Falling revenue, a battered world economy and a summer of natural disasters have been blamed for a no frills State Budget which prioritises key frontline services and increases cost of living taxes for Queenslanders.

With health, education and disability services the key recipients of expenditure increases, Local Government Association of Queensland President Margaret de Wit said that the official budget announcement contained few surprises and on first reading, no overall funding reductions for local governments.

'We appreciate that the State has had to make tough choices with this budget and had been anticipating little relief for councils already dealing with financial pressure under the very same conditions,' she said.

Treasurer Tim Nicholls today told parliament the Newman Government's journey back to fiscal surplus had been ‘blown off course’ by ex-Tropical Cyclone Oswald and a $2.5 billion damage bill from a summer of natural disasters.

A joint State and Federal Betterment Fund of $80 million earmarked for disaster proofing local communities was described as a mere ‘down payment on resilience’ with Mr. Nicholls acknowledging the State had unfinished business with Queensland communities.

'In practical terms, the 2014-15 Budget result will depend heavily on the timing of payments from the Australian Government for its share of natural disaster costs,' he said.

Despite funding shortfalls, Local Government Association of Queensland President Margaret de Wit said that the LGAQ was looking forward to continuing to work closely with the State and Federal Government on a new approach to disaster management.

'We certainly welcome the commitment to building increased resilience in communities across the state along with the recognition that developing preventative measures for local communities makes for better policy than clean-up funding,' she said.

Mr Nicholls described a previously reported 26.6% increase in electricity prices and an extended Emergency Management, Fire and Rescue Levy to be imposed upon an estimated 400,000 Queenslanders as modest but necessary in order to counter falling revenue and State debt.

However Cr de Wit said that changes to the Emergency Management Levy would not be welcomed by rural councils, and needed to be implemented by the State government with both care and thought to avoid unintended consequences.

'Funding will be pivotal to assist councils to implement this new levy, with a collection fee to be paid in recognition of the fact that councils should not be out-of-pocket for the cost of being the State’s collection agent ,' she said.

'We look forward to continuing to work with the State government on the return of funding to pre-2012 budget levels.'

Other allocations relevant to local government in the 2013-14 State Budget include:

• Continued base funding of $43.5 million of transport infrastructure development grants for upgrades to local government controlled roads;

• Continued investment in the ‘Royalties for the Regions’ program as forecast;

• $66. 9 million allocated to The Local Government Grants and Subsidies Program, delivered as $47.1 million supporting priority infrastructure projects and a further $19.8 million under Local Government Floods Response Subsidy to support projects that will protect communities and infrastructure from future floods;

• Increased funding to support essential social and municipal services previously funded from general liquor licences in Indigenous communities; and

• Significant reconstruction and resilience works to continue in 2014-15 with capital grants to local governments of $2.01 billion, including $80 million for betterment projects to restore essential public assets damaged by ex-Cyclone Oswald

A detailed budget analysis released by the Local Government Association of Queensland to Queensland councils is forthcoming.

Local Government Association of Queensland
LGAQ House, 25 Evelyn Street, Newstead Qld 4006