At present world economies are experiencing an economic downturn and the effects of this are having an unprecedented effect on the Irish economy. Ireland is dealing with major challenges with high rates of unemployment and the constant threat of job losses. The exchequer finances are challenged which is having a direct impact on CCC finances.
This report will focus on the challenges in relation funding revenue expenditure for CCC in 2010 and in the future. I will also discuss areas of concern in terms of level of revenue expenditure and outline issues that were taken into account in the preparation of the budget for 2010.
Section 102 of the Local Government Act 2001 states that each LA must prepare a draft budget for the next financial year setting out:
1. The expenditure necessary to carry out its functions and 2. The income estimated to accrue it.
In 2010 the total budget income for CCC is €324,706,407 a decrease of €32.9M compared to budget 2009.
Sources of Income
| |2010 |%2010 |2009 | |Rates |90,507,300 |27.87 |94.78 | |Local Government Fund |48,353,652 |14.89 |53.43 | |Income from own resources |93,649,550 |28.84 |96.41 | |Income from grants & subsidies |92,195,905 |28.40 |112.97 |
Revenue expenditure relates to day-to-day expenditure and does not produce an asset. CCC revenue expenditure is outlined below:
|Division |Expenditure | |Housing & Building |43,105,991 | |Road Transportation & Safety |76,966,194 | |Water Supply & Sewerage |62,832,198 | |Development Management |27,395,229 | |Environmental Services |56,545,492 | |Recreation & Amenity |15,491,386 | |Agriculture, Education, Health, Welfare |27,160,171 | |Miscellaneous |15,209,746 | |Total Expenditure |324,706,407 |
When CCC finance department sat down to begin the process of preparing budget 2010 it was always going to be a difficult task. It was prepared bearing in mind expenditure would inevitably have to be reduced as CCC income reduces and also keeping in line with the County Managers strategy as set out in budget 2009 of working towards reshaping and refocusing CCC priorities as income falls.
The priorities for Budget 2010 include:
• Complying with statutory obligations and maintaining essential services • Continuing to allocate funding to community projects and to support the amenity grant scheme* • Maintaining housing aid grants at previous years level* • Making the right choices in terms of prioritising where scarce resources are being allocated
The budget was prepared anticipating as recent trends have shown a reduction in income in the following areas:...