Ministry 2002/03 Annual Service Plan Report -- Ministry of Finance

Performance Reporting — Continued

Core Business Area 1: Provide advice to support government's financial and economic objectives

Goal/Objective: Balance provincial budget beginning in 2004/05

*Performance Measure: Achieve annual targets for the provincial budget*
Rationale:	The achievement of this goal indicates government's plan to balance the provincial budget beginning in 2004/05 is on track.
Measure Status:	No change in the measure in Service Plan 2003/04 – 2005/06.
2001/02 Baseline	2002/03 Target	2002/03 Actual	Variance	Achieved
N/A	$4.4 billion deficit	$3.169 billion deficit	$1.231 billion ahead of target	Yes

Public Accounts 2002/03 -- Fiscal plan on track.

Goal/Objective: Increase accountability and performance in the management of capital infrastructure by encouraging public private partnerships (P3s) and alternative service delivery (ASD)

*Performance Measure: Number of P3/ASD projects initiated with financing in place*
Rationale:	The number of P3/ASD projects that have been initiated with financing in place will be a key measure of the success of the government's goal to provide public infrastructure and services in an effective and affordable way, while protecting the interests of taxpayers. While the achievement of the goal has not been as rapid as anticipated, significant progress has been made. On May 30, 2002 a new capital asset management framework was established to foster innovative and affordable infrastructure projects. The framework ensures that all capital projects are reviewed in an appropriate manner. At the same time, the government conducted a thorough review of how other jurisdictions approached public private partnerships. Partnerships British Columbia, a public company, was also formed in May 2002 to promote and support public private partnership projects and to identify opportunities for maximizing the value of capital projects used by the public. While the initial goal was not achieved, the research and planning undertaken to date has resulted in British Columbia being recognized as a leader in the development of innovative capital infrastructure projects. To date, five active P3 projects have been initiated. An additional five potential projects have been identified and are under development. It is expected that three Requests for Proposals and two Requests for Quotes will be issued in 2003/04.
Measure Status:	Discontinued measure in the Service Plan 2003/04 – 2005/06. Areas of the ministry responsible for encouraging P3s in the British Columbia public sector were transferred to Partnerships British Columbia in May 2002 and the Ministry of Management Services has been identified as the lead on Alternative Service Delivery initiatives. Information on Partnerships British Columbia's 2003/04 Service Plan is available at: http://www.partnershipsbc.ca/pdf/PBC_serviceplan.pdf Information on the Ministry of Management Services is available at: http://www.gov.bc.ca/mser
2001/02 Baseline	2002/03 Target	2002/03 Actual	Variance	Achieved
0	10	0	10	No

Goal/Objective: Establish a competitive tax and business environment that encourages economic growth

*Performance Measure: Provincial ranking of personal income tax rates for the bottom two tax brackets*
Rationale:	This performance measure evaluates government's success in achieving its New Era commitment to cut the base personal income tax rate to the lowest rate of any province in Canada for the bottom two tax brackets on the first $60,000 of income. Keeping these tax rates low is consistent with the objective of maintaining a tax system that is competitive and that encourages investment and innovation.
Measure Status:	No change in the measure in Service Plan 2003/04 – 2005/06
2001/02 Baseline	2002/03 Target	2002/03 Actual	Variance	Achieved
Lowest	Lowest	Lowest	0	Yes

*Performance Measure: Provincial ranking of the personal marginal tax rate*
Rationale:	Comparisons of provincial top marginal personal income tax rates are a key component in the decision-making processes of investors in choosing where to invest, and companies in choosing where to locate.
Measure Status:	No change in the measure in Service Plan 2003/04 – 2005/06
2001/02 Baseline	2002/03 Target	2002/03 Actual	Variance	Achieved
2nd Lowest	In the lowest 3	2nd Lowest	0	Yes

Competive personal tax system.

*Performance Measure: Number of regulatory requirements*
Rationale:	Streamlining the regulatory burden faced by business improves competitiveness and supports economic growth.
Update:	As a result of changes made by the Deregulation Office to correct counting errors and omissions, the baseline was adjusted from 68,337 to 65,490 and the 2002/03 target was reduced from 66,000 to 58,000.
Measure Status:	Revised measure in Service Plan 2003/04 – 2005/06. The baseline and targets provided in the Service Plan 2002/03 – 2004/05 included the regulatory requirements of both the Ministry of Finance and the Insurance Corporation of British Columbia (ICBC). To improve transparency and accountability the measure has been segregated by the responsible entity in the Service Plan 2003/04 – 2005/06.
2001/02 Baseline	2002/03 Target	2002/03 Actual	Variance	Achieved
65,490 (revised)	58,000 (revised)	57,333	Beat target by 667 and reduced overall by 8,157	Yes

Goal/Objective: Effective management of public-sector compensation

Performance Measure: Under development

Rationale:

This performance measure was under development at the time the Service Plan 2002/03 – 2004/05 was issued. Over the course of the last year the ministry has identified two new performance measures related to this objective. Together, these performance measures provide effective indicators of management of public sector compensation costs and the provincial labour market environment.

Measure Status:

New measures identified in Service Plan 2003/04 – 2005/06:

1. Compensation cost changes over 2002/03 compensation base (excluding previously existing contracts).

2. Days lost due to labour disruption in the British Columbia Public Sector

Information on these measures including baseline data for 2002/03, future three year targets and related strategies is included in the Ministry of Finance Service Plan 2003/04 – 2005/06 available at: http://www.bcbudget.gov.bc.ca/2003/sp/fin/