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 Councils squeezed by buck passing 

Councils squeezed by buck passing

04 Nov, 2009 08:54 AM
ACCORDING to survey conducted by the Local Government and Shire Association, “buck passing” from the State Government to NSW councils cost ratepayers $431 million in 2007/2008, up from $380 million in 2005/06.

Councils are now spending 5.92 per cent of their income paying for or carrying out jobs that used to be the responsibility of the State, without an increase in funding from State or Federal Governments.

Goulburn-Mulwaree Council in its response to the survey estimated that cost shifting was costing it $1.266,505 a year, or 3.12 per cent of its income.

Responsibilities that the State Government has offloaded onto Councils include environmental assessments, sewerage inspections and liquor licensing, in addition to increased levies for disposing of waste at State Government facilities, and administration of government Acts.

Wingecarribee, as part of the Sydney water supply area, also carries the extra burden of complying with Sydney Catchment Authority requirements, as well as paying an ever-increasing price for water.

At the same time, State Government funding for services like public libraries is constantly falling, forcing councils to carry a larger share of the cost of maintaining these essential services.

With rates capped – or in the case of Wingecarribee Council rate rises dedicated to the specific purpose of maintaining and improving infrastructure – councils will have no choice but to cut services unless an alternative, assured source of funding can be identified.

Guaranteeing local government a share of the Federal Government’s GST revenue is one suggestion frequently put forward. Recognition of local government in the Australian Constitution is the first step towards making this possible and should be something that all Federal MPs support.

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