The ACT Chief Minister Katy Gallagher is going back to the drawing board with the territory’s budget after substantial funding cuts in the federal budget, according to the ABC.
Due to a $100 million dollar write down, thanks to Federal Government cuts in health and education, Ms Gallagher will be reviewing all revenue and expenditure.
Current projections see the loss of 6,500 federal public servants in Canberra which will affect local budget revenue.
“I’ve actually said to my colleagues that we need to actually revisit all of the decisions we’ve made to date in relation to the budget,” she said.
“And reconsider them in light of the dramatic cuts that our budget will now experience over the next few years. So we will have a lot of work to do on Monday and Tuesday.”
Ms Gallagher will be meeting with State and territory in Sydney on Sunday for emergency talks on the national impact of the federal cuts.
Canberra skies were already thick with fiscal pigeons coming home to roost, now it will be like Hitchcock’s Birds.
How will the loss of 6,500 public service jobs affect local budget revenue?
Labor sacked twice that many in the two years prior to the coalition winning the last (Federal) election and the Chief Minister didn’t draw on that as being a problem.
Those of the 6,500 who have homes and require services will still pay their rates and taxes. They won’t be drawing any unemployment benefits either due to the usually high severance packages they will recieve.
I think the Chief Minister has to look elesewhere to apportion the blame for the parlous financial situation the Territory is in. I expect Andrew Barr will now have to cancel his trip to Hong Kong as the planned light rail and convention centre will have to be put on hold.
How is the Territory’s AAA credit rating looking now, Andrew?
Do you pay on the first date?