Strategic Thoughts

bannerspacerAbout Me | Mail Me | My Stuffbannerspacer2

January 11, 2002

Damage Control on the Depth of Cuts

How much damage? How deep the cuts?Finance Minister Gary Collins is up to mischief again. Now he's claiming his cuts aren't so deep. Looks like they will just take an arm, an eye, and both legs off the body politic rather than half the body!

In October he produced his infamous chart showing a three year freeze for health and education and a 35% cut for the rest of government. Now, a week before massive layoffs are announced and four weeks before his first full budget, Collins is saying that he is backing off from $500 million in cuts for the Ministries of Children and Family Development; Human Resources; Water, Land and Air; and Community, Aboriginal and Women's Services.

Collins isn't credible with his damage control. On January 9th, Vancouver Sun columnist Vaughn Palmer first reported that government was looking at backing off on some of its cuts. The next day the Vancouver Province, in a story headlined "Grief counselors hired for fired civil servants", claimed "…Collins said ministries dealing directly with people will not have their budgets cut as deeply as previously planned." The Province went on to say that "about half a billion dollars will be handed back" as if the public knew how much was cut and should now appreciate the restoration. The fact is that those ministries and the programs people depend upon will be severely damaged.

The budgets for health and education (K-university) account for 65.7% of government spending. Children and Family Development is another 6.3%, Human Resources is 7.7% and Community, Aboriginal and Women's Services is 2.3%. If they were also frozen (which is actually a cut relative to rising costs), that would be another 16.2% for a total of 81.9% frozen. That makes it almost impossible to pay for the reckless tax cuts. In fact, it would require almost the entire elimination of all of the rest of government - the courts, the police, environmental protection and caring for our forests to name a few.

When one looks at the actual numbers, no one should think children, developmentally disabled adults or anyone else is off the hook. Government may be feeling the heat and it may know that it needs to do damage control, but the only real damage control will be to back off from the horrible cuts about to be inflicted on families throughout British Columbia.


January 10, 2002

Feeling the Cuts

Feeling the pain of cutbacksJanuary has brought with it first hand experience of Premier Campbell's New Era. It is one thing to read in the news papers about worries over cutbacks, but it is quite another matter to feel them.

On January 1st we saw the first changes to Pharmacare. User fees for seniors went from the dispensing fee, usually around $6.00, to a fee of as much as $25.00. For someone used to paying $12 when refilling two prescriptions, it is quite a shock to suddenly be asked for $50. There are thousands of such unhappy folks throughout BC today, and this is just the start. They are joined by people who started the New Year with a visit to an optometrist, a chiropractor, a physiotherapist or a podiatrist only to be shocked by fees fives times larger than the last visit.

Those cuts that people are now experiencing total about $145 million ($15 million for cuts announced in October for eye exams and Pharmacare and another $129.4 million for cuts announced in December). While that is a lot of money, it is a lost decimal on the amount that the Campbell government plans on cutting over the next three years!

Those unhappy seniors can look forward to income tested Pharmacare beginning January 2003. Then those $25 bills won't stop when they reach $275 for the year. In 2003 many seniors will pay the full cost of their prescriptions until the bills total $1,000 or more. By that time it will be hard to find anyone who hasn't been hurt by a cutback. It will be little comfort to think of the 8,000 British Columbians who received over $200 million per year in tax cuts from the Campbell government. That's no misprint, just 8,000 of the highest income earners in BC received 14% of the benefits or about as much as the bottom 1,673,000 income earners. That is bound to comfort the senior who just got hit with the bigger drug bill.

A phone call, letter or visit to one's local MLA might help that representative of the Campbell government feel the pain.

 

About Me | Mail Me | Navigation | Top
© 2002 David D. Schreck. All Rights Reserved.