PEI Budget: Missed Opportunity to Strengthen Public Services

Charlottetown, PEI –The Lantz government’s 2025-2026 operating budget is cause for concern, as it once again prioritizes short-term private sector gains over long-term public service solutions.

“With a record-breaking $183.9 million deficit, this budget could have marked a turning point in how we invest in people and public infrastructure,” said CUPE PEI President Ashley Clark. “Instead, this deficit is largely tax dollars flowing to private operators and consultants—without clear fixes for the core issues within our public sector.”

In her speech, Finance Minister Jill Burridge framed the deficit as a necessary response to population growth and global trade turmoil.  “There’s no denying we will face a tough year,” said Ashley Clark. “But we need smart, structural public sector investments, so we can be strong enough to weather the storm,” she added. Instead, this government is making the foolish decision to cut provincial revenues (cutting the corporate tax rates from 16% to 15%) while increasing spending in corporate handouts.

Clark acknowledged the increased healthcare spending, including the jump to nearly $1.1 billion for Health PEI, but criticized how the funds are allocated. “Again, we’re seeing more public dollars handed over to private consultants and staffing firms. The private healthcare staffing agencies, for example, cost Islanders 20 million dollars. That is 4 times more than what the PCs had planned for. Imagine what that level of spending could do if it were invested in Island workers and public institutions instead of steadily funnelling out of the public purse.”

CUPE PEI urges our government to view this moment as an opportunity, not just a crisis. The budget includes supports like wage increases for early childhood educators and a modest $1.5 million for reskilling workers, but it’s not enough to fix long-standing recruitment and retention issues.

“People don’t move to or visit PEI for tax cuts or contingency funds—they come for quality of life, for good schools, for accessible healthcare, for a strong sense of community,” she continued. “That starts with a strong public sector. This budget was another missed opportunity for the government to show that they believe in investing in Islanders.”