Community grants a ‘major stress’ on Council coffers

The Chief Executive of Galway City Council has warned that a ‘funding pot’ system may have to be introduced for community organisations to replace existing grants, because of strained local authority coffers.

Outlining his Budget 2016 proposals, Brendan McGrath said many groups which had benefitted from grants in the past had an “expectation” that this would continue each year.

However, he said this policy worked to the detriment of other groups who cannot be supported.

He praised the wide range of “excellent and committed” organisations, but said that with no increase in income to the Council, grants are a “major stress” on the city’s finances.

“Over a number of years, the Council has committed to a range of multi-annual funding initiatives, all of which, particularly in combination, are imposing a major stress on the city’s finances, especially when considered in the earlier context of a stagnant income base.

“There also has been a tendency to continue to fund some organisations, though extremely worthy in their own right, on an annual and continuing basis. In many cases, the tendency has been that if an organisation has received funding once, that the funding stream will continue annually.

“Among the consequences of such a policy is that many worthy groups cannot be supported, because there is limited or no additional income available.

“Some funding choices have, in the past, been made in the absence of coherent and transparent policies. As a result of some groups receiving funding in a previous budgetary cycle, the perception often exists that such funding should continue. There is also an expectation among such groups that such funding should continue.

“I am very much aware of the many funding demands that are being made of councillors from a wide range of excellent and committed organisations, all of whom are playing important roles in the delivery of programmes within the city,” said Mr McGrath.

He suggested a ‘funding pots’ or ‘staggered’ system, where organisations would bid for grants.

“There is a need for a more equitable and balanced support and funding regime for all of the many bodies that the City Council supports to better inform how such funding should be considered.

“Consideration could be given, for example, to the provision of staggered funding over, say a three-year horizon for groups, providing that the funding provision in year one will be reduced in year two, further reduced in year three and eliminated completely in the fourth year.

“Rather than providing a series of bespoke grants to a particular organisation, it might be preferable as an alternative, if pots of funding are provided for certain activities on a bidding basis, subject to very clear qualifying criteria and a very open and transparent evaluation and selection process.

“In my view, an over-rising consideration in the award of funding to any group should be a requirement to address the question how and in what ways does the area of the activity of the group deliver to the strategic objectives and goals for Galway City that have been established by the Council, and furthermore, to what extent will the work of the group or the project that is seeking support contribute to the Council’s own objectives,” the Chief Executive said.

Funding for organisations for next year will be discussed by councillors at a budget meeting this evening (Monday).