P.E.I. Unveils Urgent $486.5 Million Capital Budget for 2026-27

UPDATE: P.E.I. Finance Minister Jill Burridge has just announced a crucial capital budget of $486.5 million for the fiscal year 2026-27, prioritizing health care and education to meet the urgent needs of Islanders. This budget was tabled in the P.E.I. Legislature on the opening day of the fall sitting, marking a significant moment for the province as it grapples with pressing public service demands amid population growth.

Burridge emphasized that this year’s budget, while only slightly above last year’s record-breaking spending, is designed to address the evolving needs of a growing population. The government plans to invest a total of approximately $1.6 billion over the next five years, a strategy aimed at enhancing vital public services.

Amid rising concerns about P.E.I.’s net debt surpassing $3 billion, Burridge reassured that the province’s robust economic performance allows for these investments. She stated, “While this plan is slightly smaller than last year’s, it is focused, practical, and grounded in what Islanders need most,” highlighting the necessity of consistent investment in essential services.

HEALTH CARE INVESTMENTS

The new budget allocates over $132 million for a new health-care campus in Kings County, which includes plans for a new hospital and community health centre. An additional $3.7 million will upgrade facilities at the existing Kings County Memorial Hospital in Three Rivers. Furthermore, the province will invest $11.9 million in CT scanners for local hospitals.

Burridge underscored the urgency of these investments, stating, “There’s no frivolous spend. A lot of this work is really overdue,” as the province enters a “catch-up period” in health infrastructure.

The comprehensive health-care funding includes:
– $40 million for a new medical clinic building in the capital region.
– $43.2 million for upgrades at the Queen Elizabeth Hospital.
– $59.1 million for campus redevelopment.
– $16 million for the completion of the Community Health Centre on the Mental Health Campus.

In total, the province will invest $538 million in health-care infrastructure over the next five years, a vital step towards addressing critical health needs.

EDUCATION EXPANSIONS

The capital budget also emphasizes education, dedicating more than $437 million over five years to enhance school facilities. A significant $14.5 million will fund the design of a replacement for the aging Parkside Elementary School, with construction slated for 2030-31.

To accommodate growing student populations, the budget includes:
– $65.4 million for new elementary schools in East Royalty, West Royalty, and Georgetown.
– $109 million for a new intermediate school in Stratford.

Additionally, $92 million is allocated for French-language education, which includes vital upgrades for École Évangéline and expansions at École François-Buote.

HOUSING AND INFRASTRUCTURE INITIATIVES

In housing, the budget outlines $28 million for repairs and upgrades to existing public housing, alongside $100 million to construct over 300 new affordable housing units. While the overall housing investment has decreased, Burridge noted that previous increases have led to a record number of housing starts, with nearly 1,700 units projected for 2024.

New initiatives also include $600,000 for early planning of a subsea power cable, a project that Burridge stresses will require federal partnership.

As P.E.I. moves forward with these ambitious plans, the government remains committed to addressing the urgent needs of its residents. “We feel like we’re in a good spot with housing right now,” Burridge concluded, ensuring that the province is ready to tackle future challenges head-on.

Stay tuned for further updates on this developing story as P.E.I. embarks on its critical infrastructure journey.