Local Government NSW is making strong representations on behalf of councils concerning the increase to the emergency services levy, the ESL. The New South Wales Government provided a one-off subsidy to Local Government in the 2020 financial year, and this one-off subsidy was then repeated for the financial years ending 30 June 2021, 2022 and 2023. The definition of one-off funding support is an event that occurs once and is not repeated. The subsidy was never guaranteed to continue, and the New South Wales Government provided additional assistance during the COVID years to assist local councils. Any good, prudent budget ought to have included councils' fair share of the ESL funding, which is approximately 11 per cent of the total statewide emergency services funding program. The Minister for Local Government said during question time on 1 June 2023:
"I want them"—
councillors—
"to be given the opportunity to manage the finances in their council areas, because if elected people were able to do that then we would not be receiving reports from the Auditor-General about the crisis in local government."
This statement created outrage across the sector. I am not sure why. The local government Minister was trying to empower local councillors in the budgetary discussion process. Each year, councils knew that at some point the one-off subsidy would end. The subsidy stopped because this new Labor Government was handed a budget blowout of $7 billion and State gross debt anticipated to be above $180 billion. This Labor Government wishes to focus on providing more staffing for our schools, hospitals and Police Force, and more social workers; addressing key societal challenges; and managing the infrastructure cost blowouts left behind by the Liberal‑Nationals Government.
Blacktown Council was so incensed that it put in everyone's letterbox a newsletter stating that services will be cut as a result of the ESL. The council was implying that it no longer wanted to support the SES and the RFS, but the mayor was still keen to get his photo with them. The council report shows the total cost per year of the emergency services levy contribution and a second column, which identifies "New South Wales Government one‑off funding". Councillors and managers chose not to account for the full amount in the budget. They gambled on the hope that the one-off subsidy would continue for a fifth year.
What is involved for councillors in developing a budget at Blacktown Council? The first meeting of Blacktown Council's budget estimates committee, on 15 February 2023, opened at 6.36 p.m. and closed 6.42 p.m., six minutes later. The second meeting, on 15 March 2023, opened at 7.02 p.m. and closed 7.44 p.m., 42 minutes later. The third meeting, on 19 April 2023, opened at 6.34 p.m. and closed at 7.40 p.m., 66 minutes later. At least it took more than an hour. The council had an extraordinary meeting to present the budget, on 3 May. It opened at 6.33 p.m. and closed at 7.33 p.m., 60 minutes later. In developing and tabling the budget, Blacktown councillors had four meetings, totalling 174 minutes, to discuss a $787 million budget. That is $4.5 million of the budget decided every minute. The deputy mayor delivered the budget speech, stating:
Once again, we are presenting a balanced and financially responsible budget.
…
This budget ensures that infrastructure and services are provided efficiently, effectively and sustainably.
Nowhere did the deputy mayor mention that the ESL was a challenge, and nowhere were any concerns of financial sustainability mentioned. You can imagine my shock when I received a letter from the deputy mayor, stating:
… to avoid serious impacts on the financial sustainability of our council as a result of the New South Wales Government's decision to impose enormous increase in the ESL.
I am confused. The one-year increase of $1.6 million out of $747 million, which ought to have been budgeted for but was not, by their choice, is seriously impacting on the financial sustainability of Blacktown Council? Really?
Its first cost saving can be to stop writing, printing and distributing crap to the ratepayers. As the local government Minister indicated, local councillors need to take control of their finances. Ratepayers expect that councillors undertake their due diligence in questioning and guiding the budget, and do not simply take instructions from their staff. I am still waiting on an answer from the mayor about whether he wants a financial administrator appointed to the council to help manage the approaching fiscal cliff that the deputy mayor believes it is heading towards.
