Local government funding: facing the issues

Abstract

Designing funding policies to serve all the local and regional councils in New Zealand is challenging. This article looks at some of the issues that arise, and some principles for addressing funding arrangements and for considering whether current local government funding arrangements are suited to the requirements of local governments throughout New Zealand. The need for new sources of revenue for local governments in New Zealand is a topic which is raised in most reviews of local government funding. The larger question is whether the nature, level and mix of current funding sources meets the needs of all the councils, given the diversity of their roles, funding requirements, opportunities and constraints.