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“For example, beginning in 2009, to help meet its balanced budget targets for fiscal 2014, the government reduced expenditure growth by limiting compensation increases in negotiated wage mandates and incorporated administrative savings across all government organizations, such as reduced full-time equivalents.”

Other factors that contributed to the continued favourable credit rating were the provincial civil service (“experienced and qualified to effectively enact fiscal policies”), the standing policies for budget-making and debt management (“prudent”) and the practice of “transparent, comprehensive and timely” disclosures on provincial finances.

B.C. was also found to be relatively secure on pensions (“very manageable and not a risk”) as well as other contingent liabilities like sick leave, workers’ compensation, long-term disability, litigation, environmental cleanup and even the controversial public-private partnerships.

Emphasis on “relatively”, B.C. was being judged against other Canadian provinces as well as more troubled jurisdictions south of the border and elsewhere.

So long as the New Democrats continue on the course charted in the three year budget and fiscal plan tabled in the legislature Feb 20, they should continue to earn ratings as favourable as this one. As to what could put the Triple A at risk, the report had this to say:

“We will continue to monitor the government’s ability and willingness to make politically difficult decisions if required to sustain strong fiscal performance as expected at the ‘AAA’ level. In the past, this has enabled B.C. to enact structural changes, including strong expenditure management control.

“Erosion in these traits, for instance due to a perceived weakening in the government’s willingness and ability to enact reforms to sustain strong fiscal outcomes in response to an external shock, could lead to a downgrade.”

Still, for now the bottom line for the New Democrats from S&P, similar to reports from the other rating agencies, is “so far so good.”

vpalmer@postmedia.com

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