Southeast Public Health Reports $2.4 Million Surplus Amid Challenges

UPDATE: The Southeast Public Health Unit (SEPH) just announced a projected surplus of $2.4 million for 2025, revealing critical financial updates during a presentation to the Council this afternoon. As SEPH navigates its first full year following a regional merger, the agency is highlighting both successes and ongoing challenges that could impact services moving forward.

According to SEPH, the financial surplus is attributed to staffing optimization and resource consolidation, bolstered by $10.6 million in provincial merger funding. This funding has primarily been utilized to pay off mortgages inherited from former health units and stabilize staffing during the transition. However, as municipal levies were harmonized in 2025, some municipalities experienced increased contributions while others saw reductions.

In a bid to counterbalance the financial strain on municipalities facing higher levies, a separate $4.3 million provincial allocation was approved. The recently approved 2026 budget includes $1.9 million in merger funding aimed at maintaining staffing levels throughout this adjustment period. Municipal contributions will rise by 1.09 percent overall next year, leading to further scrutiny of local budgets.

Despite these measures, SEPH officials warn that rising operational costs and sluggish provincial funding increases pose serious challenges. Projections indicate potential deficits of $7 million by 2030, which could jeopardize public health services across the region. The Board of Health is advocating for a phased funding split target of 67.5 percent provincial and 32.5 percent municipal by 2030, yet acknowledges that additional savings or new funding sources will be essential to avert financial crises.

SEPH continues to deliver essential public health programs and support community partners while building a cohesive organizational structure across the newly merged unit. The presentation outlining these developments was distributed to staff, prompting an urgent report back to the Council.

As SEPH pushes forward, it remains focused on stabilizing operations while grappling with the reality of increasing costs and the need for sustainable funding. Stakeholders and community members are urged to stay informed as the situation develops, and to discuss potential solutions to ensure the health unit can effectively serve the public going forward.

With these pressing issues at the forefront, the conversation around public health funding in the region is more critical than ever.