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

2. 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

3. 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

4. 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

5. 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

6. 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

7. 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

8. 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

9. 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

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

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