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

North Coast fishing grounds key to orca recovery: DFO

Plan marks waters from Langara to Rose Spit as critical habitat for northern resident killer whales

Chris Green, mother of scouts, passes away

Green, who was born near Kitimat, spent more than 60 years volunteering with Scouts Canada

Intertidal Music Festival back for round two

More than 20 performances throughout the day at the North Pacific Cannery on July 21

Alberta man missing on Kitimat River found dead

Body found on July 11 after going missing on July 7

Reported fire in Kitimat turns out to be smoking salmon

Fire reported at apartment on Albatross Street on July 10

Trudeau asks transport minister to tackle Greyhound’s western pullout

Prime Minister Justin Trudeau says he’s asked Transport Minister Marc Garneau to find solutions in Greyhound Canada’s absence.

VIDEO: Life’s a beach at this B.C. sand sculpting contest

More than $50,000 was up for grabs at the annual contest held in Parksville

Group urges Canada to help Holocaust denier on trial in Germany

They’re concerned about Canada’s apparent unwillingness to come to the aid of Monika Schaefer

RCMP seek person of interest after elderly man left with ‘life altering’ injuries

Burnaby RCMP believe a male teen is a ‘person of interest’ in the case

MGM sues Vegas mass shooting victims, argues it isn’t liable

The company argues it has “no liability of any kind” to survivors or families of slain victims

Vancouver police propose policy for victims, witnesses who are undocumented immigrants

If approved, officers will not ask about an immigration status, unless needed

Crashes reach ‘all-time high’ across B.C.: ICBC

Auto insurer recorded more than 350,000 crashes in 2017

Pressure on for ride hailing, bus options in B.C.

Premiers to press Ottawa for help replacing Greyhound service

Usain Bolt to make run at pro soccer in Australia

Olympic sprint great has long expressed his love of the game

Most Read