Cost shifting from state and federal governments is costing Gunnedah Shire Council more than $2 million annually.
The added financial expense was detailed in response to research commissioned by Local Government NSW (LGNSW). This research described how cost shifting to councils, coupled with rate pegging and insufficient state and federal funding, is having a significant impact on the financial sustainability of local government.
“Our ratepayers fund the costs associated with cost shifting – currently estimated as at least $2.2 million per annum for Gunnedah Shire Council – and go without the additional services this would otherwise represent,” council’s August business paper stated.
“Council’s services are negatively impacted as grant programs are consistently reduced or withdrawn or state government capped limits are placed on revenue, resulting in either the inability to continue services or a reduction in them.
“Council is on the receiving end of significant community dissatisfaction with the increased cost of services and the need to increase rates by way of a Special Rate Variation to maintain service levels.”
The impost of cost-shifting on Gunnedah Shire Council was expected to be heard at last night’s Gunnedah Shire Council meeting.
It was recommended that council write to the Premier, the NSW Treasurer and the NSW Minister for Local Government seeking they urgently seek to address cost shifting through a combination of regulatory reform and appropriate funding.
A copy of the LGNSW cost-shifting report was also expected to be placed on council’s website for the benefit of the local community.
As previously reported by the Gunnedah Times, the LGNSW’s cost shifting report, produced by independent consultants Morrison Low for the 2023/24 financial year, revealed that $1.5 billion of expense has been imposed on councils. This is an increase of approximately $140 million (10 per cent) since the last report for the 2021/22 financial year, when the total cost shift was estimated at $1.36 billion. On average, this also now represents an inflated cost of $497 for each ratepayer, an increase of $36 from 2021/22.
