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BC VIEWS: Borrow and spend best for B.C.?

Justin Trudeau wants to make deficits cool, and Thomas Mulcair was punished for wanting to balance the budget. Next up, John Horgan
Carole James
NDP finance critic Carole James responds to the 2016 provincial budget. As NDP leader in 2013

With 11 months to redefine itself for voters, Premier Christy Clark91裸聊视频檚 B.C. Liberal government has dialed back its boasting about four consecutive balanced budgets, and has begun creating the impression of a minor spending spree.

It picked up with a series of education funding announcements. First Education Minister Mike Bernier unveiled an increase to the province91裸聊视频檚 91裸聊视频渇ix-it fund,91裸聊视频 as he calls it.

This is not to be confused with the annual 91裸聊视频渇acilities grant91裸聊视频 provided to school districts each year, or the carbon tax collected from schools and hospitals that is then doled out for approved energy upgrades.

The 91裸聊视频渇ix-it fund91裸聊视频 was $20 million last year, but this past March, Bernier announced it was increased to $40 million, and called for districts to propose roof, electrical, heating and other projects that could be done by March 2017.

After going through the submissions, Bernier announced in mid-May that the fund is up to $45 million. The increase is not new money, he assured reporters. That means it91裸聊视频檚 taken from the next two years of the three-year education budget.

Hence my reference to 91裸聊视频渃reating the impression91裸聊视频 of a spending spree. Or perhaps Cowichan Valley NDP MLA Bill Routley91裸聊视频檚 favourite expression captures it best: 91裸聊视频渏iggery-pokery.91裸聊视频

Then Bernier found another $25 million for struggling school district operations, by returning 91裸聊视频渁dministrative savings91裸聊视频 his ministry had required from districts for the second year running. With some school districts charging for bus service or cutting it out entirely, the 91裸聊视频渁dministrative savings91裸聊视频 argument wasn91裸聊视频檛 doing so well.

The B.C. NDP ran its last election campaign on the assertion that the 2013 budget wasn91裸聊视频檛 going to be balanced, despite a run of land sales to stop the flow of red ink left from buying the province out of the harmonized sales tax.

But B.C. Liberal Finance Minister Mike de Jong did balance the books, with the help of a temporary tax increase on incomes of $150,000 and up.

Then came last year91裸聊视频檚 federal election, and balanced budgets got a bad name. Justin Trudeau91裸聊视频檚 Liberals insisted the Stephen Harper Conservatives were running a hidden deficit and starving us into recession. Trudeau promised 91裸聊视频渕odest91裸聊视频 deficits of no more than $10 billion a year to stimulate the economy.

Federal NDP leader Thomas Mulcair promised to balance the budget while still providing national daycare and other big-ticket services. He lost, and his party turned away from him and from 91裸聊视频渁usterity,91裸聊视频 as borrow-and-spend enthusiasts like to call paying for public services as you go.

NDP leader John Horgan took note of the apparent shift in public mood to tolerate borrowing. The NDP under Adrian Dix promised deficit spending four years ago, but wrapped it in a claim it would only spend the B.C. Liberals91裸聊视频 alleged hidden deficit. That didn91裸聊视频檛 work very well.

In 2017, will Horgan follow Mulcair91裸聊视频檚 path or Trudeau91裸聊视频檚? He is careful not to commit himself now on specific positions, but in a recent interview with The Vancouver Sun, Horgan did question the need to account for the costs of every promise.

91裸聊视频淛ustin Trudeau didn91裸聊视频檛 cost a damn thing,91裸聊视频 he said. 91裸聊视频淎nd Donald Trump91裸聊视频檚 not costed a damn thing, nor did Bernie Sanders, and I don91裸聊视频檛 imagine Hillary Clinton will either.91裸聊视频

Actually, Trudeau did cost his platform for voters. Then, after winning a majority, he threw those estimates out and tripled the forecast deficits.

Canada spent itself into a huge hole in the 1970s, and it took until the 1990s to get out of it. We91裸聊视频檒l soon find out if that lesson is lost on a new generation of voters.

Tom Fletcher is B.C. legislature reporter and columnist for Black Press. Email: tfletcher@blackpress.ca Twitter: @tomfletcherbc

 





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