Published Nov 04, 2025Last updated 14 hours ago5 minute readFinance Minister Jill Burridge, right, delivers a budget address in the P.E.I. legislature on Nov. 4, next to Premier Rob Lantz. The budget includes $1.6 billion worth of capital spending over the coming five years. Photo by Stu Neatby /The GuardianArticle contentThe Progressive Conservative government of Premier Rob Lantz has released its five-year capital budget, which includes plans to build a new school in Summerside.THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLY.Subscribe now to access this story and more:Unlimited access to the website and appExclusive access to premium content, newsletters and podcastsFull access to the e-Edition app, an electronic replica of the print edition that you can share, download and comment onEnjoy insights and behind-the-scenes analysis from our award-winning journalistsSupport local journalists and the next generation of journalistsSUBSCRIBE TO UNLOCK MORE ARTICLES.Subscribe or sign in to your account to continue your reading experience.Unlimited access to the website and appExclusive access to premium content, newsletters and podcastsFull access to the e-Edition app, an electronic replica of the print edition that you can share, download and comment onEnjoy insights and behind-the-scenes analysis from our award-winning journalistsSupport local journalists and the next generation of journalistsRegister to unlock more articles.Create an account or sign in to continue your reading experience.Access additional stories every monthShare your thoughts and join the conversation in our commenting communityGet email updates from your favourite authorsSign In or Create an AccountorArticle contentThe capital budget commits $14.5 million for the construction of a new school as a replacement for Parkside Elementary.Article contentArticle contentThis fall’s capital budget is a departure from previous years’ capital budgets in that it is slightly smaller, over five years, than the previous year’s budget. Overall, the capital budget commits $486.5 million next year and $1.62 billion over the next five years for capital projects across P.E.I.Article contentArticle contentLast year’s capital budget included $482.5 million in spending for the current fiscal year and $1.65 billion over five years.Article contentCapital spending is long-term and focuses on infrastructure like buildings and roads.Article content In its latest capital budget, the provincial government committed $14.5 million for the replacement of Parkside Elementary School in Summerside. Photo by Kristin Gardiner /Journal PioneerArticle contentThis year’s capital budget includes $538 million in spending on health-care projects, $437 million for education projects and $365 million for transportation and infrastructure over the next five years.Article contentIn a speech in the legislature, Finance Minister Jill Burridge cast the capital budget as a measure to make sure the province meets the needs of the future. Burridge also said the Progressive Conservative government was “making up for lost time” of previous governments who she said had failed to invest in health and education infrastructure.Article content“Meeting the moment means recognizing that government can’t afford to wait for perfect conditions,” Burridge told the legislature.Article contentArticle content“It means understanding that the costs of inaction are always higher than the costs of progress.”Article contentArticle contentP.E.I.’s last operating budget projected a $184 million deficit for the province. Speaking to reporters in a media lockup, Burridge acknowledged the province’s deficits were “higher than we would like to have it.”Article contentBut she said the province’s debt level, compared to its gross domestic product, is at 32.6 per cent and is expected to grow to 38 per cent. This, she said, is similar to debt levels in other provinces.Article content“Relative to other provinces, though, we don’t stand out. We would be just, you know, in the middle there,” Burridge said.Article content“So we feel that we are being fairly prudent with our spending here.”Article content Finance Minister Jill Burridge tabled a five year, $1.6-billion capital budget on Nov. 4. The capital budget is slightly smaller than the previous year but is still among the highest in the province’s history. Photo by Stu Neatby /The GuardianArticle contentHousing fundingArticle contentThis year’s capital budget allocates $104 million less than last year’s budget for the P.E.I. Housing Corporation, the main public housing organization in the province. This year’s budget allocates $129 million for public housing projects over five years, whereas last year’s budget allocated $233 million.Article contentFinance Minister Jill Burridge said the reduction in funding partly reflected the anticipated completion of some public housing projects this year. An 82-unit public housing project on Charlottetown’s Lower Malpeque Road is nearing completion.Article contentBurridge also said P.E.I. has seen record high housing starts in the last two years, with 1,400 so far this year.Article content“We feel like we’re in a good spot in terms with housing right now. So we’re just taking the foot off the gas a little bit right now,” Burridge said.Article content“Private industry is going to continue on.”Article contentThe province’s housing strategy has said 2,000 new housing units are needed each year to meet the province’s needs.Article contentThe capital budget includes $12 million to install new CT scanners at Kings County Memorial Hospital and Western Hospital.Article contentIt also includes a $14 million allocation to build between 20 and 24 publicly-owned long-term care beds in Souris’ Colville Manor and Tyne Valley’s Stewart Memorial.Article contentArticle contentA $36 million fund is also included to help aging schools perform repairs and establish mobile classrooms to address overcrowding.Article content In response to the capital budget released on Nov. 4, Liberal Opposition leader Hal Perry raised the impact of high capital spending on the province’s debt. Photo by Stu Neatby /The GuardianArticle contentHealth and EducationArticle contentMany of the commitments in the capital budget include projects previously announced in health and education. These five-year funding commitments include:Article content$132 million to replace the Kings County Memorial Hospital.$131 million to complete the new mental health hospital, as a replacement for the existing Hillsborough Hospital, in the fall of 2027.$22.9 million for primary care spaces.$102 million for upgrades and redevelopments to Charlottetown’s Queen Elizabeth Hospital.$65 million for new elementary schools in East Royalty, West Royalty and Georgetown.$25 million for a new Stratford High School, scheduled to be completed in Summer 2027.$109 million for a new intermediate school in Stratford.$24 million to expand Charlottetown’s Queen Charlotte Intermediate.$64 million to replace Evangeline School in Western P.E.I.$28 million to expand Charlottetown’s Ecole Francois Buote.$19 million to complete the first phase of renovations at WestIsle school.Article contentArticle contentArticle contentGreen Leader Matt MacFarlane suggested the coming federal budget could include cuts that may affect the province’s finances, making debt repayment more difficult.Article contentInfrastructure and LandArticle contentOther infrastructure announcements include $296 million for P.E.I. road maintenance over five years.Article contentAn existing program aimed at buying back index fields that previously yielded potatoes infected with potato wart will receive an influx of $14 million over five years.Article contentThe budget includes $3.5 million aimed at improving the province’s spotty cellphone service. This is an increase from a $2.5 million allocation for construction of new cellphone towers in last year’s budget. This would require the co-operation of large telecoms like Bell or Rogers, but no agreement has yet been announced.Article contentFinally, the capital budget includes a $600,000 allocation for the construction of a new subsea power cable between P.E.I. and New Brunswick. Burridge noted in her speech that construction of this cable will require “a strong partnership with the federal government.”Article contentThe federal government is expected to table its budget on Nov. 4. Media reports have suggested this budget will involve significant cuts to federal services but will also include a $50 billion infrastructure fund that will be made available to provinces.Article contentIn response to the capital budget, Liberal Opposition leader Hal Perry raised the impact of high capital spending on the province’s debt. He noted the province’s debt to GDP ratio will approach 40 per cent in the coming years.Article content“That means more of every tax dollar will go towards paying interest instead of improving health care, improving housing or improving education,” Perry said.Article content“Islanders deserve a government that manages its finances responsibly, not one that will leave it to future generations to pay for today’s mismanagement.”Article contentPerry said recent health investments have not addressed staffing shortages in frontline care. He accused the province of making investments in the “front office, not the frontlines,” a reference to high salaries for the Health P.E.I. executive leadership team.Article contentArticle contentGreen Leader Matt MacFarlane said the previous Liberal government had underinvested in capital infrastructure like schools and health facilities. But he said that “reckless and wasteful spending” of the current PCs would not balance the budget.Article content“If this government can’t be fiscally responsible in the best of times, when money has been flowing in faster than ever before, how can we possibly trust this government to manage responsibly when times get tighter?” MacFarlane said.Article contentMacFarlane suggested the coming federal budget could cut back on federal programs and transfer payments.Article content“Tighter times, we’ll get,” MacFarlane said.Article content“Population growth is slowing, federal transfers are uncertain and we will know later today, with the federal budget, just how uncertain that will be.”Article contentArticle contentStu Neatby is a political reporter for The Guardian in Prince Edward Island. He can be reached at sneatby@postmedia.com and followed on X @stu_neatby.Article contentArticle content
P.E.I. capital budget commits to new Summerside school, reduces housing spending
