Fair Level of Funding Project

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Fair Level of Funding Project
2
Welcome

• Brad Swan
• Assistant Director-General, Policy, Programs and
  Community Specialist Services
• Disability Services Queensland

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Overview

• Fair Level of Funding
• Government Funding
• Funding Issues
• Project Context
• Project Aim, Objectives Timelines
• Sector Involvement Reference Groups

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Fair Level of Funding
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Funding for Service Delivery

• In many human service sectors not-for-profit and
  charitable providers are the major providers of
  services.
• In these sectors Government often represents the
  major funder of services.
• However, in some instances other entities may
  have obligations to contribute towards the cost
  of service delivery.
• Sustaining an effective, diverse and responsive
  human service sector is reliant on appropriate
  funding for service delivery.

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Fair Level of Funding

• A clear understanding of the actual costs of
  service delivery.
• Recognising the contribution of other parties.
• Having clear and transparent funding policies.
• Identifying the amount of funding government
  would provide for each service type.
• Having efficient and flexible methods for
  allocating funding.

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The Fair Level of Funding Project

• Aims to identify, develop and recommend
• a methodology for identifying a reasonable
  contribution for services.
• a framework for funding non-government service
  providers to deliver services.

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Government Funding
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Funding for Service Provision

• In 2006-07
• DSQ will provide an estimated 368 million as
  grants or subsidies.
• Department of Communities will provide an
  estimated 190 million as grants or subsidies.

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Funding Disability Services Queensland
DSQ funding and funding provided as grants of
financial assistance

• Over 119 increase since 2001
• 23 increase in 2006-07
• 2006-07 figures are estimates only

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New Funding - Disability

• New and expanded service delivery
• Viability (recurrent non-recurrent)
• Asset acquisition and replacement
• Capacity building training, organisational
  planning (SNGOs)
• Shared and collaborative arrangements
  multi-tenant (SNGOs)

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Funding - Department of Communities

• Grants and subsidies
• 90 increase in since 2001-02
• 28 increase in 2006-07
• 2006-07 figures are estimates only

Department of Communities Grants and Subsidies
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New Funding - Communities

• Referral for Active Intervention (8.5M)
• Early Years (5M)
• Responding to Homelessness (16M)
• Blueprint for the Bush (6M)

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Funding Issues

• Karen Copeland
• Assistant Director-General, Program Management
• Department of Communities

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Funding Issues

• Community services are often provided by
  not-for-profit and charitable organisations.
• Government is the main funder of these services
• sets the level of funding.

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Funding Issues

• Rising costs
• Declining revenue
• Environmental changes
• Impact on service delivery

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Rising Costs

• Increasing overheads (leases, rates, petrol etc).
• Reduced levels of volunteering resulting in
  increased workforce costs.
• Increasing salary costs.
• Workforce issues skilling the workforce,
  creating career paths, attracting and retaining
  employees.

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Declining Revenue

• Traditional revenue sources are decreasing e.g.
  donations, fund raising and consumer fees.
• Declining value of funding in real terms
• indexation not increasing at the same rate as
  inflation.
• the same dollar amount buys less services.

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Environmental Changes

• Service delivery improvements resulting in
  increased costs
• Individualised and flexible service models
• Improved quality and safety of services
• increasingly skilled and trained workforce
• Increasing governance and accountability
  requirements (legislation, service standards,
  activity reporting)
• More services no equivalent increases in
  infrastructure or administration

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Environmental Changes

• A Grant or Grant of Financial Assistance is not
  intended to pay the full cost of service
  provision, and is a contribution towards the cost
  of providing services.
• Newer services are more likely to be funded with
  a clearer costing approach.

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Environmental Changes

• Implementation of new initiatives including
• Disability Sector Quality System
• CSTDA National Minimum Data Set
• New funding
• Disability Services Act 2006 Disability
  Services Regulation 2006
• Proposed Community Services legislation
• Standards for Community Services
• Strengthening Non-Government Organisations

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Impact on services

• Sustainability issues ability to deliver
  services reliably over time.
• Viability issues ability to meet financial
  obligations on time.

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Impact on services

• Potential for providers to move to service types
  or sectors that are funded at a fair price.
• Decreased service quality and poor outcomes.
• Increased risk to consumers.
• Decreased consumer confidence.
• Workforce recruitment and retention difficulties.

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Project Context

• Kathy Dunning
• Executive Director, Programs and Community
  Specialist Services
• Disability Services Queensland

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Government Priorities

• Government priority Improving health care and
  strengthening services to the community
• develop and implement strategies to support
  Queensland families
• improve the lives of people with a disability,
  their families and carers
• work with Aboriginal and Torres Strait Islander
  communities to improve economic and social
  wellbeing.
• Government recognises its role in supporting
  service delivery to people in need.

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Government Funds

• Use of Government funds occurs under the
  Financial Administration and Audit Act 1977.
• Among other things, the Departments have a duty
  to ensure that
• operations are carried out efficiently,
  effectively and economically
• that reasonable value is obtained for moneys
  expended and
• that adequate safeguards exist to ensure the
  correctness, regularity, and propriety of
  payments made.

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Key Projects

• Disability Services Queensland Funding Reform
  (2002)
• Department of Families Funding Reform (2002)
• Commonwealth-States/Territories Disability
  Agreement (2002-2007)
• Future Directions (2003)
• Legislative Reform (2002-2005)
• Assessment, Prioritisation, Funding and Service
  Approaches Project (2004 ongoing)
• Strengthening Non-Government Organisations (2005
  ongoing)

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Major Consultations

• Disability Services Queensland Funding Reform
  (2002)
• Disability Services Legislation (2003, 2004
  2005)
• Blueprint for the Bush strategy (2005)
• Have your say On improving disability services
  in Queensland (2004 2005)
• Shared Visions Conferences (2005 2006)
• Strengthening Non-Government Organisations and
  Strengthening Indigenous Non-Government
  Organisations initiatives (2005)
• Community Services legislation (2006)
• Blueprint for the Bush (2006)

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Sector Partnerships

• Non-Government Organisations/Disability Services
  Queensland Partnership forum (2002- ongoing)
• ACROD Disability Sector Quality System
• QCOSS Strengthening Non-Government Agencies
• Community Services Strategy Statement of
  Partnership
• Disability Council of Queensland Regional
  Disability Councils
• Regional Queensland Councils

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Project Scope and Objectives

• Shane Lowry
• Project Director, Fair Level of Funding Project

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Project Aim

• For the disability and community services
  portfolio

• review funding instruments and the way funding
  allocations are calculated.
• develop a funding framework that supports
  sustainable service delivery without compromising
  quality, diversity, innovation or flexibility.

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Project Aim

• A funding framework would assist in
• Estimating the cost of new service delivery
  initiatives ( new programs, or expanding
  programs).
• Determining a reasonable contribution to pay for
  a specific service when allocating new funding.

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Project Objectives

• Review and investigate
• public feedback on funding from previous
  consultations
• current funding methodologies used in Disability
  Services Queensland and the Department of
  Communities
• contemporary methodologies used in other
  jurisdictions, or other sectors, nationally and
  internationally.
• Engage with key stakeholders to identify funding
  issues and options.

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Project Objectives

• Investigate the dynamic relationships between
• funding methodologies
• funding levels
• viability
• service quality
• sector diversity
• innovation
• Develop, cost and critique a range of funding
  options for Governments consideration.

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Demand for Services
What is the scope of the Fair Level of Funding
Project?
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Cost of
Demand for Services
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Sector Involvement

• Anne Reddell
• Executive Director, Community Funding Sector
  Development

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Government
Minister
Strengthening NGOs Reference Group
Director-General
Core Oversight Committee
Joint Project Management Team
Communities Sector(s) Input
Disability Sector Input
Whole of Portfolio Project Team
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Reference Groups

• Two reference groups
• Disability sector representatives
• Communities sector representatives
• All service providers invited to express interest
  in participating with selection based on
• capacity to represent and participate
• balance of representation eg large/small
  organisation, regional/metropolitan.
• Scope for flexibility in membership based on need.

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Reference Group - Disability

• Valmae Rose - ACROD Limited (QLD Division)
• Kaye Deeley - Queensland Alliance - Link In
  Association Sunshine Coast Inc
• Paige Armstrong - Endeavour Foundation
• Geoff Rowe - Cerebral Palsy League of QLD
• Hilary Martin - Spiritus Care Services
• Darrel Bourke - Montrose Access
• Teena Spark - Hinterland Community Care Inc
• Des Quinn - Keppel Community Care
• Seranie Eecen - ARC Disability Services Inc
• Kathy Dunning - Disability Services Queensland
• Ruth Brown - Disability Services Queensland
• Shane Lowry - Disability Services Queensland

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Reference Group - Communities

• Jill Lang - QCOSS
• Margaret Hornagold - Darumbal Community Youth
  Services
• Andrew Davis - Relationships Australia
• Neil Williamson - Laidley Shire Community Care
  Assoc.
• Trevor Carlyon - Lifeline Community Care Qld
• George Donohue - Charleville District
  Community Support Assoc.
• Tony Stevenson - Anglicare Central Qld Ltd
• T A Hartley - Choice Australia
• Wendy Williams - Silky Oaks Childrens Haven
• Karen Copeland - Department of Communities
  (Chair)
• Anne Reddell - Department of Communities
• Carol Mackay - Department of Communities

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Reference Groups

• Active involvement in
• Providing information and advice to the project
  about
• the actuals of funding and service delivery,
• sector views,
• funding options.
• Providing information to other service providers
  and sector representatives.