$38.47 million has been cut from local government funding in the Andrews Labor Government’s first Budget (Budget Paper 3, Table B.1 page 406).
Without the once off $50 million funding for the ten interface councils in 2015-16, the cut to local government funding would have been $88.47 million.
Page 40 of the Essential Services Commission’s Local Government — Rates Capping and Variation Framework Consultation Paper notes that “rural councils with smaller populations and significant road networks generally rely more on grants than rates and charges”, meaning Daniel Andrews latest cut to Local Government grants impact them disproportionately.
Quotes attributable to Shadow Minister for Local Government, David Davis:
No matter what excuses Labor gives, local councils will receive less money as a result of Daniel Andrews’ first Budget.
Labor cannot simultaneously cap councils’ rates and cut councils’ revenue without adversely impacting on local jobs, services, infrastructure and communities.
Reductions to rural and regional councils will be exacerbated by the fact that there is no money in this budget for the country roads and bridges program.