Winnipeg Free Press

Winnipeg Free Press (Newspaper) - March 23, 2024, Winnipeg, Manitoba LEASING FOR NEW AND USED VEHICLES 1400 LAKEVIEW RD, MOOSE JAW, SK MOOSE JAW AUTO & LEISURE LARGEST CASH & CARRY DEALER IN WINNIPEG 702 Broadway @ Sherbrook (204) 783-5742 (CASH & CARRY ONLY) $ 1 49 PER SF SHAW ANVIL PLUS 20 MIL CLICK W/PAD WATERPROOF LVP 12 MIL GLUE DOWN WATERPROOF AERIAL LVP (CASH & CARRY ONLY) $ 2 99 PER SF SATURDAY, MARCH 23, 2024 A2 ● WINNIPEGFREEPRESS.COM NEWS VOL 153 NO 113 Winnipeg Free Press est 1872 / Winnipeg Tribune est 1890 2024 Winnipeg Free Press, a division of FP Canadian Newspapers Limited Partnership. Published six days a week and always online at 1355 Mountain Avenue, Winnipeg, Manitoba R2X 3B6, PH: 204-697-7000 Interim CEO / DARREN MURPHY Editor / PAUL SAMYN Associate Editor Enterprise / SCOTT GIBBONS Associate Editor News / STACEY THIDRICKSON Associate Editor Digital News / WENDY SAWATZKY Director Photo and Multimedia / MIKE APORIUS NEWSMEDIA COUNCIL The Winnipeg Free Press is a member of the National Newsmedia Council, which is an independent organization estab- lished to determine acceptable journalistic practices and ethical behaviour. If you have concerns about editorial content, please send them to: editorialconcerns@freepress.mb.ca. If you are not satisfied with the response and wish to file a formal complaint, visit the website at www.mediacouncil.ca and fill out the form or call toll-free 1-844-877-1163 for additional information. 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Call or email before 10 a.m. weekdays or 11 a.m. Saturday City: 204-697-7001 Outside Winnipeg: 1-800-542-8900 press 1 6:30 a.m. - 4 p.m. Monday-Friday.; 7 a.m. - noon Saturday; Closed Sunday TO SUBSCRIBE: 204-697-7001 Out of Winnipeg: 1-800-542-8900 fpcirc@freepress.mb.ca The Free Press receives support from the Local Journalism Initiative funded by the Government of Canada INSIDE Arts and Life D1 Books G1 Business B4 Celebrations D5 Classifieds E7,8 Comics I3-7 Community Voices A18 Destinations I1 Diversions G6-7, I8 Faith G5 Homes H1 Horoscope D5 Miss Lonelyhearts D5 Money Matters B7 Obituaries C1 Opinion A8,9 Sports E1 Weather D8 49.8 F1 COLUMNISTS: Charles Adler A9 Paul G. Thomas A9 Tom Brodbeck B1 Martin Cash B4 Laura Rance B5 David Christianson B6 Joel Schlesinger B7 Tory McNally B8 Ben Sigurdson D2 Jen Zoratti D4 Jerrad Peters E5 Shawna Forester F3 Russell Wangersky F6 Alison Gillmor F8 READER SERVICE ● GENERAL INQUIRIES 204-697-7000 Province projects deficit climbing close to $2B A “DOOM and gloom” update on the province’s finances Friday included news of a forensic audit of one health region, the payout of hun- dreds of millions in legal settlements, and a forecast deficit that’s grown to nearly $2 billion. The third-quarter report puts the projected shortfall at $1.99 billion as of Dec. 31, 2023, up from the $1.6-billion deficit forecast at the end of Septem- ber. “The biggest drivers that have led to this increase in the scope of the defi- cit are tied to increases in health-care expenditures that are mostly driven by collective bargaining-related costs,” Finance Minister Adrien Sala said at a Friday news conference. “There was a flurry of very last-minute collective bargaining agreements that were put in place prior to us arriving to govern- ment. The impacts of those collective bargaining agreements are now com- ing online.” After the NDP won the Oct. 3 prov- incial election, the second-quarter report released in December noted decreased tax revenues, over-budget health spending and forecast losses at Manitoba Hydro. It showed the prov- ince was on track for a $1.6-billion deficit — which would’ve been the lar- gest non-pandemic deficit in Manitoba history. Total provincial revenue is projected to be $901 million below budget, main- ly because of lower income from Mani- toba Hydro as a result of drought con- ditions, decreases in income taxes and the government’s fuel-tax holiday. The report indicates provincial fu- el-tax revenue will be $101 million below budget, mostly due to the Jan. 1 gas tax holiday. Previously, the govern- ment estimated the tax pause to cost $82 million in the final three months of the fiscal year. Sala wouldn’t say ahead of the April 2 budget if the six- month gas-tax holiday will be extended beyond July 1. Expenses, meanwhile, are projected to be $733 million higher than budget. “This increase in expenses is large- ly attributable to significant and un- budgeted overspending in the health care bureaucracy,” Sala said. His government has ordered a for- ensic audit of the Northern Regional Health Authority and comprehensive financial audits at Shared Health, Winnipeg Regional Health Authority, Interlake-Eastern Regional Health Au- thority and Prairie Mountain Health. While promising the government would be accountable and transparent in its budgeting, Sala wouldn’t say why Northern Health is to undergo the aud- it — only that it will be on a “somewhat deeper level” than the audits in other health regions. “These audits are important because we know that Manitobans want to see value for our health care spending,” Sala said. “We’ve seen health-care spending go up in recent years but we’re not necessarily seeing better outcomes. These audits demonstrate that we are concerned about the direc- tion of health care spending and that we want to see action to remedy that and that it’s not acceptable to see these increasing costs go up without better outcomes for Manitobans.” Northern Health CEO Raj Sewda was not available for an interview Fri- day but issued a statement about the ordered forensic audit: “We welcome and respect the audit process under- way. Such exercises identify opportun- ities for improvement, and learnings for the benefit of patients and their families on the health care journey.” When asked about its “comprehen- sive” audits, Shared Health and the WRHA issued statements. “We share government’s desire to ensure funding is being used thought- fully and efficiently in the interest of patient care,” Shared Health said. “We will be working with govern- ment to review budgeting and spending within the WRHA, and will co-operate fully with the financial audit that will be conducted,” the WRHA said. Sala said the audits will review budgeting and spending practices to ensure “every single dollar that flows will deliver real results for Mani- tobans. We need to do things different- ly. We need to budget differently than the previous government,” Sala said. The report also attributes the worsening deficit to “provisions for the settlement of longstanding lawsuits” in the Families and Justice departments. Sala declined to elaborate on the lawsuits that were settled. Previously, Families Minister Nahanni Fontaine said the province was nearing a settle- ment related to the clawback of the federal children’s special allowance from youths in the child-welfare sys- tem. The Manitoba Métis Federation de- clined to comment Friday but a spokes- person said stakeholders connected to the children’s special allowance law- suit may issue a statement Monday. The fiscal update highlighted “major expense variances” totalling $99 mil- lion in the Families department and $124 million in Justice. “The last government did not prop- erly prepare or budget for those costs,” Sala said. “That’s what’s driving some of this deficit increase that we’re see- ing here today.” Sala promised Manitobans would be “very happy” with the NDP’s first budget. “We are going to be showing Mani- tobans that we can both make the in- vestments in the things that they want to see us invest in as a new govern- ment, namely health care and afford- ability, while we show a path to bal- ance,” said Sala. The NDP has promised to balance the budget in its first four-year term. PC finance critic Obby Khan questioned the New Democrats pre- senting the province’s financial situa- tion as “the world is on fire” and “doom and gloom” that they will somehow “magically” fix with their upcoming budget. Khan called them hypocritical for promising transparency and account- ability then refusing to explain the reasons for ordering a forensic audit in Northern Health or offering any details on the families and justice de- partment legal settlements. “The NDP need to really come clean with Manitobans on what’s really hap- pening,” Khan said Friday. He said they need to stop “the blame game” and pointing fingers at the previous government. “They will have been in government for half of this fiscal year. They are responsible for the decisions and gov- erning going forward and that’s the re- ality of the situation,” Khan said. danielle.dasilva@freepress.mb.ca carol.sanders@freepress.mb.ca Third-quarter fiscal report: audits ordered of regional health authorities DANIELLE DA SILVA AND CAROL SANDERS RUTH BONNEVILLE / FREE PRESS Finance Minister Adrien Sala delivers the third-quarter fiscal report Friday. Slower growth forecast PREMIER Wab Kinew has often said “the economic horse pulls the social cart.” The third-quarter fiscal update released Friday indicates the economic horse won’t get much bigger any time soon. The report said real gross domestic product growth is expected to be 1.4 per cent in 2023, which is double budget expectations of 0.7 per cent. Growth of nominal GDP — the total value of all goods and services produced in a given time period — has also been revised up to 3.4 per cent for 2023, compared to 2.2 per cent in the budget. Growth expectations in 2024, however, are being dampened by extended periods of elevated inflation and higher interest rates, the report said. The province has lowered its forecast real GDP growth to 0.6 per cent and nominal GDP growth to 2.9 per cent. “I think our economy is still dealing with the impact of really high interest rates,” Finance Minister Adrien Sala said. “The forecast suggests 2024 will see modest growth and more in 2025.” Meanwhile, the province faces a whopping $1.99-billion deficit. When asked if the province would raise taxes or lower spending, Sala would only say the government would “invest where Manitobans want to see us invest, while ensuring that we’re mindful of our commitment to a balanced budget in our first mandate.” When asked it he’s concerned credit rating agencies would downgrade Manitoba’s credit rating, the finance minister said, “We are doing a lot to make sure we are clear with them about our plans to show how we’re going to bring our budget back to balance.” “As a new government, we’re going to do everything we can to foster and enable that growth in the best way possible.” ;