Thursday, 26 February 2015

Four years of Christy Clark

The BC Liberals are congratulating Christy Clark on her four years as Premier of British Columbia. They just revealed another 'balanced' budget for BC with lots of smiles of accomplishment.

"Hey, why have you got balanced in quote marks?  A balanced budget is a great thing. It's a good example of fiscal responsibility."
Yes I know, but a balanced budget means that whatever money you will get into the BC Government coffers, is all that the BC Liberals will spend.

"All good. So what's your point?"
You don't really get it, do you?  The BC Libs idea of balancing does not include paying anything on the BC debt! Deficit and debt are two different things in case you didn't know. The government estimates how much money is coming in as revenue, and write a budget accordingly, but they are not paying anything to reduce the amount of debt everyone in BC owes. The Provincial debt has gone from 33 BILLION dollars to almost 60 BILLION dollars this year, and they don't even calculate what they call 'contractual obligations'.  That is money we are destined to pay on contracts that various entities have with BC. Then the amount of BC debt tallies up at 100 Billion dollars.

As of 10:00 AM Feb 26, 2015

"WTF? Where you getting that info."
From respected organizations across Canada, many of which are worried about BC's credit rating.

The Tyee - The debt increased 4,877 billion last year, according to the release of Public Accounts for 2013-2014.
according to the July 15-released Public Accounts for the 2013-2014 fiscal year.
The debt increased $4.877 billion during the year.
- See more at:
That is according to the July 15-released Public Accounts for the 2013-2014 fiscal year.
The debt increased $4.877 billion during the year.
- See more at:
That is according to the July 15-released Public Accounts for the 2013-2014 fiscal year.
The debt increased $4.877 billion during the year.
- See more at:

The Globe and Mail -  Under B.C. Premier Christy Clark the government may not be able to meet its commitment to balance the budget, as it’s obligated to under provincial legislation. If it has to renege on this commitment, it will be the third time in recent years that the Liberal government has had to undo balanced-budget laws in order to build up more debt. And build it up it does.
Consider this: when the Liberals came into power in 2001, the provincial debt stood at $33.8-billion. In 2011, it was estimated to be $45.2-billion. And we know it is only going to keep growing.

The Fraser Institute - British Columbia’s growing government debt remains hidden in the province’s capital budget - unnoticed by most taxpayers - and could pose serious fiscal challenges in the future. When the B.C. government says the 2014/15 budget is balanced, it’s referring to the operating budget, which attracts most of the attention. But the capital budget, where the province borrows large sums of money to pay for long-term infrastructure spending, is in deficit and is largely overlooked.

The Canadian Taxpayers Federation - British Columbia’s government debt is growing by $209 every second!

Helmut Pastrick, the Vancouver-based chief economist at Central 1 Credit Union - Moody’s has fired a warning shot that British Columbia’s current credit rating of Aaa is at risk of being downgraded, unless the government becomes more aggressive in corralling its deficit.

Moody’s Investors Service has sounded the alarm by reducing its outlook on British Columbia’s debt to “negative” from “stable” in the latest warning signal on the fiscal health of provincial governments.
These are the so called business savvy people you voted in because you were afraid of the NDP spending? LOL

How does this happen? The BC Liberals are losing 40 million a year on the Golden Ears Bridge, and now are saying we'll be losing 89 million more on the Port Mann Crossing. And our estimates of LNG revenues have plummeted. Etc etc ad nauseum. Get the picture so far?

"Now you're just trying to depress me."
Aww, sorry, would you rather not face the facts?

"Of course, I voted for BC Liberal Christy Clark. I can't face anything that says I was wrong."
Now you're depressing me. As a Liberal voter what will you do about this?

"I'll go sit on my porch and whittle at a stick and say the BC Forest industry is healthy, the stick proves it."
Oh my.  Nothing in that "balanced budget" about using the $284 million surplus to pay down any debt.

"Shh. No one wants to talk about that." 
Didn't think so. Liberals still better than the NDP?

"I have to go now."
Thought so.

This whole exercise means something like this, IF you could apply it, but you cannot, you're not government - Your house payment is $1000. per month, car payment is $400. per month - your pay income is $1000, per month. So you have a 400 dollar deficit. What to do? Simple by BC Liberal calculations, just don't pay the car payment, see? All balanced. All is well.
And even if your income increases by 10%, and you have a $100. surplus, so take the family out to dinner in India.

 "Wait a minute, someone has to pay the car payment."
Oh, you came back. Sure they do, the taxpayers pay it.

"Aha, got you now, the BC Liberals under Christy Cark have not increased taxes."  
Well, it could be known as creative accounting. They don't need to add taxes, they only need to take away things you already have. Like your ICBC surplus that should have resulted in lower rates for British Columbians. See? And now YOU pay for it instead of them. Same thing really.

"Going now for sure."
And have yourself a really nice day. See you at the voting booth.

Life is good in Lotus Land.