Budget NSW: 2011-2012

From Jozefa Sobski

The first state budget brought down by the fledgling O’Farrell Government leaves little doubt about its priorities: investment in infrastructure and cuts in a restructured bureaucracy. As part of its strategy, it will be capping public sector wage increases to 2.5% when most analysts predict  that the inflation rate  for the coming year may be between 3.6% and 3.8%,

Many of the major initiatives were in the pipeline or had been previously announced. For example, those in the disabilities area, are part of the Stronger Together 2 range of initiatives which are part of national partnerships or COAG agreements. So, there is a $2.8 billion allocation which is a $342 million increase on the previous year. (see www.budget.nsw.gov.au )

Wading through the budget papers, you are soon drowned in confusion because comparisons to previous year’s expenditure in certain programs is not possible, in many cases due to the amalgamation of departmental figures or the transfer of elements of programs into different areas.

NCOSS has undertaken a detailed overview and it is available on its website at www.ncoss.org.au.

The government has stuck to its big themes in its statement, Delivering Our Commitments: It aims to rebuild the economy, return quality services, renovate infrastructure, restore accountability and protect local environment and communities. In this list, a Grandparents’ Day is promised!

WEL NSW attended the NCOSS briefing and undertook some analysis of its own to determine which aspects of the Budget would assist women. Children’s Services, now in the Department of Education and Communities, will receive $278.7m, an increase of $66.4m or 27.5% in real terms.  This program, as reported in our recent newsletter is subject to a review being conducted for the government by Professor Deborah Brennan so it is a little surprising that fees are to be introduced into the 100 public pre-schools, usually co-located with public primary schools. There will be exemptions for the disadvantaged, but a free service will become a fee service with parents being asked to pay between $20 and $50 a day. This initiative is designed to remove the competitive advantage these schools have over their community sector counterparts and to ensure “a level playing field”. At the same time, the government is reviewing early childhood services with the aim of improving participation and affordability. As the lessons from ABC Learning indicate, this is not an area for profiteering. Using the same “marketspeak”, you might consider it logical to introduce fees into public primary and high schools. WEL condemns this pre-emptive introduction of fees before the review has even produced a discussion paper.

Other elements of the budget have breathtaking billions  allocated ($15.3b in infrastructure) over the next four years, but the Office for Women’s Policy is provided with  an additional $300,000 for the Domestic Violence Line; $5.5m for the Start Safely Program that provides subsidies for women and children to rent in the private housing market; $2.5m for an extension of the Staying Home Leaving Violence program to 5 additional sites and $1.3m allocated for engaging domestic violence and mental health specialists. There is also some money ($1m) for the Legal Aid Commission to provide services for victims of sexual assault. Within its allocation, there is a community partnership program that funds the community legal centre and the Women’s Domestic Violence Court program. On NCOSS’s analysis, it has calculated that there is an overall budgetary decrease of approximately 4.8% in this program.

In the Department of Family and Community Services, there are minimal changes in allocations and program elements. Community Development and Support will receive $283.4m; Child, Youth and Family Prevention and Early Intervention Services have been allocated $168.3m with Statutory Child Protection $424.7m and Out-of-Home Care $700m. Payments to Foster Carers will fall by $30m in the next financial year due to a reduction in payments for carers of 16 year olds entitled to Youth Allowance. The Minister, Pru Goward had indicated that expenditure in this area was growing at 9% a year and funding at only 5% so watch this space for more cuts as the shortfall is predicted to be $1.3b by 2014.

For Housing and Homelessness, it appears from the NCOSS analysis that there will be no new money for growth in social housing. Public housing tenants will have the 2009 pension increase counted for rent purposes in two stages. These tenants will therefore see their rents increase.

Specialist Homeless Services (SAAP) have been allocated $131m which is no change in real terms. There is also a major problem with the uptake and hence, the administration of the National Rental Affordability Scheme (NRAS). The uptake in NSW is estimated to be only 12% which, for the most populous state, is very low. Reforms are needed here as housing is a big issue for single mums.

In the NGO sector, which is sub-contracted to deliver services for the government, and this government wants more of them delivered through this and the private sector, there is no provision made for any pay equity, should Fair Work Australia make some determination on quantum.  Pru Goward signaled before the budget was delivered that the Federal Government will have to meet any shortfall should this be required.

Many organisations will do their own assessments after more information is supplied by departments on what impact the State Budget will have on service or program delivery.