Reform of State Government Grants to Local Government A Opportunity for Transformational Change

Background Submission by the LGAQ, March 2016 “With regard to the Review of Grants to Local Government: Current and Future State Assessment, I can confirm the Queensland Government's commitment to work with the LGAQ and other stakeholders to respond to and implement the recommendations of this review.” The Hon Anastasia Palaszczuk Queensland Premier 20 February 2018 Submission by the LGAQ, March 2016 State Infrastructure Plan, March 2016 DILGP/LGAQ Steering Group established, July 2016 KPMG/AEC review completed, July 2017 LGAQ Annual Conference resolution, October 2017

Impact of grant arrangements Fragmented Unpredictable Poorly targeted Costly to administer Undermines: Long-term planning Asset management Financial sustainability Sub-optimal infrastructure and service delivery Current Grant Program Features Impact on Councils Impact on Communities

Other drivers of grant reform Increasing community and regulatory expectations Need for councils to be economic and policy leaders that deliver locally The need to leverage reform to pursue related policy agendas

Opportunities for reform Grant reform is an election commitment A ‘pipeline’ approach is easier to administer and builds on existing programs Councils are best placed to identify and deliver on local priorities Four-year State Government terms support a longer-term approach Councils are major employers in their regions Local government has a stakeholder network that can support reform efforts

Grant Program Streams (LGAQ Proposal) Security of essential services Safe and efficient road and transport system Community wellbeing Sustainable natural resource management Resilient communities Jobs and economic growth Council capacity and capability building Evaluation, learning and communication of outcomes

Our ambiton: Principles of grant reform Genuine partnership between the State Government and local government Strategically focused on delivering outcomes Stable funding parameters, underpinned by planning and asset management Develops councils’ capability and capacity & incentivises innovation Administratively simple Evaluation of outcomes to underpin learning and communication

Risks to reform State agencies can be risk averse (no clear incentive for reform) Lack of public recognition of State and local government contributions Lack of understanding of local government in state agencies and ministerial offices Councils are unable to agree on the rules for new grant arrangements Local government elections in 2020 halt reform momentum

Our approach Ensure governance arrangements are a partnership between State and local government (direct engagement with councils is critical) Ensure capability building for local government is properly structured and resourced Integrate incentives into the reform process for professional officers and politicians Build on the best attributes of existing programs to minimise risk and encourage support LGAQ takes a leadership position in negotiating new grant program rules

Where to from here? Actively support & participate in the reform agenda Spend current grant $$$ Support good planning and asset management 1 2 3

Reform of State Government Grants to Local Government A Opportunity for Transformational Change