Manitoba Minute: Equalization Increase, Homelessness Plan, and a Final Fundraising Appeal

Manitoba Minute - Your weekly one-minute summary of Manitoba politics.

This Week In Manitoba:

• Happy New Year from all of us at the Manitoba Institute! Looking back on the past year, we’re so thankful for the incredible support and encouragement from you - our amazing supporters. Your commitment to our mission and generous contributions have powered our efforts to begin driving real change across the province. Here’s to making a difference in 2025!
  
  
• As we head into the new year, we’re working toward a big goal - raising $10,000 by midnight on December 31st. The exciting part? We’ve got a matching donor, so your gift will go twice as far! If you’re able, please consider contributing to our year-end fundraiser and help us kick off the new year strong.
  
  
• Manitoba is set to receive $337 million more in equalization payments next fiscal year, bringing the total to over $4.6 billion - a 7.7% increase. This follows a significant 24% increase from the previous year and reflects the province’s reliance on equalization, which accounts for over 15% of its revenue. Manitoba is the only western province to benefit from the program. Equalization payments to Manitoba have fluctuated over the years, but the 2025-26 allotment is more than double what the province received in 2019-20.

Last Week In Manitoba:

• The Province reaffirmed a commitment to freezing Manitoba Hydro electricity rates in 2025, despite the utility facing another financial loss. The proposed freeze, aimed at easing cost-of-living pressures, has raised concerns among consumer advocates, who warn it could lead to steeper rate hikes in the future. Manitoba Hydro, which reported a $157 million loss last year and projects another deficit, has seen its debt triple over two decades due to cost overruns and drought impacts. Premier Wab Kinew expressed confidence that the Public Utilities Board will approve the freeze. Critics argue that sustainable funding for the utility is necessary to avoid financial risks down the road.
  
  
• Premier Wab Kinew said he is exploring options to make the Manitoba Legislature's daily prayer more inclusive by incorporating diverse faith traditions and secular perspectives. One idea, inspired by a recent summit with faith leaders and secular experts, is to rotate prayers from various traditions, such as Christian, Buddhist, and Indigenous, on different days. Kinew emphasized the importance of modernizing the prayer to reflect societal changes while maintaining it as a moment of reflection for legislators. Any changes require consensus among all parties.
  
  
• In a year-end interview, Premier Wab Kinew announced plans to address homelessness by moving individuals from encampments into housing starting in 2025, with an aim to end chronic homelessness within eight years. The government will prioritize providing housing, social services, and mental health support for those without shelter. Despite a growing deficit of $1.3 billion, Kinew said he remains committed to balancing the provincial budget by 2027. The province has allocated $116 million in the current budget for social and affordable housing and plans to increase funding in the coming year.