The South Australian Minister for State/Local Government Relations Russell Wortley has announced Commonwealth approval of more than $36 million in grants to fund road works and other local government services.

 

Mr Wortley says the Commonwealth approval clears the way for payment to South Australian local government authorities of one quarter of the 2011-12 Financial Assistance Grants to be brought forward and paid in 2010-11.

 

These approved payments comprise:

  • a general purpose component of $27.3 million, which is distributed to equalise, as far as possible, the financial capacity of Local Government Authorities to provide a similar level of service to their communities; and
  • an identified roads component of $9.1 million, which is distributed according to an estimate of relative road expenditure need.

The announcement follows approval by the Federal Government of the State Government endorsed recommendations on the distribution of the funds. The allocations were proposed by the South Australian Local Government Grants Commission and are based on the 2010-11 allocations.

 

“Bringing forward the payment of the 2011-12 grants has been initiated by the Commonwealth and supported by the State Government to provide local governments with the additional flexibility needed to respond to natural disasters during 2010-11 and other pressures,” Mr Wortley said.

 

“While the Commonwealth won’t finalise the estimated 2011-12 allocations until July, bringing forward a portion of the 2011-12 grants, based on the 2010-11 allocations, will provide funding now for local road works and other local government services."

 

The brought-forward payment represents one quarter of the estimated $2.15 billion in Financial Assistance Grants to be distributed to local government in 2011-12. The entitlement for Local Government Authorities in South Australia in 2011-12 is estimated at more than $145 million.

 

The remaining pool of funding to be paid in 2011-12 would be confirmed after the release of final population and Consumer Price Index data and the approved recommendations of the South Australian Local Government Grants Commission.

 

When confirmed, the remaining pool of funding for 2011-11 will be distributed in four equal instalments to Local Government Authorities after adjusting for the brought forward payments.