Why I support and will vote for BC Government Budget 2020

On Thursday this week members of the BC Legislature will vote on the BC NDP’s 2020 budget.

The BC NDP’s 2020 budget continues to build on the positive work done since my colleagues and I first signed the Confidence and Supply Agreement (CASA) in 2017. The Premier and I reiterated our ongoing support for the CASA agreement in letters we exchanged shortly after I left the BC Green Caucus to sit as an independent as their leadership race unfolds.

In my view, Budget 2020 delivers on multiple fronts by making investments which will benefit numerous demographic groups. And rather than becoming mired in politically expedient short-termism, the budget charts a path forward to an economy centered around sustainable development and innovation.

This budget reflects many of our shared priorities. While no budget will please everyone, and all budgets can be criticized for what’s not in them, taken together I am very pleased with what’s in Budget 2020 and look forward to supporting it in the upcoming vote.

Below I expand upon my media release from last week and provide further thoughts and reflections on Budget 2020.

Affordability

Currently, the high cost of living in urban areas in BC is putting the comfortable middle-class lifestyle enjoyed by previous generations out of reach for large segments of the population, and the government is addressing the issue by continuing to introduce measures designed to make life more affordable. The complete removal of MSP premiums should save a family of four $1,800 per year while raising the earnings exemption for those on income and disability should put more money back into the pockets of those who need it most.

I am absolutely thrilled to see the regressive form of taxation embodied in MSP premiums finally eliminated. I’ve been working towards this end since January 2015 when I first announced that the BC Green Party, if elected, would eliminate the MSP premium and replace it with a progressive form of revenue generation mirroring what was done in Ontario. Public support for this was overwhelming as indicated by the tens of thousands of British Columbians who signed petitions or emailed their MLAs, and by the fact that both the BC NDP and the BC Liberals eventually also embedded a promise to eliminate MSP premiums in their 2017 election platforms.

Ongoing funding increases to childcare in BC should help to alleviate an economic stress for young families while benefiting the entire economy through greater female participation in the labour force, families with more disposable income, and the creation of jobs related to early childhood care.

On the housing front, the combination of the speculation tax (which I spent much time working on collaboratively with the Finance Minister to ensure it was razor focused on urban speculation) and the construction of affordable housing should bring unit costs down, but these measures need to be combined with continued conversations with municipalities about ways to increase density to most effectively deal with the housing crisis. Further work is needed to combat underemployment (only 39,300 of the 65,400 jobs created last year were full-time) and to provide support to those dealing with addictions, homelessness, and mental health issues, but in a time of economic uncertainty the government is continuing to devote resources to ensuring that those who require assistance are able to get it.

Education and Youth

For years, BC has been the only province without an up-front, needs-based, post-secondary educational grant. The 2020 budget rectifies this situation by introducing the BC Access Grant. Making the grant up-front is especially important because it gives students immediate financial aid, allowing them to focus on their studies without the added stress of worrying about how they are going to pay tuition or loans. The grant will also be of medium-term economic benefit to the province, helping to address anticipated shortages of healthcare providers and workers equipped with the skills needed to power an economy driven by green energy and intangibles.

The growing number of students requesting access to on campus mental health supports has been well documented and the government has responded with the introduction of a new 24/7 mental health counselling service. This system will help to provide many students with the support they need to navigate the challenges of living away from home for the first time, the pressures induced by social media, and the financial stressors that come with being a student. The new support network is not panacea to the increasing number of young adults who experience mental health challenges, but its creation demonstrates that the government is taking students’ concerns seriously and is working to address them.

Additionally, after years of inadequate funding, the government is continuing to make investments into supplying the teachers, psychologists, and educational assistants needed to maintain our public education system’s status as one of the best in the world. Indeed, a primary driver of long-term economic growth, a well-educated, skilled workforce, can only be produced through investments into our public education system now.

Strong education systems  correlate with positive health outcomes, greater social mobility, and higher levels of civic engagement. However, the mismatch between four-year political timelines and the time it takes to see the benefits of investments into education can create incentives for governments to shirk their responsibilities to adequately fund public education systems. By taking the long view and investing substantial resources into our education system now, the government is continuing to demonstrate that it is committed to sustaining our province’s prosperity.

Capital Projects and Innovation

Government choosing to make record-breaking investments into infrastructure projects while capital is cheap is a prudent choice which will help the province to deal with multiple immediate and looming challenges. Transportation related infrastructure projects such as the Pattullo Bridge replacement, Skytrain expansions, and additional HOV lanes should tackle pressures associated with continued urbanization and help to reduce congestion and pollution while facilitating the smooth flow of goods and services. Hospital overcrowding, another pressing issue in the province, promises to see relief through the construction and renovation of multiple hospitals. Additionally, the construction and renovation of numerous schools will assist areas of the province dealing with demographic pressures, and ongoing seismic upgrading is a much needed investment after years of delayed progress.

Innovative design and the integration of BC engineered wood products and energy/energy conservation systems into these capital projects demonstrates British Columbia’s ongoing leadership in recognizing that the reduction of greenhouse gas emissions can be paired with job creation throughout the province. Although it is true that the province’s debt will increase in order to finance these record-breaking capital projects, our debt to GDP ratio remains at a sustainable level.

I was also pleased to see that  government is providing a roadmap to an economy with sustainability and entrepreneurship as its cornerstones, the importance of which I have emphasized to government in countless hours of discussions and negotiations.

We have the resources to transition to an innovation driven, low-carbon economy but businesses require the certainty that comes with a clear commitment from government to supporting emerging industries in order to feel comfortable investing in them. Although there are some measures which push in the opposite direction that I will continue to oppose, on balance, the province is signaling its commitment to supporting an emerging economy that realizes BC’s comparative advantages.

Measures such as targeted investments into the bioeconomy, the exemption of electric aircrafts and electric aircraft conversions from PST, and the pledge to establish a quantum computing institute all aid burgeoning industries capable of becoming areas of economic strength for the province. Ongoing incentives to purchase electric vehicles and charging stations are simple, smart demand-oriented policies which will continue to electrify transportation. More work is needed to encourage retrofitting and the development of renewable energy sectors which harness BC’s natural resources, but the province is well on its way to transitioning to the economy of tomorrow.

Rural Development

Rural areas of the province continue to be connected to high-speed internet, giving them access to the benefits of the digital economy, and forestry dependent communities will see much needed relief through The Forestry Worker Support Program. We need to continue to transition towards a more sustainable model of forestry which produces high value-added exports but the coastal revitalization initiative, investments into the bioeconomy, and the use of made in BC engineered wood are steps in the right direction.

The only way we’re going to compete in the resource world is not to just dig dirt out of the ground and think, somehow, we’re going to compete with a jurisdiction that doesn’t internalize the social and environmental externalities we value here. The way we do that is to be smarter, more efficient and cleaner. We do that by bringing the technology sector together with the resource sector. We do that by focusing on the value-added. We do that focusing on efficiency, being cleaner and selling those technologies elsewhere, like MineSense, Axine or others. I was pleased to see that the BC NDP government has recognized this in both Budget 2020 and their recent Throne Speech.

I feel that this government is on the right track. It understands where the future of our economy is. It doesn’t lie in simply continuing to dig dirt out of the ground. It never will. It lies in innovation. It lies in the harvesting our resources in innovative ways by bringing the tech sector together with that.

Concluding Remarks

Although the scale of action  may not be as large as some may desire, there is a lot to like in a budget that devotes resources to raising the standard of living for many now while articulating a positive long-term vision for the province. I look forward to supporting the budget on Thursday.