P.E.I. capital budget includes significant spending boost

The P.E.I. government plans to boost capital spending significantly for each of the next two fiscal years.

In its capital budget, released Thursday in the provincial legislature, the MacLauchlan government outlined its plan to spend more than $96 million on construction projects in 2017-18 and the following year as well.

Capital spending for the current fiscal year is estimated to come in just under $80 million.

"Our capital budget is consistent with our pledge to grow our economy and spend public dollars wisely, and build sustained prosperity for all Islanders," Finance Minister Allen Roach said in a government media release.

"Islanders have spoken about their priorities and our government has listened."

$59M for Cornwall bypass over 4 years

The capital budget for the construction year starting in the spring of 2017 includes $46.5 million to be spent on highways, bridges, and other transportation projects. That figure includes $14 million to be spent on the Cornwall bypass in 2017-18. Over the next four fiscal years government has set aside $59.3 million for the bypass project.

In total, government says 109 kilometres of highway in the province will be improved next year.

Health PEI will receive $26.7 million in infrastructure spending next year. Government says that includes funding to build a new Women's Wellness Centre at Prince County Hospital, funding to plan for a new mental health care facility, and $10.9 million to replace public seniors' homes in Montague and Tyne Valley. A further $10.6 million is included in the 2018-19 capital budget for the completion of those projects, which have been announced multiple times by government going back as far as 2008.

Education will receive $13.3 million to continue renovations at Three Oaks High School in Summerside and École La Belle Cloche in Fortune Bridge, which will become a K-12 school with a community centre.

Spending shifted in current fiscal year

Figures for the fiscal year currently underway show there were significant changes in how capital dollars were spent compared to the plan government unveiled in the fall of 2015.

• Health care spending came in at $14.2 million compared to the original budget estimate of $21.4 million.
• Transportation spending came in at $40.9 million compared to the initial estimate of $30 million.
• Altogether the province says it expects to spend $79.7 million on infrastructure in the current fiscal year, up almost two million from its initial estimate.

Government had announced a year ago manors in Montague and Tyne Valley would be replaced this year, but those were delayed. In addition, construction of a new Cornwall bypass, which began this fall, wasn't included in last year's capital budget.

Opposition questions government's spending priorities

The day before the capital budget was released the official Opposition was questioning government's capital spending priorities, accusing government of putting too much priority on replacing highways and not enough on replacing aging health care facilities, because highways qualify for 50 per cent funding from the federal government.

"We're not dealing with the priorities and the needs of the province of Prince Edward Island," said Opposition leader Jamie Fox.

"We'd rather look at 50-cent dollar projects than projects that actually help the families and the lives of Prince Edward Island."

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