlier.

B.C. has seen an increase of 71,400 jobs so far this year, up 3.1 per cent as of October.

De Jong was also asked to respond to the potential that U.S. president-elect Donald Trump’s administration may start a trade war.

More protectionist policy from American leaders would also hurt the U.S. at a time when that country needs more B.C. lumber to accommodate growth projections, de Jong said.

No advertising campaign is contemplated at this time, he said, but he did not rule out strenuous lobbying by B.C.

“We are going to have to ramp up in a strategic way to ensure that Americans themselves understand there’s a price to be paid for protectionism and that it is not just a price you inflict upon others.”

He noted the U.S. forest industry has already fired the first shot against B.C. softwood lumber imports, with a petition that could lead to an initial ruling as early as spring.

Just Posted

City of Campbell River backs effort to increase emergency medical funding, policy changes

BC HEROS: Increasing resources to improve medical response would be made up for in other savings

Human remains found near Campbell River

Human remains were found in a rural area outside Campbell River, RCMP… Continue reading

BC Hydro warns of upcoming Canyon View Trail closures

BC Hydro is advising of two rounds of Canyon View Trail closures… Continue reading

‘You just don’t know when someone has a challenge’

Wounded Warriors Run BC spreads awareness of mental health, hopes to raise $100,000

SUV rolls down Campbell River embankment

A white SUV rolled down an embankment on Evergreen Road near the… Continue reading

B.C. Games open with Olympic touch

The 2018 B.C. Winter Games kicked off in Kamloops

Charge laid in Vancouver Island animal cruelty case

Daniel Howard Ruygrok charged after dog found with compound fracture

BCHL Today: Merritt Centennials keep moving while Salmon Arm Silverbacks slide

BCHL Today is a (near) daily look at what’s going on around the league and the junior A world.

Former Canuck Roberto Luongo addresses Florida shooting victims

Parkland, Fla., resident, delivers speech before Florida Panthers’ first home game since tragedy

OLYMPIC ROUNDUP: Kelowna skier Kesley Serwa adds to Canada’s gold medals

Despite losses in men’s hockey and curling, Canadian women won medals in ski cross and figure skating

Suspected serial killer targeting Toronto gay community now faces six murder charges

Bruce McArthur now charged with murders of six men: Toronto police

Trump suggests more guns in schools to combat shootings

Trump floats two-step plan for gun control: More guns, more control

Second Russian athlete tests positive for doping at Olympics

Russian Bobsled Federation states a drug-test sample that pilot Nadezhda Sergeeva gave on Sunday was positive.

Indigenous leaders call for change after ‘system fails’ Tina Fontaine

‘All of us should be ashamed’: Calls for change after jury finds Raymond Cormier not guilty

Most Read