‘High-risk, high-reward budget’ Province tackles health care woes while battling massive deficit
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Hey there, time traveller!
This article was published 02/04/2024 (524 days ago), so information in it may no longer be current.
The Manitoba government is vowing to hire 1,000 new front-line health-care workers this year while offering tax breaks to families and extending the fuel-tax holiday in its first budget.
The 2024 provincial budget released Tuesday mirrors the party’s key promises from last year’s election, focusing largely on efforts to shore up the ailing health-care system and ease the cost-of-living crisis, while running a deficit of nearly $800 million in fiscal 2024-25.
“We’re staffing up the health-care system with tangible, achievable targets this year. You are going to start to see the improvements to health care in this budget year,” Premier Wab Kinew said at a news conference, alongside Finance Minister Adrien Sala.
“The challenges that we face in terms of the health-care staffing crisis — the addictions issues, trying to tackle inflation and making life more affordable for people… we can’t just flip the switch and have it done overnight.
“But, we have a comprehensive, well-thought-out plan.”
Health spending is set to hit a record $8.2 billion — up by $980 million from last year. The government said it will hire 100 doctors, 210 nurses, 90 paramedics and 600 health-care aides as part of retention, recruitment and training efforts that will cost $310 million.
Initial design work for the new Victoria General Hospital ER is budgeted this year and included in $635 million of health capital spending with no specific amount allocated. Shovels are expected to be in the ground on the Victoria and an Eriksdale ER within the next two years, the premier said.
About $65 million is being set aside to help reduce emergency room wait times, which includes 151 new acute-care beds across Manitoba.
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A large part of the province’s recruitment plan relies on convincing out-of-province workers their dollar will go further in Manitoba with its lower cost of living and lower home prices.
The government will be sending official job offers to every prospective health-care worker who graduates from post-secondary training programs, Kinew said.
“The challenge that we face in health care isn’t going to be solved overnight, but based on the investments in this document, you are going to start seeing improvements in health care this year.”
Interim Tory Leader Wayne Ewasko told reporters the Progressive Conservatives deserve the credit for the increase in health-care professionals graduating this year, saying his government had increased the number of seats at post-secondary schools for the first time in 20 years.
Kinew and Sala said their government is living up to its campaign promises, including an earlier pledge to balance the budget later this term.
“We made a commitment to the people of Manitoba that we will put Manitoba on a positive path forward by rebuilding health care and by bringing in lower costs for you and your family,” Sala said. “Today, we are delivering on that promise.”
The NDP is introducing a single $1,500 property tax credit for homeowners, starting in 2025, to replace a package of rebates designed by the PC government.
The 50 per cent provincial property tax rebate and $350 education tax credit will be eliminated. Under the new system, some owners will pay less or no provincial property taxes at all, while homes with higher values will pay more. Owners of homes valued at $250,000 will get a rebate of $308, those with values of $437,000 will see no change, and people with homes worth $850,000 will pay $1,088 more, the province said.
Budget highlights
Manitoba’s NDP government tabled on Tuesday its first budget since winning last October’s provincial election. Here are some of the highlights:
● Provincial fuel-tax holiday extended by three months to Sept. 30.
● Rebates of up to $4,000 on electric and plug-in hybrid vehicles, and $300 rebates for security cameras…
Manitoba’s NDP government tabled on Tuesday its first budget since winning last October’s provincial election. Here are some of the highlights:
● Provincial fuel-tax holiday extended by three months to Sept. 30.
● Rebates of up to $4,000 on electric and plug-in hybrid vehicles, and $300 rebates for security cameras.
● Tax credit for renters raised by $50 to $575.
● Tax credit for fertility treatment doubled, and free prescription birth control.
● Education taxes on property sees owners of lower-value homes pay less, and those with higher-value homes and commercial properties pay more.
● Basic personal income tax deduction reduced for people with a net income of more than $200,000.
● New tax on vape products, matching a federal levy.
● Money set aside to establish a supervised consumption site in Winnipeg.
● $500,000 to review the province’s handling of the COVID-19 pandemic and $500,000 to lay the groundwork for a full inquiry into cost overruns at Winnipeg police headquarters.
● Projected deficit of $796 million on total spending of $24.1 billion.
● $116 million to help build and maintain 350 social and affordable housing units in the next year.
● Details are scarce but four new personal-care homes – in addition to the new personal-care home for Lac du Bonnet announced last month – are to be built, including two in Winnipeg and one in Arborg.
● Plastic health cards are coming, but how much they’ll cost hasn’t been determined — no specific amount is budgeted.
● $24.1 billion in projected expenses, an increase of nearly six per cent in 2023-24 due, in part, to greater spending on health care and tax cuts.
● $23.3 billion in projected revenues, an increase of 4.3 per cent from last year, are being driven by increases in personal, corporation, retail and education property tax revenues.
● Crown corporations revenue expected to drop by $363 million, mainly because of losses at Manitoba Hydro and Manitoba Public Insurance.
● Federal transfers are expected to jump by $992 million, or 13.6 per cent, from 2023.
— The Canadian Press/Staff
The province said the reform of school tax-related credits and rebates will bring in $148 million more revenue.
“This is going to help those who need it most: 83 per cent of Manitobans are going to be doing a lot better under this approach than they did under the previous government,” Kinew said.
Ewasko said the premier and the finance minister need to look past the Perimeter Highway, where school divisions are having to hike taxes as much as 17 per cent.
“Yes, they’re giving a bit of a rebate, but when you drill down it’s going to be a significant loss to Manitobans, and I think it’s going to hurt more Manitobans,” Ewasko said.
In February, the government announced more spending on education, and that school divisions would be allowed to raise school property taxes if they deem the increase inadequate.
It was also announced the suspension of the 14-cents-per-litre tax on gasoline and diesel will being extended to Sept. 30 because of Imperial Oil’s temporary shutdown of a pipeline between Gretna and Winnipeg and to keep gas prices as low as possible. Compulsory auto insurance premiums will be cut by five per cent.
It’s a “high risk, high reward” budget, said Brandon University political science Prof. Kelly Saunders.
“Manitobans are patient and we’re willing to give any government an opportunity and hope for the best, but you’ve got to start delivering on some real, concrete things.”–Kelly Saunders
The NDP “set the bar very high in terms of fixing health care, getting at the roots of crime, fixing chronic homelessness, and balanced budgets in four years,” she said. At the same time, it’s dealing with a record-level deficit, reduced revenues from Manitoba Hydro and reduced tax revenues, she said.
“Manitobans are patient and we’re willing to give any government an opportunity and hope for the best, but you’ve got to start delivering on some real, concrete things,” Saunders said, noting residents have to see the health-care system improve.
“I think that is going to be the challenge. It’s not just building new buildings, it’s finding and retaining the staff, the doctors, the nurses, the health-care professionals to be able to staff those new buildings and new clinics and new emergency rooms. That is going to be, I think, a real Achilles heel for this government,” she said.
Experts say it’s not clear how the NDP can deliver on its promises while balancing the budget in four years.
“If you don’t have the revenues, you’re going to have to look at cuts on the expenditures side,” said University of Manitoba economics Prof. Jesse Hajer.
The NDP also touted a “broad” middle-class tax cut, which increases tax bracket thresholds to $47,000 and $100,000 in 2024, before returning to annual indexing in 2025.
The basic personal amount, which increased to $15,780 because of indexing in 2024, is projected to increase to $16,206 in 2025.
MIKAELA MACKENZIE / FREE PRESS Finance minister Adrian Sala presents the budget in the chamber at the Manitoba Legislative Building on Tuesday.
Interim Liberal Leader Cindy Lamoureux accused the NDP of “fiscal recklessness” for hanging on to the former PC government’s 50 per cent education property tax rebate this year, which is adding to Manitoba’s growing debt.
“We’re paying three time more to service our debt than how much we spend on the department of justice alone,” Lamoureux said.
Manitoba’s debt is expected to climb to $35 billion this year, with $2.2 billion in the budget for servicing that debt. The operating budget for justice this year is under $800 million.
Hajer said changing the education property tax rebate to a flat $1,500 tax credit next year and clawing back the basic personal exemption from the highest income earners will help.
The budget also extends $10-a-day child care to summer months and holidays for children under 12 at regulated non-profit facilities.
— with files from Katie May
chris.kitching@freepress.mb.ca
carol.sanders@freepress.mb.ca
As a general assignment reporter, Chris covers a little bit of everything for the Free Press.
Carol Sanders
Legislature reporter
In 1997, Carol started at the Free Press working nights as a copy editor. In 2000, she jumped at a chance to return to reporting. In early 2020 — before a global pandemic was declared — she agreed to pitch in, temporarily, at the Free Press legislature bureau. She’s been there ever since.
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History
Updated on Tuesday, April 2, 2024 3:41 PM CDT: Adds fact box
Updated on Tuesday, April 2, 2024 7:44 PM CDT: Adds photos, quotes and updates to final version.
Updated on Wednesday, April 3, 2024 12:10 PM CDT: Amends web headline, subheadline
Updated on Wednesday, April 3, 2024 3:02 PM CDT: Changes featured photo