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Budget and Fiscal Plan 2008/09 – 2010/11 Budget and Fiscal Plan 2008/09 – 2010/11 February 19, 2008 National Library of Canada Cataloguing in Publication Data British Columbia. Budget and fi scal plan. –- 2002/03/2004/05- Annual Also available on the Internet. Continues: British Columbia. Ministry of Finance and Corporate Relations. Budget ... reports. ISSN 1207-5841 ISSN 1705-6071 = Budget and fi scal plan — British Columbia. 1. Budget — British Columbia — Periodicals. 2. British Columbia — Appropriations and expenditures — Periodicals. I. British Columbia. Ministry of Finance. II. Title. HJ12.B742 352.48’09711’05 C2003-960048-3 TABLE OF CONTENTS Budget and Fiscal Plan 2008/09 – 2010/11 February 19, 2008 Attestation by the Secretary to Treasury Board Summary ................................................................................................................................................. 1 Part One: A Budget for Climate Action Summary .............................................................................................................................................. 7 Carbon Tax and Revenue Recycling ................................................................................................... 11 Introduction .................................................................................................................................... 11 Principles ..................................................................................................................................... 11 How does the tax work? .............................................................................................................. 12 Revenue Recycling ....................................................................................................................... 14 Carbon Tax Implications ............................................................................................................... 16 Carbon Tax Conclusions................................................................................................................ 22 Existing Climate Action and Related Initiatves in BC: A Track Record of Action ............................ 22 The 2007 Throne Speech and Budget 2007: Ramping up to Address Climate Change ............ 22 2007 Energy Plan: Continued Actions for Conservation and Greener Energy .......................... 25 Results of Public Consultations to Prepare for Budget 2008 ..................................................... 26 Budget 2008: Expenditures to Support Climate Action .................................................................... 27 Total Climate Action Expenditures and the Federal Ecotrust Contribution ............................... 34 Environmental, Economic and Health Implications ................................................................... 35 Looking Ahead ..................................................................................................................................... 36 Tables: 1.1 Rate per Tonne of CO2-equivalent ...................................................................................... 12 1.2 Selected Carbon Tax Rates by Fuel Type ........................................................................... 14 1.3 British Columbia Tax Cut – Impact on Taxpayers ............................................................. 16 1.4 Annual Carbon Tax Cost for Gasoline Fueled Vehicles ..................................................... 17 1.5 Annual Carbon Tax Cost for Diesel Fueled Vehicles ......................................................... 17 1.6 Annual Carbon Tax Cost of Home Fuel Use ...................................................................... 17 1.7 Revenue Neutral Climate Action Measures – Impact on Taxpayers ................................. 18 1.8 Carbon Tax Cost of Selected Late Model Vehicles at $10 per tonne ................................. 19 1.9 Additional Budget 2008 Climate Action Tax Initiatives ..................................................... 20 1.10 A Track Record of Action on Energy and Climate Issues .................................................. 23 1.11 Key 2007 Throne Speech Directions: Strengthening the Commitment to Climate Action .. 26 1.12 Key 2007 Energy Plan Initiatives that Support Climate Action .......................................... 26 1.13 Budget 2008: Total Climate Action Expenditure Initiatives ............................................... 27 1.14 LiveSmartBC – Effi ciency Incentive Program ..................................................................... 29 Topic Boxes: A Climate Change Backgrounder ................................................................................................. 8 What is Taxed – the Carbon Tax Base ......................................................................................... 13 A Revenue Neutral Carbon Tax Plan ........................................................................................... 15 What Can I Do to Reduce Carbon Emissions? ............................................................................ 21 “Cap and Trade” System for Large Emitters ................................................................................ 38 BC as a Climate Action Leader: A Comparison with Other Jurisdictions .................................. 40 Budget and Fiscal Plan – 2008/09 to 2010/11 ii Table of Contents Part Two: Three-Year Fiscal Plan Introduction ......................................................................................................................................... 43 Consolidated Revenue Fund Spending .............................................................................................. 48 Climate Action .............................................................................................................................. 48 New Investments in the Economy and Communities ................................................................. 49 Vancouver Convention Centre Expansion Project ...... ................................................................ 54 2010 Olympic and Paralympic Winter Games ........ .................................................................... 55 Provincial Transportation Investments ........................................................................................ 55 K–12 Education ........ ..................................................................................................................... 56 Enhancing Health Care ........ ......................................................................................................... 57 Strengthening Social Services ....................................................................................................... 59 Justice and Public Safety ........ ...................................................................................................... 62 Expenses Recovered from External Entities ...................................................................................... 63 Service Delivery Agency Expenses .................................................................................................... 63 Revenue ............................................................................................................................................... 64 Budget 2008 Plan ......................................................................................................................... 64 Commercial Crown Corporation Income .......................................................................................... 70 Full-Time Equivalents ......................................................................................................................... 71 Capital Spending ................................................................................................................................. 72 Projects over $50 million .............................................................................................................. 76 Provincial Debt ................................................................................................................................... 78 Risks to the Fiscal Plan ....................................................................................................................... 81 Tables: 2.1 Three-Year Fiscal Plan – Operating Statement ................................................................... 43 2.2 Three-Year Fiscal Plan Update – Changes from Budget 2007 .......................................... 44 2.3 Revenue by Source .............................................................................................................. 46 2.4 Expense by Ministry, Program and Agency ........................................................................ 47 2.5 New Investments in the Economy and Communities (in addition to Climate Action) .... 49 2.6 Vancouver Convention Centre Expansion Project Funding ............................................... 54 2.7 2010 Olympics Funding ....................................................................................................... 55 2.8 Provincial Transportation Investments ................................................................................ 56 2.9 Enhancing Health Care ........................................................................................................ 59 2.10 Strengthening Social Services .............................................................................................. 60 2.11 Reducing Homelessness .....................................................................................................
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