After record surpluses, N.B. finance minister cites travel nurse contracts for projected deficit
Contracts represent nearly 60 per cent of projected $164M overrun in Department of Health
New Brunswick is projecting a deficit for the upcoming year, with government officials pointing to costly travel nurse contracts as the main driver.
That projected $27.6 million deficit for fiscal 2024-25 comes after the province recorded four major budget surpluses and had projected a surplus for the year of $40.9 million.
But an update Thursday showed the first quarter surplus was $150.4 million, below government's budgeted $269.8 million surplus for the quarter.
Finance Minister Ernie Steeves said health expenses are largely behind the projection.
The Department of Health is expected to land $164-million over budget — $97 million of which the province is attributing to those contracts.
Vitalité Health Network's travel nurse contracts represent the bulk of that number.
The province has been aware of the cost implications of those contracts since early 2023, deputy minister Eric Beaulieu told a legislative committee this summer.
Deputy
health minister, Eric Beaulieu, told a legislative committee the cost
of travel nurse contracts were made clear to the department in March
2023. (Legislative Assembly of New Brunswick)
"The impact that travel nurses contracts are having on our bottom line is really no surprise," Steeves told reporters on Thursday.
But he appeared to backtrack when asked why the budget wasn't altered if the cost wasn't a surprise.
"You're always surprised at the amount of money and surprised by how it happened I guess," he said.
"And then looking at how we can ... come up with a solution and solve the problem. That's ultimately where we are now, and where we're moving forward to is, how do we solve this problem? This $97-million problem?"
Dr.
France Desrosiers, president and CEO of Vitalité, says the health
network plans to phase out the use of travel staff by 2026. (Bader Ben Amara/Radio-Canada)
France Desrosiers, the president and CEO of Vitalité, did not respond to questions Thursday about the regional health authority's projected cost for travel nurses in the coming year.
"Our financial results and projections are shared with the Department of Health on a monthly basis, following the usual process," she said by email.
"As we stated before the Standing Committee on Public Accounts, agency staff have helped maintain essential services, ensure a safe threshold of nursing care hours per patient per day, and most importantly, save lives," Desrosiers said.
She noted Vitalité's plan is to phase out the use of travel staff by 2026.
Steeves said other personnel expenses, such as overtime and training new staff, along with supply costs, account for the rest of the overage estimate.
He said the projected deficit is 0.2 per cent of the budget and that quarterly data and federal estimates to come could change the outlook for the year.
Green Leader David Coon says he doesn't trust the province's latest fiscal projections. (Pat Richard/CBC)
Opposition parties were skeptical of the figures.
"We've done this song and dance for the last four years now," said Liberal finance critic René Legacy.
"One quarter we're projecting very low surpluses and then we end up with just humungous surpluses because the revenues are under-projected."
Green Party Leader David Coon expressed similar doubts.
"The premier and his finance minister have been off by a country mile on surpluses and projections in the last number of years, and so I don't trust the projections," Coon said.
Steeves said the last time the province recorded a deficit was in 2017, while the last deficit forecast was made in the third quarter of fiscal 2020-21.
Despite the prediction, Steeves said the Progressive Conservatives plan to forge ahead with an election promise to reduce the HST to 13 per cent — a move that would cost the province $450 million in revenue.
"We're still continuing to grow as a population, we're still continuing to grow with employment, and that leads to more income tax. So the revenue will go up naturally," he said.
ABOUT THE AUTHOR
I could tell he was a song and dance man as soon as he joined the circus
Offer free ed on the condition of a five year commitment to working in public healthcare...
Forward Together.
If you want better health care vote NDP
Dennis Woodman
Reply to james bolt
And way more debt.
Henri Bianchi
Reply to james bolt
Sure. Emergency room closures and long waits to see a doctor in NDP-governed BC, one out of every six people do not have a family doctor, but you can access private surgical services such those offered by Cambie and the Surgical Solutions Network.
Ed Franks
Reply to james bolt
I live in BC, do you have any other advice. That advice doesn’t work in my province
Bob Smith
Reply to james bolt
Many in NB want a viable third party but the NDP here is a mess. The Green party is not much better.
Gabriel Boucher
Reply to james bolt
The provincial NDP collapsed under Dominic Cardy's leadership. It's not an option here in NB. If health care is a top priority of yours, look at either the Liberals or the Greens. You won't find it through the Cons. Higgs had 6 years to make the system better, but instead, he's relying on travel nurses to keep the health care system afloat. The Cons created this mess by not funding the health care system enough during the 6 years they've been in power.
Don Corey
Reply to Gabriel Boucher
Are you not aware that we have a Canada-wide healthcare crisis? Did you know that 6.5 million Canadian adults are without a family doctor? We are competing with all the other provinces, and many other countries, for doctors and nurses.
The Liberals did nothing here to improve healthcare under the Gallant government (which employed Susan Holt in various roles). So what do you think she'd do differently now, when medical personnel are much harder to recruit and maintain?
Oh, you can forget the greenies.....talk is cheap.
Douglas James
Reply to Don Corey
And if Higgs were serious about the problem, he'd have taken the initiative to get all the provinces and the feds together for a high level meeting to try to figure out a way forward. He did nothiing.
Deborah Reddon
Reply to Bob Smith
NB wants a viable alternative but no one is willing to go to the lengths that it takes. It's also very silly to think a small Province can to that. Get behind the best alternative based on issues you want resolved and push as hard as you can for success. That's why the Liberals have my vote, they're making health care a priority instead of Museums and Prison cells - 200 MILLION dollars from Higgs, it's incredible.
Jake Newman
Reply to Douglas James
the provinces did try, Justin has refused to meet over and over.....nice try though.
Bill Hanley
Reply to Douglas James
All the provinces, including NB, tried but Trudeau wouldn't meet with them.
Walter Vrbetic
Reply to Jake Newman
All the provinces agreed to a new healthcare funding agreement... and did so relatively rapidly.
David Amos
Reply to Don Corey
Talk is cheap for the Greens and the NDP too because they will never have any power to back up their rhetoric in NB but whenever another party leader who has the mandate starts yapping matters become very expensive indeed
David Amos
I was just sent a video about Bonnie Henry's radical plan It shows that a hospital has a crack pipe vending machine.
https://www.cbc.ca/news/canada/british-columbia/safer-supply-toxic-drug-crisis-dr-bonnie-henry-report-1.7260641
My my, how things change . From huge surplus to deficit just like that . I await the spokesman's explanation with baited breath, ron.
David Webb
Reply to Allan Marven
It's right in the article. French speaking travel nurses. They cost more because there are few available.
Allan Marven
Reply to David Webb
Wiped the big surplus right out lol.
Gary Webber
Oh oh there go's Higgs hst cut lol.
Travis Ladwin
Ernie has been wrong for every year he has been in office so I expect that trend to continue. Something about near sighted conservatism.
Tyler Stevenson
I'm willing to bet that deficit will be higher as this recession continues.
Reply to Tyler Stevenson
What recession?
Dennis Woodman
Reply to Lynette Browne
Wait for tomorrow’s GDP numbers
Raymond Leger
Sad state of affairs we have here in New Brunswick.
Shawn Tabor
Reply to Raymond Leger
Too funny
Bobby Richards
Ernie always has a very technical way of explaining why his budgets are light years off his predictions.
Like this one from 2023:
Steeves justified last year's large surplus, saying the government "ran into some oddities."
Bobby Richards
Maybe the feds didn't increase the transfer payments this year?
$213 million increase 2019
$463 million increase 2020
$558 million increase 2021
$640 million increase 2022
$948 million increase 2023
$2.822 billion increase in federal transfer payments to NB since 2018
Jack Russell
Reply to Bobby Richards
maybe stop the transfer payments. that will curb spending.
Kyle Woodman
Reply to Jack Russell
What spending?
Raymond Leger
Reply to Kyle Woodman
Spending on his buddies
Tyler Stevenson
Reply to Raymond Leger
That is not true and you know it.
Lynette Browne
Reply to Jack Russell
That is hilarious :) Good one.
MR Cain
Reply to Tyler Stevenson
True.
Hugh MacDonald
"You're always surprised at the amount of money and surprised by how it happened I guess," he said.
Surprised? Only if you're asleep at the switch.
Bobby Richards
Reply to Hugh MacDonald
Johnny Fever never was a numbers guy.
Hugh MacDonald
Reply to Bobby Richards
The New Brunswick government has had as many "misadventures" as the fictional radio station, WKRP Cincinnati.
Bobby Richards
It's sad but I don't believe what this govt says. They have something up their sleeve to make themselves come out smelling like roses.
David Webb
I guess it must be more expensive to get french speaking travel nurses. Not a surprise given they are limited on where they can be drawn from.
Reply to Gabriel Boucher
Why would Vitalite be paying so much more than Horizon? No many travel nurses from African countries I would suspect. Kind of a long flight every 6 or 8 weeks.
MR Cain
Reply to David Webb
They signed a 2 year agreement whether a nurse worked or not. All approved by the premier.
André Vautour
Jul 18, 2024: We promise to cut the HST to 13% because we are doing very well and can afford it.
Aug 29, 2024: We are projecting a deficit for the 2024-2025 fiscal year.
I'm left wondering, is the cost of that electoral promise, estimated at $450M, included that projection?
Bobby Richards
Reply to André Vautour
That 2 percentage point cut means $500 million less revenue too.
MR Cain
Reply to Bobby Richards
With property tax, high rents, larger population, inflation, etc it is not costing them a cent.
Douglas James
No surprise in the 6 hour wait in the ER yesterday and still no doctor. If the guy who holds the purse strings is surprised 'at the amount of money and surprised by how it happened", is it any wonder this government can't improve healthcare? Let's start with a lesson for the Minister of Finance: 1 plus 1 equals 2; 1 plus 2 equals 3; 1 plus 3 equals 4. Or better one less vote for the Conservatives and maybe the Greens or Liberals will actually know how to spend our tax dollars to fix things.
Kyle Woodman
Reply to Douglas James
Everything is fine. Soon you will be able to pay to see a doctor.
-Blaine Higgs
Bobby Richards
Reply to Douglas James
It's the same guy that says the public school system is terrible and wants to find somebody else to blame besides him.
Scott Resident
Reply to Douglas James
My wife ended up waiting 5 hours one night then 10 hours the next day at the SJRH before she left.
Gabriel Boucher
Reply to Scott Resident
If you think that's bad, I'm currently on a 5 year waiting list to see a dermatologist. I've been waiting for 3 years already.
Michel Pelletier
small deficit because Higg's and ernie decided to purchase vote with it
Bobby Richards
Reply to Michel Pelletier
He's paying his campaign manager Steve Outhouse $20,000 a month of taxpayers money. Higgs doesn't mind spending when it benefits himself.
Graham McCormack
"You're always surprised at the amount of money and surprised by how it happened I guess," he said.
This from a Minister of Finance, unbelievable!
Kyle Woodman
Reply to Graham McCormack
Not the sharpest tool.
Bob Smith
So the travel nurses contracts are a factor in the deficit but Fitch said there's no need for an inquiry about it. That's pure incompetence...
From: Kat Kanada <contact@thecountersignal.com>
Date: Thu, Aug 29, 2024 at 7:25 PM
Subject: David, this hospital has a crack pipe vending machine.
To: David Amos <David.Raymond.Amos333@gmail.com>
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