Politics & Council
30 April, 2024
Federal funding change needed, says CEO
COUNCILS across Victoria would be forced to cut services without better funding from the Federal Government, chief executive officer Lincoln Fitzgerald has told Loddon Shire councillors. They were expected yesterday afternoon to approve council...
COUNCILS across Victoria would be forced to cut services without better funding from the Federal Government, chief executive officer Lincoln Fitzgerald has told Loddon Shire councillors.
They were expected yesterday afternoon to approve council making a submission to the Federal Parliament’s inquiry on the sustainability of local government.
Mr Fitzgerald said: “Federal Government funding is critical to the ongoing financial sustainability of Loddon Shire Council. The Financial Assistance Grants provide in the order of one third of council’s recurrent income to fund services and infrastructure, including road maintenance.
“A submission to this inquiry highlighting the critical role of Federal funding is of high importance to Loddon Shire Council.
With expenditure inflation outpacing income growth, council is unsustainable. If there is no change to the current funding model, local governments across Victoria will be forced to reduce services and infrastructure.”
Mr Fitzgerald said federal financial assistance grants for councils were one per cent of tax revenue when introduced in 1974. “In recent decades this amount has been reduced to just below 0.5 per cent.”
Loddon Shire is expected to ask the inquiry to recommend assistance grants return to one per cent and for development of a nationally consistent local government cost index to assist in setting a fair and equitable rate cap.
Mr Fitzgerald said forecasts showed the current funding model was unsustainable.