Two Ways the Provincial Budget Will Affect Municipalities
By Bill Metcalfe
Last week’s provincial budget includes two items that will directly impact municipalities: the increase in Medical Services Plan (MSP) premiums, and the creation of a new Auditor General for Local Government.
MSP will increase local government expenses
Increases to MSP premiums will amount to about $60 per year per person. This cost will be passed on to Nelson taxpayers because the City covers those costs in its collective agreements with its employees.
“We have about 160 employees, so this would cost us around $10,000,” says City Manager Kevin Cormack. “All medical benefits including our extended health plans do increase on an annual basis so this is always part of our inflationary pressure at budget time.”
Worried about low-income people
Councillor Deb Kozak says this is an example of higher levels of government downloading costs onto municipalities. “I worry about low income people. We have this “zero net” approach of the provincial government towards its own employees, but that does not relieve the pressure on municipalities and regional districts. As those costs increase so does the cost to our local taxpayers.”
The City of Nelson is currently in contract negotiations with the International Brotherhood of Electrical Workers and will be entering negotiations later this year with unions representing the fire fighters and the police, as well as with the Canadian Union of Public Employees.
Province’s new municipal watchdog is controversial
The provincial budget includes $2.6 million to create the office of an Auditor General for Local Government. This was first announced at last year’s annual Union of B.C. Municipalities (UBCM) conference and it created a stir because many municipal leaders saw it as a sign that the government mistrusts their priorities and accounting practices. Some municipal officials said the office is an expensive duplication of existing municipal auditing practices.
The UBCM passed a resolution stating that even though it does not agree that the new office is needed, it will negotiate with the provincial government on what it will look like.
Performance audits
Meanwhile, Bill 20 has passed second reading in the legislature. It states that the purpose of the Auditor General is to:
“…conduct performance audits of the operations of local governments in order to provide local governments with objective information and relevant advice that will assist them in their accountability to their communities for the stewardship of public assets and the achievement of value for money in their operations.”
For and against
The provincial NDP opposes it, saying it is unnecessary and expensive. “The Auditor General is not an independent body and it is not accountable to the legislature. It is accountable only to the Minister,” says Nelson-Creston MLA Michelle Mungall. “Any government can drive this office as it sees fit.”
The creation of the Auditor General is supported by the Business Council of B.C. and the Canadian Taxpayer Federation.
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