January
5, 2004
Coell's
Two Year Rule
Human
Resources Minister Murray Coell made statements over the holidays
that suggest he might back off on his plans to make BC the
first province in Canada to kick people off welfare on the
basis of an arbitrary two
year time limit. He said he is waiting for reports from
his field offices that will provide estimates of the number
of people who would lose assistance; when he refused to release
numbers earlier this year, he promised to make information
available by the end of January.
What is
available is the Ministry's "service plan" which
shows that its spending of $1.6718 billion last year was to
be cut to $1.4175 billion this year, and to $1.2206 billion
next year. Almost all of the cuts are planned to come from
the budget for "temporary assistance", i.e. from
the category that would be affected by the two year rule.
Government's plan calls for that budget to drop from $699.2
million last year to $451.3 million this year, and to $283.4
million next year. The Second Quarter Finance Report for 2003
showed that the plan for cuts in the Ministry of Human Resources
is "on target" with no surplus or deficit in the
welfare budget anticipated at the half way point in the fiscal
year.
Can Coell
cut a further $168 million from the budget for temporary assistance
without introducing further draconian measures like the two
year limit? The number of single employable men receiving
assistance fell from 22,553 in October 2002 to 11,759 in October
2003; the number of single employable women fell from 11,779
in 2002 to 5,978 in 2003. It is not clear whether Coell might
be able to achieve his budget target without further double
digit reductions in caseloads. Coell's policy may have more
to do with his predetermined budget target than it does with
good social policy. He needs fiscal room to be reasonable
and to back off from policies that could push even more people
onto the streets and into crime. On February 17th his revised
"service plan" will be tabled together with Collins'
budget; what he says in late January about estimates of the
number of people who will suffer as the result of his two
year rule can be taken as foreshadowing budget day.
The amount
of money scheduled to be cut from Human Resources next year,
$168 million, is less than the combined annual tax cuts ($206
million) given to the top 7,920 income earners in BC on the
first day after Campbell was sworn in to office. When combined
with the further $70 million scheduled to be cut from the
Ministry of Children and Family Development next year, almost
a quarter billion dollars is scheduled to be taken from BC's
most needy in the last year before the next election.
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