BC Municipal Spending Watch 2008
For more details
British Columbia Municipal Spending Watch
Full Report
Matthew Armstrong, Economist, Western Canada
Laura Jones, Vice-President, Western Canada
With few exceptions, operating spending at the local level in BC has grown at rates that greatly exceed population and inflation growth since 2000. These spending increases have been financed through substantial growth in property taxes, user fees, and transfers from senior levels of government.
The first comprehensive review of British Columbia’s municipal finances reveals that growth in government operating spending has consistently exceeded population and inflation growth in most municipalities across the province in recent years. In fact, just 3.8 per cent of BC residents live in a municipality that was able to keep spending growth below population and inflation growth between 2000 and 2006. Further, there is a wide difference in the level of operating spending per capita, even in municipalities with roughly the same population.
From 2000 to 2006, population and inflation growth in BC was 20.1 per cent, while aggregate operating spending at the municipal level grew by 35.7 per cent. In other words, the growth in spending at the municipal level was 1.8 times higher than population and inflation growth during that period.
These findings raise important questions for businesses and homeowners alike. What is driving these spending increases? Is this growth in spending sustainable? What, if anything, are municipal leaders doing to control costs? Why are some municipalities spending much more per capita than others?
