Hospital spending drives McNeil government's largest ever capital plan

Nova Scotia's finance minister says there's more than enough room this year and in future years to afford new demands for health-care construction while also attending to other needs.

Karen Casey released on Thursday her government's 2019-20 capital plan, the largest ever under the McNeil government. The $691.3-million document, which covers things such as hospital, road and school construction, is $86 million more than last year.

The biggest change is new demands for health-care capital spending — most notably the Queen Elizabeth II Health Sciences Centre redevelopment project and planning and design work for new health-care facilities in Cape Breton Regional Municipality.

"Nova Scotians have told us that health care is their No. 1 priority and so it is for our government," said Casey.

In total, there is $159.6 million in the capital plan for health-care redevelopment. Other major projects include expansion of the IWK Health Centre emergency department and a new MRI machine for the children's hospital in Halifax.

There are also new dialysis units for the Digby General and Valley Regional hospitals, expansion at the South Shore Regional Hospital and work on the North Cumberland Health Centre project.

Capital spending on schools drops

The Education Department consumes about 11 per cent of the plan. While there are 11 new school projects at various stages of development, there are no new additions to the list this year.

This year's capital spending on schools is $63.1 million, down from $102 million in last year's plan. In fact, it's the least amount Premier Stephen McNeil's government has spent school construction since coming to power in 2013.

But government officials said new school builds are based on a five-year plan, which was released last year, and more projects are expected in coming years, which should bring capital spending more in line with previous years.

Casey said the additional demands that will be required in future years for the hospital projects in Halifax and Cape Breton won't prevent the government from doing work it normally does as part of the plan, nor will it affect plans for future balanced budgets.

"We would not be putting this forward if Nova Scotians could not afford it," said Casey. "We have indicated and we have demonstrated that we are able to live within our means. We are able to manage our debt, we are able to manage our expenses."

As always, road and highway construction make up the bulk of the plan — about half — with the majority of that directed to the ongoing twinning projects of the 100-series highways.

Even with the additional spending requirements for health-care construction, Casey said forward budget projections show the province's net debt-to-GDP ratio will continue to decrease.