Tag Archives: news

269 – Unrestricted cash: are councils hopeless or helpless (or both)?

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630 words (7 minutes reading time) by Lancing Farrell

Professor Joseph Drew has posted another of his valuable and prescient videos for local government leaders. His analysis of the financial sustainability of councils in NSW heralds a warning across Australia for councils experiencing rapid increases in expenditure that are not being matched by revenue increases – especially those subject to a rate capping regime. NSW councils are running out of cash to fund operations. The FinPro/Municipal Association of Victoria report in 2022 showed that all Victorian councils except those in metropolitan areas are experiencing underlying deficits and the problem is getting worse.

Professor Drew’s warnings should really be a headline on the agenda papers for every council meeting!

I think part of the challenge for councils in acting on his warnings and advice is the prevalent sense that there is nothing that can be done – councils are at the mercy of forces greater than any they could hope to overcome. In discussions with Professor Drew I have likened it to a movie where a meteorite is expected to hit Earth and no one thinks it can be stopped or deflected.  Half the population are resigned to their fate and having a party, and the other half are sitting in the dark with their fingers crossed hoping it will miss.

Maybe a better explanation is that hopelessness is the feeling that nothing can be done by anyone to make the situation better. People may accept that a threat is real, but that threat looms so large that they feel the situation is hopeless. Helplessness is the feeling that they have no power to improve the situation. I think councils have a strong sense of both.

Well, for those with greater confidence that something can be done (and should be done to protect community interests), here is a list based on the initial advice Professor Drew provides (he is prepared to offer more detailed and specific advice to councils that ask):

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265 – Professor Joseph Drew – Myth Buster and Paradigm Shifter.

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264 – ‘What on earth is a paradigm shift?’ – Centre for Public Impact

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400 words (5 minutes reading time) by Colin Weatherby

I have been experimenting with Microsoft’s ‘everyday AI companion’, called Copilot. I asked it to analyse the podcast ‘What on earth is a paradigm shift?’ by the Centre for Public Impact.  I am not trying to second guess the great work by Lancing Farrell, simply to show how some new technology works!

This is what it came back with:

The podcast ‘What on earth is a paradigm shift?’ by the Centre for Public Impact (CPI), is a  conversation between Adrian Brown and Professor Toby Lowe, who are both part of the CPI team. They discuss the concept of paradigms and how they apply to public service and systems change.

Here is a brief summary of the podcast:

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262 – The other side of the ledger: A cautionary tale for growing councils

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1200 words (13 minutes reading time) by Colin Weatherby

A research article in the Australian Journal of Public Administration, titled ‘The other side of the local government ledger — The association between revenue growth and population growth,’ raises a crucial red flag for all councils currently grappling with population growth. The study, by Professor Joseph Drew and his colleagues, sheds light on the relationship between population growth and local government revenue. Professor Drew has made a video explaining the findings of the paper.

In local government, you hear a lot of talk about the rate cap, a limitation on property taxation imposed by the State government on councils, and the impact it is having on councils’ ability to fund services. I have posted previously on what I think councils should be doing in response to the spending gap arising from the rate cap. Most discussion in the sector has focused on the impact on expenditure.

Professor Joseph Drew and his colleagues are suggesting it is equally important, perhaps more important, to understand the impact on unit revenue. Unit revenue, representing the per capita revenue generated by a council, becomes pivotal when service demand stems from individuals residing in the municipality rather than the properties they occupy. The potential mismatch between service consumption drivers and revenue generators poses a substantial financial sustainability risk.

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261 – Reinventing Local Government

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600 words (7 minutes reading time) by Lancing Farrell

I recently acquired a ‘new’ copy of the 1992 book ‘Reinventing Government – How the Entrepreneurial Spirit is Transforming the Public Sector‘ by David Osborne and Ted Gaebler, a work that wielded significant influence globally in its time.

The impact of Osborne and Gaebler on world leaders can be discerned through the timing of policy changes, public declarations, and the alignment of advocated principles with the reform initiatives undertaken by these leaders. Some explicitly referenced the book in speeches, policy documents, or interviews, revealing its profound effect on their perspectives. In other instances, reforms closely mirroring the book’s principles suggest a potential influence. The book’s impact must be viewed within the broader context of prevailing ideas and reforms during that period.

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