The B.C. Liberal government's determination to balance next year's budget without significant tax increases will mean spending cuts at TRU and putting the lid on soaring budget growth at Interior Health Authority.

"There's a general recognition we need to bend the curve down," Kamloops-North Thompson MLA Terry Lake said of health care costs that have risen under this government between five and seven per cent a year.

"The challenge for all public institutions is to do business in a way that reduces costs."

Donna Lommer, chief financial officer for Interior Health Authority, said it's too early to speculate on a budget starting in April next year. Details will come in the next few weeks through a budget letter. Spending for the budget year beginning this April is already set.

But Lommer said the message from government that increases will be limited to three per cent comes as no surprise.

"Our industry likes to grow at six per cent a year. That's not sustainable. Direction to bend the cost curve to three per cent, we've heard that for a number of years and done things toward that."

One of the ways IHA intends to control its costs is by supporting seniors in their own homes and shifting continuing care into the community, rather than at institutions and hospitals, she said.

The notice regarding clamping down on health care increases comes the same month as RIH experienced critical bed shortages, resulting in hallway medicine.

Tom Friedman, New Democrat candidate for Kamloops-South Thompson, said reducing growth in health care spending will hurt seniors, who depend on health care the most.

"This is real for them," said Friedman, who spent several evenings recently in roundtable discussions with local seniors. "Governments say they can't afford it — that's nonsense."

Despite paring back spending increases for health-care operations, Lake said capital spending in the budget across all ministries and corporations is $6-7 billion a year over the next three years. That means there is potential for RIH's redevelopment to occur, a plan that will cost several hundred million dollars.

"That's a project Kevin (MLA Kevin Krueger) and I are working hard on," he said. "We know there's a master plan and business case being developed."

Fellow New Democrat Kathy Kendall, the party's candidate in Kamloops-North Thompson, said the budget shows a gap between needs in health care and funding.

"The cost of health care is growing faster than they're committed to putting into it — fundamentally that's a decrease."

Kendall also said the overall spending priorities appear little different than under former premier Gordon Campbell.

At Thompson Rivers University, administration will be asked to find spending cuts of one per cent. The province said those reductions will come in "travel, administration and executive overhead."

B.C. Finance Minister Kevin Falcon said education spending increases will drop to 0.6 per cent starting next year. That compares to average growth increases of 4.8 per cent between 2006 and 2009.

Kamloops-Thompson school district chairwoman Denise Harper expects schools here will be on decent footing for the coming year.

"Our money isn't going down," she said. "It doesn't sound like we'll get any kicks in the shins."

Her one concern is the effect of the MSP increase on operations, which it will pay on behalf of employees. The district will know more when it sees a budget letter this spring.

Kamloops Chamber of Commerce president Maurice Hindle gave the B.C. Liberals marks for pushing to reach a goal of a balanced budget by next year.

"There seems to be some good fiscal housekeeping in there."

The corporate tax rate, slated to be zero under the HST, will remain at 2.5 per cent. The general corporate tax rate could increased by one per cent, to 11 per cent in April 2014, if needed to balance the budget.

Hindle also applauded the proposed review of B.C.'s carbon tax, which is set to reach its maximum in July.

He said businesses here are competing with foreign companies that don't have a tax on fossil fuels.

"They don't have a high corporate tax or a carbon tax."

Lake, B.C.'s Minister of Environment, said he personally supports continuation of the carbon tax but added British Columbians will decide its future. It is expected to be revenue neutral this year with revenues offset by tax cuts elsewhere.

"There are people, including me, who firmly believe we need to continue carbon pricing. (But) the premier said we need to listen to British Columbians…. It's a perfect time to engage British Columbians on this issue."

cfortems@kamloopsnews.ca