Eight million dollars via a Federal Government grant for the new Centre of Excellence for Local Government is a good start, but spread over a five year period this funding will provide just
$1.2 million per year. In addition, the Government has stipulated that some of this funding must be retained and invested to generate income to allow for the continued operation of the Centre.
There may be some ongoing funding after the initial five year set up phase, but it is likely the Government will expect the Centre of Excellence to be largely, and possibly wholly, self funding.
With the new Centre providing training, professional development and research services, it will generate an income stream through user charges and fees for service.
However the question must be asked, will this be enough to ensure the future of the Centre, as well as scope for it to grow its range of programs to meet the increasing demands being placed on Local Government’s elected and professional personnel?
With a heavy reliance on councils purchasing services from the Centre, through staff and elected members undertaking courses and programs, Local Governments large and small will be tested as to how committed they are to skills development, continuous improvement of their operations and becoming an employer of choice.
Looking at the UK’s Improvement and Development Agency (IdeA), refer to the the lead article in this edition, only one sixth of its revenue comes from user fees and charges.
UK Local Governments, through their Local Government Association, have agreed to a ‘top slice’ or set percentage of the grants that the Central Government makes to Local Government being paid directly to run IDeA.
This financial year, UK councils have foregone £25.3 million, which provides around 52 per cent of IdeA’s £48.9 million budget. This seems a substantial amount, however it is actually 0.087 per cent from
each council’s grant money – less than point one of one per cent.
Given that Australia no longer has a training guarantee (legislation requiring employers to devote a percentage of their budget to training and skills development), if Local Government is genuine about rising to the challenges it has before it with top quality professional staff and elected members, then should it be looking at a percentage of Financial Assistance Grants (FAGs) going to the Centre of Excellence?
Using the UK’s 0.087 per cent benchmark, in the 2008/2009 financial year this would have resulted in around $17 million from FAGs going to the Centre of Excellence, or just over
$12 million if the roads component was not included.
Using this 0.087 per cent benchmark, how much would it have taken from your council’s Grant money?
IDeA is wholly owned by UK Local Government, so if FAGs money is to go directly to the new Centre for Excellence this would also require careful consideration of the ownership question.
