Jaclyn Symes has called on the Victorian government to investigate why the value of federal grants provided to local councils has been frozen.
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Fourteen employees have taken voluntary redundancies at Wangaratta Council in the past month, needed to save $1 million per year.
More job losses at Wangaratta Council were expected in the future.
The council has stated both the federal government decision to freeze the indexation of grants and the Victorian government’s 2.5 per cent cap on rates had contributed to the need to cut jobs.
The northern Victoria MLC told parliament losses for Wangaratta Council from grants were estimated at $1.4 million over three years.
“Federal government cuts to local government are having a negative impact on local communities right across Victoria,” she said. “Lower income from federal government shifts the funding burden onto ratepayers.
“As we know, these cuts were not reversed by the federal budget. I know that the more than $1.4 million has affected Wangaratta, the council and its ratepayers.”
The money was used for road maintenance and community facilities and services such as playgrounds, libraries and kindergartens.
Local Government Minister Natalie Hutchins said she was concerned Victorian councils would be $62.2 million worse off this financial year than if the grants were not frozen.
“The continuing freeze on funding, confirmed in the 2016 federal budget, is already having significant implications on the capacity of all councils, but particularly those in regional areas such as Wangaratta, to provide vital services and infrastructure,” she said.
“I will follow up Ms Symes’ request and will look at the specific impacts on Wangaratta.”