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2001 Legislative Session: 2nd Session, 37th Parliament

FIRST READING

The following electronic version is for informational

purposes only.

The printed version remains the official version.

HONOURABLE GARY COLLINS

MINISTER OF FINANCE

BILL 4 – 2001

BALANCED BUDGET AND MINISTERIAL ACCOUNTABILITY ACT

Contents

Definition and

interpretation

Prohibition against deficit budgets

Salary holdback

Payment of 1/2 of holdback for achieving collective responsibilities

Payment of 1/2 of holdback for achieving individual responsibilities

Making public a comparison of expected and actual results

Calculation of deficit or surplus, and operating expenses and revenue

Application of Act in relation to general elections

Regulations

Repeal

Commencement

HER MAJESTY, by and with the advice and consent of the Legislative Assembly of the Province of British Columbia, enacts as follows:

Definition and

interpretation

(1) In this Act, "operating expenses" means operating expenses accounted for in the consolidated revenue fund.

(2) In this Act, words and expressions have the same meanings as in the Budget Transparency and Accountability Act .

Prohibition against deficit budgets

2 The main estimates for the 2004/2005 fiscal year or for any subsequent fiscal year must not contain a forecast of a deficit for that fiscal year.

Salary holdback

(1) The salary otherwise payable under

section 4 (6) to (8) of the Legislative Assembly Allowances and Pension Act to each member of the Executive Council must be reduced by 20 %.

(2) A reduction in salary, under this section, of a member of the Executive Council is to be restored, in full or in part, to the member as provided in, and subject to, sections 4 and 5.

Payment of 1/2 of holdback for achieving collective responsibilities

4 Half of the 20% reduction in salary under

section 3, for a fiscal year, becomes due and payable to a member of the Executive Council on the next day after the public accounts for that fiscal year are made public, in the case

(

a) of the fiscal year 2002/2003 or 2003/2004 if, in the main estimates for that fiscal year,

(

i) a surplus was estimated and there is a surplus of at least 50% of the amount estimated,

(ii) a deficit was estimated and there is either a deficit of no more than the amount estimated or there is not a deficit, or

(iii) neither a surplus nor a deficit was estimated and there is not a deficit, or

(

b) of the fiscal year 2004/2005 or a subsequent fiscal year,

(

i) if, in the main estimates for that fiscal year, a surplus was estimated and there is a surplus of at least 50% of the amount estimated, or

(ii) in any case other than described in subparagraph (i), if there is not a deficit.

Payment of 1/2 of holdback for achieving individual responsibilities

(1) Half of the 20% reduction in salary under

section 3, for any period in a fiscal year when a member of the Executive Council was responsible for operating expenses other than of the Ministry of Provincial Revenue, becomes due and payable to that member on the next day after the public accounts for that fiscal year are made public, if the actual amount of those operating expenses does not exceed the estimated amount of those operating expenses for that fiscal year in the main estimates.

(2) Half of the 20% reduction in salary under

section 3, for any period in a fiscal year when a member of the Executive Council was responsible for operating expenses of the Ministry of Provincial Revenue, becomes due and payable to that member on the next day after the public accounts for that fiscal year are made public, if the actual revenue from sources specified by regulation of Treasury Board is not less than an amount specified by regulation of Treasury Board.

(3) Half of the 20% reduction in salary under

section 3, for any period in a fiscal year when a member of the Executive Council was without responsibilities referred to in subsection (1) or (2) of this section, becomes due and payable to that member of the Executive Council for expected results that are specified by regulation of Treasury Board, if the actual results for that fiscal year are the same or better than those expected results.

(4) If a member of the Executive Council, during the same period, had both the responsibilities referred to in subsection (1) of this

section and those referred to in subsection (2) of this section, no part of the reduction in salary under

section 3, in relation to those responsibilities, becomes due and payable to the member unless the conditions under both of those subsections are satisfied.

Making public a comparison of expected and actual results

(1) For a fiscal year, the "estimated amount" referred to in

section 5 (1), the "amount specified" referred to in

section 5 (2) and the "expected results" referred to in

section 5 (3) must be made public with the main estimates for that fiscal year.

(2) For a fiscal year, the actual surplus or deficit under

section 4, the "actual amount of those operating expenses" referred to in

section 5 (1) and the "actual revenue" referred to in

section 5 (2) and the "actual results" referred to in

section 5 (3) must be made public, together with the information required under

section 6 (1), accounts for that fiscal year.

(3) The "actual results" referred to in

section 5 (3) may be included in the applicable annual service plan report under

section 16 of the Budget Transparency and Accountability Act.

Calculation of deficit or surplus, and operating expenses and revenue

(1) For the purpose of sections 4 to 6 and 8, the deficit or surplus, and operating expenses and revenue, for a fiscal year must be determined and made public on the basis of

(

a) the government reporting entity used in the preparation of the main estimates for the fiscal year, and

(

b) the accounting policies and practices used in those estimates.

(2) Subsection (1) of this

section applies even if there is a change referred to in

section 11 (1) (a) [change to government reporting entity] , or

section 11 (2) (a) [change in accounting policies and practices] of the Budget Transparency and Accountability Act.

Application of Act in relation to general elections

(1) If there is a general election and the political party forming the government after the election is different from the political party that formed the government at the time of the election, this

section applies.

(2) For the purpose of ascertaining the payment due and payable under sections 4 and 5 to a member of the Executive Council appointed to that office before the date of the post-election appointment of a new Executive Council,

(

a) the reference in sections 4 to 6 to the public accounts for a fiscal year must be read as a reference to those public accounts or a quarterly report for that fiscal year, whichever is first made public after that date, and

(

b) the amount for a fiscal year of a deficit or surplus and operating expenses and revenue must be determined

(

i) if the public accounts are made public before a quarterly report, by reference to the public accounts, or

(ii) if a quarterly report is made public before the public accounts, by reference to the forecast of surplus or deficit and operating expenses and revenue contained in the quarterly report.

(3) Section 3 does not apply to a member of the Executive Council appointed to that office on or after the date of the post-election appointment of a new Executive Council until the earlier of the following dates:

(

a) the date after the election on which main estimates for the fiscal year in which the election was held are tabled in the Legislative Assembly;

(

b) the beginning of the next fiscal year after the election.

Regulations

(1) The Treasury Board may make regulations for the purposes of

section 5 (2) and (3).

(2) A regulation referred to in

section 5 (3) may prescribe differently for different members or classes of members of the Executive Council.

Repeal

10 The Balanced Budget Act, S.B.C. 2000, c. 21, is repealed.

Commencement

11 Sections 1 to 9 come into force on April 1, 2002.

Explanatory Note

This Bill provides for collective and

individual responsibility of all members of the Executive Council in achieving

(

a) no annual deficit in the 2004/2005 and all

subsequent fiscal years, and

(

b) other specific results.

Copyright (c) 2001: Queen's Printer, Victoria, British Columbia, Canada