THE Baird government’s record spend on infrastructure has failed to reach the Hunter, with a number of electorates receiving no new funding in Tuesday’s budget.
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In her second budget as Treasurer, Gladys Berekijlian has unveiled $8 billion worth of surpluses in the next four years and almost no net debt, a rosy economic picture that she says has NSW "leading the nation".
But despite spending an average of $12.1 billion a year on infrastructure in the next four years, there’s few new commitments in the budget for the Hunter this year, with some electorates receiving no money in funding.
The most significant new money is the government's commitment to spend $14 million on planning for the long-awaited freight rail corridor between Hexham and Fassifern.
But most of the spending in the Hunter will be on projects the government has already committed to.
The biggest individual commitment is the $142 million the government will spend on continuing the Newcastle Light Rail project.
Budget documents show that despite spending only $15 million specifically on the light rail project to date, the government has spent $133 million overall on truncation and the Wickham Interchange planning.
In a boost to education funding an additional $1 billion on school capital works and double its spend on maintenance backlog to $330 million over two years.
In April the Newcastle Herald reported the Hunter had a $70 million maintenance backlog.
Riding on the back of asset sales including the $1.5 billion lease of the Newcastle Port and high stamp duty income, Ms Berejiklian revealed a $3.4 billion surplus projected to rise to $3.7 billion in 2016-17.
The Baird government is boasting almost zero net debt this financial year and predicting surpluses across the forward estimates, though those will become smaller beyond the next financial year thanks to a dramatic reduction in the state’s share of GST proceeds.
It's a more-than-healthy economic outlook for the state that, coupled with its big ticket Sydney infrastructure projects, has the government beating its chest.
"Our state is the engine room of the national economy and the infrastructure capital of Australia," Ms Berejiklian said in her budget speech on Tuesday.
"Our fiscal discipline and asset recycling strategy has ensure that net debt in the general government sector today is virtually zero."
But large parts of the Hunter appear to have missed out on any funding.
For the second year in a row, Swansea MP Yasmin Catley’s breakdown of spending in her electorate is $0.
“This is an arrogant government that is not listening,” she said.
“We are asking for things that will benefit our community. People’s day-to-day lives depend on this and this government doesn’t care.”
Maitland MP Jenny Aitchison said many of the projects awaiting funding in her electorate, including the new Maitland Hospital which received only $6 million in planning money for 2016/17 , were promises not delivered by the previous Liberal member, Robyn Parker.
“That hospital was promised by the former Liberal member; not delivered,” she said.
“The roundabout at Maitland, the $51 million, it’s still not delivered now.
“It’s not Liberal or Labor, the fact that we are being marginalised, it’s the fact that Mike Baird does not care about the Hunter.”
Ms Berejiklian said the government had been forced to "prioritise" its spending commitments, particularly in health.
"I'd love to be able to deliver everything tomorrow," she said.
Elsewhere, the government has allocated another $7 million to continue planning for the M1 extension to Raymond Terrace and $35 million to continue upgrades on Industrial Drive and Cormorant Road.
It will also spend $10.3 million completing the final stages of the John Hunter Hospital neonatal intensive care unit.
The government has also allocated $6.2 million to the Williamtown contamination issue.
Asset recycling measures like the long-term lease of TransGrid, coupled with a stubbornly strong property market that has delivered another increase in stamp duty profits, continues to allow the government to push on with its big infrastructure spend - mostly in Sydney - while maintaining surpluses.
After 2016-17 the government's predicting those surpluses will become smaller because of a smaller share of the GST and a reduction in stamp duty growth to about 4.7 per cent down from highs of 40 per cent.
But the government insists the partial long-term lease of Ausgrid and Endeavour, which it says it expects to complete in 2016-17, will boost cash receipts into the state and reduce debt below what it is currently forecasting in the forward estimates.
The government's nearly zero net debt will not be permanent - with borrowing costs expected to see it rise again across the forward estimates.
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