Lake Macquarie faces $85m in state funding cuts over decade
Lake Macquarie faces $85 million in cuts if NSW changes its grants formula over ten years.
Lake Macquarie City Council faces a dramatic fiscal cliff if NSW proceeds with changes to grants distribution. The council would lose $7.2 million from its $21 million annual funding pool starting next year.
Over the next decade, the total cuts add up to about $85 million. The council's modelling predicts eight years of budget deficits over ten, including about $7 million in shortfall for 2032-33.
Deputy chief executive Tony Farrell told councillors finding $7.2 million to cut next year is "simply not plausible". The council would have to slash operating budgets, the hardest cuts to make.
Three other NSW councils face major reductions: Newcastle ($9.4 million yearly), Central Coast ($20 million yearly), and Mid Coast ($5 million yearly).
- $7.2 million from $21 million pool
- Annual funding cut next year
- $85 million
- Total cuts over decade
- $7 million in 2032-33
- Largest deficit predicted
- Tony Farrell
- Deputy chief executive
Why it mattersA $7.2 million cut forces councils to choose between slashing services or raising rates on residents already hit by cost-of-living pressures.
AustraliaResidents across Lake Macquarie, Newcastle, Central Coast and Mid Coast face potential cuts to council services or higher rates if the NSW government implements these grants changes.
✓ Claims checked against the source. checked 3 h ago
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