Thread by @kerrywcampbell

#PEI 2021-22 budget comes with a $112M deficit — but has a built-in, $50M COVID contingency fund.

Deficit for current fiscal year — initially pegged at $172M — now expected to be $120M, in part because province didn’t spend all 2020-21 COVID contingency funding. #peipoli

cbc.ca/news/canada/pr…

This is a spending budget, with at least two more years of deficit spending in the long-term plan. That plan for #PEI only extends to 2023-24, when the province is projecting a $28M deficit. Govt calls it a plan to "get back to a more balanced budget." #peipoli

#PEI is in a good position to rebound from the pandemic slump faster than most or all other provinces, the government says. But the focus with this budget, govt says, is on growing the economy.

There are a lot of perks in here -- spending in healthcare, education, environment, and tax cuts.

Personal basic exemption will increase $750 this year.
Small biz tax rate will be cut in half, from current 2% to 1%.

There's $8M over 2 years to create 5 collaborative care 'medical neighbourhoods.' 1 each for East Prince, West Prince & Kings counties, 2 for Queens County. Also $2.65M to expand virtual medical care.

Diabetes will receive an extra $1M in funding, in part to cover glucose monitoring. There's $1.5M for the shingles vaccine for Islanders 65+ that will kick in Jan. of 2022. As per the throne speech, $1.5M for nurse recruitment.

As of Jan. 1 2022, designated early childhood centres on #PEI will charge families a flat $25/day. Currently the rates are $28-$34, depending on the age of the child.

There's $2M to designate 8 more early years centres and add 300 new spaces, part of the pre-k rollout this Sept (for which govt says it's allocated another $2.9 M). And $1.1M to increase salary grid for early childhood educators.

Budget includes $4M for 84 new frontline education positions (incl. 20 teachers, 34 EAs, 12 counsellors, 4 autism consultants). But some of these increases will be offset when 25 temporary COVID positions in the school system are expected to end this fall. #peipoli

In environment, there's another $5.6M for grants to help low-income Islanders switch from fossil fuel home heating. $500,000 in rebates for new & used electric vehicles. $250k for a rural transit pilot to start this fall. A $750k in funding for organizations protecting land.

There's also a bit of a surprise expected with the environment file. Carbon levy revenues expected to double this year to $35M. There's $15M set aside for carbon rebates but no details on that program, which #PEI is still negotiating with Ottawa.

$3M this year for the tourism industry to open this season. $2.3M to extend government's secure income pilot project. An extra $200k for PEERS Alliance / harm reduction and somewhere in here, a written commitment to a safe consumption site...

I may leave it there for now as the finance minister finishes her address, to be followed by reaction from the opposition leaders....

"Crisis management by a thousand band-aids," says the Opposition finance critic @beaton_michele, saying it's a budget with a lot of boutique spending items but lacking a transformative vision for leading #PEI out of the pandemic.

Among prior commitments from govt yet to be fulfilled, says Beaton: third option reporting for victims of sexual assault. Increased dental coverage for low-income Islanders. Mobile mental health units.

More band-aid references from 3rd party finance critic @CornwallHeath, who refers to #PEI govt's COVID response as "band-aids that did little to stop the bleeding."

Some kudos from Libs for govt's commitment to fund shingles vaccine for seniors and written commitment to a safe consumption site. But criticizes lack of spending on mental health & addictions. $28M in contingency funding unspent last year, which should have been spent, he says.

Like the Greens, the Liberals find this budget shows a lack of vision from government in terms of the path forward through the rest of this pandemic.