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REASONS FOR OVER-RUNS BY PROGKAM

easens for over-run
poaaciahsiinaselan aie ls

-~ Is a new program.

— No models to estimate number of people
eligible

—flad to implement immediately to help
the aged and con risk of underestimating
costs.

—~ Under-estimation includes cost factor of
providing B.C. senior citizens quarterly
cost-of-living increase.

-- Cnforescen factors, related to energy
crisis, price of drugs increased unpredict-
ably at rate of 13-15 per cent.

— A 400 per cent increase in number of
children cared for. .
~ Salary increases for aay care workers
from $250 - $350 per nionth to $475 - 575 per
month.

—- Late decision by Federal government to
discontinue L.LP. programme Dept. of
Human Resources faced with 42 requests
for project funding for programmes wh
expired as result ef Federal government's
decision,

— Number of older children needing ser-
vices increased. .

— More receiving homes, reception ventres
and resid for handicapped children
becoming unionized, staff now demanding
and receiving reasonable salaries.

~-Is difficull to make accurate predictions
en programme costs. Had to provide serv-
ices, Delay would have continuing effect on
children and families.

Private hospitals, boarding homes, and
intermediate care facilities are subject to
increasing costs caused by unionization of
personne}, rise in cost of living, increases in
minimum wage, and increased use of
facilities,
—— For these fucilities to operate, has been
necessary for the government to absorb
cost increases. Subsidies given from time-
* to-time. . :

Over-ren
——
Mincome $22,480,000
Medical Services & $2,552,000
Pharmacare
Child Day Care $3,860,000
Community Grants $*,865,000
Child Maintenance $13,130,000
Aduit Care , $4,790,000
Homemaker Services and $3,22" 000
Special Allowances

~- Special grants to mect emergency needs.
For example: burned-out families. educa-
tional assist andh ker services.
— Expansion and increased costs in the
homemaker programme.

Social Allowance $44,919,000

~- A 16 per cent increase in the number of
people receiving social allowance.

— Arate increase of $20 per month aciuss-
the-board which came on July 1, 1974,
months after the spending extimates has
been anrounced on Feb, 11, $974.

«— Above increases made because of
rapidly increasing cost-of-living.

— Error made in calcutating social
assistance costs. The increase made to
social assistance rates in June, 1973 was nol
included in projection. The error created
an under-estimation of 11 million dollars.

General Administrative Costs $2,554,000

-- Due to integration of the Cily Welfare
and Rehabilitation Department in Van-
couver.

— Part of budget over-run totolling $817,000
was caused by late billing to the provincial
government by City of Vancouver for ad
ministrative costs actually incurred in
previous fiscal year.

DEPARTMENT OF HUMAN RESOURCES
Statement of Estimated and Actual Expenditures 1066-67 to 1973-74

Year Estimate

1966 / 67 66,775,268
1967 / 68 72,559,849
1968 / 69 75,276,644
1969 / 70 87,771,927
1970/71 + 108,193,043
wit / 72 136,615,096
1972, 73 "198,841,896

1973. 74 229,070,705

Actual Pet, of Over-run
72,554,540 8.7 .
76,874,345 © 5.9
93,747,070 24.5 |

104,125,233 18.6

147,074,025 08

148,504,289 8.7 .

171,080,815 - 23.7

261,957,984 14.4

« The percentage over-run fluctuated up to 36 per cent under the Social Credit govern:
ment, and they didn't have to worry about paying for new und innovative programmes

being implemented ufter their eslitnates were drawn up.