James

Conclusion:
The priority spending initiatives contained in the NDP plan do not represent a large increase
in the operational budget of government. Consolidated Revenue Fund expenses would rise
by $40 million above the un-debated 2005 Liberal budget—from $28.836 billion to $28.876
billion, and the estimated surplus would be $180 million, rather than $220 million.
Carole James’s commitment to balanced budgets and prudent handling of finances is
demonstrated by incorporating a “contingencies budget” of $170 million for unanticipated
events, a forecast allowance of $400 million to guard against sudden economic dislocation,
and a surplus of $180 million.
However, the NDP plan does differ significantly from the un-debated 2005 Liberal budget.
It reallocates $286 million from unnecessary spending, election slush funds, and a bloated
contingencies budget. And it uses those funds to improve public services for students, for
environmental protection, for regional economic diversification, for helping the most
vulnerable in our society, and for other issues that the Campbell government has neglected.
Repairing the damage to public services caused by the extreme agenda of the Campbell
government cannot be accomplished overnight. But it is not too late to make a better world,
and we can start right after the election on May 17.
Capital investments and debt
Long term care capital
In March of 2000, a special steering committee appointed by the Minister of Health issued
a report on the costs of continuing care entitled Non-profit Continuing Care – New Projects
and Partnerships. That report provided capital and operating estimates for a major five year
expansion of continuing care facilities for the elderly who are chronically ill.
Based on an average cost of $125,000 per bed, the report estimated the total capital cost of
1000 new beds in the first year to be $125 million. However, of that amount, only $31.25
million (or 25%) would require public capital funding since the remainder would be financed
by non-profit societies using private financing (similar to the successful, long-standing model
for B.C. social housing) or by private sector providers relying on provincial per-diem
payments for support of their private debt.
Inflation has increased in B.C. since the committee’s report in 2000. Based on increases in
the consumer price index in B.C. since 2000, the average cost per bed will have increased to
$138,000. Using the same model suggested by the steering committee, that will require a
provincial capital investment of $34.5 million in the first year.
Increased taxpayer supported debt for long term care
in 2005/06: $34.5 million
BCNDP Platform 2005 71