Budget Makes changes to MSP Premiums
Prince George, B.C. – The Budget has been delivered, and as expected there are changes coming to the Medical Services Plan.
Changes to Medical Services Plan (MSP) premiums and enhanced premium assistance will take effect Jan. 1, 2017, will help lower-income families, individuals, and seniors with the cost of living. All children will be exempted from MSP premiums, directly benefiting about 70,000 single-parent families. By making children free and expanding premium assistance, an additional 335,000 people will see their premiums reduced and an additional 45,000 people will no longer pay MSP premiums at all. With these changes, for example, a single-parent with two children would save up to $1,224 each year, and a senior couple earning up to $51,000 may now qualify for reduced premiums. Once the changes are implemented, nearly two million British Columbians will pay no premiums at all.
Minister of Finance Mike de Jong prefaced the budget with a report card on B.C.’s fiscal position “Like all jurisdictions we are being challenged by changing not only are we passing that test, but we are scoring top marks.”
He referred to reports from a number of financial agencies which said B.C. is poised to top the nation in economic growth, be the envy of the other provinces and that B.C. still has a triple A rating in the world of credit ratings. “BC is the only province to have that triple A rating.
“Not only are we doing our homework, we are doing it on time and in a format people can trust” said de Jong.
He said it will be a budgetary “grand slam” as the Government is tabling “and will deliver a balanced budget” for the fourth straight year.
Here are some of the other highlights.
$3.2 billion over three years added to the Ministry of Health compared to 2015-16.
$673 million in additional support for children, families and individuals in need over three years, including $217 million for the Ministry of Children and Family Development to support vulnerable youth and their families, and $456 million for the Ministry of Social Development and Social Innovation to support those in need and to increase monthly disability income assistance rates. The increases will allow the hiring of 100 new front line staff.
$143 million over three years to enhance key areas of the B.C. economy that support jobs in communities, including the new $75-million Rural Dividend Program to help small communities strengthen and diversify their economies, additional support for youth trades training, building the B.C. wood brand in India, and additional BC Transit funding.
Changes to Medical Services Plan (MSP) premiums and enhanced premium assistance effective Jan. 1, 2017, will help lower-income families, individuals, and seniors with the cost of living. All children will be exempted from MSP premiums, directly benefiting about 70,000 single-parent families. By making children free and expanding premium assistance, an additional 335,000 people will see their premiums reduced and an additional 45,000 people will no longer pay MSP premiums at all. With these changes, for example, a single-parent with two children would save up to $1,224 each year, and a senior couple earning up to $51,000 may now qualify for reduced premiums. Once the changes are implemented, nearly two million British Columbians will pay no premiums at all.
Government is acting to help the housing market respond to high demand for homes, which is resulting in rapidly rising prices, particularly among single-family homes in the Lower Mainland.
Budget 2016 introduces a new full exemption from the property transfer tax on newly constructed homes (including condominiums) priced up to $750,000. This exemption will save purchasers up to $13,000 on a newly constructed home and is estimated to provide approximately $75 million in property transfer tax relief for new construction in 2016-17. The cost of this measure will be offset by adding a third tier to the property transfer tax rate, increasing the rate to 3% from 2% on the fair market value of property above $2 million.
Proposed changes to the Property Transfer Tax Act will authorize government to collect new information from owners when they register their property. The government will resume collecting data that specifically identifies foreign purchasers. Beginning this summer, individuals who purchase property will need to disclose if they are citizens or permanent residents of Canada, and, if they are not, their citizenship and country of residence.
Government is also investing capital funding of $355 million over the next five years for construction and renovation of affordable housing for people with low to moderate incomes.
A portion of the dividend derived from the government’s strengthening economy, fiscal discipline, and reduction in operating debt will be used to establish the B.C. Prosperity Fund. Budget 2016 applies an inaugural commitment of $100 million from the forecast 2015-16 surplus to establish this long-term legacy intended to:
* Help eliminate the Province’s debt over time.
* Invest in health care, education, transportation, family supports and other priorities that provide future benefits to British Columbia.
* Preserve a share of today’s prosperity for future generations.
Government has identified its lead priority for the B.C. Prosperity Fund as reducing taxpayer-supported debt. Government will allocate a minimum of 50% of each year’s allocation to the fund to debt retirement, and a minimum of 25% will be saved to accumulate earnings. The remainder will be available for core government priorities that provide long-term benefits to British Columbia. In addition, future government surpluses including LNG revenues will help grow the fund over time.
Budget 2016 continues to invest in new and upgraded infrastructure including:
* $3.1 billion in total transportation infrastructure investment, including highway upgrades and transit infrastructure.
* $2.9 billion for new major health-care projects and upgrades to health facilities, including the new Centre for Mental Health and Addictions.
* $2.5 billion for post-secondary facilities, including building capacity and helping meet the province’s future workforce needs in key sectors, as set out in the B.C. Skills for Jobs Blueprint.
* $1.7 billion to maintain, replace, renovate, expand and seismically upgrade K-12 school facilities, including new school space to accommodate increasing enrolment.
* More money to promote BC wood markets in India.
By the end of 2015-16, the direct operating debt will be reduced by $2.2 billion since government resumed balancing its budget.
deJong says if the province continues on this fiscal path, it is possible it could be debt free by 2020, something that hasn’t happened in 45 years ” That is a gift for future generations.”
Comments
“$2.9 billion for new major health-care projects and upgrades to health facilities, including the new Centre for Mental Health and Addictions”
better book a spot in the tliotg wing of this new facility.
Seen yer toes lately….if so pick em!!
When yer in the next bed….we`ll see!And the Dr said WTF are you doing here…like I said ya got the PPL….boot-lips and sweetfart.are ones ya want!!
Interesting. Single parent one child – i.e., family of 2 income 37,000, save 1056.00 in MSP. So this family has $18,500.00 income per person.
Couple with 2 children, 43,000.00, save 648.00 in MSP, this family has $10,750.00 per person.
What is the logic in this, if you have both parents you need less help?
deJong says if the province continues on this fiscal path, it is possible it could be debt free by 2020, something that hasn’t happened in 45 years ” That is a gift for future generations.”
OMG Mike go and borrow Christy’s shovel or if you have saved enough $ in the Budget go and buy yourself one because you are going to need it. There is also alot of other things that has not happened like LNG.
Read the fine print. Operating debt free. We’ll still have all our bonds that were issued for infrastructure outstanding. What it translates to is we’re paying off the operating line that we’ve been using to bridge the gap between our income and consumption, but the mortgage is still alive and well. It’s a bit disingenuous the way he worded it.
The only way to cool the BC (Vancouver) housing market is to get rid of foreign ownership. Make housing affordable for ordinary British Columbians.
New user fees all over the spectrum now???
He is a little confused (not unusual for these coalitionists) The gift he is talking about comes from taxpayers.
More money to develop wood markets in India. What about the wood market in the USA. Where are we with the softwood lumber agreement.??
Being debt free by 202, that is 4 years, Our province runs on about 45 billion dollars a year in revenue, Its debt load is 65 billion dollars. I think paying it off in 4 years is unrealistic. I believe we could reduce the debt by 5% per year, and have our debt load to below 53 billion dollars by 2020, and hopefully by than our revenues will be exceeding 55 billion dollars a year. Than I say we may have a shot by 2030.
Unless the NDP gets in.
A Surplus Budget beats a Deficit Budget anytime and how are the other Provinces doing,
I think all are in the RED!
Palopu BC can’t do anything about the Softwood lumber agreement as that is federal jurisdiction and so like everyone else BC waits and sees what the feds will do.
I am glad BC is expanding on international markets for our softwood products I have lived through the fallout from the housing crash in the states and no way should we rely on the americans to buy everything diversify and survive.
He referred to reports from a number of financial agencies which said B.C. is poised to top the nation in economic growth, be the envy of the other provinces and that B.C. still has a triple A rating in the world of credit ratings. “BC is the only province to have that triple A rating.
That’s funny–Just checked many other provinces also have a triple A credit rating.
Dearth. I know who is responsible for the Softwood Agreement file, however if you read the story above ***LNG not part of revenue plan***, you will see that Mike deJong, thinks that he, Christy, and the rest of the Libs are responsible.
Hmmm.
@oldman1 you are looking at different ratings.
There are 3 ratings for Canadian provinces – S&P, DBRS, and Moody’s
On December 18th, 2015:
S&P has BC and Saskatchewan at AAA
DBRS has only Alberta at AAA
Moody’s has Alberta, BC, and Saskatchewan at AAA
Other news outlets are reporting in January that BC is the only province in Canada to hold a AAA credit rating (S&P) but I can’t find the ratings as of today
Alberta uses DBRS to say they are the best… at the end of the day we are doing good in comparison to other provinces right now but I am sure people want to change that. Go Bears
Brad Wall in Saskatchewan also stated that they are doing better than all other provinces so who’s lying.
“so who’s lying.” lol They are all politicians aren’t they?
Many years ago, when the government was trying to sell us the idea of accepting the Lottery Corporations plans for a lottery, they said that the profits would pay for our medical services. That never happened. I am wondering why?
From what I’ve read, there was never ANY of the money raised by lotteries used for medical services.
The government isn’t thinking here.
It would make sense, that if the lotteries paid for medical services, people would have that much more money to spend on lotteries and thus sustain it and the medical services and would feel better about spending it there.
Just a quick google of bclc and where the money goes and you will find your answer GiveMore
147.3 million goes to a Health Special Account for health care services and research
758.5 million goes to a Consolidated Revenue Fund for health care and education
135 million also goes to non profit community organizations in the form of a gaming grant.
9.2 million goes to the Feds
Annual revenues are 1.17 billion (these numbers are the reported 2013/14 fiscal year)
Funding that is health care and education specific frees up an equal amount of money government used to spend on health care and education so they can use that money on other things
758 million is not even close to what we spend annually in BC on medical care
Thank you.
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