With everything that has been happening, we've become accustomed to drastic action in the face of a crisis. But even still, the proposed Auckland Council emergency budget is still a shock.
"Cutting road safety projects like fixing high risk intersections and pedestrian crossings. Stalling a much-heralded conversion to electric buses - a totem of the council's climate change commitments. Selling $200m in public land and assets. Putting off the city-wide revaluation of all properties."
Tim Murphy: Auckland’s budget cuts: a half billion too far - Newsroom
I have no doubt that some will proclaim this as a victory, as if this is just council forced to reduce spending to focus on core services. But this isn't how you improve cost effectiveness, reduce bureaucracy or focus on core services. I've worked in business improvement for over a decade and positive change comes through sustained focus, good disciplines and innovative thinking. This isn't that - it's an emergency response to a crisis, survival mode.
It's also true that businesses are being forced to make tough decisions - as the person who led the development of our new business plan at work, I know this well. But while there are areas where council could be more business-like, it's not a business. The impact of this budget will be felt for sometime, especially with cuts to environmental management and regulation (which has never been a strength for Auckland Council).
We’re being asked to consider the option of a 3.5% or 2.5% rate increase which is about $1.82 or $1.35 per week extra. We're paying more but will still see significant cuts into the operating and capital budgets over the next year to account for the massive drop in revenue. While Auckland Council has worked to leverage alternative incomes, there are limited options and those have been hit hard. I sympathise with the staff and councillors who have had to make some tough calls and still had to ask for an increase to rates. We cannot continue to rely on endless rates rises, but the blame lies with central government who have ignored those of us calling for local government funding reform.
Government has allocated themselves billions for economic recovery and a decent proportion of this should go towards local government. While Auckland is budgeting to be down $525m in revenue, estimates put the total nationwide gap for all councils at around $1b. A terrifying number for local government but less so for central government. Compared to the countries in the OECD, New Zealand ranks among the lowest in terms of the proportion of local government revenue that comes from grants and subsidies given by central governments.
It’s an election year and with UnitedFuture no longer around to champion localism, I’m hoping that the other parties pick up on the urgent need for local government funding reform. In the meantime, Aucklanders need to make sure their voice is heard by council.
We have until June 19 to respond online at akhaveyoursay.nz/emergency-budget, by phoning 09 301 0101 or visiting a council service centre or library.
I’m hoping to finish reading through all the materials this weekend and will post more details on the specific impacts on East Auckland.