NSW State Budget 2007-08
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NCOSS Analysis of the 2007-08 NSW State Budget |
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| The 2007-08 NSW State Budget was handed down on 19 June 2007 by Treasurer Michael Costa. Traditionally Budget Day has entailed a large get together at NCOSS as community representatives from across our sector meet to dissect, discuss and analyse the Budget Papers. However, this year’s budget papers did not contain program level information. Budget Paper Number 3 was smaller and contained only agency wide figures with program figures to be released at the end of July.
This of course made it very difficult for us to undertake our usual community budget analysis. Instead, the NCOSS Policy Team worked, initially at NSW Parliament House as the Budget was delivered and then back at Surry Hills, and, having analysed the available budget information have put together the following breakdown of the human services related spending. |
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Index |
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Ageing, Disability and Home Care Home & Community Care
In 2007-08, Australian Government spending on HACC will be $1.038m, including $316.787m in NSW. The NSW Government has matched the Australian Government HACC growth allocation at 8.1% totaling $38.7m, bringing total HACC investment in NSW to $533.9m. The Productivity Commission reports that, in 2006, NSW again had the lowest government real expenditure per capita of eligible population on HACC services. The NSW growth contribution is $15.5m, resulting in a total NSW contribution of $210m. While this is a very welcome increase, it falls short of the 20% increase recommended by NCOSS in recent years. The Ministry of Transport reports a very welcome 10% increase in funding to Community Transport (see Transport). In a vast improvement on previous years, the HACC State Plan for 2006-07 was signed and consequent funding released in a more timely manner. NCOSS welcomes the new HACC Agreement which moves HACC planning cycles from an annual to a three year basis. This should ensure that delays in joint approval of HACC funding priorities are a thing of the past. DADHC reports that the HACC Capital Strategy will be released in 2007-08, primarily to provide improved facilities for 16 day care services, particularly for people with dementia, in NSW. Home Care Service of NSW Older People There is no evidence of a budget allocation to make the NSW Seniors Card available to Aboriginal and Torres Strait Islander people at age 45 plus years. NCOSS looks forward to the NSW Government to make this provision as soon as possible. Disability Services Program This Budget provides second year commitments in the Stronger Together package on new spending initiatives of $38m in 2007-08. At the end of the five years (2010-11), Stronger Together will have delivered total additional recurrent spending of $377.6m. Commitments under the Stronger Together package for 2007-08 include:
The 2007-08 Budget provides two new initiatives comprising $1m to intensive support to children with challenging behaviours ($5m over 4 years) and $125,000 to maintain children with autism spectrum disorder at school ($500,000 over four years). DADHC’s capital expenditure has been cut by approximately 10%. The capital budget for this year is $62.4m which will:
NCOSS has grave concerns about the redevelopment of the three large residential centres in light of this Government’s previous cast iron promises/commitments to close all disability institutions. Carers
Community Services This contributes to an 11.6% increase (9.1% after CPI) for the Department of Community Services, up from $1,129.1m 2006-07 to $1,260.2m in 2007-08 (Total expenses figure). On net cost of services, the picture is similar, with the budget increasing from $1,118m in 2006-07 to $1250.4m in 07/08. There is an extra $89.9m from the 2002 funding package in this total, bringing the funding package total in 2007/08 to $398.3m. Funding to non-government organisations, which now represents around 60 % of the DoCS budget, has included a 3.3% increase across State funded programs to help services meet the second year of the SACS award increase. While NCOSS and the ASU had argued for 3.4%, we welcome the Government’s support in providing indexation at a level that recognises the real cost to services of salary increases that must be paid. Payments will be made in September. However SAAP, as usual, will bear the brunt of the Commonwealth’s refusal to come to the party on indexation. Indexation for SAAP is 2.75% with only the State component attracting the 3.3%. Child Protection and Out of Home Care The main focus for 2007-08 will be the roll out of the out of home care money (over $600m over five years) following the expression of interest process this year. The budget papers have also flagged a move to e-reporting for mandatory reporters in 2007-08. While the DoCS budget briefing claims that DoCS will be working on developing “policies and projects in response to the Aboriginal Child Sexual Assault Taskforce and the Joint Investigation Response Team Review”, there is no new funding allocated for this. NCOSS has consistently expressed its concern that the Government has not seen fit to fund the recommendations of the Taskforce. We do not believe that a proper response can be achieved within existing resources. Foster Care allowances will increase by CPI (2.7%) as promised. Prevention and early intervention In Brighter Futures there is continued expansion of Community Service Centres (CSCs) across the State and the DoCS briefing flags that by the end of 2007-08, all CSCs will have Brighter Futures teams operating, and the program will be expanding the target group to families with children aged 9-14. There is no information about additional resources to support this expanded target group. New resources will be developed for children, young people and families from Aboriginal and CALD communities and new Aboriginal intensive Family based Services will be established in Campbelltown, Blacktown and the Hunter. In Children’s Services, which now has its own Directorate within the Department, there is no new funding, with the focus on continued roll out of the Preschool Investment and Reform Plan - $8.8m as per last year, and not enough to achieve viability for all community based preschools. The $21m additional for expansion of preschool places will appear in the 2008-09 budget. The Directorate will also be focusing on internal changes to processes around the monitoring of regulations. Work will begin on reviewing the Children’s Services Regulation for 2009. There is no funding as yet attached to the implementation of regulations for the Outside School Hours Care sector, although extra funds for this once the cost is known were not ruled out in the briefing. Community Services There is new funding in this stream for the Triple P: Positive Parenting Program ($5.2m over four years, $900,000 in 2007-08), and $4m over four years for a so-called Supernanny parent Hotline. These are both election promises. Some of the new funding promised by the Premier last year for domestic violence programs appears to remain in DoCS, although we had anticipated this moving across to Premiers. It includes the funding for continuation of the Integrated Case Management sites, and for the Staying Home, Leaving Violence initiative ($16.8m over four years, $3.3m in 07/08). The $2m announced last year for support services will apparently be administered through the Department of Health. SAAP and CSGP remain in the doldrums with no new funding and SAAP attracting lower indexation than other programs (see above). Continuing work on reviewing CSGP has been flagged, with potentially a business case for an increase being put to Treasury for the next budget cycle. Capital Concessions As part of its pre-election policy package, A Fairer NSW 2007: Bold solutions, real results, NCOSS called for an overhaul of the NSW concessions system. In particular, NCOSS called for an extension to transport concessions and energy rebates to include low-income earners who are entitled to a low-income health care card. NCOSS also called for concession cards to Indigenous people aged of 45 years who are not working full-time (similar to the Seniors Card for the over 60s). These modest proposals were estimated to cost the NSW Government around $81m per annum in tax expenditure. This is less than one quarter of the cost of the tax cuts given to businesses and the land owners in 2007-08. No significant changes were announced in the budget to the concessions system in NSW. Department of Aboriginal Affairs This program is a $240m capital construction and infrastructure upgrade program for better wellbeing in Aboriginal communities across New South Wales. The program aims to raise the health and living standards of 22 priority Aboriginal communities by providing environmental health and essential infrastructure targeting a high level of identified need in housing, water, sewerage, roads, and recreational and cultural facilities. In 2006-07 ACDP expenditure was $27.5m, which is less than the budgeted amount. The budget papers say this is due to delays in construction and other approvals. In 2007-08 the ACDP will have a budget of $16.9m. Other budget items in 2007-08 include:
DAA is the lead agency in coordinating and monitoring NSW Government agencies’ responses to the Aboriginal Child Sexual Assault Taskforce recommendations. No additional spending is allocated in any Government agencies for the roll out of those recommendations. NCOSS does not support that approach. Without a clear allocation of additional resources the end result will be that the strategies and solutions identified in the Government response to the Taskforce report will be left to wither on the vine as agencies try and implement services within existing budget allocations. Given the current rates of child sexual assault in Aboriginal communities (at four times the non-Aboriginal rate), it is clear that existing budget allocations are currently failing to meet the needs of Aboriginal children at risk of, or experiencing sexual assault. Department of Corrective Services Prison beds In 2007-08 an extra $12.8m has been allocated to recurrent costs in response to increased inmate numbers. Over the next few years the additional recurrent costs are in the order of $70m. An additional $59.3m will be spent on an extra 1,000 prison beds in 2007-08. Contrast this with the $17m for affordable housing, and additional 196 units of social housing. Over the next four years, the additional capital costs are $286,000. NCOSS is greatly concerned about the increasing rate of full-time inmate population in NSW, and the increasing number of people on remand following amendments to the Bail Amendment (Repeat Offenders) Act 2002. NCOSS believes significantly more could be done by the NSW Government to reduce this dramatic increase in offence and imprisonment rates including strategies for early intervention, community rehabilitation and support, legal aid services as well as adequate provision of and access to post release support. The budget does not address the urgent need for bail hostels in order to ensure people are not remanded in custody due to a lack of availability of appropriate accommodation. NCOSS welcomes increased response to the medical and operational needs of the female prison population of NSW by way of stage two of redevelopment of Silverwater Women’s Correctional Centre. However, this strategy is limited by the Correctional Centre’s uniformly high security class. Wellington Correctional Centre: It is unclear as to whether the 500 beds located at the Wellington site form part of the 1,000 beds also announced in this budget. NCOSS is concerned as to the lack of support and targeted rehabilitation services that are required in correspondence to the opening of new correctional beds in NSW. Kariong Juvenile Correctional Centre: NCOSS would welcome more information regarding details of $1.9m refurbishment work planned for this financial year, specifically what proportion of this funding will be allocated to health, rehabilitation and education facilities at this juvenile centre run by adult corrections. Post release support Electronic Case Management North Coast Second Chance Program Men’s Transitional Centre Other budget allocations
More information is required regarding the implementation/further development of a standard assessment instrument for measuring the risk of re-offending as well as ways to reduce this risk. In particular, a timeframe for further development, the basis and location of prospective intervention paths stemming from assessments, and the consultation process for development is unclear. NCOSS also takes the view that evidenced-based rehabilitation programs should not be limited to offenders who are assessed as ‘high-risk’ as programs should be available to all offenders. Further information is required as to what constitutes ‘high-risk’ in relation to this strategy, and to what criteria ‘targeted’ alludes. NCOSS welcomes the provision of additional residential services and programs for parolees who are assessed as at high-risk of re-offence due to lack of accommodation and access to programs in the community. Information as to the locations and frequency of services and detail of funding is needed. NCOSS is not supportive of the position that only offenders who are deemed at high risk of re-offence get access to services due to rationing of post release resources. NSW has a recidivism rate of 44% - suggesting that a significant proportion of prisoners could be deemed “at risk’ of re-offending. NCOSS welcomes the commitment to improving the provision of services and programs for offenders with intellectual disability, mental illness and/or substance abuse problems. More detail regarding the location of these services, the level of funding allocated to this initiative and how the strategy will be rolled out is needed. Further information as to the determination of eligibility for these services is required, particularly in light of the stated condition of offenders suffering from ‘significant mental health disorders’. A strategy for addressing dual diagnosis of mental illness of female offenders should not be limited to cases where challenging, self destructive and/or violent behaviours are present. NCOSS however supports the intersectional approach to service delivery and intervention. NCOSS supports a strategy for culturally appropriate correctional service provision for Aboriginal offenders by means of strengthening community supervision and support. There is inadequate detail of this strategy that will inform further critique, including accessibility, appropriateness and effectiveness of services, and adequacy of funding. Budget Predictions At budget time last year, Treasurer Costa was forecasting a deficit for 2006-07 of $696m. This was revised to a deficit of $497m in the half-year budget review. Now, the projected figure for 2006-07 financial year stands at a budget surplus of $444m. The turnaround in the budget outlook in 2006-07 arose from significantly higher revenue than projected and expenditure being only slightly higher than projected (apart from a one off rail debt reduction payment). In particular, stamp duty from the sale of commercial property and government income from investments were both significantly higher than projected. The Treasurer has predicted a budget surplus in 2007-08 of $376m. Economic outlook The major risks to the economy listed in the budget papers that may affect the budget position include a downturn in the US economy caused by a decline in the housing market, volatility in world oil markets, delayed recovery from drought, and higher national domestic demand growth putting upward pressure on inflation and interest rates. Of particular concern is the projection contained in the budget papers that inflation will remain stable around the mid-range of the Reserve Bank of Australia’s target of 2-3%. Given the projection of increased domestic demand and the projected reduction in unemployment with the resultant possibility of significant wages growth it seems an overly optimistic projection that the rate of inflation will not rise and the Reserve Bank will not increase rates. Most economists are now projecting a rise in interest rates in the second half of 2007. A major risk to the NSW Government budget, not discussed, is the possibility that a tight labour market will require a significant increase in public sector wages. The budget papers indicate that the Government is satisfied with the current level of public sector wages after reasonable increases in recent years and are projecting no real increases without productivity trade offs. However, the historically low level of unemployment and the lack of skilled workers puts public sector employees in a strong bargaining position. The non-government human services sector is well aware of the impact of wages in competitor industries and is already having difficulty filling positions. The public service could soon find itself in a similar situation. Revenue measures The small level of revenue growth is the result of the NSW Government decisions to reduce taxation. The Treasurer announced a reduction in land tax from 1.7% to 1.6% which is projected to reduce revenue by $110m in 2007-08 and $467m over the next four years. Further revenue will be forgone from the abolition of stamp duties announced last year and arising from the Intergovernmental Agreement on the Reform of Commonwealth-State Financial Relations (IGA) on the following:
The abolition of mortgage duty has been brought forward to 1 September 2007 from a phase out commencing on 1 January 2010 as announced in the 2006-07 budget. The abolition of these duties and the reduction in land tax will incur a significant cost to the NSW Budget, $343m in 2007-08 and around $2.5 bill-ion in the four years to 2010-11. This is money that could be better spent on support for low-income and other disadvantaged people in NSW. Revenue is also obtained from dividends and income tax equivalents from government trading enterprises. The electricity companies contribute the bulk of this income. Revenue from the government owned electricity companies is expected decline from $1.20 billion in 2006-07 to $1.15 billion in 2007-08 but rise again to $1.26 billion in 2010-11. This is paid through increases in electricity prices. Education and Training NCOSS has welcomed the funding of a range of election commitments made in this area, although these have not necessarily reflected some of the priorities we have identified such as more ESL teachers, increased support to students with disabilities (including planning time and professional development for teachers), increased support for transition to high school programs specifically geared to Aboriginal students, and resource standards for schools that would recognise a needs base for funding. Maintenance of school buildings remains an issue, as does the continued funding support of private schools at a time when public schools need a serious physical upgrade. Non-government schools will receive an extra $40m bringing total funding to $773m in 2007-08. This represents a 5.5% increase in funding. The Department will introduce a $65m Grants Assistance Scheme for non government school building works to replace the former Interest Subsidy Scheme. While the Minister claims that this will now target the funding better to the smaller fee charging private schools, it is still money that could have gone into the public system. Election promises to receive funding in this budget include:
TAFE continues to be neglected despite an acknowledgment by the Government that we need to address the serious skills shortages in NSW. Without detailed information in the budget papers we cannot determine what the predictions for increased student places might be. The 2007-08 NSW Budget provides for an increase in expenditure of only $55m to $1,798m for TAFE and Related Services. This is an increase on last year’s budget allocation of about 3.2%, when inflation is predicted to be 2.5%, teacher pay is to go up 4% and growth in student hours of 2-3% is expected to be provided. Health The NSW Government is committed to its four year, $2.4 billion capital works program with $714m allocated in 2007-08, an increase of $140.9m (22% in real terms) from 2006-07. Rural and Regional Services The Government reannounced it $62.4m allocation for capital works programs in regional NSW including the Queanbeyan, Bathurst and Orange Hospital redevelopments. The Bathurst Hospital redevelopment was announced in June 2006 and the Orange and Queanbeyan hospital redevelopments were announced in February 2007. Oral Health $4m of this year’s budget has been provided for a range of dental workforce and infrastructure initiatives including increasing the number of dental therapists and hygienists and expanding Rural Oral Health centres. No detail was provided on the location and makeup of the Rural Oral Health Centres. In addition, an extra $4m was announced aimed at reducing waiting lists for children. Under capital programs, $2m has been provided to the Oral Health Strategy for continuation of fluoridation in rural NSW and the refurbishment of dental clinics at Port Macquarie, Orange and Nepean. Within their Country and Coast Health Care Strategy, Labour promised $1 million to establish major dental clinics at Orange and the Shoalhaven and replace 10 rural dental chairs. It is unclear where this promise (besides the Orange dental clinic) fits within the allocated budget. The total Oral Health Budget for 2007-08 is $138m compared to $130m for 2006-07. This is an increase of $8m or 3.6%in real terms. Although any expansion in funding for these services is more than welcome by NCOSS, this is way below the $170m investment in public dental services that is needed to redress waiting lists, workforce shortages and limited services. Ambulance Service Health Transport and the Isolated Patients Transport Accommodation Assistance Scheme (IPTAAS) The budget for the Ambulance Service has increased by $20.7m to $316.3m, an increase in real terms of 4.5%.
Integrated Health Care: HealthOne NSW Healthy at Home Mental Health This continues the Government’s commitment under NSW: A New Direction for Mental Health announced in 2006-2007. $358.4m was allocated under this strategy for the 2007-08 budget. Two thirds of the Mental Health Budget increase ($66.5m) has been allocated to improving mental health facilities. Budget highlights were dominated by reannouncements and the Governments continuation of programs already committed to by the state under the COAG National Action Plan for Mental Health 2006-2011 and the states 5 year mental health plan, NSW: A New Direction for Mental Health. Such reannouncements included:
Aboriginal Health
NGO services Other commitments
Housing Despite this increased funding, the social housing system in NSW continues to contract in real terms with total dwelling numbers projected to increase by just 196 from 148,172 at June 2007 to 148,368 at June 2008. Within this total, public housing dwelling numbers continue to decline, offset by strong growth in community housing and only very modest increases in Aboriginal Housing and Crisis Accommodation. Affordable housing The Budget allocation includes the next instalment of the Debt Equity Affordable Housing program funded by the Rental Bond Board. At the time of writing the DOH was unable to provide a complete breakdown of the likely distribution of the $17.7m. In any event, it is clear that an allocation of this size will have little impact on the housing affordability crisis facing low to moderate income households in NSW. NCOSS is extremely disappointed that we have yet to see the Affordable Housing Strategy promised by the Premier in 2005. To date all that the Government has announced are some extremely modest measures that DOH will take. It remains the case that a comprehensive Affordable Housing Strategy is required, in line with the measures outlined by NCOSS in our state election platform. This must include provision for the planning system to make an increased contribution to the supply of affordable housing. Public housing Public housing received an extra $25m in the budget as part of a 4 year program, announced in the 2005-06 Budget, to address the Department of Housing’s working capital requirements. With earlier allocations of $20m in 2005-06 and $25m in 2006-07, this takes the cumulative extra funding to just $70m of the promised $190m. This means the State Government will need to provide an extra $120m in 2008-09 if it is to meet its original commitment. While the extra funding is welcome, public housing in NSW would be in a much better position if a greater proportion of the enhancement funding had been provided in this year’s Budget. With much public housing activity focused on redeveloping poor stock and addressing DOH’s maintenance backlog and, with substantial stock transfers to community housing occurring, total public housing dwelling numbers are predicted to fall from 126,523 as at June 2007 to 125,274 in June 2008. The Budget includes welcome funding to implement the four year Building Stronger Communities Program which was announced by the Premier in January 2007. The Program aims to revitalise 18 priority public housing estates in six major locations. Funding of $21m has been allocated for Building Stronger Communities in 2007-08, as part of the promised total funding of $66m over four years. Community housing The Government has committed to more than double the size of the community housing sector to reach 30,000 dwellings within 10 years. In April 2007 the Minister Matt Brown released NSW Planning for the Future, the Government’s draft five year strategy for community housing growth and sustainability. NCOSS considers that some of the underlying assumptions about the source of this growth appear to be very optimistic. Overall community housing dwelling numbers are predicted to increase from 14,199 as at June 2007 to 15,574 as at June 2008. This includes a predicted 966 stock transfers from public housing. While the proportion will fall slightly in 2007-08, it remains the case that more than a third of all community housing dwellings in NSW are leased stock. Indigenous housing The number of Aboriginal housing dwellings is predicted to increase only slightly from 5,979 in June 2007 to 6,009 in June 2008. There is growing concern about the future prospects for indigenous housing in NSW as a result of foreshadowed policy changes by the Commonwealth Government. The Aboriginal Housing Office pools funds from a number of sources including the Aboriginal Rental Housing Program (a component of the CSHA) and the former ATSIC Community Housing and Infrastructure Program (CHIP). The Commonwealth Government has announced that CHIP is to be abolished and replaced with a new Australian Remote Indigenous Accommodation (ARIA) Program which is focused entirely on remote communities. As only 7% of NSW Aboriginal people live in areas that the Commonwealth considers to be remote, NSW will be severely disadvantaged by this change. The Commonwealth Minister Mal Brough has also made it clear that he does not believe that community organisations should be allowed to manage indigenous housing. Other housing programs Juvenile Justice
Recent developments:
NCOSS is disappointed the numbers are rising and expenditure is directed at increasing the capacity of the system, rather than prevention and early intervention strategies. NCOSS also notes with concern that 90% of young people in detention are on remand. The rise in admissions will result in more money being spent on additional custodial units (additional recurrent funding amounting to $9m in 2007-08 and $7m per annum from 2008-09 to 2010-11, plus capital costs). NCOSS notes the following strategic directions of the department:
Attorney General’s Department The commentary includes a cross reference to election promises and other previous announcements. Domestic violence services funded by AGs are included in this analysis, others area within DoCS (though they will soon transfer to Premiers Department). In 2007-08, total expenses are budgeted at $716.2 million, an increase of 9.6% (7.1% in real terms) compared to 2006-07. However these increases are largely due to accounting changes, rather than significant increases to programs and services. (This increase is mainly due to the expenses of the Crown Solicitor’s Office accounts, and the employee related expenses of the Office of the Protective Commissioner and Public Guardian, the Public Trustee NSW and the Legal Profession Admission Board being reported in the 2007-08 estimates for the first time, reflecting changes in annual report requirements)]. Net cost of services fell by $4.9m against last years budget (0.9%, 3.4% in real terms). NCOSS welcomes the following specific increases in the 2007-08 Budget:
Legal Aid Commission Total expenses are projected at $186.6m in 2007-08, an increase of 9.5% on 2006-07. (7% in real terms). This is mainly due to additional funding of $9.4m from the Public Purpose Fund. This PPF money will be used to :
NCOSS supports these activities, noting the transfer of these funds from the Public Purpose Fund. This trend of using funds from previously quarantined funds to fund activities previously paid for by Consolidated Revenue is increasing. Note for example the use of $8m from the Rental Bond Board (interest on tenant’s bonds) to fund affordable housing, and also funds from the Rental Bond Board being used to fund additional financial counsellors. NCOSS notes that the Legal Aid Commission has expanded its services as a result of changes in Government policy including:
Other factors influencing the Commission’s spending include:
Both of these are welcome. NCOSS also notes that the Legal Aid Criminal Law Program has been allocated:
Domestic Violence (See Also Community Services and Health)
NCOSS also notes that the Legal Aid Commission is undertaking a review of its services in relation to domestic violence in alignment with Government priorities. NCOSS is seeking further clarification as to the scope and timeline of this review. There was an election commitment to expand the DV Court Assistance Scheme by changes to the funding formula plus establishing five new locations. There is no detail in the budget papers on this initiative which were originally costed at $2.54m in 06-07 dollars. The budget summary indicates that no additional money will flow until 2009-10. NCOSS is seeking clarification on exact figures for DVCAS through the Budget Estimates Committee. Big disappointments Comprehensive DV services SAAP The SAAP budget for 2007-08 is $117.18m, compared to $113.783m in 2006-07. This represents no change in real terms. Owing to different approaches to indexation by the Commonwealth and NSW Governments, SAAP services will only receive indexation of 2.75% in 2007-08. This comprises 3.3% indexation of the NSW half share of the program’s funding and just under 2.2% indexation of the Commonwealth share. Transport Services Rail Another anomaly is the funding for Cityrail and Countrylink services: the allocation for Railcorp passenger services has remained stagnant at $1.5bn in 2007-08, or a real reduction in allocation of 2.5%. Budget details remain sketchy in the rail area, and mean that the budget papers must be interpreted with care. NCOSS has been unable to gain any information on the specific allocation for Countrylink services in 2007-08. There are continuing allocations for rolling stock and infrastructure upgrades: for example, $12.5m has been allocated for XPT and Endeavour car upgrades. Easy access rail station upgrades will commence at Lindfield, Newtown and St James stations. Bus Services The Budget Papers report on the planned allocation for metropolitan privately operated bus services. In 2007-08, these operators will receive $178.1m. There will be 50 new buses for these operators in 2007-08. There appears to have been a reduction in the allocation for outer metropolitan and regional privately operated bus services in NSW, with the allocation for these services reduced from $383.2m in 2006-07 to approximately $360m (a real decrease of 9%). This may reflect the effect of the new contracting system for outer metropolitan providers (including better accountability around payments for the School Subsidy Transport Scheme), but NCOSS will request confirmation from the Ministry of Transport that the decline in expenditure will not effect service provision over the coming year. It is important to note that rail infrastructure upgrades and maintenance aside, there has not been any new allocations for additional services in rural and regional NSW reported in the budget papers. Rural bus reform has commenced, although no firm indication has been provided on when service improvements might occur, and what budget government intends to allow for to ensure that there are more affordable and appropriate services in these areas. Sydney Ferries Parking Space Levy No information is provided in the budget papers on revenue derived from the fund in 2007-08, but there is a continuing allocation for bus stations on the North West Transitway, and new funding for interchanges at Hurstville, Macarthur, Morisset and Windsor that are derived from this fund. Community Transport Unfortunately, in real terms, funding for other community transport programs remains stagnant. Although both the Community Transport Program (CTP) and Area Assistance Scheme (AAS) have received indexation, the failure of government to grow more flexible community transport funding means that there is significant unmet need in the community transport area for people who are not eligible for HACC services, but face transport disadvantage. Taxi Transport Subsidy Scheme (TTSS)
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