NCOSS Community Budget Briefing 2013-14 NSW State Budget


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NCOSS analysis of the 2013-14 NSW budget papers at a community sector forum on 19 June 2013, from 2pm-4pm. Proceedings will be webcast via

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  • Need to clarify estate redevelopment funding flow.
  • Recurrent expenses = health services. An additional $884 million will be invested in the NSW health system in 2013-14, an increase of 5.2% compared to the previous yearCapital expenditure =infrastructure$1.2 billion to upgrade and redevelop health facilities Increase of 10.4% $153.6m new capital works and $121.7m new minor works
  • Difficult to identify new spend vs existing spend, and NSW vs Commonwealth fundingEnable = $2.9m Home Ventilation Program (total $4.4m with kids)$1.5m Kids $2.7m Prosthetic Limb Service
  • Oral health – Budget is $183m. No new NSW funding, but have counted CW NPA of $50m, which accounts for substantial increase in PCH budgetPCH – overall increase 5.2%, but if remove OH CW NPA, and 0.6% decrease.Compacs – unsureEnable = $7.1m – welcome, but not enough$2.9m Home Ventilation Program (total $4.4m with kids)$1.5m Kids $2.7m Prosthetic Limb ServiceMental health $1.45 billion expenditure, up $56.4m or 4.1%$26 million additional to expand existinghospitals services$1.8m to pilot a model for integrated community based care for people with mental illness through an NGO-led consortium in 2 locations.$1.6m to better respond to people with eating disordersTransport – No new funding - IPTAAS budget in 2013-14 is $20.2m. Question re pre-election commitment of $28m over 4 years? Only $7m in 2011-12, leaves $21m to be allocated in next year’s budget
  • NCOSS Community Budget Briefing 2013-14 NSW State Budget

    1. 1. 19 June 2013Council of Social Service of NSW (NCOSS)66 Albion StreetSurry Hills NSW 2010ph: 02 9211 2599Email:
    2. 2. 1. NSW Overview2. Dept of Attorney General & Justice3. Dept of Education & Communities4. Dept of Family & Community Services5. Dept of Finance & Services6. Ministry of Health7. Dept of Premier & Cabinet8. Dept of Planning & Infrastructure9. Dept of Trade & Investment, RegionalInfrastructure & Services10. Transport for NSW2
    3. 3.  NSW Treasurer◦ “jobs, housing and infrastructure”◦ 3 pillars – improving services, delivering infrastructure andprotecting the vulnerable “Business as usual” for community sector◦ Enhancements where they happen have largely beenexpected◦ In most cases growth in funding reflects CPI and EROsupplementation3
    4. 4. 4 Sydney CPI: 2.5% Wage Price Index 3.25% Unemployment: 5.5% Gross State Product: 2.75% Sector indexation 2.4 to 2.5% (tbc) ERO supplementation $297m over 4 years
    5. 5. 2013-14 2014-15 2015-16 2016-17Revenue($m)62,573 65,731 68,615 71,001Expenses($m)64,462 66,295 68,459 70,466Budgetresult ($m)(1,890) (563) 157 535Traditionalresult ($m)*(329) 829 1,305 1,5262012/13Forecast289 562 1,1725* Accounting standards relating to superannuation havechanged the way the overall results are calculated
    6. 6. 6Healt h28%Ot her Purposes7%Recreat ion andCult ure3%Educat ion21%Housing andCommunit yAmenit ies3%Transport andCommunicat ion13%Economic Affairs4%General PublicServices3%Public Order andSafet y10%Social Securit y andWelfare8%
    7. 7. 7Department of Attorney General & JusticeTotal budget (expenses & capital expenditure) is $5.86m, adecrease of 0.5% or $28.6 (with CPI, decrease of 3.4%).Budget & NSW 2021Performance Report Highlights $2m for implementation of Youth on Track Scheme $5.6m to implement reforms to the Bail Act 1978 Stage 3 Metropolitan Drug Facility Continued support for NGO person-centred casemanagement services Offender initiatives – focus on program completion rates Launching redesigned Joint Support Program
    8. 8. 8Legal Aid Commission of NSWTotal budget (expenses & capital expenditure) is $2.5m, adecrease of 2.7% or $7.2m (with CPI, 0.2% increase).Budget & NSW 2021Performance Report Highlights $1m recurrent funding to Legal Aid for regionaloutreach legal services re: Work Development Orders $0.7m to Legal Aid for homeless persons legal servicein four regional areas
    9. 9. 9Pre-Budget SubmissionDepartment of Attorney General and Justice Crime prevention strategy Reduce remand population Long-term housing for released prisoners Rehabilitation programs within prisonsLegal Aid Commission of NSW Community Legal Centres
    10. 10. 10 Minimal increases overall, most below indexation -some reductions A few specific increases for small initiatives in each portfolio Some capital infrastructure and maintenance +$301 million early childhood education services (up $72m) Schools – NSW primary & secondary schools - $10.2 billion for NSW government-run primary and secondaryschools $320m for school maintenance $204m for minor works on school infrastructure $128m to continue major building projects including enhancinginformation technology and business support systems $21m to start 8 new building projects including 3 new schools $995m for non government schools
    11. 11. 11 $2.3billion to provide vocational education& training, including providing servicesthrough TAFE NSW Institutes and otherregistered training providers $91m to start 9 new building & IT projects& continue existing projects
    12. 12. Citizens and Communities $23m in Community Building Partnerships for community infrastructure $1.6 m for the NSW Government‟s new Aboriginal Affairs plan OCHRE(Opportunity, Choice, Healing, Responsibility, Empowerment) $23 m for Community Building Partnerships program Note: Children‟s Guardian and Working with Children Checkresponsibilities to be transferred to Family and Community ServicesclusterSport & Recreation $10m upgrades to Sport to Sport and recreation centres Note:$22m for Sydney Cricket Ground stand redevelopment works; $108 m for programs including providing grants to peak sportingbodies and managing government-owned or controlled sporting andrecreation facilities12
    13. 13. DISABILITY ADHC Agency Budget: $2.82 billion including capital DisabilityCare Australia NDIS◦ Hunter Launch Site begins 1 July 2013 for 3000 people inNewcastle in the first year. Cost over 3 years $550m plus$35m over 4 years for entire Launch site for 10,000 peopleincluding Lake Macquarie & Maitland.◦ Full roll out for NSW from 1 July 2016 Commonwealth & NSW Governments have agreed todetermine the most appropriate funding mechanism for theScheme by July 201413
    14. 14. DISABILITY : Stronger Together fully funded $440 this year but realigned towardsthe NDIS. Highlights include:◦ $54m over 4 years ($16m in 2013-14) retrofit fire safetymeasures and sprinklers to 330 ADHC supported accommodationhomes & facilities under the new Fire and Building Safety Program.◦ 900 supported accommodation places◦ 2,800 places for flexible respite◦ 300 places for support networks for families, parents & peoplewith disabilities Minister announced the development of a Transition Strategy for theNDIS Poor uptake of the Payroll Tax Rebate: $10m over 5 years.◦ This gives $4000 per permanent job for employers who employ aperson from the Transition to Work Program.14
    15. 15. COMMUNITY CARE SUPPORTS PROGRAM(previously Home and Community Care)Support for non-Aboriginal people with disability under 65 &Aboriginal people under 50. Funding responsibility for non-Aboriginal people over 65 and Aboriginal people over 50 lieswith Commonwealth. HACC in NSW for younger people with disability renamedCommunity Care Supports Program in October 2012. NSW Government funding: $208 million for 2013-14.Reduction of $23 million from previous year, or 12.7% inreal terms. Home Care Service of NSW receiving $229 million in total(incl. Commonwealth funding for people aged over 65/50).15
    16. 16. Community Care Initiatives in 2013-14 „Future proofing‟ projects to support community careproviders as funding transitions to the NDIS. NCOSS discussion paper: „Get this party started‟ recommendshow ADHC can support a transition to person centredapproaches in community care.HACC and Aged Care Reforms HACC services for older people to be consolidated into theHome Support Program from 2015 Growth for HACC and other community care programs forolder people in Commonwealth Budget Consultations underway for HACC service types16
    17. 17.  Domestic & Family Violence Funding Program toreceive modest increase; total funding $3 million Staying Home, Leaving Violence Program: $3.9million New initiative: Investing in Women - $200,000 tosupport women & girls to enter non-traditionaloccupations NSW Domestic & Family Violence Framework underdevelopment17
    18. 18. NSW AGEING STRATEGYWhole-of-government strategy to plan for population ageingand direct government policy relating to older people. AgeingStrategy Implementation Plan to be released publicly in 2013. Spending initiatives:◦ $3.7 for projects relating to the Ageing Strategy◦ $1 million for advocacy & peak orgs working with older people◦ $600,000 for research projectsOFFICE FOR CARERS NSW Carer Strategy under development – to be released 2014 Priority areas: economic participation, health & wellbeing,access to information, and community engagement $3.5 million spending in 2013-1418
    19. 19.  Very little new expenditure and minimal growth Reduced allocation to earlier intervention◦ Strengthening Families moved to Statutory Child Protection◦ CS “corporate” staff reallocated across all service areas◦ Reduced $ for Charitable Goods Transport – now only fundfood transport◦ Community Builders Fixed Term to be revised with no newround in 2013/14 although commitment to a new round in2014/15 ($10m) Reduction in CS staffing by 440 FTE (2011/12 to2013/14)19
    20. 20. Servicearea2012-13revisedexpenditure($000)2012-13expenditureto budget($000)2013-14expenditure($000)2013-14% increase ordecrease2013-14Real increaseor decreaseTargetedEarlierintervention$262,220 - $11,901 $245,798 -6.3% -8.5%Statutorychildprotection$423,000 - $2,287 $445,601 +5.3% +2.8%OOHC $776,828 +47,323 $798,917 +2.8% +0.3%20
    21. 21. 21 The Budget for the newly created FACS Social HousingAssistance and Tenancy Support program increases from$678.7m to $755.6m. This includes:◦ $162m for tenancy management by Housing NSW,◦ $106m for headleasing of properties ($66 m forcommunity housing and $40m for public housing, and◦ $52m (TBC) for private rental products. Further briefing planned for next week. We are seeking toclarify how much is Commonwealth funding and thedistribution of NAHA funding across four programs. No new measures. The total number of tenancies managedby HNSW, the AHO and CHPs projected to decline slightly to140,700.21
    22. 22.  The total Budget for the AHO increases modestly from$110.7m in 2012-13 to $114.5m in 2013-14, including:◦ $49m for new housing, largely funded by theCommonwealth under the NPARIH,◦ $26m for repairs and maintenance for Aboriginalcommunity housing properties, and◦ $11m for capacity building under the Build and GrowStrategy for Aboriginal community housing. NCOSS is pleased to note that the AHO once again has its ownCEO and Board.22 22
    23. 23.  The overall allocation for FACS‟ Homelessness Servicesincreased from $228.7m in 2012-13 to $251.9m. Of thisthere is provision for $220.1m for grants and subsidies,including:◦ $138 m for Specialist Homelessness Services;◦ $65 m for a 12 month extension of the National Partnershipon Homelessness (NPAH);◦ An unspecified amount for Temporary Accommodation. While the allocation appears to have increased substantiallyfrom 2012-13, this is due to the rollover of unspent projectfunds, rather than new initiatives.23 23
    24. 24.  Total Budget for the Land & Housing Corporationnot included anywhere in the Budget. $117.3m for new supply, down from $138.6m in2012-13. Includes $36.8m for 196 new communityhousing dwellings for vulnerable clients (NPAH?). Asset improvement (maintenance) $157.1m, downfrom $194.5m in 2012-13.24
    25. 25. 25 Total Budget $56.2m up from $54.5m. Funded byinvestment earnings of $58.8m. Allocation for grants and subsidies$28.8m, compared to $28.7m in 2012-13. Nobreakdown provided between TAAP, NILS, FinancialCounselling etc.25
    26. 26. 26Total budget (expenses & capital expenditure) is $1.6m, adecrease of 0.9% or $15,000 (with CPI, decrease of 3.4%).Budget/Media Release Highlights $5m for regulatory reform which specifically referred toresidential parks. Additional $500,000 for Consumer, Trader & TenancyTribunal to increase hearing hours, improve disputeresolution timeframes.Pre-Budget SubmissionNo additional funding for boarding house reform initiatives.
    27. 27. 27 Increase of 21% in real terms to managecollection of revenue, fines and debts Increase of $30m in grants and subsidieslargely due to the extension of the JobsAction Plan which provides a payroll taxrebate for eligible businesses employingnew staff
    28. 28. 28Overview Total budget =$19bn Expenses = $17.9bn (h 5 %) Capital = $1.1bn (h 10 %) Health = one quarter of NSW budget (28%)
    29. 29. 29Significant new initiatives: Increased patient services/activity = $220m Integrated care = $30m Ambulance services & reform = $15m Radiotherapy = $7m Enable NSW = $7m Palliative care = $5m ($10m total)
    30. 30. 30NCOSS PBS 2013-14 NSW BudgetOral health –$35.5m/yr ($213m over 3 yrs)Primary & Community Health -$208m / yr / /Community Managed Mental Health - $1m/yrTransport for Health - Increase funding to $11.7mComPacks - $18.7m/yrProgram of Appliances for Disabled People – $24.4m / /
    31. 31. NSW Health NGO Program Indexation =2.5% (+ Modern Award) NSW Partnerships for Health replacing NGOProgram from 2014 Procurement commencing mid-late 2013 Timeframes to be discussed at NGO AdvisoryCommittee meeting in August31
    32. 32. 32$20.9 m allocated for the roll out of the new planningsystem and legislation.There are a multitude of infrastructure funds to accompanynew housing activity, including the Local InfrastructureGrowth Scheme, UAP Precinct Support Scheme and HousingAcceleration Fund.Total infrastructure budget is $15.5 billion, much the sameas in 2012-13 ($15.0 b). Biggest spenders are in thetransport ($7.3b or 47%), electricity ($3.3b or 21%) andwater ($902m or 6%) sectors, with Health ($1.1b or 8%) andEducation ($538m or 3%) the largest spending humanservices agencies. Social housing gets only 2% of the state‟sinfrastructure budget.
    33. 33.  Audit Office – real increase of 3.5% in expenditure notmatched by revenue which has a real decrease of 1.6% ICAC - <0.1% real increase in recurrent appropriation butwith a special grant from DPC to cover current investigationsand inquiries ($3.2m in 2012-13 and $1m in 2013-14) IPART – 4.8% real decrease in recurrent appropriation Ombudsman – 4% real decrease in recurrent appropriationwith a special grant of $2.2m to continue with Strike ForceEmblem investigation.33
    34. 34.  Registered clubs are taxed at lower rates on gaming machinesthan hotels The cost of this to the Government‟s revenue base was$777m in 2012-13 and is forecast to cost $805m in 2013-14 Revenue from gaming machine taxes in 2012-13 was $667mfrom clubs and $509m from hotels Forecast revenue for 2013-14 is $694m from clubs and$536m from hotels $15m will be available through the Responsible GamblingFund for measures to deal with problem gambling $11m will be available for Category 3 projects under theClubGRANTS scheme34
    35. 35.  $247m to assist eligible NSW households meet energy needs andreduce impact of power prices This figure includes $206,910m for Low Income Household Rebateand $18,970 for Family Energy Rebate Energy Accounts Payments Assistance Scheme (EAPA), $15m. Noincrease in EAPA budget from last year even though the voucherswill increase from $30 to $50 each on 1 July. Not extended toresidents of caravan parks. Low Income Household Rebate to be extended to eligible residentsof retirement villages on 1 July Budget Paper 3: „Reforming the state-owned networks to drive downelectricity prices, delivering assistance to customers andimplementing protections for vulnerable customers‟ IPART‟s price determination: 1.7% increase in electricity prices35
    36. 36. 36 Total of $14.6 billion spending on Transport:$9.5b to public transport, $5.1b to Roads and MaritimeReversed previous years where spending for roads was higher thanpublic transport Transport for NSW expenditure is $11.3b, an increase of 9% fromlast year‟s $10.4b Capital expenditure includes $4.1b for public transport (up 32%from last yr) and $3.2b for roads Key public transport initiatives include $806m for North West RailLink, $353m for South West Rail Link, $105m for Wynyard Walk and$75m for the CBD and South East Light Rail (none of these are newannouncements) Road projects include the $1.8b Westconnex; of which $140mallocated this year.
    37. 37. 37 Transport Access Program (train station disability access andupgrades) 195 m, up 47 m from last year‟s 148 m. TAP prioritiesare customer needs and demographics, patronage, proximity to keyservices such as hospitals, accessibility of nearby transportinterchanges Taxi Transport Subsidy Scheme The bad news: no enhancementfunding for the TTSS. This year‟s funding is 29.4m an increase ofonly 2 m from last year‟s allocation of 27.4 m The subsidy cap ofhalf the fare will remain at $30 Community Transport Program 7.5 m (includes the 3 menhancement announced last year of 12 m over 4 yrs). In additionthere will be 0.5 m for accreditation. HACC CT is $49.5 m
    38. 38. 38 Service measures: public transport patronage across Sydney metro The Budget Papers (No 3) show a steady increase in City Rail andMetropolitan Bus patronage City Rail 2010/11 – 2012/13:294.5 m to 308.3 m journeys Metropolitan Bus: 2010/11 – 2012/13198.7 m to 207 m journeys
    39. 39.  Full analysis in NCOSS News and website NCOSS staff can be contacted on 92112599, or by email: Alison Peters, Director Christine Regan, Acting Deputy Director Solange Frost, Senior Policy Officer Warren Gardiner, Senior Policy Officer Rashmi Kumar, Senior Policy Officer Robyn Edwards, Senior Policy Officer Sue Gillett, Senior Policy Officer Amanda Smithers, Senior Project Officer