Eastern Charlotte puts daycare project on hold over funding shortfall

Lack of provincial funding has put Eastern Charlotte’s daycare building in limbo.

In a special meeting last Tuesday, the municipality’s council decided to cancel awarding the tender for the construction of the St. George YMCA daycare, citing a lack of provincial funding.

The earliest conception of the daycare dates to before the 2023 amalgamation, when the provincial government approached the community about childcare needs highlighted in the 2023–26 Early Learning and Childcare Action Plan.

In an interview with Acadia Broadcasting last Thursday, CAO Jason Gaudet said that when the project was first proposed, it was understood the province would cover 40 per cent of the costs, the federal government another 40 per cent, and the municipality 20 per cent.

However, the province has now reduced its contribution to $500,000.

The federal government provided $800,000 for the project, of which $270,000 was allocated for planning fees. The remainder was funding designated for the creation of childcare spaces under the federal government’s Canada Early Learning and Childcare Act.

According to Gaudet, with the province’s current contribution, the municipality would have to cover about $1.36-million to complete construction of the daycare if it accepted the lowest bid.

“We didn’t believe at the time that over 50 per cent of the project would come back on the municipality,” he said.

“We were under the believe the province was going to help support this, and we were certainly going to be a partner, we didn’t believe we were going to lead the way.”

According to plans shared by the municipality, the building was expected to have 82 spaces in total, including 52 childcare spaces for children aged one to five and 30 after‑school spaces for children aged five to 12.

The municipality had partnered with the YMCA of Southwestern New Brunswick, which was going to provide programming based on the National YMCA Playing to Learn curriculum.

According to a press release shared by the municipality in May 2025, construction was planned to start in March 2026, but council has now decided to put the project on hold until it can secure more funding from either the province or other investors.

Gaudet said council does not believe it could secure the remaining costs through fundraising and is not willing to borrow money or raise the tax rate to pay for the building.

At the meeting, council also explored the option of building a smaller daycare, but Gaudet said nothing has been decided.

He said that if council chooses that option, the project would need to be retendered, which could take a significant amount of time.

Gaudet said council recognizes the need for childcare, based on resident feedback and the government’s study, but believes most of the project’s cost should not fall on the municipality.

“Municipalities are not looking to address childcare gaps. It’s usually not within our mandate. However, we sat at the table with the province and said, ‘How can we help?’”

Gaudet said the municipality has asked the province to consider increasing its contribution, but at the time of the interview, it had yet to respond.

In an email statement Monday, Department of Education and Early Childhood spokesperson Diana Chávez said the Regional Development Corporation — the provincial Crown corporation responsible for supporting communities and driving economic growth across government departments — would “entertain” keeping its 40 per cent contribution above the $500,000.

She said this would depend on the municipality providing a sustainable business plan for the childcare centre and outlining how it will raise the remaining funds.

She added that the province’s Child Care Connect waitlist guides the allocation of designated childcare spaces.