Briefly: February 22, 2013

Budget balances

BC’s government promised to deliver three consecutive years of modest surpluses by hiking tax rates, controlling spending and selling off government assets in its 2013 budget.

“More than a decade of prudent fiscal management has paid off for BC,” said Finance Minister Mike de Jong. “While other jurisdictions are postponing balanced budgets to later years, we are in the enviable position of having a balanced budget and are in a much better place than most to manage the ongoing global volatility and uncertainty.”

Over the next three years, total revenue is expected to grow by an average of three per cent annually, he added. “But we will continue to hold the line on spending, by increasing expenditures an average of just 1.5 per cent a year over the three-year fiscal plan.”

Budget highlights include:

• Medical Services Plan premiums will increase by an estimated four per cent on January 1, 2014.

• The personal income tax rate for individuals earning more than $150,000 will rise by 2.1 per cent to 16.8 per cent on January 1, 2014.

• Smokers will pay an extra $2 a carton, effective October 1, 2013.

• General corporate income tax rate will rise to 11 per cent from 10 per cent. That still leaves BC with a rate 33 per cent lower than in 2001 and still among the lowest in Canada, according to the government.

• A one-time $1,200 grant goes toward a BC resident child’s Registered Education Savings Plan after the child reaches age six.

• Early Childhood Tax Benefit will provide $146 million to approximately 180,000 families with children under age six, effective April 1, 2015, which is up to $55 a child per month, with most receiving the full amount. Those with family incomes between $100,000 and $150,000 a year will receive a partial benefit.

• RCMP frontline policing budget gets an additional $52 million over three years.

• Early Years Strategy will invest $76 million over three years to support the creation of new child care spaces and improve the quality of child care and early years services. This includes $32 million to support the creation of new child care spaces and $37 million to improve quality of available services.

British Columbians can now replace their CareCard with the new BC Services Card.

“This new card will be a secure piece of photo identification with many anti-fraud and security features including secure design, an expiry date and enhanced features which will help to protect citizens’ personal information,” said Health Minister Margaret MacDiarmid in making the announcement on February 15.

Most adults will need to re-enrol in the Medical Services Plan over the next five years. The easiest way for British Columbians to enrol is to do so when renewing their driver’s licence and opt for the combined card that includes both a driver’s licence and BC Services Card. People who do not drive can still enrol at the nearest location where driver’s licences are issued.

The current CareCard was introduced in 1989 and has not been significantly updated over the last 20 years. The new BC Services Card takes advantage of significant advances in technology, to provide a secure piece of photo identification with enhanced features to protect citizens’ personal information. The new card features a photograph of the beneficiary, secure design and an expiry date.

Once a person enrols, they will be mailed a new BC Services Card, and will need to re-enrol and get a new card every five years. Children and certain groups of adults, such as the elderly or those in residential care or extended hospital care--for whom renewed enrolment would be impractical or present a hardship--will be exempt from re-enrolling or managed through special arrangements.

Seniors will be able to use the new BC Services Card to obtain discounts with BC Ferries, but they will have to present the new card to a ticket agent for inspection. BC Ferries will also continue to accept the BC Gold CareCard. Seniors can travel for free on all but three northern routes Mondays to Thursdays.

To learn more, readers can visit the ministry's website.