BC Budget 2023: Delivering on renters’ rebate, mental health and addictions supports

With B.C. expected to wade into a more fiscally prudent era amid an anticipated recession, Budget 2023 is delivering on some key promises that many have been waiting years to see.

But top of mind for the province this budget is the increasing cost of living.

“I know some people are feeling particularly vulnerable right now – vulnerable about making sure they can pay their rent or their mortgage, about going to the grocery store, about day-to-day expenses that have gone up with inflation. Premier David Eby directed all of us in cabinet to have these people and pressures front and centre in our minds as we worked together across government to build Budget 2023,” Finance Minister Katrine Conroy said Tuesday, Feb. 28 in Victoria.

BC Budget 2023 by CityNewsToronto

As was expected, the proposed budget includes spending plans for health, affordability, housing, and mental health and addictions.

However, there are also plans to deliver new affordability credits, as well as monetary supports in the form of a long-awaited renters’ rebate and free prescription contraception for all British Columbians.

Here are some key takeaways from B.C. Budget 2023:

Affordability: credits, rebates

Various items in the province’s first budget since David Eby became premier include already-announced credits, as well as additions to those supports.

However, they also include new investments, some of which may sound familiar to many.

Free prescription birth control: A long-debated topic in B.C. and an election promise in 2020, Budget 2023 promises B.C. will be “the first jurisdiction in Canada to make prescription contraception free to all its residents” starting April 1 of this year. This includes a dedicated $119 million over three years, with the program set to cover a variety of contraception options including “most oral hormone pills, contraceptive injections, copper and hormonal IUDs, subdermal implants, and Plan B,” commonly referred to as the “morning after pill.”

“This is a win for health and it’s a win for gender equity in our province,” Conroy said. “It’s about time. The days of passing down these costs to women and trans and non-binary people are coming to an end.”

Renters’ rebate: Initially part of the BC NDP’s election promises in 2017, British Columbians will finally see the long-awaited renters’ rebate, which is set to provide “as much as $400 annually” to eligible moderate and lower income households starting in 2024. The BC NDP says this credit is “expected to reach more than 80 per cent of renter households, including people who receive income and disability assistance or support from the Rental Assistance Program (RAP) or Shelter Aid for Elderly Renters (SAFER).” The credit is available to households that make less than $60,000 a year, while a partial credit will be available to those making as much as $80,000 a year.

Climate Action Tax Credit: The province says it will enhance this credit each year so that, by 2030, 80 per cent of B.C. households “will receive a full or partial credit.” With the province’s Carbon Tax increasing yearly by “$15 per tonne until rates are equal to $170 in 2030,” Budget 2023 projects that “a significant majority” of people will “receive more through the enhanced credit than they pay in increased carbon tax costs by 2030.” “Ordinary British Columbians already struggling with costs can’t bear this cost burden alone which is why as the price on pollution rises, so will the Climate Action Tax Credit,” Conroy explained.

BC Affordability Credit: Announced last year, the province already doled out part of this support in October and January. Budget 2023 also includes a credit set to roll out in April.

BC Family Benefit: Three payments in January, February, and March were part of temporary affordability supports. The budget promises starting in July, there will be a 10 per cent increase to monthly payments, while there will also be an additional $500 annual top up for single parents.

BC Hydro credit: A $100 rebate for customers, announced last year and applied to bills in the latter months of 2022.

Related articles: 

• BC Ferries funding announced

• B.C. throne speech: Cost of living, housing, health among budget priorities

• B.C. Budget 2022: Where are your tax dollars going?

Mental Health and addictions and health

A massive increase in funding for mental health and addictions support is being announced in Budget 2023, with $1 billion in new cash to expand services. This is up from the promises made in Budget 2022, when the BC NDP announced $10 million for this sector over three years.

“Mental health is health,” Conroy said.

The $1 billion is part of an overall $6.4 billion allocated to the health-care system. The portion for mental health and addictions is being divvied up as follows:

• The province says more than $586 million will go toward adding treatment and recovery beds across B.C., developing and rolling out new supports for recovery, as well as funding wraparound supports and expanding Indigenous treatment centres.
• Budget 2023 allocates an additional $184 million to accelerate the response to the illicit drug toxicity crisis, with promises to support enhanced prevention and early intervention for children and young adults, safe prescription alternatives, the expansion of mobile response programs, and the creation of culturally safe Peer Assisted Care Teams led by Indigenous people.

“This will all feed into our work to develop and implement a new model of seamless care, one that supports people through their entire recovery journey, from detox to treatment to aftercare,” Conroy said.

Other funding in health is as follows:

• $11.2 billion over three years to fund health-care infrastructure, with money going to previously approved projects. Those include the new St. Paul’s Hospital in Vancouver, the new Surrey Hospital and cancer care centre, and the redevelopment and expansion of Royal Columbian Hospital.
• Previously announced funding of $19 million over three years as part of the province’s decriminalization pilot program.
• Cancer Action Plan: Cancer research, treatment, and prevention funding announced this month as part of B.C.’s new plan, totalling more than $440 million.

Housing

“As always, housing remains a priority for our government,” Conroy said.

Budget 2023 promises “to take action on affordable and attainable housing by investing an additional $4.2 billion over three years.” The funding, the province says, will help it deliver on its overall “refreshed housing strategy,” with more details expected this spring.

Some of the housing investments outlined in Budget 2023 are as follows:

• $1.7 billion over three years to support the building of thousands of new homes through Building BC and BC Housing programs
• $575 million over three years ($1.1 billion over 10 years) for post-secondary institutions to create more student housing spaces in places with the highest demand
• $66 million in “annual operating funding” for new housing developed through the Rapid Housing Initiative, launched in 2020 to address the needs of vulnerable Canadians

Budget 2023 also introduces what the province calls a “new property transfer tax incentive” to encourage new purpose-built rentals, building on an exemption provided in the 2018 budget.

In addition to the renters’ rebate, named the Renter’s Tax Credit in Budget 2023, the province is also promising more supports and protections for those who rent in B.C. Funding includes millions to help protect renters from evictions, to build new units, and address supply.

There are also promises to take “new actions” to tackle homelessness, with Budget 2023 providing “over $1.5 billion in operating and capital funding over three years to further this work.”

This year’s budget is building on the Rapid Response to Homelessness program launched in 2017 and 2022.

Economic outlook

B.C.’s updated forecast for Q3 of the 2022/2023 fiscal year projects a surplus of $3.6 billion – lower than the $5.7 billion surplus forecast in the fall. This is due to increased spending on things like the Renters Protection Fund and the addition BC Affordability Credit payment for this coming April. It is also due to “$2.7 billion for supplementary estimates,” with Conroy adding the difference between the estimates is due to “putting the surplus to work for people now.”

“The projected surplus will continue to change as final revenues and the resources are determined and as we continue putting resources to work for people,” the finance minister explained.

Conroy says the province knows this year’s surplus “is unlikely to happen again,” adding that’s why supplementary estimates are also being tabled. She notes B.C. is heading for a deficit – one that’s also quite large.

“It’s been a difficult few years but B.C.’s economy has remained resilient,” Conroy said, pointing to factors like the pandemic as well as rising inflation as adding pressure in recent times.

Last year saw inflation reach a 40-year high in B.C., she added.

From surplus to deficit

The budget estimate for 2023/2024 is a deficit of $4.2 billion, with the following fiscal year falling to $3 billion.

“Our overall debt for 2022/23 is lower than what was projected this time last year because of our surplus. It’s important to note our debt is expected to increase and that will finance the operating and capital investments we need now. Knowing that, our debt burden remains manageable,” Conroy said.

“Budget 2023 builds today for a stronger tomorrow. These uncertain times require careful, thoughtful action, and the choices this budget makes addresses not only the uncertainty ahead of us but also moves on long-standing priorities.”