MUNICIPAL SPENDING TOO HIGH: BUSINESS GROUP
Local politicians are scratching their heads over a report by the Canadian Federation of Independent Business that is critical of their spending habits. The report says that the majority of B.C. municipalities’ spending growth is far higher than the growth in population and inflation — leading to something it calls the fiscal responsibility gap. Spending left unchecked means that taxes and fees will continue to increase at rates that will erode living standards, the report says. But local mayors say the report has what amounts to a fiscal credibility gap and that looking at spending in isolation of revenue sources skews the picture.