Minister of Finance Brenda Bailey introduced a budget earlier today that increases government spending by $3.9 billion and projects deficits of $13.3 billion, $12.2 billion, and $11.4 billion over the next three fiscal years.
The budget revealed the Province’s plan to slow the delivery of its housing strategy; make modest new investments targeting street disorder; and a funding commitment to support the Premier’s involuntary care announcement at the 2025 UBCM Convention. The FireSmart program received some additional funds to support the current application period. Overall local government transfers will be reduced by $10 million.
Slowing the pace of housing delivery
The provincial government is slowing the pace of delivering on its housing strategy, and will re-allocate $1.4 billion from it over the three years of the fiscal plan. A portion of the re-allocated money will come from closing the Community Housing Fund indefinitely. The fund had been intended to support building affordable rental homes. Local governments with applications into the Community Housing Fund which will contacted by the Province with further details.
Street disorder and public safety
Budget 2026 provides $139 million more over three years to reduce repeat, violent offending and chronic property crime, and support timely access to justice. This includes:
- $73 million to continue to improve access to the justice system and support court operations,
- $16 million for the new Chronic Property Offending Intervention Initiative (C-POII) that strengthens monitoring and enforcement for vandalism and shoplifting,
- $26 million for the Repeat Violent Offending Intervention Initiative, and
- $24 million for the continuation of the Special Investigation and Targeted Enforcement program (SITE) and the Community Safety and Targeted Enforcement program (C-STEP) to combat repeat violent offending and address street disorder.
FireSmart funding – $15 million will be added to the FireSmart Community Funding and Supports program, topping up funds available for the current intake.
Involuntary Care – The Province will allocate $131 million for intensive mental-health and addictions treatment, including increasing spaces for those who need involuntary care through new facilities in Prince George, Maple Ridge and Surrey.
Local government transfers – Appropriations for local government services and transfers will drop by $10 million in 2026/27 from $218 million to $208 million. UBCM will seek clarity from the Province on which programs will be impacted.
Leveraging federal funding – The Province has allocated $400 million for the British Columbia Strategic Investments Special account to work with the federal government as it invests billions to protect Canada’s sovereignty.
Provincial permitting – Budget 2026 invests more than $40 million over three years to remove barriers and avoid duplication in permitting across the natural resource and tourism sectors.
Contingencies – Contingency allocation is increased to $5 billion annually over the fiscal plan, from the current $4 billion.
Capital spending – Budget 2026 invests $37.7 billion in taxpayer-supported capital investments over three years, including $13.8 billion for transit and transportation infrastructure, $11.1 billion for new and upgraded health-care facilities and $3.9 billion towards seismic upgrading schools. Self-supported capital spending by commercial Crown corporations is estimated at $15.3 billion over three years, mainly for electricity generation and transmission.
Taxation increases – The Speculation and Vacancy Tax rate for foreign owners and untaxed worldwide earners will increase to 4% for the 2027 tax year, up from the current 3%.
The Additional School Tax rates are increasing to 0.3% from 0.2% for property values between $3 million and $4 million, and to 0.6% from 0.4% for property values above $4 million, effective for the 2027 tax year.
The Property Tax Deferment Program’s interest rate structure will change from simple to compound interest. Prime plus 2% rate will be applied to new loans.
Reducing the size of the public sector – Over the past 10 years, public sector job growth has increased by over 40%, including more than 80,000 full-time-equivalent positions (FTEs). BC is planning to reduce the size of the public sector by 15,000 FTEs over three years, a reduction of 3.4%, including a reduction of 2,500 FTEs in the civil service.