By Cheryl Jahn

Mayor “Disappointed” in EHT Details

Jul 5, 2018 | 3:39 PM

PRINCE GEORGE – School District 57 is overjoyed after some finer details were released by the Province on the pending Employer Health Tax. That is replacing the MSP premiums, which the BC Government promises to phase on. Many organizations sounded the alarm over the increased costs with the EHT. But the government has announced funding to offset the increased costs for colleges and teaching universities, research universities, community-health and social-service providers, health authorities and school districts.

The Chair of the Board of Education for District 57 has issued a sigh of relief.

“Over the past few months, our Board along with many boards in BC have been advocating to government around the additional costs the Employer Health Tax would have on our district and how that money would take away from our classrooms, especially next year, when we have the Employer Health Tax and the MSP,” explains Tim Bennett, Chair of the Board of Education.

But school districts weren’t the only organizations advocating government for some reprieve. Municipalities have been sounding the alarm since the EHT was introduced. There is no help coming there.

“That means now we’ve got some real work to do around how we’re going to look at this in upcoming budgets,” says Mayor Lyn Hall, who calls the EHT “a huge cost” to local government. In fact, a report from the Union of BC Municipalities looked at the financial impacts for 77 communities, including Prince George.

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It found that, in 2017, the City paid $667,358.00 in MSP premiums. That will be cut in half, to $333,679.00 this year. In 2019, the City will be stung with both EHT and MSP and will have to pay out $1,678,291.00. MSP will be gone by 2020, but the City will still pay out $1,371,504.00.

“When we take a look at our budget and set our tax rate every year, you can roughly estimate between $750,000 and $850,000 representing one percent increase in taxes,” says Mayor Hall.

However, he says he and other mayors, as well as UBCM, will continue to fight for financial help to offset the cost to municipalities.

by Cheryl Jahn

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Mayor “Disappointed” in EHT Details

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