Campbell hints B.C. deficit could grow
The Canadian Press – Globe and Mail/BC
By: Dirk Meissner
Jun. 08, 2009

Premier Gordon Campbell says his Liberal government will table a new budget this fall, hinting that British Columbia's deficit could grow beyond the projected $495-million …. The B.C. Premier announced that he will appoint a new cabinet Wednesday, which will give him time to recall the legislature in August and table a new budget in September.

… After months of denials last fall, the government admitted the B.C. economy was falling into recession and the province would have to fall into the red to ensure vital government services are protected.

Throughout the recent provincial election, the Liberals rebuffed suggestions that the deficit would be larger.

… British Columbia has also been posting some of the highest job losses in Canada in recent months.

…. During last month's election campaign, Mr. Campbell was firm that the government would keep the deficit at $495-million, leading to speculation that public sector job and service cuts were on the way.

He was less than adamant on Monday.

“Anyone that thinks they're going to rely on economic forecasts to determine what they are going to do, I think, is going to look back at the last year and say, ‘that doesn't make very much sense,”' he said.

Mr. Campbell said the government is attempting to cut $1.9-billion from discretionary spending and some programs as part of its February budget plan.

He said the legislature will be recalled Aug. 25 and a new budget tabled on Sept. 1….