Province to slash, then eliminate MSP premiums
Posted February 21, 2017 1:55 pm.
Last Updated February 21, 2017 3:01 pm.
This article is more than 5 years old.
VICTORIA – British Columbia’s government is taking its re-election on a broad range of tax cuts and spending increases on education and child-welfare programs in a 2017-18 budget that projects a fifth consecutive surplus.
Tax cuts being brought in by Finance Minister Mike de Jong include a promise to eliminate unpopular medical service premiums, starting with a 50 per cent cut next year that will see a family paying the full premium saving up to $900 a year.
A release from the province says:
“Beginning January 1st, 2018, MSP premiums will be reduced by 50 per cent for households with an annual net income of up to $120,000.
Following this change, more than two million British Columbians will pay no premiums and a further two million will see a 50 per cent reduction in their premiums, cutting premiums near to levels set in 1993.
A typical family of four paying full premiums will save $900 per year in 2018. A single parent with net income up to $40,000 and two children will see their monthly premiums drop from $46 to $23. A family with net income less than $35,000 and two children will see their monthly premiums eliminated.”
The 2017-18 budget also cuts the small business income tax rate to two per cent from 2.5 per cent, and will eliminate the provincial sales tax on electricity for business by 2019-20.
The $50.2-billion budget forecasts a surplus of $295 million, down from the $1.5-billion surplus forecast for the current fiscal year ending March 31.
Some notable spending increases include an additional $287 million over three years for the Ministry of Children and Family Development, including $120 million to address recommendations in a report on indigenous child welfare, after the death of children in government care.
The government is setting aside an additional $740 million over three years for education, which includes $320 million to cover the costs of ongoing negotiations with the teachers’ union after the province lost a Supreme Court of Canada decision on class size related to special-needs children.
“The Education budget will increase by $740 million over three years, including $228 million more to fund enrolment growth in BC schools, funding for rural education enhancement, student transportation, K-12 salary costs, continued funding for the Learning Improvement Fund, and an incremental $320 million over three years while government works to conclude a final agreement with the BC Teachers’ Federation on class size and composition.
Budget 2017 is also funding $2 billion in school capital projects over three years – to build, replace, renovate, seismically upgrade and repair schools throughout the province.”
The province’s Liberal government has been in power since 2001 and the next election will be held May 9th.