She said councils were hamstrung due to federal government grants being cut from 1 per cent of taxation revenue to .55 per cent.

"What the local governments are telling me all across Indi is that they used to rely on...Commonwealth funds to come in...and they'd support them in all of their infrastructure work," Dr Haines said.

"Instead what we have is competitive grants where local governments pit themselves against each other to try and get pieces of money to do the things they need to do.

"The Federal Assistance Grants to local governments needs to be restored, it absolutely needs to be, and I would be advocating for that very strongly if I was the member for Indi."

Dr Haines was speaking at a candidates' forum at Benalla on Wednesday night in response to a question about what she would do to foster regional development.

Labor candidate Eric Kerr echoed Dr Haines'  concerns, while Liberal candidate Steve Martin highlighted the roads spending boosts provided to councils through last week's federal budget.

Mr Martin said he would like to improve tertiary study levels in Indi via a hub at Wangaratta or Benalla that would allow students to remain at home for their first one or two years of courses with Melbourne universities.

"You can work part-time, you can get your independence and start your university course, it gives you that kickstart," he said. 

"To go and finish your degree you would then go on campus."

United Australia Party hope Shane Wheatland did not back a council cash lift, saying it would go on "more drones to fly over your property to try and charge you for having a dam full of water".