Finance Minister Katrine Conroy tabled the provincial budget earlier today. Budget 2023 projects a series of deficits over its three-year fiscal plan: $4.2 billion in 2023-24; $3.8 billion in 2024-25; and $3.0 billion in 2025-26. The budget also provides $5.7 billion in contingencies through the fiscal plan period for climate and emergency response; Clean BC and other spending uncertainties. Significant new spending has been earmarked for healthcare and housing.
Funding commitments over the three-year fiscal plan of interest to local governments include the following:
Housing
A refreshed housing plan will be funded through $4.2 billion in operating and capital funding, including:
- $1.7 billion in operating and capital funding for BC Builds and Building BC programs, which includes:
- $394 million for transit-oriented development; and
- $66 million in operating funding to support new housing developed through the Rapid Housing Initiative.
- $575 million in capital funding over three years to create post-secondary spaces in high demand areas;
- $230 million to renew BC Housing aging rental stock;
- $91 million for a pilot project that will provide financing incentives to encourage homeowners to develop new secondary suites;
- $11 million to implement legislation, including the Housing Supply Act; and
- $57 million to unlock new homes through new residential zoning measures and reducing the time and cost associated with local government approval processes.
$1.5 billion in operating and capital funding to help reduce homelessness, including:
- $228 million over three years to establish new multi-disciplinary teams to provide rapid response for regions responding to encampments;
- $44 million for those living in encampments to access temporary modular housing;
- $97 million in operating funding to support health‑focused services and resources at complex care sites;
- Up to $640 million over three years in operating and capital funding for the Supportive Housing Fund; and
- $109 million to expand shelter and low-income assistance programs.
Budget 2023 introduces a new property transfer tax incentive to encourage the construction of new purpose-built rentals. It also provides a Renters Tax Credit that will save low- and moderate-income renters up to $400 per year.
Healthcare
$6.4 billion (including contingencies funding) to strengthen the public health care system, including:
- $2.6 billion to address growing demand and increasing costs, including:
- $270 million for the BC Cancer Care Plan; and
- $150 million for BC Cancer Foundation.
- $1 billion for a health workforce strategy; and
- $1.1 billion for a primary care strategy.
$1 billion to support those who struggle with mental health, addiction or substance use, including:
- $867 million for mental health and addictions services across the continuum of care, including prevention, harm reduction, safe supply, treatment and recovery;
- $586 million of this spending will add new treatment and recovery beds throughout BC and fund a new model of “seamless support”.
- $169 million in capital investments over three years to create additional complex care beds.
$11.2 billion for healthcare infrastructure.
Critical Community Infrastructure
$450 million for Critical Community Infrastructure to support targeted projects located in each economic development region in B.C. This includes supplying reliable, clean drinking water, effectively managing wastewater and solid waste, and reducing greenhouse gas emissions. As the Investing in Canada Infrastructure Program is fully allocated, this funding will help to address key projects to ensure continuation of infrastructure improvements in B.C. communities, including Indigenous communities.
Climate Action and Adaptation
$567 million in operating and capital funding to support climate mitigation and adaptation measures, including:
- $100 million to help local governments improve active transportation infrastructure; and
- $64 million in capital funding for the B.C. Wildfire Service over five years (2022/23 to 2026/27) for firefighting equipment.
Forestry
$21 million over three years to support 8 Forest Landscape Planning Tables in partnership with First Nations.
Community Safety
$317 million for policing and enforcement, including:
- $87 million for programs to address repeat offending; and
- $230 million to hire 256 RCMP officers.
$65 million for Police Act modernization, cannabis licensing and decriminalization.
$150 million for a local government Next Gen 911 Readiness Fund.
Emergency Preparedness
Budget 2023 provides $85 million to increase emergency management capacity in the province and provide new investments in disaster risk assessment, preparedness and mitigation. Funding will also support more cross-ministry coordination, including working collaboratively with local governments and First Nations.
Connectivity
$85 million for Highway and Community Cellular Connectivity.
Libraries
$45 million to address local priorities and support accessibility, inclusion, and reconciliation. The funding will also support steps to improve access to books, digital collections, programs, spaces, literacy, technology and operating hours.