How the province conducts its finances matters greatly to municipal taxpayers who are finding the grim news very hard to swallow.
S&P and Moody’s are the latest credit rating agencies to strongly scold the NDP for piling up deficits and debt and offering no plan to bring the books back to balance. Both downgraded their ratings and added a negative outlook.
Our life is about to cost a heck of a lot more thanks to the gross mismanagement of the province’s finances.
Local governments invest any spare cash and raise billions through the independent municipal finance authority for short or long-term financing and equipment. Municipalities will also benefit less from provincial largesse and grants on everything from roads and bridges to daycares. Business will be hampered.
In just two years, the Eby government has witnessed the deficit grow to $9.1 billion. Now his finance minister estimates the deficit this year will spike to $ 11 billion, but Moody’s says ballooning to $ 14.3 billion is more likely once the carbon tax is figured in. There’s no end in sight. Stay tuned for the full impact of the nasty tariff war, and what’s likely to be a recession to follow.
For even a casual observer, it’s clear provincial finances are in shambles and getting rapidly worse. This, after digesting all the recent property tax hikes in Greater Victoria.
A very strong dose of provincial and municipal fiscal prudence is one recommendation of course, but that doesn’t seem to be a serious part of the conversation among politicians. So, dear taxpayers, given the breathtaking news, it’s time to be inventive.
With the right recipe, it takes only an hour (and at least a week of maturing) to make four quarts of potent dandelion wine. If the recipe bombs, it’s a cheap way to unclog your drain. One way or the other, you can save a few dollars or temporarily drown your sorrows.
Stan Bartlett, vice-chair
Grumpy Taxpayer$ of Greater Victoria
