PEIP.E.I.’s capital budget for 2026-27 is prioritizing what Islanders need most, with health-care infrastructure and education leading the way in new spending, says Finance Minister Jill Burridge.‘There’s no frivolous spend. A lot of this work is really overdue,’ Jill Burridge saysThinh Nguyen · CBC News · Posted: Nov 04, 2025 2:17 PM EST | Last Updated: 1 hour agoListen to this articleEstimated 5 minutesThe 2026-2027 capital budget was tabled by Finance Minister Jill Burridge in the P.E.I. Legislature on Tuesday afternoon, which was also the opening day of the fall sitting. (Thinh Nguyen/CBC)P.E.I.’s capital budget is prioritizing what Islanders need most, with health-care infrastructure and education leading the way in new spending, says Finance Minister Jill Burridge.Burridge tabled the province’s 2026-27 capital budget in the P.E.I. Legislature on Tuesday afternoon, the opening day of the fall sitting.This year’s budget spending is only slightly higher than last year’s record-breaking budget. The government estimates it will spend $486.5 million for 2026-27, and a total of about $1.6 billion over the next five years.Burridge said the spending plan reflects the province’s growing population and the pressure that growth places on public services.“While this plan is slightly smaller than last year’s, the plan is focused, practical and grounded in what Islanders need most,” Burridge told reporters.The province’s auditor general recently raised concerns about P.E.I.’s debt, with net debt surpassing $3 billion. Burridge said the projected net debt-to-GDP ratio for the upcoming fiscal year is 38 per cent, which is higher than in recent years.But she said the province’s strong financial performance and growing economy allow it to move ahead comfortably with these investments.“There’s no frivolous spend. A lot of this work is really overdue,” she said. “Governments, over time, haven’t been putting in those consistent investments to keep us where we are, and so we’re in catch-up period right now, so I can say that we’re at a point where the cost of inaction is actually the most risk.”Health careOver the next five years, the province is setting aside more than $132 million to create a health-care campus in Kings County, including a new hospital and a community health centre. An additional $3.7 million will go toward upgrades at the existing Kings County Memorial Hospital in Three Rivers.The province will invest $11.9 million over the next five years to purchase and install CT scanners at KCMH and at Alberton’s Western Hospital. Both currently lack this equipment.There will also be $131 million set aside to complete the ongoing Mental Health Campus project in 2027-28.Finance Minister Jill Burridge says the new capital budget prioritizes what Islanders need most, with health care infrastructure and education leading the way. (Wayne Thibodeau/CBC)Other health-care investments include:$40 million for a new building in the capital region to house medical clinics.$43.2 million to upgrade and strengthen building operations at the Queen Elizabeth Hospital.$59.1 million to redevelop the QEH campus.$16 million to complete the Community Health Centre on the Mental Health Campus.$300,000 to complete the new Community Health Centre in Summerside.$1.5 million to expand the patient medical home in Central Queens.$3 million for renovations at the Kensington Primary Care Access Clinic in 2029–30.$10 million to add more long-term care beds in Souris and Tyne Valley.$4 million to support provincial home care and adult day programs.In total, $538 million will be invested in health-care infrastructure across the province over the next five years.EducationThe government is also making significant investments in education, with more than $437 million allocated over five years to renew and expand the school system.A new $14.5-million investment will fund design work for a replacement for Summerside’s Parkside Elementary School, one of the oldest schools on P.E.I. Construction is scheduled for 2030-31.The province is also setting aside $65.4 million for new elementary schools in East Royalty, West Royalty and Georgetown to address growing capacity needs and provide modern learning spaces.A new $14.5-million investment in the budget will fund design work for a replacement for Parkside Elementary School, one of P.E.I.’s oldest schools, with construction scheduled for 2030-31. (CBC)French-language education will receive $92 million over five years, including $64 million to replace École Évangéline in western P.E.I. and $28 million to expand École François-Buote in Charlottetown. Other education projects include:$109 million for the new intermediate school in Stratford, with work on it set to begin next year.$24 million to expand Queen Charlotte Intermediate with more learning spaces.$19 million for major repairs at Westisle Composite High School.$36 million for school revitalization and capital repairs to make sure aging schools receive needed upgrades.$1.5 million for the Childhood Recreation Fund to help communities create safe, active school spaces.Other spending itemsNew in this year’s capital budget is $600,000 over two years to support early planning for a new subsea power cable to ensure the Island’s energy system can support future growth, which Burridge said is a project that will require a federal partnership.“This project will be one of the most important infrastructure undertakings in our province’s future — and one that we cannot do alone,” Burridge said.The province also plans to open a new Access P.E.I. site in Stratford by 2030-31, with $700,000 set aside to complete this work. That’s the finance minister’s home district.In housing, $28 million will go toward upgrades and repairs to existing public housing, and $100 million over the next five years will be used to build more than 300 new affordable housing units.Burridge says the overall housing investment in the capital budget has decreased compared to previous ones, but the province is now able to slow down the funding pace as it feels P.E.I. is currently ‘in a good spot’ with housing. (Brian McInnis/CBC)Although the overall investment in housing in this capital budget has decreased compared to previous ones, Burridge said housing budgets were significantly increased over the last two to three years.And those investments have paid off, with 2024 seeing a record number of housing starts with nearly 1,700 units. So far this year, that number is already about 1,400 new units, she said.”We feel like we’re in a good spot with housing right now,” she said. “So we’re just taking the foot off the gas a little bit right now.”With files from Wayne Thibodeau
New P.E.I. capital budget focuses on ‘what Islanders need most,’ finance minister says
