$16M Choices for Youth funding cut a 'complete surprise' to N.L. government, says minister
John Abbott calling on Ottawa to rethink its decision
The Newfoundland and Labrador government says a $16-million federal funding shortfall for non-profit Choices for Youth came as a shock to the province — and is calling on Ottawa to rethink its decision.
"This has come as a complete surprise," Housing Minister John Abbott told reporters Wednesday.
"The way this whole funding arrangement has worked … is not working to anybody's benefit. If the province had been engaged and there was a collaborative effort here, right from the get-go, we wouldn't be facing this."
The non-profit announced Tuesday it had laid off 16 staffers and ended two of its social enterprises after waiting for millions from Ottawa that never arrived. Two other enterprises — Crust Craft Bakery and Neighbourhood second-hand store — will survive the cuts, but with reduced hours.
Executive director Jen Crowe said Wednesday the layoffs will severely reduce the non-profit's ability to get young people into the job market.
"Right now, we're estimating that 150 young people as of yesterday will be directly impacted by a lack of services," Crowe said.
Choices for Youth had asked for $20 million. In June, they were told the amount would be $4 million dispensed over four years. As of this week, Crowe said she hadn't received a response to the non-profit's request to have that funding allocated in bulk this year, which would allow them to operate as normal while searching for other funding sources.
Abbott said the federal funding allocation system is at fault, and has negatively affected other agencies in the province.
"Choices for Youth had to apply as part of a national funding program, so they're competing with similar organizations right across the country," Abbott said.
"And we have seen time and time again that that approach really does not benefit Newfoundland and Labrador."
Abbott suggested the federal government include provinces in its decision to allocate funding to agencies like Choices for Youth.
"The importance of the programming that they're offering requires, in my view, that the federal government collaborate more with the provincial government and that the funding arrangements should probably flow through and with the provincial government in mind," Abbott said.
"We have a lot of cost-share agreements. They work quite well."
Abbott says provincial leaders will meet to look for emergency funding for the non-profit, but noted this year's budget is already set.
Alongside job losses, the cuts mean about 70 additional young people won't have help from Choices for Youth getting into affordable housing this year.
"[It's] a very specific niche that they have carved out," Abbott said, "and we are very dependent on them to deliver those services."
Employment and Social Development Canada, which allocates the funds, refused an interview, but responded Wednesday evening to questions sent by email.
The department said it received an "unprecedented number" of applications — more than 1,000 of them — for the $370 million earmarked for its Youth Employment and Skills Strategy fund this year.
"Organizations are not guaranteed that their proposal will be selected or that they will receive the same level of funding allocated in previous years," wrote spokesperson Maja Stefanovska.
On Wednesday afternoon, the federal minister for youth, Marci Ien, responded over social media to Premier Andrew Furey, who said he was "disappointed that the federal government has cut funding" to the non-profit. He wrote that he was "requesting a meeting with the federal minister responsible."
"For the record, funding has not been cut," Ien replied over X, formerly known as Twitter.
Abbott likened Ien's response to splitting hairs, saying the federal government was arguing over semantics.
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