The B.C. NDP government’s second budget focused on tax breaks and benefits for people with children, students and businesses, and investments in clean energy and climate initiatives. Here’s a brief summary of how British Columbians will be affected.
The budget didn’t make any large strides toward $10-a-day child care beyond continuing funding for the government’s 2018 child care plan into 2021/2022 and increasing it by $9 million a year. The bigger news was the introduction of a B.C. Child Opportunity Benefit to replace the early childhood tax benefit, which currently provides families with up to $660 a year per child under the age of six.
The new benefit, which begins in October 2020, will provide families with one child up to $1,600 a year, with two children up to $2,600 a year and with three children up to $3,400 a year. Instead of ending at six years of age, the benefit will be paid until the child is 18.
Good news for British Columbians with student loans — no more interest payments. As of Tuesday, all B.C. student loans will stop accumulating interest, saving someone with $11,700 in provincial student loans $2,300 over the 10-year repayment period. This will cost the government $318 million.
The public education system will get a boost, with $2.7 billion set aside over three years to maintain, replace, renovate or expand facilities. There will also be $550 million invested to hire new teachers and special education assistants, and improve classrooms.
Community organizations will be provided with funding to operate rent banks to provide short-term loans with little or no interest to low-income tenants who can’t pay their rent because of a financial crisis. It will cost $10 million and be funded through the Ministry of Social Development and Poverty Reduction.
The implementation of a B.C.-wide rent bank system for low-income people was one of 23 recommendations delivered late last year from the Rental Housing Task Force struck by the B.C. government.
The climate action tax credit will be increased in 2019, 2020 and 2021. Starting July 1, the maximum credit will go up by 14 per cent for adults and children, meaning low- and middle-income families of four will receive up to $400 for this year.
More than $107 million in operating funding will provide incentives for battery-electric and hydrogen fuel-cell vehicles (up to $6,000), incentives for medium- and heavy-duty vehicles, incentives for home charging stations, as well as other programs.
Pharmacare program will be expanded with an additional $42 million to cover more drugs, including those for diabetes, asthma and hypertension. An additional $30 million will be invested in tackling the drug overdose crisis, bringing the total investment since 2017 to $608 million. Mental health programs focused on prevention and early intervention for children, youth and young adults will be funded to the tune of $74 million.
As promised previously, Medical Services Plan premiums will be fully eliminated on Jan. 1, 2020, saving families up to $1,800 per year.
Income and disability assistance rates will be increased by a $50 a month, a total increase of $150 a month (or $1,800 a year) since the 2017 budget update. Before 2017, the rates had not been increased for a decade. This will cost an extra $44 million over three years.
A homelessness plan will invest $76 million in land acquisition and services to build 200 more modular homes, bringing the total to 2,200 units.