The Provincial Government put forward its 2025 Budget. The following serves as a very brief overview and initial analysis.
This budget comes during the most tumultuous and ambiguous time in our economy and can be understood as an attempt by the provincial government to offer a steady hand in these rough waters.
Since the Greene Report, which was a roadmap to austerity and the complete privatization of our public services, your Union has been adamant, active, and determined protect these essential services.
It is clear from this budget that the efforts by our membership, workers, and the labour movement were recognized. At a time when many governments are turning to a reduction in public services, including cuts to healthcare and education, the Government of Newfoundland and Labrador has stayed the course.
You made it clear; austerity has no place here.
We have done some sector specific analysis for the areas that we directly mentioned or of note in Budget 2025.
HEALTHCARE
We know that everyday healthcare workers are continuing to face the pressures of major workplace shortages, threats of privatization, and the stress of trying to maintain levels of care. This budget continues previous commitments with several additional measures for supporting healthcare:
- $10 million for the maintenance of recruitment and retention incentives for health professionals
- $26 million to continue ambulance integration, including 8.5 for the expansion of emergency medivac services
- LPN seats will be maintained at the College of the North Atlantic
- Continued $10 million in funding to address backlogs in healthcare
MEMORIAL UNIVERSITY/COLLEGE OF THE NORTH ATLANTIC
Funding for Memorial University has been cut by tens of million the last 4 years; this budget offers 13.7 million to address the budget shortfall. Again, this a testament to the organizing and advocacy being done by the #FundMUN, which includes our Locals at the Marine Institute and at Memorial University.
The College of the North Atlantic will receive $82 Million for its operating grant, that is an additional $11 million increase for its budget. For years, the budget of the College of the North Atlantic had been essentially frozen, and the increase comes in conjunction with the recruitment and retention efforts that depend upon increasing our capacity at our public college system.
EARLY CHILDHOOD EDUCATION
The $10-a-day regulated childcare system in the province will continue with direct funding support, as well as an additional $3.9 million for projects to increase the number of childcare spaces.
Your Union has been active in ensuring all childcare is accessible, inclusive, and universal, the enhancement of the current program is a key goal of that advocacy.
JUSTICE AND CORRECTIONS
The budget includes $3.4 million for public safety initiatives including, additional deputy sheriffs and correctional officers, this is the continuation of the pre-budget announcements.
There will be $17.5 million allocated to continue the procurement of the replacement of His Majesty’s Penitentiary and to address infrastructure enhancements until the new facility is completed.
TRANSPORTATION AND INFASTRUCUTRE
The budget outlines the importance of spending on critical transportation infrastructure and includes a $37.7 million investment this year to replace snowplows, loaders, tractor trucks, and an asphalt paver truck.
As well, we know from our members that marine services operation requires considerable maintenance and rehabilitation of the fleet, this budget provides $90.6 million for the inter-provincial ferry system.
COST OF LIVING
Budget 2025 does not have any additional increases in taxes and there are some decreases in fees, such as a registering your vehicle. As well, in response to the tariff threat, there is a $200 million contingency set aside to address possible economic and worker impacts.
There are additional measures for poverty reduction, seniors support and homelessness.
PRIVATIZATION
Of course, the devil is always in the details of any budget, and we must always remain cautious as the ongoing creep of privatization is a very real danger. The government continues to favour P3 models, while using agencies and contracting out instead of investing in building an ever-stronger public sector. Any increase in funding to healthcare, education, transportation and infrastructure, and justice, must be done with the overall goal of expanding and improving our public sector.
CONCLUSION
This is by no means a comprehensive review of the provincial budget, overing a few of the issues particularly relevant to our Union and our members.
There are a lot of unanswered questions in this budget, but that is the case for every economic touchstone in our lives now. While the budget attempts to quell any major distress, the reality remains—we face growing unemployment, increasing inflation, and many unknowns when it comes to the value of resources.
In the coming weeks and months, workers will need to stand united as we all weather this storm. I know many of you might be breathing a sigh of relief today but there is a lot of uncertainty ahead and it will be our solidarity that will see us through.
In Solidarity,
Jerry Earle, NAPE President
Trevor King, NAPE Secretary-Treasurer
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