NCOSS Budget Briefing:2012-13 NSW State Budget

13 June 2012

Council of Social Service of NSW (NCOSS)66 Albion Street

Surry Hills NSW 2010

ph: 02 9211 2599Email: info@ncoss.org.au

Website: www.ncoss.org.au

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©2012 Council of Social Service NSW

Overall Themes

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Fiscal ResponsibilityExpense growth reduced from 7.1% to 5.3% ( 2011-12) and

projected to be 3.6% in 2012-13Savings of $1.24b to be delivered from unannounced cuts

InfrastructureHousing not homesBuyers not rentersRoads not rail

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Economic situation

Sydney CPI: 2.5%

Wage Price Index 3.5%

Unemployment: 5.5%

Gross State Product: 2.25%

Sector indexation 2.6% on labour component of programs (tbc)

Overall Position

2012-13 2013-14 2014-15 2015-16

Revenue ($m)

59,727 62,636 64,916 68,074

Expenses($m)

60,552 62,347 64,353 66,902

Budget result ($m)

(824) 289 562 1,172

2011/12Forecast

292 156 152

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Total Expenses 2012-13 by policy area

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Health27%

Education22%Transport and

Communication11%

Public Order and Safety11%

Social Security and Welfare

8%

Other Purposes7%

Other6%

Housing and Community Amenities

4%

General Public Services

4%

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Attorney General and Justice Cluster:Legal and Justice Services

Overall budget decreased by 2.1% after inflation. In general most programs within the Legal and

Justice Services group, have experienced small cuts or small rises (taking into account inflation) within the 5% to –5% range.

The two “budget highlights” which aim to improve people’s lives do not appear to have made a noticeable impact on the budget.

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Legal and Justice Services:Budget Highlights

$2 million to fund new Intensive Drug and Alcohol Treatment Program at John Morony Correctional Complex, which will help reduce re-offending risks and have 300 participants at capacity. A further $1 million is committed for related court-based activities in the second metropolitan Drug Court, established at the Downing Centre.

$1.2 million to increase the number of full-time Intensive Learning Centres for inmates, starting at the South Coast Correctional Centre, with pilot programs at Lithgow and Mid North Coast Correctional Centres. The objective of Intensive Learning Centres is to significantly reduce the risks of re-offending by improving education outcomes.

Department of Education and Communities: Schools, TAFE and

VET Department wide Minimal increases overall, most below indexation - some

reductions A few specific increases for small initiatives in each portfolio Some capital infrastructure and maintenance Schools – NSW primary & secondary schools - very small

increases + $47m Assisted School Travel Program + $26 m literacy & numeracy project with CW + $21m for school maintenance + 4.6% for non government schools Reduction in capital due to CW ‘Education Revolution’ wind down TAFE - slight reduction, made greater with no increase for

indexation A little support for mentoring for women in non-traditional roles VET – reduction of 6.4%

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Department of Education and Communities

Citizens and Communities + $81m for Working with Children Checks and

OOHC accreditation scheme + $47m in Community Building Partnerships for

community infrastructure

Aboriginal Affairs - Aboriginal cultural support down 10%

Note in Sport & Recreation - $100m for Sydney Cricket Ground

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Department of Education and Communities: Children’s

Services Children’s Services will receive $377.1m in 2012-13

This represents an increase of $98.3m (or 32.8% in real terms) from the 2011-12 budget.

However, in 2011-12 only $283m will be spent – an underspend of around $40 million.

The Commonwealth Government agreed to provide $137.9 million to NSW to implement the National Partnership Agreement. This is an increase of around $55 million from 2011-12.

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NSW Ministry of Health

Overview Total budget (services + infrastructure) =

$18.3bn (+5.4%) Health services (recurrent expenses) =

$17.3bn (+5.2%) Health infrastructure (capital expenditure) =

$1bn (+ 9%) Focus = clinical services, workforce,

infrastructure

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NSW Ministry of Health

Major initiatives: Workforce = $70m Medical research = $45m Sub-acute services = $42m Mental health services = $38.3m Preventive health = $29m Patient services

◦ Radiotherapy in rural/regional areas = $7.6m◦ Palliative care = $5m◦ Pain management = $5m

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NSW Ministry of Health

What’s missing:

NCOSS PBS 2012-13 called for: Budget:

Oral health –$17.3m p.a. recurrent increase

Primary & Community Health -$123.2m p.a. increase

Strengthening local decision-making for health - $0.9

Transport for Health - Increase funding to $11.4m

Program of Appliances for Disabled People – $24.4mNSW 2021 - Keep people healthy and out of hospital (Goal 11)

Health promotion, aboriginal health, mental health, hospital avoidance

NSW Health NGO Program Indexation of 2.5% for existing grants Health-wide program expense savings of $28m Grants Management Improvement Program

◦ Improve grants administration, & accountability◦ Increase competition, new flexible service models◦ Strengthen partnerships and governance arrangements◦ Negotiated with the sector through the NGO Advisory Committee

NSW Ministry of Health

©2012 Council of Social Service NSW 14

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Transport for NSW$13.2 Billion

Capital Investment

Roads – $2.8 Billion

Public Transport – $2.7 Billion◦ North West rail link – $360 million◦ South West rail link – $397 million◦ Light Rail – $116 million◦ Electronic Ticketing – $124 million◦ Transport Access Program – $148 million◦ Buses – $95 million (replacement) + $32 million (new)

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Transport infrastructure spending

2009-10 2010-11 2011-12 2012-130

0.5

1

1.5

2

2.5

3

3.5

State Roads

Rail Services

$ B

illi

on

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Transport for NSW

Initiative Funding

Taxi Transport Subsidy Scheme 27 million

Community Transport• HACC• Community Transport Program

53,842,00047,741,0006,800,000

Bus Services • State Transit Authority• Metro and outer metro

↓(337 million)↑ (521 million)

Aboriginal Programs 3.25 million

Alternative sources of funding:◦ Public Private Partnerships◦“The role of road pricing in alleviating

congestion”◦“Increasing the extent to which

customers pay for public transport”

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Transport Master Plan

Department of Family and Community Services: Ageing, Disability and Home Care

Ageing Grants Program: funding maintained at $6m (no CPI increase). NCOSS called for $8.8m for whole-of-government priorities & improved access for Aboriginal people to Seniors Card.

Whole-of-government ageing strategy: to be delivered in July.

HOME AND COMMUNITY CARE (HACC) HACC split – funding responsibility for non-Aboriginal people

over 65 and Aboriginal people over 50 lies with Commonwealth Government

NSW government funding $231.6m for 2012-13

Home Care Service of NSW receiving $230m overall (1.3% increase in dollar amount)

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Department of Family and Community Services: Ageing, Disability and Home

CareHACC Highlights for 2012-13 Reforms to Home Modifications services Person Centred Packages for people with younger onset

dementia Expansion of Community Care Access Point to Central

Coast from 1 July 2012 Transition funding grants for NGOs, allocated in May

HACC and Aged Care Reforms HACC services for older people to be consolidated into the

Home Support Program from 2015 New culturally and linguistically diverse aged care strategy

to be developed in 2012

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Department of Family and Community Services: Ageing, Disability and Home CareDISABILITY

Stronger Together is the NSW Government’s 10 year plan for supports to people with disability 2006 – 2016. The second 5 years of STRONGER TOGETHER 2 is fully funded & included in the forward estimates until 2016.

Stronger Together 2 provides that anyone receiving disability services can convert them into an individual and portable funding arrangement from 1 July 2014

$10m over 5 years additional to Stronger Together to provide a payroll tax rebate ($4000 each) to any employer providing a permanent job for someone with a disability coming through the Government’s Transition to Work Program. This has not been claimed.

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DISABILITY (Cont.)

Stronger Together 2 includes significant capital spending = $148.5m in 2012-13

The Living Life My Way consultations will shape the implementation of the person centred plans for individualised portable funding arrangements from July 2014. Second round consultations on implementation are still open. NCOSS has no information on any allocations to independent advocacy, independent information or capacity building for people with disability and families towards exercising choice and control in individualised

Department of Family and Community Services: Ageing, Disability and Home Care

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Department of Family and Community Services: Ageing, Disability and Home Care

ADHC Agency Budget is $2.7 billion, up $178 million or 9% on 2011-12.

2012-13 is the largest increase in Stronger Together 2 spending until 2016.

Highlights of Stronger Together 2 for 2012/13 are 9,125 new places including:◦ 530 supported accommodation places including 100 Supported Living

Packages◦ 630 places for school leavers with disability in the Community Participation

& Transition to Work Programs◦ 70 Aboriginal and family intensive support packages◦ 3,900 decision support “places” for people with disability◦ 300 Community Engagement places for adults with disability under◦ 860 places on Flexible Respite options◦ 55 attendant care places◦ 710 opportunities for skills development in children & young people ◦ 6,770 new short term intervention places

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Department of Family and Community Services: Ageing, Disability and Home Care

OTHER DISABILITY RELATED NEWS:

National Disability Agreement shows an increase of 8.4% over 2011-12 overall, including the Commonwealth contribution. The 2012-13 budget provides $2,237.1m with $416.4m (or 18.1%) from the Australian Government.

The Budget Papers renew the NSW Government commitment to the development of an NDIS and to engaging in constructive dialogue towards its introduction on the understanding that the Australian Government is best placed to finance the entire costs of an NDIS.

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Department of Family and Community Services:

Community Services Minimal changes in the Community Services part of the

FaCS budget. Budget allocations for the main program areas:

◦ Community Development and Support $141.2 m◦ Child, Youth &Family Prevention & Early Intervention Services $131.2m◦ Statutory Child Protection $411.6m◦ Out-of-home Care $723.0 m

Highlights are:◦ $11m has been allocated to assist in the transfer of OOHC to the non-

Government sector.◦ $10m for innovative early intervention services for older children (9 –

14 year olds). Projected decrease in the number of children in Out-of-

Home Care◦ 800 fewer than projected in 2011-12

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Department of Family and Community Services:

Housing NSW Overall Housing Policy & Assistance budget increased from

$725.3m to $754.7m, after adjusting for transfers; virtually no change in real terms.

Home Purchase Assistance Fund budget static at $18.2 m. No new Commonwealth or State investment in the growth of

social or affordable housing. No increase in the overall number of households in social housing (141,000). Increase in NRAS properties from 1,557 to 2,213 reflects previous approvals.

By contrast, there are large additional benefits for purchasers of new dwellings valued under $650,000.

$48.2m for assistance to private renters and $19m for RentStart Bond Loans.

Continued funding for Tenant Participation ($1.8m) and Housing Communities programs ($0.6m).

Department of Family and Community Services: NSW Aboriginal Housing Office

The overall AHO budget reduced from $122.9 m to $110.7 m, a reduction of 10%.

Around $35m for the Build & Grow Strategy for Aboriginal community housing, including repairs and maintenance, and recurrent funding and other reform measures. Down from $49m in 2011-12.

Total allocation for new housing supply $37.4m, including 35 Commonwealth funded homes in remote areas and 6 new homes for employment and training related housing.

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Department of Family and Community Services:Homelessness

Specialist Homeless Services: Allocated $134m, compared to $131m last year, no real

change. Responsibility transferred from Community Services to Housing NSW.

Homelessness Action Plan: Allocated $37.1m for the final year of the COAG NP on

Homelessness, and $13.3m for A Place to Call Home. Unclear if the NP on Homelessness allocation includes carryover of underspend from previous years, which is awaiting Commonwealth approval .

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Department of Finance and Services: Housing (not FACS)

The Land & Housing Corporation (L&HC) has been transferred to the Department of Finance & Services. It largely operates as a public trading enterprise, paying Housing NSW to provide tenancy management.

The L&HC receives funding from F&CS for new supply and for estate redevelopment projects. In 2012-13 it will receive $12m for new projects, and $76.3m for projects already committed, out of a total capital works budget of $331m.

The L&HC funds routine maintenance out of its rental income. In 2012-13 this has been allocated $210.2 million.

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Department of Premier and Cabinet:Department of Planning and

Infrastructure

Infrastructure Total state sector infrastructure budget up from $13.4

billion to $15.0 billion. Biggest spending areas are energy ($4.2b), roads ($2.8b), rail ($2.5b) and health ($1b).

Last year saw a significant underspend. Few new initiatives pending finalisation of the State

Infrastructure Strategy in September (Infrastructure NSW), the completion of the privatisation of Port Botany, certain energy assets and Port Kembla, and the finalisation of new funding agreements with the Commonwealth.