If adopted without changes, the 48 recommendations of the Final Report from the Inquiry into Local Government funding and services will go a long way to redressing the imbalance which has left local government strapped for cash and reliant on state funding, says Brimbank Council CEO Fiona Blair.
“It was great to see so many of the suggestions from Brimbank Council’s submission included in the 48 recommendations made to the Victorian Government.
“As a result of the inquiry, the Victorian Government is now aware of how the restrictions to revenue and the funding arrangements it has imposed on local governments are not financially sustainable,” says Ms Blair.
“If all the recommendations are adopted without changes, local government will be in a much better position to meet growing community needs and expectations.”
Purpose of the Inquiry
With rising costs and rate-capping, local governments budgets are shrinking at an alarming rate.
The terms of reference for the Legislative Council Economy and Infrastructure Committee focused on the issue of cost-shifting and the ability of local governments to meet core service delivery objectives, which include the sustainability and appropriateness of local government’s revenue structures and alternative funding models.
Representing your interests
Brimbank Council made a detailed written submission to the Inquiry, and Director of Corporate Services Mark Stoermer also appeared before the committee to speak to the submission, answer questions and provide further information.
Brimbank Council’s submission outlined the unique challenges the City currently faces, including our community’s reliance on government services, need for investment in social cohesion and management of contaminated land. Council also drew attention to the greater costs relating to climate change and increasing temperatures in Melbourne’s west.
Along with other LGA’s, Brimbank faces the challenges of maintaining ageing community infrastructure at the same time as servicing the growing needs of community due to rapid population growth in the region.
What is cost-shifting?
Cost-shifting is the redistribution of costs relating services or maintaining and expanding infrastructure from one level of government to another.
Examples of cost-shifting where the state or federal governments have moved costs, in part or fully, to Council include:
- School crossing supervisors
- Changes in funding to libraries
- Changes in funding to maternal and child health programs
- Policy changes for kindergartens
- Changes to State policy on waste that are driving increased expenditure
- Responsibility for social infrastructure
- Expenses related to flammable cladding
- Public maintenance of works for which the State is responsible, such as arterial roads.
Still a way to go
Brimbank’ s Director of Corporate Services, Mark Stoermer appeared before the Inquiry and was quoted extensively in the Final Report, which was tabled in Parliament on 28 November 2024.
Mr Stoermer believes that the 48 recommendations go a long way to addressing the concerns raised by local governments during the Inquiry, although recognises that the report calls for further investigations and reports by Office of the Auditor General and other statutory bodies.
“While these processes will take time, there is light at the end of the tunnel,” says Mr Stoermer.
“Some of the recommendations are easily implemented, such as changes to the rate cap and restoring 50/50 funding for libraries and school crossing supervisors. Others will require more work, but at least we know we’re heading in the right direction for the benefit of the communities we serve.
Already, earlier this year Council has pushed back on the unfair burden of costs relating to the upkeep and maintenance of state-owned roads under the Municipal Maintenance Agreement.
Council will continue to work closely with the Municipal Association of Victoria, local Members of Parliament and the Victorian Government to deliver high quality services and infrastructure to the Brimbank community.
