The Municipal Association of Victoria (MAV) says while the State’s Budget 2023 includes some wins for local government, challenges remain for the delivery of council services that are cost-shared with the Victorian Government.
The Budget handed down today included a $1.2 billion investment in early years infrastructure, $50 million over four years for the Delivering Better Local Roads program, and $12.1 million to help councils boost traineeships.
“The announcement of additional funding for roads is welcomed, but big questions remain about the funding gap of at least $300 million to fix local roads and infrastructure,” said MAV President, David Clark.
He said the Association will continue to advocate to include betterment in flood recovery funding and to seek funds from the State Government for this.
“The State Government’s 23-24 budget highlights the importance of councils as a delivery partner of community services.”
“Councils have less money to spend in real terms, with the budget confirming the rate cap in 22-23 was just a quarter of CPI. This means councils will have to make hard decisions about existing community infrastructure and services, let alone build for population growth into the future.”
Mr Clark described the $12.1 million pledged to help councils create new apprenticeships and traineeships as “a good start” to address skills shortages, and said MAV would work alongside the Government to further address workforce challenges.
The Budget also included a significant cut to the Growing Suburbs Fund – from $50 million down to $10 million – along with a drop in library funding support, which now sits at just 17%.
State Government funding for the School Crossing Supervisor Program remains at a close to 50/50 contribution thanks to an additional $15.7 million on top of base funding, however the single year commitment leaves the program’s future uncertain, said Mr Clark.
He said the Government has also fallen short in its funding share of Maternal and Child Health Services, leaving councils to fill the gap.
“With additional services added to the Maternal and Child Health program, the State Government falls further away from our 50/50 cost share agreement, meaning councils will remain under pressure to provide the services needed for their communities.”
He said the Government, however, had taken heed of MAV’s call for greater kinder infrastructure spending.
“Communities will benefit from the increased kinder infrastructure expenditure, with the State Government listening to the MAV’s advocacy to match the ambitious reform commitment much-needed funding,” said Mr Clark.