bc budget brandon ma, audit partner, kpmg On February 18, 2020, Carole James, Minister of Finance, delivered Budget 2020: A Balanced Plan to Keep BC Moving Forward. The balanced budget has an updated forecast surplus of $203 million for fiscal 2019/2020 and estimates a surplus of $227 million for fiscal 2020/2021. Notable general budget highlights include a new tax bracket for the top 1% of income earners of 20.5% for taxable income exceeding $220,000 and PST changes to eliminate PST exemptions on sugary beverages (pop) and new PST registration requirements for software and telecommunications companies. The budget stays within the government mandated commitments of Making Life More Affordable, Services British Columbians Count On, and Building a Strong and Sustainable Economy that Works for Everyone. These commitments and underlying investments may result in additional access to funding, grants, and development opportunities for local governments. A summary of the potentially most impactful elements of Budget 2020 for BC local governments is as follows: 1. Transportation Investment Plan • The Province will continue to make transportation investments, working alongside federal and local governments, with $9.2 billion invested over the next five years in transportation infrastructure. • There are numerous significant investments named in the budget including Pattullo Bridge Replacement, Broadway SkyTrain line to Arbutus Street, Accelerated four-laning on Highway 1 to the Alberta Border, Highway 1 HOV lanes between 216th Street and 264th Street, and Highway 91/17 and Deltaport Way Upgrade. • In addition, Budget 2020 discusses the launch of a South Island Transportation Plan and Fraser Valley Integrated Transportation and Land Use Plan, both assessing the multi-modal transportation strategy in these two geographies and involving engagement with local governments. 2. Housing investment and homelessness initiatives – potential funding opportunity • Housing continues to receive capital investment from the Province. The Province had previously announced an investment of $7 billion over 10 years in its 2018 budget.
who are homeless or at risk of homelessness. This new funding is incremental to previous supportive modular housing investments made. • In total $1.1 billion is provided in capital funding to support housing and homelessness over three years. • $118 million over three years is included for housing and homeless initiatives supporting the Homes for BC plan, with a new investment of $50 million over three years. 3. CleanBC investments and potential funding opportunities • New investment of $419 million over the fiscal plan is added to support CleanBC, which is BC’s climate action strategy, bringing the four year total to $1.3 billion. • Electric car charging stations includes $5 million for incentives to install home and workplace charging stations and $2 million for new public fast charging stations. 4. Policing investment • $23 million in new investment towards public safety and crime prevention programs, including police services and First Nations policing for rural communities amongst other items. • $71 million in additional budget over three years to enhance public safety and support services.
• $56 million in new capital funding is provided for fiscal 2020/2021 for the development of 200 new units of modular housing for people MARCH 2020 • DOLLARS & SENSE PERSPECTIVE | 9
