Welcome to the start of our series of Q&As.

Welcome to the start of our series of regular Q&As, providing an inside perspective of the response of both Canberra and your state government in supporting local government through hibernation to economic recovery.
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This Q&A has been prepared in response to multiple requests to Section51 from council staff asking ‘what is happening’ with funding and support for local government.  We will not repeat the vast amount of official information and advice from government or your LGA.  We are providing our personal perspective from the inside workings of Canberra. We may not know the answer to many questions, but we do know how to find out. 

At the end of each Q&A we provide a simple 3 x 3 process to help guide you and council through the funding process. 3 tasks for the week, the next 3 weeks and 3 months.  This will be updated for each Q&A.

Enough of an introduction, let’s get into answering some of the questions we have been asked.
 

Welcome to the start of our series of regular Q&As, providing an inside perspective of the response of both Canberra and your state government in supporting local government through hibernation to economic recovery.
.
This Q&A has been prepared in response to multiple requests to Section51 from council staff asking ‘what is happening’ with funding and support for local government.  We will not repeat the vast amount of official information and advice from government or your LGA.  We are providing our personal perspective from the inside workings of Canberra. We may not know the answer to many questions, but we do know how to find out. 

At the end of each Q&A we provide a simple 3 x 3 process to help guide you and council through the funding process. 3 tasks for the week, the next 3 weeks and 3 months.  This will be updated for each Q&A.

Enough of an introduction, let’s get into answering some of the questions we have been asked.
 
Q: What has happened to the urgently prepared Drought round of BBRF4?
A: The Department of Industry, Science, Energy and Resources verbal advice is that announcement will not be made until the middle of the year, which is as per the expected time frame in the grant guidelines so everything is on track. Note that the average time from grant submission to announcement over previous rounds of BBRF has been 6 months.
 
Q:Will there be more rounds of BBRF?
A:  No and yes.  There are no further rounds in the Australian Government forward budget estimates, meaning for the current/next financial year?  Inside perspective late last year was the Department of Infrastructure had prepared a budget proposal for further rounds, but now everything has changed with COVID-19.  Which leads to the next two questions.
 
Q: Will there be funding like the GFC?
A: Eventually. Colin Steele was working inside the Australian Government during the Global Financial Crisis (GFC) in 2008 and it is apparent that the response at both levels of government is different to 12 years ago.  The initial focus in 2020 is on getting though the health crisis, saving business and immediate jobs.  Infrastructure projects, no matter how shovel ready, do not provide this immediate response.  Governments are already starting to roll our limited Infrastructure project grant programs with progressively larger programs over the coming 12 months.  The GFC included a wide array of funding from environment restoration to water to arts, well beyond infrastructure. 

If BBRF or other grants fit into the $130b response we may see another round early, but the more likely scenario is we have to wait for the budget process, which is now in October. We are watching the space.

Q: Should I get projects ready now?
A: Yes.  Grant programs have already opened in various states with timeframes such as a 2-week window to apply.  There has been a call from the Australian Government for road projects and environmental restoration projects for fire affected regions.  If you want to be part of the funding process, preparation is everything.  See the timetable below.
 
Q:What is open now?
A: At the Australian Government the Bridges Renewal Program is open, road funding and drought and fire recovery funding.  Multiple grants are open from State Government.  If you would like a more detailed list please let us know and we can send it through.

Q:What happened to drought and fire funding?
A: Drought and fire has been overshadowed by COVID-19 but it is still available.  At the Australian Government level coordination has been moved to the National Bushfire Recovery Agency. In States Local Bushfire Recovery Coordinators remain in place. Funding continues to be provided Disaster Recovery Funding Arrangements (DRFA), which in simple terms requires expenditure and then a claim though the state government under these arrangements.
 
Q: What if I cannot finish projects already funded?
A: Funding providers are very aware that COVID-19 has significantly impacted your capacity to deliver projects as per the funding deed.  Let them know now that you may need an extension of time.  See the timetable below on a suggested approach.
 
Q: Can Section51 suggest a simple approach to funding to get us through hibernation and beyond?
A: Yes 3 x 3
Everyone is trying hard to provide the support needed.  We continue to operate in a Federation, meaning the Australian and State governments have differing responsibilities, with sometimes overlapping announcements and different focus depending on the source.  In response we suggest breaking the process down into simple steps, 3 x 3, which will ultimately lead you though recovery, with funding coming into your council, managed budget and financial outcome and recovery of your community. 
 
3 things to do this week: 

1. Create a list of all your existing grant commitments to enable you to understand your capacity to take on additional grants;
2. Seek out all the sources you can find, elected representative, community, staff and your established budget and work program and create a list of all potential projects that you may seek funding for; and
3. Make a decision on if you would like to apply for projects for currently open state and Australian Government grant opportunities.

 
3 things to do over the next 3 weeks: 

1. Review all existing grant commitments and decide what is realistic to continue to deliver within the timeframe set out in the grant agreements that you have signed;
2. List the realistic financial commitment council can afford in applying for new grant opportunities which will require either matching funding or a loan from State or Australian Government; and
3. Select the 2 or 3 projects council can actively pursue and commence the process of preparing these to be shovel ready.  These projects should be from the small and immediate such as footpaths and park restoration to major infrastructure.  Government will be looking for all types of projects with a focus on immediate job creation.

 
3 things to do over the next 3 months:

1. Prepare an external funding profile on what council can reasonably take on from external grants and funding from a financial, staff resource or contract perspective over the next budget cycle;
2. Complete the shovel ready preparation for the first 2 projects and move on to the next projects on the list; and
3. Learn to say no to offers of funding from State and Australian Government where council does not have the financial or staff resources to deliver.

 
Questions, advice and support

Section51 has an understanding of the process over the next 12 months and beyond.  We know the steps, have prepared a research analysis we can provide on request, and will update the list regularly for you as we work our way out of hibernation. 

If you have questions, send them in and we will answer them personally as well as include them for all readers.  Advice and support specific to your council is available from Section51 from the smallest state government grant program to the largest of the Australian Government funding offers.