NL

Cathy Bennett says community grants to remain at $70M for next year

The 2016-17 provincial budget is still weeks away, but Finance Minister Cathy Bennett confirmed Wednesday the $70 million in core funding will remain intact.

Government to carry out review to ensure money spent effectively

Finance Minister Cathy Bennett announced Wednesday that the $70 million in core funding for community organizations will remain intact for the 2016-17 fiscal year. (CBC )

The 2016-17 provincial budget is still weeks away, but Finance Minister Cathy Bennett confirmed Wednesday the $70 million in core funding for community organizations in Newfoundland and Labrador will remain intact, at least for a year.

Bennett made the surprise announcement in the House of Assembly, saying government wanted to provide some "clarity" for the organizations that provide "critical services" throughout the province.

She also announced a wholesale review of how the money is spent by these organizations, including women's centres, to ensure the money is used wisely, "as opposed to interest charges, administrative costs, rent and those kind of things."

Bennett said government wants to find ways to cut costs for community groups.

More information on this review will be included in the budget, which is expected to be delivered in late March or April.

"This is a slice of the 2016 plan, and is a clear communication to the community groups that we intend to keep our commitment on multi-year funding," she said, referring to an earlier promise to stabilize funding for community-based organizations.