$12 billion NSW Government train building commitment to create hundreds of Hunter jobs(City of Newcastle)
Newy 87.8 FM – Lake Macquarie City Council, City of Newcastle, Central Coast Council and MidCoast Council are calling on the NSW Government to pause proposed changes to 2027 Financial Assistance Grants, warning the cumulative reduction over the next decade is almost half a billion dollars.
The four councils, the largest by population in the region, warn the proposal would divert more than $33 million away from their communities next year alone.
The Local Government Grants Commission is proposing the stripped funding be reallocated to other councils whose residents can less afford a rate increase.
City of Newcastle currently receives around $15.5 million annually. Under the proposed changes its allocation would be more than halved, creating a shortfall of at least $9.5 million each year and more than $108 million over the next decade.
Lake Macquarie faces a projected reduction of at least $7.2 million a year, Central Coast Council up to $20 million per year, and MidCoast $5 million per year.
City of Newcastle CEO Jeremy Bath said the proposal was "just robbing Peter to pay Paul" and called on the State Government to "hit the pause button".
The councils say the methodology even includes Newcastle Airport's income, despite the Airport being a separate legal entity whose income is entirely invested into airport operations.
The councils want the changes paused until the Federal Government's commitment to increase Financial Assistance Grant funding has been implemented.
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