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NPA makes strange promises on fiscal accountability

September 27th, 2011 · 39 Comments

Latest announcement from the NPA didn’t get much media play Tuesday because media were running around dealing with BC Ferries CEO resignation, shooting near a school, and the Municipal Convention That Ate Vancouver (UBCM).

So I’ve attached the news release in full, plus my thoughts here, which are: Sigh.

I don’t like being the wet blanket all the time. Or, let’s say, I’d rather be an equal-opportunity wet blanket, but only the NPA are making announcements so they are the ones getting all the criticism for the moent.

But really. How dumb do they think voters are?

The NPA used to promise all the time to keep taxes to the rate of inflation but somehow that didn’t always quite happen.

A million dollars in savings in a billion-dollar budget? Please. That’s no Ford Nation gravy train announcement. It’s like saying you’re going on a diet so you’ll only have one dessert instead of two, after your five-course meal.

And giving surpluses back to taxpayers? Oh, I don’t care what the Visionistas say about her having voted against giving back the surplus from the city strike. That was a one-time unique situation, different from trying to establish a permanent policy.

But saying you’ll give back surpluses is just bogus. There are all kinds of ways to juggle the books so that you don’t have a surplus. Or so that you do (like raising taxes more than you actually need to) so you can have something to give back and look like you’re accomplishing something when you’re not.

And, btw, the shift of taxes from business to residential has been happening steadily for the past three years.

Oh my gosh, can the NPA not do better than this? I was hoping for more.

Anton Announces Common Sense Tax Measures: Year-end Surpluses will be Returned to Taxpayers

Vancouver, BC– NPA Candidate for Mayor Suzanne Anton announced today that, when elected, the NPA will return year-end capital and operating surpluses to taxpayers as part of its fiscal plan for more accountability at City Hall.

“Vision Vancouver and COPE are holding back our city’s prosperity,” said Anton. “While taxes, fees and the burden of red tape are rising, residents and business owners are being left out of decision making at City Hall. That will change when the NPA is elected in November.”

Anton announced the NPA prosperity platform will include fiscal and taxation commitments to:

  • return budget surpluses directly to property taxpayers
  • cut at least $1 million in ineffective Vision Vancouver pet projects from municipal budget
  • set a cap for any future operating spending increases
  • continue the NPA fair tax shift to help keep Vancouver small businesses competitive

Estimates at the end of the second quarter of 2011 project the City of Vancouver’s operating and capital budget surpluses to exceed $7.5 million.  In 2008, Gregor Robertson inherited a $15 million surplus from the NPA.

“When City Hall takes your tax dollar and doesn’t use or need it by the end of the year, that money should go back to taxpayers,” explained Anton. “In the last three years city operating and capital surpluses have amounted to millions of dollars. That money belongs to Vancouver taxpayers and should be returned and not spent on year-end projects.”

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  • Julia

    I would like more details because some of those statements could be more significant than they first appear.

    The tax shift being one.

  • Michelle

    What are you talking about Frances?
    I see no strange promises. Keep looking at the ones Vision and Robertson pushed through during their campaign three years ago… start with using the death of that poor woman and go to the solving of homelessness, housing… zilch. Only trying for air.
    Be fair.

  • jesse

    “continue the NPA fair tax shift to help keep Vancouver small businesses competitive”

    That a euphemism for higher residential property taxes and permit fees, right?

    If true I say bravo, but good luck selling that one the electorate. How many small business owners are left in the City anyway?

  • brilliant

    Is this any stranger (or believable) than Vision’s promises of “transparency” in government in 2008?

  • Julia

    Jesse, do you think it is fair that you buy every last city service at 48% of its actual cost? If the situation was reversed, would you be looking for someone to fix it?

    We want jobs and we want prosperity, so we need to put our money where our mouth is.

  • Baran

    7.5 million divided between ~270,000 households, that’s less than $30/household. No, thanks, I don’t need that back. I’d much rather see that invested in our city, or kept in the coffers and put towards social programs. There are lots of problems in our city and many programs that can benefit from 7.5 million.

  • Julia

    I am not sure it needs to be an actual refund but the annual surplus is not shown as any sort of carry forward into the subsequent years budget as an offset.

  • brilliant

    @Baran 7
    Trouble is it ends up going to flaky stuff like front yard wheat fields.

  • Julia

    what bugs me about it is that they ask us to choose between fire and police when in reality there is enough left over in the previous year to perhaps have both…

  • spartikus

    7.5 million divided between ~270,000 households, that’s less than $30/household.

    Less than that – assuming businesses will also receive a refund.

    Businesses tax makes up roughly 50% of total tax revenue for CoV.

    So each household would get about $15.

    Assume 10 minutes of staff time per household to process and mail. Plus postage.

    You’d get. on average, about $12.

    Conversely you could open a couple more after-school care locations for working parents.

  • spartikus

    Trouble is it ends up going to flaky stuff like front yard wheat fields.

    This just in – Lawn to Loaves continues to be $5000.

    I would like to see the NPA produce a list w/ costs of the alleged “flakey stuff”.

  • Glissando Remmy

    The Thought Of The Day

    “Every time when one doesn’t want their money back from the City, the City Hall has got to come up with… creative accounting!”

    Yay, goh-lly!

    “7.5 million divided between ~270,000 households, that’s less than $30/household. No, thanks, I don’t need that back.”

    says Baran…

    Let these money on the table and guess what? Unorthodox ‘massage parlor’ techniques will follow thru.
    Pet projects of all kinds.
    For example, selling an asset (whose market value is high but book value is low) to create non-operating profit that offsets operating loss.

    Unlike cooking the books, creative accounting is generally legal. Euphemistically also called financial engineering or earnings management.
    Not that is anything wrong with tha,t if you ask the powers that be at the VCH.

    And yeah…I’ll leave the creative financing… to the Renewal gurus.

    We live in Vancouver and this keeps us busy.

  • Paul T.

    “NPA makes strange promises”

    You know I really can’t argue with Frances that the idea of common-sense in this city is strange to us. No matter what the extra amount comes to — one penny or a thousand dollars, it doesn’t matter. The fact is, it’s your money. Not Geoff Meggs’ or Gregor Robertson’s.

    Let’s say your co-worker is heading to the store, they ask you if you want anything and you get them to grab you a bottle of juice (Happy Planet of course). You hand them a 5 dollar bill. Now I was always taught by my parents to return the change when you do something like that. By not giving that money back to us, the city is just keeping the change. Sure it’s not a heck of a lot, but still, it’s not theirs.

    I know accountability isn’t as flashy as wheat or chickens or bike lanes, but we do need elected officials that respect that accountability is job one.

    So is this announcement strange? Sadly, yes. Hopefully after November 19th it won’t be strange anymore.

  • ICAMP

    Re: flaky stuff. Seems to me that in places that heave community gardens, they have seen increases in property value and community involvement. Further,in regard to the comments about homelessness, had previous civic governments lived up to their responsibilities we wouldn’t have had such a massive problem to deal with.

    How long can an elephant in a room be ignored?

  • Max

    re ‘Lawns t o Loaves’ continues to be $5,000

    Many of us read a recent letter published in the Vancouver Sun, from a local inner-city school teacher begging for help with providing children at that school with snacks, lunches, socks, shoes etc.

    $5,000 would have gone a long way in helping these kids, rather than providing a privleged few with a couple of loave of bread and a symbolic gesture.

    For some, it puts things into perspective of where priorities should lie and where they do lie.

  • spartikus

    What level of government is responsible for funding schools in this province, Max?

  • Baran

    @brilliant #8

    Global change and its impact on food security is NOT flaky. It’s more than legit, and its magnitude has been greatly underestimated by federal and provincial governments. I applaud a local government or politicians (read: Peter Ladner) who attempts to address food security.

  • brilliant

    Cluck cluck the sky is falling,the sky is falling!

  • Agustin

    @ Paul T. – deciding what to do with budget surpluses is separate from accountability. It’s a policy question.

  • Paul T.

    @ Agustin #19 – I disagree. I believe accountability has to be judged on everything a government body does. An accountable government would not keep money it did not need. That’s especially true on the civic level.

  • Sean

    Budgeting is an exercise in predicting the future, and as such it’s an inexact science. I have what most people would probably describe as an iron-clad control over my household expenses, but I still go over and under my budget by various amounts each month. So I bank the small surpluses and use them in the months that I run the small deficits. I don’t sweat the differences as long as the imbalance doesn’t go too far one way or the other.

    The city budget should be the same way. If there’s a budget surplus one year, it should go towards next year’s budget. If a multi-year trend of surpluses or deficits, then the overall budget needs to be adjusted.

    I realize that it’s not quite that simple because of legislation that restricts the City’s flexibility (I understand that it’s prohibited from actually running a deficit, for example) but still the principle of using the surplus to offset next year’s budget is the approach I’d prefer to see taken.

  • F.H.Leghorn

    @spartikus: Everyone knows the provincial Ministry of Education funds K-12. Their budget (the second largest behind Health) has grown every year despite falling enrollment and mediocre student achievement.

    Local boards routinely loot operating budgets to satisfy teacher salaries and benefits packages most of us can only dream about. Teachers with 12 years on the job work half as much (37 thirty-hour wks/yr) and are paid twice as much ($72K) as the average taxpayer.

    Their union’s intransigence, crackpot ideology and de facto control of the provincial NDP are legendary. If they really cared about child poverty they would restrain their contract demands. They have no respect for the law, no respect for the truth and no respect for the rights of others.

  • spartikus

    Everyone knows the provincial Ministry of Education funds K-12…[snip extraneous teacher bashing]

    So why is Max using it to bash CoV budgeting?

    Lawn to Loaves was part of the grant package the CoV makes every year. Suzanne Anton approved that budget. Proposals come forth, staff sort them and make their recommendations, Council approves it.

    In years past the NPA has funded a Wooden Boat festival and other such things.

    Getting rid of these grants entirely is certainly a position one can take, but so far I haven’t seen anyone make that argument.

    As for the rest, we live in a world where the top 1% has seen their share of national wealth double to nearly 40%, a world where the wages of middle and lower classes have stagnated for decades.

    The top 1% of income earners are more than delighted to see people like you turn, not on them, but on each other.

    They’re laughing in fact.

  • F.H.Leghorn

    Bashing? Because teacher salaries exceed $60K/yr they are in the top 10% of Canadian salaries. The other terms are specified in the current collective agreement (imposed, like all the others, after an illegal strike and after accepting a $5000 signing bonus and a sizable increase, not stagnation).

  • boohoo

    $5000 signing bonus? I wish!

    How horrible that we should pay teachers a high wage, I mean come on–education? What a waste.

  • MB

    @ Leghorn, I know several teachers. Your portrayal of them is way off base and inappropriate.

    STUDENTS have eight weeks off in summer, but most teachers are working for two additional weeks (a week before & after school sessions), yet they have eight weeks unpaid leave. A hefty portion of teachers also do not spend as much time off during spring and fall breaks as students.

    A huge number of teachers put in 15 hour days, or 80+ hour, six-day weeks during marking and reporting periods, much of it spent over many consecutive unpaid evenings secluded in the study at home.

    And $72K? That is not the starting salary. Only the teachers with several years of experience attain that level, but also have the stress on their health to account for, especially in public high schools where teachers have to deal not just with more knives and deliquency and poverty than ever before, but with overbearing parents who expect teachers to mold their kid into perfection, and hold them personally responsible for every inconsequential failure.

    Guidance counsellors may be the exeption. My neighbour was a councellor at Van Tech and he was home everyday at 5:00, and had the full eight weeks off in summer. This guy has a masters in psychology, but acted against his neighbour (moi) like any of the deliquents he counselled when he vandalized my property for totally unjustified reasons. Just goes to show that going on to higher education sometimes is no guarantee that you’ll be a better person.

  • Baran

    @ brilliant #18

    wow, great contribution to the discussion.

  • brilliant

    @Baran 27
    Sometimes the ridiculous hysteria of the preceding post can be summed up in one pithy sentence.

  • boohoo

    brilliant,

    Your line of thinking reminds me of this:

    http://politicalhumor.about.com/od/environment/ig/Environment-Cartoons/If-Global-Warming-Is-A-Hoax.1-Bh.htm

  • bc bud

    nothing pisses off the rightwing in this province more than the BCTF – its the one union the bc liberals, the corporate media, the fraser institute, cannot kick around, as evidenced by the last strike in which the public was firmly on the side of the teachers …

  • Max

    @spartikus #23:

    I wasn’t ‘bashing’ the funding of K-12, I was making a statement that since given many kids don’t have proper shoes, socks, breakfasts lunches etc, and that a Vancouver teacher has been asking the public for help in donating these items – that the $5,000 used for a symbolic food learning experience, that few will benefit from, could have gone along way to help support kids that really need the help.

    However, if you want to talk about the K-12 funding tied in with the above…)from the GS – Janaury 2011)

    In fact, in terms of educational outcomes, food in schools is one of the best things to spend money on. That’s according to Susan Lambert, president of the B.C. Teachers’ Federation. The province should have postponed the rollout of full-day kindergarten (which began in 2010), she told the Straight in a phone interview. They should cut StrongStart B.C. early-learning programs—another Liberal project. Instead, she said, the money should be used to provide a breakfast-and-lunch program to all kids who need it.

    “The federation, for how many years, has talked about how hungry kids can’t learn,” Lambert said. “It’s fallen on deaf ears for a long time.”¦The federation is in support of all-day K. But in my view, instead of making a commitment to it, that money should have been channelled into areas where kids are going without.

    Meanwhile, Patti Bacchus tweeted this:

    @pattibacchus
    pattibacchus Interesting read for parents of preschoolers – Delay Kindergarten at Your Child’s Peril: http://nyti.ms/nnMXp6

    *******

    So which is it – the BCTF either supports the all day kindergarten or they don’t, regardless of who brought it in. Rght now – mixed messaging depending on what political agenda is being pushed.

  • Phil

    @ Leghorn 22
    The thing I don’t understand is, why shouldn’t teachers be paid well?

    Is it because it’s an easy job? Do you think anybody could do it: control a room of 30 kids for 5 hours a day *and* teach them something at the same time? Easy?

    Or is it because you don’t think teaching our kids is important. Is that it? Do you figure that it’s a low priority for our society, so we shouldn’t pay or treat teachers well?

    Just asking.

  • spartikus

    that the $5,000 used for a symbolic food learning experience, that few will benefit from, could have gone along way to help support kids that really need the help.

    It’s profoundly dishonest to use the spending choices of one level of government – in this case the Province – to bash another level of government – in this case the City of Vancouver – who isn’t responsible for the lack of funding which you condemn.

    BTW, enjoying the opening day of the new BC Place, Max?

    There’s about half a billion dollars that could have purchased a lot of shoes, socks, breakfasts.

  • A Dave

    “So which is it – the BCTF either supports the all day kindergarten or they don’t, regardless of who brought it in. Rght now – mixed messaging depending on what political agenda is being pushed.”

    Er, Max, Patti Bacchus is a School Trustee, not a member of the BCTF.

    In the future, perhaps you should eat something before posting, as your inability to get the most basic facts straight as you push your anti-Vision/ anti-union/ anti-all-things-remotely-left-of-centre agenda often leads to some rather bizarre leaps of logic.

  • Jason

    “but only the NPA are making announcements so they are the ones getting all the criticism for the moent.”

    Interesting isn’t it? After this website and many of the posters on it claimed the NPA was disorganized and at deaths door, suddenly they are the only ones worth talking about. At least Anton is out there in the media answering questions and responding to criticism…you can’t find our mayor doing either. In fact if I was Geoff Meggs, I’d be asking why Gregor gets all the attention when Meggs seems to be doing all the work.

  • brilliant

    @Jason 35
    Because Mayor Moonbeam is so gosh darn purdy?

  • Max

    @spartikus #33:

    If Vision is going to boast about spending $5,000 on a program geared at school kids to show them where their food comes from, do you not consider to ironic that a good percentage of those kids don’t even get a breakfast? Do you actually think that those kids and their parents see a need to visit someone growing wheat in their front yard ? I am sure as they struggle, that is one of their biggest worries.

    Like I said, priorities and I am sorry you and A Dave can’t get past your rose colored union glasses to see what is right and wrong and how a seemingly small spending decision to you, can mean a world of change to others.

    Robertson used the poor and the homeless a key component of his 2008 election campaign. and since then, he has abandon them.

  • Max

    @A Dave #34

    Forgive me, I guess I am connfused by all those tweets Patti Bacchus put out.

    And given the topic of starving kids – how tacky of you to suggest ‘I eat something’ before posting.

    Speaks volumes about you.

  • Michelle

    A Dave #34 Your name might Be Changed to “A Hole”!
    Go Max Go!