I can tell you this: the deficit for 2009-2010 will be $495 million maximum.
Premier Gordon Campbell, April 23, 2009
The B.C. Liberals have a new plan to stimulate the provincial economy - make B.C. the "Financial Fudge Budget" capital of the world.
Finance ministers from around the globe will travel to Victoria to learn from the masters - Premier Gordon Campbell and Finance Minister Colin Hansen - about how to craft the slipperiest, most expensive fudge ever seen.
That's the only conclusion one can draw from the most astonishing, outrageous and massive fudging of the B.C. budget in provincial history - and all done during an election campaign.
So while Campbell said that if re-elected the 2009-10 budget tabled in February with a $495 million projected deficit will be "pretty much the budget that's re-introduced", not even the premier's closest corporate allies believe him.
B.C. Business Council executive vice-president Jock Finlayson says he would not be surprised by a $2 billion deficit - and Finlayson sits on the province's council of economic forecasters.
Bank of Montreal Deputy Chief Economist Douglas Porter says he could "easily foresee a deficit of that magnitude."
And last year's "balanced budget" for 2008-09 could also show a deficit, says Helmut Pastrick, chief economist for Central 1 Credit union.
Pastrick has said consistently that B.C.'s deficit would be much larger than projected, most recently predicting it at about $1.5 billion.
What all this B.C. Liberal fudge means for ordinary and particularly lower income British Columbians is not a sweet treat but a coming bitter pill to swallow as the government begins dramatically slashing public services.
For even if Campbell decides to temporarily run a much bigger deficit than he promised to deliver, it will still require massive spending cuts and/or a significant tax increase to keep the red ink from staining the B.C. Liberals permanently pink.
The B.C. Liberals have already promised $2 billion in spending cuts over three years through "administrative and other savings" - want to bet that number goes way up?
There's another big factor - almost all public-sector union contracts expire after the February 2010 Olympic Games - and with B.C.'s economic disaster status, expect a nasty round of bargaining as the government tries to downsize employees faster than a bobsled on pure ice.
But will business groups be up in arms like when the 1996 NDP government brought in a $355 million deficit after projecting a balanced budget in that year's election? Will the National Citizens Coalition again finance court challenges against government fraud?
Not a chance - but these hypocrites should be embarrassed when their own business-funded B.C. Liberals' fudge make the NDP's past mistakes look like penny candy.
Read more from Bill Tieleman at www.thetyee.ca Hear Bill Mondays at 10 a.m. on CKNW AM 980's Bill Good Show. Email: weststar@telus.net Website: billtieleman.blogspot.com
