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B.C. MLA pay freeze won't solve legislature inflation crunch

NDP house leader Ravi Kahlon agreed with BC Liberal and Green counterparts that lawmakers shouldn't get a raise while British Columbians are grappling with higher costs.
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An across-the-board cost of living increase for MLAs would have cost taxpayers another $600,540.12.

While the 87 members of B.C.’s Legislative Assembly won’t be getting a cost of living increase in 2023, a report estimated the budget to run the seat of government would balloon by nearly $13 million. 

At the all-party Legislative Assembly Management Committee’s Dec. 13 meeting, new NDP house leader Ravi Kahlon agreed with BC Liberal and Green counterparts that lawmakers shouldn’t get a raise while British Columbians are grappling with higher costs. 

A report from the closed-door Nov. 23 meeting of the finance and audit subcommittee assumed and budgeted a 6% consumer price index rise of $6,902.76 to the current  $115,045.93 base salary for lawmakers, who are eligible for additional payments if appointed to a committee. 

An across-the-board cost of living increase for MLAs would have cost taxpayers another $600,540.12.

“I'm pleased that the government has come to his senses on this,” said Todd Stone, the BC Liberal house leader, during the meeting.

David Eby already receives an additional $103,541.34 a year as premier for a total $218,587.27. Cabinet ministers and opposition leader Kevin Falcon are paid $172,568.80 annually. 

In last spring’s budget, the NDP government did away with the 10% penalty for each cabinet members whose ministry overspends. It amounted to a $5,551 raise per minister. 

Even without a pay raise for inflation, MLAs who were first-elected in 2017 are looking forward to June 2023. That is when they meet the six-year requirement to qualify for a pension.

A staff presentation, however, showed a proposed 2023-2024 legislature budget of $104.88 million — up $12.9 million or 14% over 2022-2023. Inflation is blamed for 48% of the increase. 

The budget submission, which is subject to Treasury Board approval, was temporarily stood down by the committee, pending further analysis from staff.

The proposed budget included spending $7.05 million more on Legislative support services, for a total of $43.3 million, and $5.1 million more on Members’ services, a total of $49.36 million. 

Those are both substantial increases compared to four years ago. In 2019-2020, Legislative services cost $32.23 million and Members’ services almost $41 million. 

Constituency office staffing and operations is $26.15 million of the proposed Members’ services budget. The biggest driver of cost increases is $3.9 million for a new constituency office funding formula that Stone called “excessive.”

“While it may be well-intentioned and there may be pieces of it that we could revisit in subsequent fiscal years, now is not the time to proceed with a multi-million-dollar increase to constituency office budgets,” Stone said. “One of the largest increases on a year over year basis that I think the assembly has asked for and presumably will receive when the government votes this through, in many years.”

Inflation, at almost $7.8 million, is the biggest pressure on Legislative support services, partly offset by $1.73 million in business expense savings and professional services reductions. 

Clerk Kate Ryan-Lloyd told the committee that the legislature is also facing increased energy costs. For example, the cost of steam to heat the Parliament Buildings has risen by $10,000 a month.

“We've relied upon natural gas price forecasts, as well, for other utilities, such as electricity and water, to inform the budget plan and are anticipating that those will account for about a $420,000 increase, or 25%, to utilities, materials and supplies managed by our legislative facilities team,” Ryan-Lloyd said.