Politicians giving themselves huge wage increases
A lot of people are struggling these days, after coming out of a multi-year pandemic only to be hit by a cost-of-living crisis.
They look for their leadership to help them get through a difficult time. But, when you examine the failed governance process around remuneration and the recent huge hikes local politicians gave themselves in Colwood, Esquimault, Sooke, Oak Bay and View Royal, there’s little solace.
During the municipal election, blunt questions about generous pay packages should be directed face-to-face to our political hopefuls in Dysfunction-by-the-Sea.
For starters, why the darn secrecy?
Few municipalities – Saanich and Victoria are exceptions – bother to publicly inform residents about council remuneration and expenses.
Nor do most bother posting easily accessed expense policies, statements of financial information (SOFI), or financial disclosure statements so taxpayers can spot such things as conflicts of interest or financial irregularities. SOFIs show all the extra pay politicians receive for sitting on boards or committees.
Why not tell the entire story?
It seems every time the topic of politician pay comes up and the public gets steamed, they neglect to mention and include the t-o-t-a-l remuneration received by virtue of their office.
The CRD is governed by a 24-member board of directors, supported by more than 75 committees and commissions, and they are compensated. The CRD posts on its website the remuneration and expense allowances – a base salary of $14,000 for directors and $7,000 in expenses – received for these additional roles.
There may also be bonuses for taking on the role of committee chairs, per diems for showing up, sitting on commissions, or other bodies.
Why constantly reset pay?
Lot’s of effort goes into setting the remuneration and expenses for councils and some insist on doing it every year.
In Sooke, council has given itself three pay raises since 2019, the most recent a hefty 50 per cent increase in May this year.
While in Esquimalt, council just signed off on a pay increase just weeks before the upcoming election that will see salaries increased and adjusted to inflation for the next few years.
It takes effect after the new council is installed, a practice more councils are following. It helps minimize public outrage if they give the next council a large pay hike.
In Colwood, a few weeks before the fall election, council almost doubled their salary. Pay will be also adjusted annually by Victoria’s Consumer Price Index, and the BC Stats sub-provincial population estimate. Of note, the next pay increases will also be determined by an independent committee during the last year of the term in office.
Why do councils set their own pay?
Few things enrage taxpayers more than seeing councils setting their own pay. Increasingly councils are deferring to staff reports that compare their jurisdictions to others (a sure way to get an increase) to mitigate public flak.
The amount of work councils actually do varies dramatically depending on the complexity of the municipality, if they stray constantly outside of core responsibilities, and if council manages their agenda and municipality efficiently and effectively.
To their credit, Colwood is one of the few jurisdictions to have appointed a four-person citizen committee to report with recommendations on pay and expenses. Salary increases here are based on population, a reasonable consideration given the growth in the municipality.
The damning Governance Review Report by business consultants MNP has recommended Victoria council bring in a cost of living adjustment in January 2023 and strike a comprehensive independent task force review.
Why don’t councils follow best practices?
A couple of years ago the 161-member Union of British Columbia Municipalities felt the issue was a constant minefield that discredited municipal government. It’s still a source of media headlines.
The result was a 44-page Council and Board Remuneration Guide of best practices. But members don’t know that it exists or bothered to read it.
As a result you have disparate practices when it comes to pay packages that are not defensible, fair and consistent.
Are there other questions?
Depending on your perspective, the important question is, why in heck are there 13 neighbouring fiefdoms on the South Island? The 425,000 or so souls live in the most over-governed region in Canada. Calgary, population 1.3 million, operates with one mayor and 14 councillors.
During a pandemic year in 2020 when there was little travel, regional taxpayers forked over $3.3 million in salaries and expenses for the 13 municipal councils and the CRD, according to our analysis. Every time there are huge wage increase, it prompts other jurisdictions to do the same.
It’s little wonder a new ‘Rage Index’ by the research company Pollara Strategic Insights has started monthly measuring of ‘outrage, negativity, and anger’. Much of the discontent is directed toward governments.
It seems reasonable to direct some constructive grumpiness – certainly not uncivil vitriol – toward tone-deaf municipalities that can’t get their act together on paying politicians.