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HST COULD COST B.C. SCHOOLS $24 MILLION, ASSOCIATION FINDS
November 8, 2009
VICTORIA – The Liberals’ Harmonized Sales Tax could be a $24 million hit to annual operating costs for B.C. schools according to estimates from the B.C. Association of School Business Officials, the New Democrats said today.
“Our school classrooms are already reeling from B.C. Liberal cuts and downloaded costs, and cannot afford a $24 million blow from the HST,” said New Democrat finance critic Bruce Ralston.
“During the election campaign, the B.C. Liberals promised to protect education, and they said they would not bring in the HST. It’s beyond belief for the government to make children and their families pay the price for the B.C. Liberals’ betrayals.”
The BCASBO stated in a letter to Finance Minister Colin Hansen that “B.C.’s K-12 Section will face significant cost increases due to HST”, and estimated the new tax will cost B.C schools $24 million per year in additional operating costs.
Furthermore, the BCASBO estimates the HST would be a $14.7 million annual hit to the capital facility budget, and the impact of the HST on the current inventory of capital projects would be $111 million.
“In addition to the HST, school districts are struggling to deal with the costs of H1N1 and increased MSP premiums. Coming on top of the cancellation of over $100 million in annual facilities grants, these downloaded costs mean that fewer resources are going to classrooms,” said Ralston.
The HST, which the provincial Liberal and federal Conservative governments plan to bring in next July, will represent an estimated $1.9 billion tax shift onto B.C. consumers.
“The HST will drive up school districts’ costs for everything from school supplies to transportation costs to facilities maintenance,” said Ralston, who noted that the tax will hit families in the pocketbook and hurt many small businesses.
Carole James and the New Democrats have been holding the B.C. Liberals accountable for breaking their word on the HST, and for backtracking on their election promises to protect health care, education, and other vital services.
