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December 18, 2006

Over $1 billion in Own-Source Revenue Unexplained

In September Finance Minister Carole Taylor reported that over next three years the province expects $287 million more in "own-source" revenue from school boards and health authorities than it estimated in its February budget. Own-source is a euphemism for things like the private payments made by 1,100 patients for MRIs at St. Paul's and Mt. St. Joseph's, school fees that have been ruled illegal by the court, revenue from junk food sold in vending machines and dozens of other things that have been in the news over the past year. Of course, it also includes many less controversial items, from fees charged to foreign students to revenue from hospital parking. When Taylor revealed a windfall from own-source revenue, I submitted a freedom of information request for details on the funds and for any documents that explain the increase.

On October 18th the Ministry of Finance wrote: "This is to advise that we have transferred your request for records related to health authority own-source revenue to the Ministry of Health … because these records are in the custody and/or control of the Ministry." On December 4th the Ministry of Health wrote: "The Ministry of Health does not have any records on the composition or details responsive to your request. The numbers reported in the First Quarter Report were developed by the Ministry of Finance …" This would be comical if it weren't for the arrogant manner in which the Campbell government treats the Freedom of Information and Protection of Privacy Act, and for the amount of money involved. Appendix A.5 in the Second Quarter Financial Report says direct revenue for school districts is estimated to be $502 million this year, and direct revenue for health authorities is estimated to be $592 million. If the Ministries have no idea how a change of $287 million over three years was estimated for those sources of revenue, then they are either incompetent or less than truthful.

The Ministry of Education provided an edited email and two highly aggregated tables in response to the request put to it for information on own-source revenue. The Ministry wrote that its Resource Management Department "confirms that its standard reports confirm the total amount of school-generated funds for all school districts and that school districts do not provide the ministry with a breakdown of the composition of school-generated funds in their districts." With $502 million at stake, and numerous policy questions on how those monies are raised, isn't it about time that the Campbell government made it its business to learn how that money is raised?

On October 23rd the Ministry of Finance was asked to take a second look to see if it doesn't really have some documents that relate to the $287 million projected increase. It responded saying that it needed to extend the time limit for a response because it had to consult with other public bodies. Yet another freedom of information request has been submitted asking for any documents related to that consultation. The time limits provided in the Act have now been exceeded for both outstanding requests. While this matter will be reviewed by the Freedom of Information Commissioner, the amounts also make it something that the Auditor General should examine.

 
 

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