Front-line worker Cassandra St. Germain was cut off two years earlier than expected from an Alberta program that supports youth aging out of care. (Cassandra St. Germain)
Failure to improve programs for Indigenous youth adults transitioning out of government care could cost the Canadian economy billions, warns a new report from the Conference Board of Canada.
In the recently released report, Empowering Indigenous Youth in Care as They Transition to Adulthood: Critical Actions for Philanthropy and Policy, researchers call on policymakers to rethink guidelines for eligibility “to ensure that youth get the support they need during critical life transitions.”
“Children who spend time in care fall behind in various areas of well-being and development. These effects continue to limit their opportunities and outcomes long into adulthood, which together impact economic growth and incur costs on government,” the report states.
“Age cut-offs are incongruous with developmental realities and do more harm than good. By expanding the criteria for program eligibility beyond age, policymakers can create more inclusive and effective programs for Indigenous youth.”
Using two different economic modelling scenarios, the report projects revenue loss in areas including income tax, earnings, and social assistance payments.
“The report found that if investments weren’t made in education, employment and mental health supports for Indigenous youth aging out of foster care over the next five years, it could cost the Canadian economy anywhere between $2 billion and $5.5 billion,” said Amanda Thompson, report co-author and researcher.
Youth advocate Penny Frazier urged the Alberta government to reinstate full supports for youth up to 25 aging out of care. (Penny Frazier)
In Alberta, the UCP government announced it would scale back the age of eligibility from 24 to 22 for the Support and Financial Assistance Agreements (SFAA) in 2019, though the policy wasn’t implemented for a few years due to a court challenge.
The move cut off hundreds of Indigenous youth two years earlier than expected from benefits such as rent, daycare and groceries while they finished school.
Edmontonian Cassandra St. Germain, 27, a front-line worker who grew up in Alberta’s foster care system, experienced cuts to the SFAA program first-hand.
St. Germain had just turned 22 when she was informed by phone that she would lose her SFAA benefits two years earlier than expected.
Fortunately, she said, she was already working and had a good support system in place that equipped her to access resources that “are not actually as accessible and easy to navigate as they seem superficially.”
“So it wasn’t such a blow to me. But I know other people who have become homeless and have ended up on the streets because of [cuts to SFAA],” St. Germain said.
“What’s really shocking to me is just seeing how young the faces are getting that are approaching us for help, and how little resources there are for it.”
Investing more in Albertans exiting the child welfare system is essential, according to Penny Frazier, long-time youth advocate and editor of Zine & Heard, a monthly publication that amplifies the voices of youth in Alberta’s child welfare system.
The cut to SFAA sparked a legal battle that delayed changes to the program by more than a year.
As hundreds of SFAA participants lost their benefits, the province introduced the Transition to Adulthood Program (TAP) in 2022, touting it as a way to help more youth transition smoothly out of care.
Frazier said that unlike SFAA, TAP does not provide support for rent, groceries, clothing, bus passes and daycare. Also missing, said Frazier, is the ongoing relationship with a social worker, who can be like a parental figure for youth in care.
She urged the province to reinstate the full range of benefits up to the age of 25, noting British Columbia and Ontario have recently expanded their programs.
“That can make the difference between them attending school, getting a job, getting the help they need for their mental illness or for their addiction, for gathering those skills they need to live on their own,” Frazier said.
The province says it has invested a total of $28 million over the next three years to expand the TAP program but did not provide its rationale for the change to SFAA.
“Alberta’s government is committed to supporting the safety, well-being and success of youth and young adults transitioning out of care,” wrote Ashli Barrett, press secretary to the Office of the Minister of Children and Family Services, in a statement.
“Efforts are made to help transition program recipients find employment, and access First Nation-provided financial support or provincial adult income supports if needed.”
The report also found that strengthening education and mental health for Indigenous youth aging out of care across Canada could increase their total lifetime income by an estimated $1.1 billion.
“While youth in the general population typically benefit from family supports in their pursuit of a post-secondary education, youth aging out of foster care lose access to their supports,” the report said.
TORONTO – Canada’s main stock index was higher in late-morning trading, helped by strength in energy stocks, while U.S. stock markets also moved up.
The S&P/TSX composite index was up 34.91 points at 23,736.98.
In New York, the Dow Jones industrial average was up 178.05 points at 41,800.13. The S&P 500 index was up 28.38 points at 5,661.47, while the Nasdaq composite was up 133.17 points at 17,725.30.
The Canadian dollar traded for 73.56 cents US compared with 73.57 cents US on Monday.
The November crude oil contract was up 68 cents at US$69.70 per barrel and the October natural gas contract was up three cents at US$2.40 per mmBTU.
The December gold contract was down US$7.80 at US$2,601.10 an ounce and the December copper contract was up a penny at US$4.28 a pound.
This report by The Canadian Press was first published Sept. 17, 2024.
OTTAWA – Canada’s inflation rate fell to two per cent last month, finally hitting the Bank of Canada’s target after a tumultuous battle with skyrocketing price growth.
The annual inflation rate fell from 2.5 per cent in July to reach the lowest level since February 2021.
Statistics Canada’s consumer price index report on Tuesday attributed the slowdown in part to lower gasoline prices.
Clothing and footwear prices also decreased on a month-over-month basis, marking the first decline in the month of August since 1971 as retailers offered larger discounts to entice shoppers amid slowing demand.
The Bank of Canada’s preferred core measures of inflation, which strip out volatility in prices, also edged down in August.
The marked slowdown in price growth last month was steeper than the 2.1 per cent annual increase forecasters were expecting ahead of Tuesday’s release and will likely spark speculation of a larger interest rate cut next month from the Bank of Canada.
“Inflation remains unthreatening and the Bank of Canada should now focus on trying to stimulate the economy and halting the upward climb in the unemployment rate,” wrote CIBC senior economist Andrew Grantham.
Benjamin Reitzes, managing director of Canadian rates and macro strategist at BMO, said Tuesday’s figures “tilt the scales” slightly in favour of more aggressive cuts, though he noted the Bank of Canada will have one more inflation reading before its October rate announcement.
“If we get another big downside surprise, calls for a 50 basis-point cut will only grow louder,” wrote Reitzes in a client note.
The central bank began rapidly hiking interest rates in March 2022 in response to runaway inflation, which peaked at a whopping 8.1 per cent that summer.
The central bank increased its key lending rate to five per cent and held it at that level until June 2024, when it delivered its first rate cut in four years.
A combination of recovered global supply chains and high interest rates have helped cool price growth in Canada and around the world.
Bank of Canada governor Tiff Macklem recently signalled that the central bank is ready to increase the size of its interest rate cuts, if inflation or the economy slow by more than expected.
Its key lending rate currently stands at 4.25 per cent.
CIBC is forecasting the central bank will cut its key rate by two percentage points between now and the middle of next year.
The U.S. Federal Reserve is also expected on Wednesday to deliver its first interest rate cut in four years.
This report by The Canadian Press was first published Sept. 17, 2024.
FREDERICTON – New Brunswick‘s finance minister says the province recorded a surplus of $500.8 million for the fiscal year that ended in March.
Ernie Steeves says the amount — more than 10 times higher than the province’s original $40.3-million budget projection for the 2023-24 fiscal year — was largely the result of a strong economy and population growth.
The report of a big surplus comes as the province prepares for an election campaign, which will officially start on Thursday and end with a vote on Oct. 21.
Steeves says growth of the surplus was fed by revenue from the Harmonized Sales Tax and federal money, especially for health-care funding.
Progressive Conservative Premier Blaine Higgs has promised to reduce the HST by two percentage points to 13 per cent if the party is elected to govern next month.
Meanwhile, the province’s net debt, according to the audited consolidated financial statements, has dropped from $12.3 billion in 2022-23 to $11.8 billion in the most recent fiscal year.
Liberal critic René Legacy says having a stronger balance sheet does not eliminate issues in health care, housing and education.
This report by The Canadian Press was first published Sept. 16, 2024.
