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Citing the provincial deficit, PEI Treasurer Mitch Murphy announced that the province will no longer contribute one-third of the costs of major public works projects. The move could lead to increased privatization as cities scramble to make up the funding shortfall.

Summerside has been waiting for money for the construction of its wellness centre, while Montague was expecting a contribution from the province toward the renewal of 40 per cent of the citys water system. Thats what always happens, the feds cut the province and the province cuts the towns and we suffer the most, says Montague mayor Richard Collins.