The Holt Liberals say they need “flexibility” from the federal government on a target of $10-per-day average child-care costs six weeks from now.
Under the 2021 federal-provincial agreement, out-of-pocket costs for parents with children in designated spaces must average $10 by April 1.
But Claire Johnson, the education and early childhood development minister, told reporters that she was recently in Ottawa seeking some latitude on that goal as the province seeks to cut spending in its March 17 budget.
“We are asking to have a certain amount of flexibility on that front to be able to create new spaces, to make sure that daycares are affordable, and absolutely we’ll be continuing to fund that,” she said.
Johnson said the province is “negotiating the details” of a renewed agreement and “we’re not ready to land on that level of detail right yet.”
Finance Minister René Legacy unveiled a record-high deficit of $1.3 billion this week. (CBC News)
The $544 million, five-year agreement subsidizes “designated” spaces in regulated child-care centres that adopt a provincially required curriculum.
Ottawa has covered $491 million of the cost of subsidies over the five years of the deal, and the province agreed to cover $53 million in order to get to that $10-per-day average by April 1 this year.
But the province’s latest budget projections for this year would have the province spending $38 million less than expected of the federal-provincial total in 2025-26.
Asked earlier this week what that meant and whether the new budget for 2026-27 would have enough money to subsidize spaces at $10 a day, Finance Minister René Legacy said, “That’s what we’re working out right now.”
The current average cost per day in designated child care centres is $12.82 per day.
In a statement to CBC News, the federal government didn’t say what would happen if New Brunswick doesn’t meet the target
“New Brunswick committed to reducing child-care fees to an average of $10 a day by the end of fiscal year 2025 to 2026,” the statement said.
“The governments of Canada and New Brunswick continue to work together to advance their shared priorities under the Canada-wide system and ensure access to affordable and high-quality early learning and child care for families in New Brunswick.”
Premier Susan Holt said the government is considering its options for reducing the deficit. (Tara King-Stewart/CBC)
The Holt government’s cost-cutting exercise has prompted speculation and worry across several sectors that rely on provincial funding.
Premier Susan Holt said she has asked all government departments and entities to identify what a 10 per cent budget cut would look like.
She said Friday that the Liberals will give “very careful consideration” to ideas for spending more efficiently, reducing the civil service and generating new revenue in order to deliver “the most fiscally responsible budget possible” that protects health care and boosts the economy.
Legacy has repeatedly floated the idea of closing schools that are below capacity.
Under the province’s Policy 409, school closures must be launched by a district education council and include a sustainability study and three public meetings.
Johnson said Friday the government won’t circumvent that requirement.
“At this point in time, we are committed to Policy 409, and we are planning to continue to follow that specific course, absolutely,” she said.
Holt also defended the decision to give J.D. Irving Ltd. up to $45 million in tariff relief subsidies over three years to support its Saint John paper mill at the same time it’s looking at budget cuts.
The premier noted the money has conditions attached, including the maintaining of existing jobs and new capital investments in the mill, and the government didn’t expect the company to need the full amount.
“We determined that the economic spinoffs and the tax impact of the investment that we were at risk of losing justified being open to the possibility — if the conditions were met — of spending up to $15 million a year,” she said.
Holt and Johnson made their comments following a reannouncement of $67.5 million in upgrades over 10 years for Fredericton’s École Sainte-Anne and the adjacent community centre, which opened in 1978.