 Good morning everyone and thank you for joining us at the annual budget lockup I'm I'm pleased to be presenting this Three-year plan in person today on the land of the Lekwungen speaking people's a song He's in a squimalt nation and I'm honored to be on the territory And I'm honored to present you with the details of BC budget 2023 And I have to say how happy I am to see people here and downstairs Even though I'm bringing a rural angle to the budget. I didn't expect to bring rural weather to budget day So very happy everybody's here We know that British Columbia is a great place to live This is a beautiful diverse province with strong caring communities But people are facing real challenges and we know we are not alone Global inflation is squeezing household budgets everywhere. It's harder to afford groceries or find essential medication for your kids Then there's the added pressure of economists predicting the global slowdown The province can't control global forces But we can make choices that help protect British Columbians and build a stronger more secure future We all want when times are tough. You need government in your corner Budget 2023 reflects the improvements we need to see today and the promising future We need to see on the horizon for ourselves and for our families this year's budget improves health care builds more homes helps people with increased costs and ensures our communities are safe and healthy because we are strongest when everyone rural and urban Shares in the benefits of a strong economy Now before we get to the fiscal plan Let's look at the updated forecasts for the current fiscal year as we told you in the fall We projected a five point seven billion dollar surplus at the end of the second quarter today We are projecting a three point six billion dollar surplus The difference is we are putting the surplus to work for people now We're immediately investing in helping people with cost of living challenges This new spending includes another round of the BC affordability credit in April and it helps more people make ends meet Once again approximately 85 percent of BC will receive the credit and about half of those will get the full amount and It's income tested which means the lower your income the higher your payment The new spending also includes the rental protection fund that was announced in January The fund protects people from evictions and rent hikes while preserving rental buildings And there is two point seven billion dollars in more spending to support British Columbians through supplementary estimates The projected surplus will continue to change as final revenues in the resources are determined as we continue putting resources to work for people As always will provide a full account of the provinces financials for 22 23 this summer as part of public accounts We know this year's surplus is unlikely to happen again Which is why we are tabling supplementary estimates along with this budget This is an important step to secure more spending authority and get this surplus money to work for people now Because we know that supporting British Columbians will build a stronger province for us all Support like the one billion dollar growing communities fund which will go directly to growing communities right across the province It will support the improvement of local roads and and water facilities and build more community centers pools trails and arenas From interest infrastructure to connectivity to emergency preparedness These investments will make a positive difference for people businesses and communities It's been a difficult few years But BC's economy has been resilient in the face of pandemic geopolitical and climate-related challenges Despite it all we have seen strong economic performance in areas such as our labor market and home building But there are also areas where activity is slowing BC's labor market is strong with the unemployment rate near here's historic lows at 4.4 percent in January 2023 But there are high-jaw vacancies in some sectors like construction Accommodation and food services the increase in workers has not kept pace with the demand in these areas and we've heard at first hand from businesses We're seeing people spend more on services like tourism and hospitality Meanwhile increased rates and prices are affecting consumer spending on goods particularly big ticket items like vehicles Nominal retail sales growth in BC is softened rising by just 2.7 percent in 2022 on Housing construction activity continues to be strong with the second highest number of housing starts on record last year at around 46,700 units that's well above the 10-year historical average at the same time We've seen home sales fall significantly in response to increased interest rates in 2022 MLS home sales decreased 35 percent and activity was well below average in the second half of the year The MLS average sale price has also softened falling almost 18 percent from February 22 to January 23 As always housing remains a priority for our government and we continue to monitor these trends closely High prices are affecting the cost of living for households inflation in BC reached 40-year high last May and declined to 6.2% in January We are seeing the worst effects and how much we are paying for food shelter and transportation in Response to rising inflation central banks have raised interest rates faster than expected Affecting the cost of borrowing for people as well as the province the latest update is that Bank of Canada single its intent to hold rates steady for now Regarding trail trade the value of goods exports was strong on an annual basis with growth of almost 20 percent in 2022 however, the value of goods exports started to decline in the latter half of the year in response to lower commodity commodity prices exports are down 25 percent since May Meanwhile service exports continue to recover as tourism picks up as people continue to resume travel The economic outlook for most of BC's major trading partners for example the rest of Canada US China Japan has weakened That's due to a number of factors including higher interest rates and uncertainty associated with the war in Ukraine And while it may feel like the pandemic is over in some region It still remains a risk globally that could affect labor trade and supply chains So let's turn to the outlook for BC's economy in budget 2023 We are forecasting that BC's economic growth will slow to 0.4 percent in 2023 The slower near-term growth projection largely reflects the combined effects of elevated price pressures and tighter monetary policy Working their way through the economy. This isn't unique to BC We're expecting a similar slowing throughout Canada and the world looking beyond 23 economic activity in BC is expected to gradually recover and you can see real GDP growth is forecast to rise in 2024 and then range between 2.2 and 2.4 percent annually over the medium term The ministry's forecast for BC is similar to the average outlook provided by the economic forecast forecast council with prudence in the near term So budget 2023 builds today for a stronger tomorrow These uncertain times require careful thoughtful action and the choices this budget makes address not only the uncertainty ahead of us But also moves and long-standing priorities budget 2023 reflects the priorities we've heard from British Columbians and in the face of challenges of global inflation budget 2023 continues to help people here at home with costs Through the key investments. I'm about to highlight. I'll show how budget 2023 will strengthen and health and mental health care so people can find and stay connected to the care they need We'll take bold action to make homes more affordable and attainable for people in BC We'll ease the stress on household budgets and put money back in people's pockets to help with everyday costs Increase services and support the fosters safe and healthy communities and set the groundwork for a strong sustainable economic Process through BC's greatest resource people We are all better off when a good life is in reach for everyone who calls BC home and by helping people Families businesses and communities today budget 2023 builds a stronger more secure future for everyone Before I begin with our investments, I'd like to speak to our long-term fiscal sustainability at the as a province This sustainability is essential We're focused on finding a way back to balance but not at the expense of British Columbians and the services we all rely on This is why once again we present a plan with declining deficits Starting at 4.2 billion next year and declining to 3 billion by 25 26 We have focused on people since day one and budget 2023 expands on historic investments made since 2017 to help build a stronger more secure BC for everyone This includes more than 16 billion in new ministry operating funding and 10 billion more in capital funding At the same time we remain prudent and significant contingencies allocated to specific areas to prepare for any unknown costs This includes 7.5 billion for the shared recovery mandate 1 billion for ongoing pandemic response and recovery measures and 750 million over the next two years to support recovery from climate emergencies like the November 2021 flooding 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 that 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 other key metrics the taxpayer debt to GDP ratio is expected to remain below 25 percent across the fiscal plan lower than many other provinces and Taxpayers supported debt at the end of the three-year fiscal plan is forecast to be 99 billion People want to know that strong health care will be there when they need it at the same time coming out of the Pandemic health care workers have never been under such great stress These challenges are not unique to BC Which is why provinces have been working with Ottawa to help us deliver better care, but we're not waiting We need care we can count on now Budget 2023 takes the next steps to strengthen BC's health care system with 6.4 billion dollars in new investments over the fiscal plan This funding is dedicated to support the growing demand for health services as our population increases and ages This includes an initial investment in the cancer plan Minister Dix recently announced with more investments to come in future years as the plan rolls out Our health care system is only as strong as the people who keep it running That is why budget 2023 delivers a new deal for family doctors and support species health care workers It will help us recruit train and retain more family doctors nurses and other high allied health professionals Mental health is health and we're making the largest investment in mental health and addiction services in BC's history Combined with our capital investments We will bring the new mental health spending to more than a billion dollars which includes the budget investing 867 million over three years Our focus will be on expanding supports across the spectrum of care for people struggling with addiction We'll do this by expanding the number of treatment and recovery beds By creating new recovery communities to support those who have gone through treatment and by delivering more indigenous treatment centers And wraparound services to youth 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 after care This includes new investments for the road to recovery initiative in partnership with Providence health and the Vancouver Coastal Health The same goes for the Redfish Healing Center in Coquitlam a first of its kind in North America at the center Complex mental illnesses and addictions are treated simultaneously with this year's budget We will be expanding the Redfish model of care So more people have access to these services closer to home and we're continuing to put funding aside to support our continued health response to COVID-19 With new budget 2023 investments health and mental health annual funding has increased by nearly 10 billion since 2017 Total investments will grow to more than 30 billion a year by 25 26 and will support improved health care services for British Columbians It's about taking action now to deliver better care for more people We know that housing is top of mind for people throughout the province an Affordable accessible home is part of what it means to build a good life in BC For too long the housing market worked well for investors Speculators and banks not for everyday people After five and a half years of work. We're starting to see results 40,000 homes are built or underway and we're seeing record construction on new rental housing Budget 2023 includes a bold housing action plan with more than four billion in new operating and capital investments to build on the work done so far Work like lifting strata restrictions setting new housing targets for communities that need it and creating a rental protection fund to preserve Older rental units the details of the plan will be released this spring And it will take new steps to build and unlock more homes for middle-class families for indigenous peoples and for renters and those with the greatest needs We're also creating more student housing spaces throughout BC to help ease pressure on local markets and build on the thousands of student beds Already open or underway. We're also increasing housing and services near public transit hubs around the province This year's budget will fund more supportive housing and strengthen existing programs that help vulnerable people keep their homes And we're adding hundreds more units of complex care housing And we've done a lot of work already and there is still a lot of work to do Budget 2023 is investing in the delivery of homes for all kinds of British Columbians Because too many people are struggling to find a decent home even if they have a good income Not only are we investing in new housing We're clearing the way for more housing with zoning changes and a faster permitting process Since 2017 we have invested over four times the amount of annual operating spending on housing initiatives and in budget 2023 We have 1.9 billion dollars budgeted for next year alone on top of this There is 800 million dollars in capital spending planned for housing for next fiscal year Our economy is attracting talent from around the world and we're looking ahead to another year of strong population growth With a predicted 1 million job openings in the next decade. This is great news The best we can make for our future is on the people of bc And that's what we're going to do Budget 2023 invest 480 million in our future ready plan to grow the most inclusive and talent driven workforce in Canada The details of the plan are coming this spring And it will take action to close the immediate and long-term skills and labour supply gaps The plan helps to ensure that people do not face barriers and building the skills they need to succeed Today and in the years to come We've heard from businesses across sectors that their biggest challenge right now is finding skilled workers And our plan is to help employers across Access the talent they need including funding to assist small and medium-sized businesses And help them find and implement technology and practical solutions to current labour market challenges and prepare for changing global economy Budget 2023 also supports a clean economy and climate resiliency When we think about tomorrow's economy sustainability and innovation are top of mind We are guided by our clean bc roadmap to 2030 a continent-leading plan to reduce emissions while creating family supporting jobs and strong communities Budget 2023 builds on our clean bc commitments with new targeted improvements and investments in active transportation networks across the province We're also investing in more emergency management capacity for communities to better respond to fire flood or heat emergencies And we are providing more resources to speed up and modernize the permitting process to unlock more economic potential throughout the province We know bc is a wealth of economic opportunity when done sustainably and responsibly And it's where we see the results of a new approach to reconciliation with indigenous peoples The future lies in a rights-based partnership approach to decisions respecting land water and resource stewardship And that's our focus. That is why our budget invest 21 million dollars to advance our work on old growth and spore stewardship With indigenous communities who play a critical role in these temporary deferrals bc's climate action plan is a key part of canada's plan which in turn is part of a global solution to reduce emissions Carbon pricing is an important part of our clean bc roadmap Budget 2023 outlines a path ahead through a made in bc carbon output pricing system for industry And in line with the federal government's requirement a carbon tax that increases by $15 per ton each year until the price reaches $170 per ton in 2030 But ordinary british colombians already struggling with costs can't bear this cost burden alone Which is why as the price on pollution rises So will the act climate action tax credit Budget 2023 will deliver more money to more households through an enhanced climate action tax credit Where a family of four would have received a total of $500 last last year the same family will receive almost $900 starting in july A significant majority of people are projected to receive more through the credit than they pay in increased carbon tax costs by 2030 I know some people are feeling particularly vulnerable right now Vulnerable and won't make 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 Evie directed all of us in cabinet to have these people and pressures front and center in our minds as we work together Across government to build budget 2023 This budget provides new targeted supports for people's people hardest hit by increased costs As mentioned the climate action tax credit has been increased and is one of the ways we're helping people with the cost of daily life In addition, we're also increasing the income ceiling so that more households can get the supports that they need Our goal is to have 80 of bc households receiving some portion of the tax credit by 2030 And starting next year Renters in bc will be able to claim the new renters tax credit This income test tested renters tax credit will give low and moderate renters Back as much as 400 dollars per year And we know that one third of all british columbians rent their homes And we expect it will benefit more than 80 percent of renters households We also permanently we will also permanently increase the bc family benefit Starting in july families with children will see an additional 10 percent on their monthly bc family benefit Single parents will be able to count on that 10 percent boost and as much as 500 dollars to top up their annual benefit amount When you look across 18 years this increase alone could provide a two parent family with two children with an extra $4,500 For a single parent with one child this increase will provide almost $12,000 Parents will have more support and flexibility to buy food or clothing pay the bills or even enroll your kids in extracurricular activities Altogether these three actions will give more than three billion dollars in supported targets for people with low and moderate income Well addressing the cost of living this doesn't mean just giving money back to people It also means removing barriers and providing better access to the resources that people need And when it comes to essentials having full control over your reproductive rights is at the top of the list Prescription birth control is a necessary health care not a luxury It's a vital resource for equity and equality And i'm happy to announce that as of april 1st British columbia will become the first jurisdiction in canada to fully cover prescription contraception We know costs vary, but it really does add up for someone who pays 25 dollars a month That's 300 dollars in savings every year and can be as much as 10 000 dollars in savings over their lifetime To address other costs of living we are expanding existing school food programs for kids throughout bc And we can make sure that no child has to learn on an empty stomach We are also helping students access post-secondary education by doubling student loans maximums This will increase from 110 to a total of 220 per week for individuals and from 140 to 280 per week for students with dependents This is the first increase to student financial aid allowances since 2006 To help british columbians relying on income and disability assistance to maycans meet We are providing more support for the first time since 2007 We are increasing the shelter rate for people who receive income and disability assistance Along with increases to emergency supplements and earnings exemptions And for too long the essential work of foster families and other caregivers has not received enough respect or Foster families will see their rates increase by 47 percent This will help foster parents cover the rising costs of essentials like food gas and clothing People need to feel safe in their home and their community Budget 2023 backs our safer communities action plan with a commitment of 462 million dollars In the fall we announced more support for policing including specialized rural police and enforcement programs as part of this plan These new response teams will monitor and address repeat violent offenders and help keep them off the streets And this new funding and budget 2023 will help improve access to justice by continuing to update the police act and adding more resources To the bc human rights tribunal as well. We are working to break the cycle of reoffending It begins with addressing the poverty trauma and health issues that brought the person to the justice system in the first place That's why we're making significant new investments across the spectrum of care People in crisis will be met early on by health care workers and people who understand what they're going through And it will free up officers to focus on stopping crime Budget 2023 will also include 10 more indigenous justice centers in partnership with the bc first nations justice council Bringing the total network to 15 These centers provide culturally safe and welcoming places that provide legal help Early resolution programs and support services for healing and wellness Addressing the overrepresentation of indigenous people in the justice system is a top priority Both for our government and for the bc first nations justice council Budget 2023 also provides significant new funding to support agreements under the 2022 shared recovery mandate This historic investment provides fair and reasonable increases to wages including significant inflation protection to bc public sector workers This will help to support and retain the people we all depend on Including those in health care and education to improve the essential services that british columbians rely on Overall, the fiscal plan includes 15.1 billion for the estimated costs of the mandate Capital spending over the three-year plan is increasing to 37.5 billion in budget 2023 We're delivering the schools hospitals transit highways and other infrastructure people rely on With the largest infrastructure investment in bc's history. This is a place to be for good family supporting jobs This investment a strengthens the economy directly and indirectly creating approximately 125,000 jobs over the three years And budget 2023 looks at all capital investments through an environmental social and governance lens This means being a leader on innovative mass timber construction Creating more child care spaces Incorporating energy efficient and low carbon design Creating a safer and more resilient network of infrastructure and creating more apprenticeship and training opportunities in local communities Particularly for traditionally underrepresented people who want to build a career in the trades Government continues to balance the near-term priorities with longer-term fiscal Sustainability and while there are risks of a global economic slowdown We remain committed and on track with the fiscal guardrails that have helped to guide budget decisions making since budget 2021 These and this includes the declining deficits higher levels of prudence and ensuring funding is targeted toward the most urgent of issues While keeping an eye on our debt and debt affordability We have seen how this approach has worked to build a strong economic recovery in bc And we will continue to support the province in tackling today's biggest challenges While balancing responsible fiscal management As mentioned earlier provincial debt is expected to increase to support the operating and capital needs of the province Our taxpayer supported debt to GDP ratio, which is measured as a percentage of our GDP remains relatively low And we expect it to grow to 23 by 25 26 Which is lower than many other provinces In the second chart the cost of servicing our debt remains very low Only 2.4 cents per dollar of provincial revenue is going toward interest payments in 22 23 And if there's anything we have learned or the past few years It's that going it alone won't work We can only succeed if everyone is on the journey with us We really are all in this together The budget is our map our compass to guide us forward as one And it makes us smart strategic investments to help bc through the challenges of today Budget 2023 puts more money in people's pockets and it addresses the barriers that continue to cause pressure in people's lives Budget 2023 improves health and mental health services and it supports safe and healthy communities Budget 2023 sets a stage to help us improve the housing markets and build a stronger cleaner economy for the future From new supports for families to help them get through the day to day to building new homes hospitals and schools for our communities To taking action to revitalize and refresh our healthcare system and investing in skills and education to help fill the new jobs of tomorrow Budget 2023 pays attention to today's very real challenges while planning for an even stronger future for our province I want to thank you all for your participation today and look forward to your questions later on today. Thank you