Manitoba Minute: Issue 80

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

📅 This Week In Manitoba: 📅

• Two years into its first term, Manitoba’s NDP government is facing persistent billion-dollar deficits despite earlier pledges to balance the books. After inheriting a surplus in 2022-23, the Province recorded shortfalls of nearly $2 billion in 2023-24 and more than $1.1 billion in 2024-25, partly offset by legal settlements and one-time revenue windfalls. Even without these factors, the gap between spending and revenue remains close to $1 billion annually. Health care alone consumes 35% of provincial spending, and costs continue to rise faster than revenues, while job growth has lagged behind population increases. For taxpayers, this means more money directed toward debt servicing, which cost $2.3 billion last year, or 9% of provincial expenditures. While the NDP government insists it can eliminate the deficit before the next election, we believe Manitobans deserve a clearer picture of provincial finances and a realistic path forward.
  
  
• Manitoba PC Leader Obby Khan has accused Premier Wab Kinew of “gaslighting” the public and avoiding accountability, following heated exchanges in the legislature. Khan criticized Kinew for refusing to answer questions about why Families Minister Nahanni Fontaine remains in cabinet, despite receiving hundreds of emails calling for her removal and controversy surrounding her actions. Kinew had condemned the opposition for “rage farming” and referred to protesters outside Fontaine’s office as “goofballs,” linking PC questions to societal division and political violence. Khan argued that asking tough questions is part of the opposition’s duty and said it was irresponsible for the premier to suggest the recent fires at ministers’ offices were deliberate without a concluded investigation. He emphasized that debating issues is separate from condoning violence and that Kinew’s comments could mislead the public.
  
  
• Manitoba Hydro reported a $63 million loss for the 2024-25 fiscal year, mainly due to consecutive years of drought that reduced hydroelectric output and increased reliance on imported power. The electric division accounted for a $49 million loss, while natural gas posted a $27 million loss, partially offset by $13 million in subsidiary earnings. The utility highlighted that lower fuel and power costs, along with stronger domestic revenues, helped mitigate the impact. Despite the financial strain, Manitoba Hydro emphasized that service reliability has not been compromised, managing energy supply through careful water resource management and thermal generation. The Crown corporation unveiled a new three-year enterprise strategy, focusing on employee experience, financial health, system reliability, and clean energy planning, including up to 600 megawatts of Indigenous majority-owned wind power. Manitoba Hydro also submitted a rate application proposing annual increases of 3.5% over the next three years. Early 2025-26 results indicate the drought’s impact persists, with a $61 million loss in the first quarter.
  
  
• Willard Reaves, a former Winnipeg Blue Bombers running back, has been elected leader of the Manitoba Liberal Party, succeeding interim leader Cindy Lamoureux. Reaves, 64, has a diverse background, including professional sports, small-business ownership, over two decades with Manitoba’s Department of Justice, and community involvement with organizations like Siloam Mission and the Children’s Hospital Foundation. He previously served as deputy leader from 2023 to 2024 and ran twice unsuccessfully for a legislative seat in Fort Whyte. Reaves received endorsement from former Liberal leader Jon Gerrard and plans a gradual transition into the leadership role. His priorities include uniting party members, recruiting candidates, and restoring voter trust in a province where the Liberals currently hold only one seat. Party officials expressed confidence that Reaves’ broad experience will help highlight Manitoban concerns and rebuild the party’s presence in the legislature.
  
  
• The Manitoba government has introduced Bill 48, which would allow highly intoxicated people to be detained in protective care centres for up to 72 hours, an increase from the current 24-hour limit. The legislation expands the definition of intoxication beyond alcohol to include drugs, aiming to keep individuals safe while also improving public safety. Those detained would undergo medical assessments at 24 and 48 hours, with the option of early release if they are sober or being connected with continued care services if needed. Supporters, including Winnipeg’s police chief, say the measure will prevent people from being left in unsafe conditions and will ease the strain on hospitals and police resources. The Province also plans to expand services at Main Street Project to accommodate the changes. Opposition members criticized the plan as lacking clarity and questioned how protective care centres will be funded, staffed, and implemented across the province.

🚨 This Week’s Action Item: 🚨

Manitobans are facing another budget deficit - how concerned are you about the Province’s finances? 

What do you think they should cut? Reply to this email and let us know.

🪙 This Week’s Sponsor: 🪙

This week's sponsor is you! We don't have big corporate backers, so if you like what you're reading, please consider making a donation or signing up as a monthly member.

Having said that, if you are a local business and are interested in being a sponsor, send us an email and we'll talk!