Friday, 8 May 2009

As Councils prepare their own budgets with a minimum of four weeks of community consultation, it is interesting to reflect on the State Government budget process: weeks of anticipation, a media lock-up with mobile phones confiscated, 45 press releases, media saturated with analysis of a horse that has bolted.

I offer an analysis from the VLGA below, hopeful that engagement in the budget process in this way might one day make way for greater community participation in one of, if not, the most important decision of a government.

VLGA State Budget Analysis

Investing in communities - with some noticeable gaps

Councils across Victoria will welcome the spending on community services, transport and infrastructure in the 2009/10 Victorian budget.  However, the emphasis on job creation is tempered by a construction-centric approach to employment, an absence of environmental initiatives and a lack of clarity for the prioritisation of some infrastructure projects over others.  The equitable delivery of capital improvements is particularly necessary in regional Victoria where subsidies to fill the rapidly growing infrastructure gaps are critical to the financial sustainability of small Councils.

Communities

The budget promises considerable spending for community renewal and development matching the rhetoric of a fairer, more liveable and just Victoria.  Spending on health, legal aid, accessibility, homecare, children’s services, mental health, social housing and indigenous Victorians is welcome and Councils and communities will benefit from these initiatives.  Further funding for multicultural programs and CALD communities would be appropriate given the diversity of Victoria’s population.  Councils are currently under pressure to provide services in this area and require increased financial assistance.

Bushfires

The provision for bushfire recovery is necessarily generous with a particular emphasis on communications.  The learnings of the Royal Commission should continue to inform recovery assistance and budget allocations.  The rebuilding and rehabilitation tasks that lie ahead for local communities are immense and the $10M community recovery fund and $15M road and public transport restoration funds appear low.  There are no clear allocations of funds to local governments, although we are aware that funds can be made available to assist affected Councils on request.

Rural and regional Victoria

Rural and regional Victoria will benefit from funds for regional hospitals, schools and services as well as farming and drought assistance packages.  However, the extensive infrastructure renewal needs of regional Victoria will require years of prioritisation.   Schools, roads, housing and service in small rural towns require critical triage for survival. The more I speak with smaller rural Councils, the more frustrated I get with the significant funding problems they face.  The VLGA hopes that the State Government will tackle the issues of funding in the near future, as we’ve recommended in our last three State Budget submissions.

Jobs?

Employment underpins this budget – almost half of the 45 media statements released with the budget refer to the creation of 35,000 jobs.  The bulk of these jobs are in the construction industry offering marginal relief to rural and peri-urban areas affected by unemployment, drought related down-turn and the impact of the global financial crisis.

Transport

This budget fulfils an important first step in implementing the Victorian Transport Plan with improvements outlined in the plan funded in this budget – roughly split between improvements to roads and public transport.  However, the timeframes for some of the larger funded projects are unclear at this stage.  There are also some noticeable omissions:  the Regional Rail Link (a project that would build new rail track from Werribee to Tarneit to Sunshine, with the benefits of easing congestion and adding independence to the rail network) was a notable exception in the budget announcement.  Minister Kosky has indicated that Federal Government funds will precede any state announcements, compared with the Peninsula Link, which was announced, despite still the requirement of Federal funds.

Planning

The much-anticipated online planning project will receive considerable new funds which is to be welcomed. However, we would hope for further clarification about the purpose, role and decision-making frameworks for the Development Facilitation Unit – which will receive a considerable amount of funding to identify projects that the Minister can call in.

The $35,000 for each council to develop housing responses to Melbourne @ 5 million is also welcomed, although we are sure that this is only a fraction of the funds needed by many Councils.

Summary

While there are small increases in overall budget allocation to programs to benefit local communities through Councils, there are always projects that miss out. Just as for Councils, the State Government has to prioritise spending and so it is that response to bushfires and the GFC have been prioritised. Nevertheless, we have unfulfilled expectations of a more proactive response to climate change and meeting the needs of specific support for struggling rural communities and Councils.

Reminder of next Leading Edge Forum

Don’t forget our next Leading Edge Forum will be held next Thursday, 14^th May in Rosebud.

Please join us for dinner at 6pm, then a stimulating discussion including experiences of 3 existing rural-metro council and community partnerships and the potential for new ones from 7pm.

 

The venue will be the Mornington Peninsula Shire Offices at 90 Besgrove Street, Rosebud (Melways Map 170, A4).

Please RSVP to vlga@vlga.org.au if you are able to join us.

If you are not able to attend but still have an interest, on the night you can go to the following link to view the Live Webcast and join in the discussion:

http://www.ustream.tv/channel/vlga-leading-edge-forum  

Members’ Planning Day – May 23rd

The VLGA will be emailing PAs to Councillors and CEOs, as well as our individual and group members, a final copy of the Agenda for the Members’ Planning Day and our Draft Strategic Plan.

This Planning Day will be held on May 23^rd at the Box Hill Town Hall so please place this date in your diary.

Conflict of Interest

Watch out for some further advice next week as the VLGA continues to discuss issues with the Minister and his Department. We are glad to see that the Minister has indicated a willingness to consider some changes following the advocacy the VLGA and our members have taken to date.