Baw Baw boost from budget

Baw Baw Shire funds will get a $200,000 boost with the Federal Government budget reinstating indexation of Financial Assistance Grants to councils.

The grants had been frozen at the former rate for the past three years.

The shire’s acting director of corporate and community services Malcolm Lewis said council’s draft 2017-2018 budget, prepared prior to last week’s Federal announcement, included an allocation of $8.7 million from the Financial Assistance Grant.

Baw Baw Shire Cr Jessica O’Donnell told last week’s council meeting the reinstatement of FAGs was one of the positive things to come out of the budget.

She said it was pleasing the budget had delivered on the government’s promise to restore indexation of the grants and provide much needed funding to councils.

“Financial Assistance Grants are a vital source of funding for councils, who are able to spend the grants according to their community priorities.

“But since a freeze on indexation of the grants began in 2014, Victorian communities have missed out on around $200 million for their local roads and services,” Cr O’Donnell said.

The Australian Local Government Association welcomed the Federal decision but vice-president Damien Ryan commented that there is “still a long road ahead before councils recover from the freeze” that reduced the base level of FAG payments.

He said the government had honoured a commitment to communities to ensure, as far as possible, every citizen has equitable access to municipal services wherever they live.

The grants help councils invest to provide better infrastructure and services for communities, Cr Ryan said.

The Municipal Association of Victoria also welcomed the budget announcement.