A small number of our readers are of the opinion that a $5 million cut in grant funding every year is a drop in the ocean for Campbelltown Council.
While it’s important to respect everyone’s opinion, what the NSW Grants Commission is proposing is frankly an outrage.
Over 10 years council, and therefore Campbelltown ratepayers, will miss out on $50 million of revenue.
That’s a lot of money in anyone’s language that could go towards any number of important things across town.
This cut is the result of a proposed new NSW Grants Commission formula for sharing Commonwealth Government grants for general purposes and for roads.
For the 2026-27 financial year, the total amount of Commonwealth Government grants for NSW councils is $3.62 billion.
Of that, councils will share $2.5 billion for general purposes, and $1.1 billion for roads.
Also, 30 percent of each allocation will be based on the population number of each local government area using a per capita formula.
The rest will be worked out under a new methodology aimed, we’re told, at more fairness for councils that require more financial assistance than others.
Campbelltown Council says the new methodology is both untested and lacks transparency, and there should be more time allocated before implementation.
At last night’s emergency council meeting to deal with the prospect of losing almost $5 million in revenue every year, our elected representatives reiterated their opposition to the new methodology.
And to be fair, a change that contains a sledgehammer approach cannot be allowed to stand, nor get the support of any fair minded residents.
The NSW Grants Commission needs to rethink its approach by postponing the implementation of the new methodology for at least one or two financial years, if not longer.
Reading their report sent to council it is clear as mud why they are hell-bent on rushing this change.
When a council like Campbelltown cops a $5 million chop, Blind Freddie can see there’s something seriously wrong with the formula and its implementation.
Council is talking about various responses, including a rate hike, which would be the last thing any of us need during a cost of living crisis.
Finally, with a NSW state election on the way – in less than six months – it may be an opportunity to make this issue part of the debate during the campaign.
Hopefully our local political representatives will go on the front foot here, because if this funding cut goes ahead, we will all lose.
