Source: The Canadian Press

Prince Edward Island’s Liberal government tabled a new provincial budget Friday that increases spending on the education of young Islanders but adds to the provincial debt they’ll face in the future.

Finance Minister Wes Sheridan brought down a $1.5-billion budget for 2010-11 that includes a projected deficit of $54.9 million. That’s down from the $84.2-deficit recorded for 2009-10.

As a result, the net debt increases to more than $1.7 billion by the end of March 2011, or about $12,246 for every Islander.

Sheridan, though, isn’t raising taxes and expects to return to balanced budgets in four years without increasing taxes or making major cuts.

Property taxes will remain unchanged for the fourth year in a row.

“Our largest single new investment this year, the most far-reaching educational measure in decades, will bring kindergarten into the public school system,” he said. “This September, over 1,400 children will begin a full-day kindergarten program in school.”

The government will spend $10 million on the kindergarten program in the coming year.

“Only three other provinces – Nova Scotia, New Brunswick and Quebec – now offer full-day kindergarten, and Ontario and British Columbia are phasing in full day over time,” Sheridan told the legislature.

As a result of the new program, the government will increase the number of teachers in the province by 12% to almost 1,700.

Every classroom in the province will also get an electronic whiteboard – a total cost of $525,000.

Funding for post-secondary education increases by $9.2 million to over $89 million.

A full third of the budget goes to health care – an increase of $24 million.

“Our government is moving forward with the creation of five primary care networks throughout the province,” said Sheridan. “This model will ensure that no Islander is more than a 30-kilometre radius from a family physician and a wide range of primary health services and programs.”

The minister said the government will spend $1.25 million to help farmers become more competitive, and $800,000 to help lobster fishermen develop new markets.

The Island’s economy is expected to grow by 2% this year.

Sheridan said that while he’s optimistic about the economy, he admits it will remain under pressure.

“The continued strength of the Canadian dollar could place downward pressure on the economic outlook for 2010, as the Island’s export sectors, tourism and manufacturing would be affected.”