East Gippsland budget passes 6–3 as three councillors revolt over spending and staffing

East Gippsland councillors argued the shire’s budget isn’t doing enough to tackle a $4.6 million deficit as June’s council meeting showcased the council’s divide on how it spends ratepayer money.

What happened: East Gippsland Council adopted its 2026/27 budget but only after a heated debate saw three councillors vote against the budget over concerns of a growing deficit and a 2.5 percent rate rise.

Councillor Joanne Eastman told the meeting: "The budget is ultimately a statement of priorities, and I don't believe this one reflects the priorities of our community".

Council officers noted the budget was developed in a challenging economic environment with ongoing cost pressures from inflation and rising fuel and insurance costs.

Rate increase: The budget comes with a 2.5 percent rate rise - below the state cap of 2.75 percent.

This will see an average rate increase of $42 a year for residential properties, $75 for commercial and industrial and $62 for farms.

• Council officers said rates supply 51 percent of the shire’s income, with the other main sources coming from grants and user fees.

The budget will deliver $54.4 million in capital works but comes with a $4.6 million deficit. Council officers noted they were beginning to work on an economic sustainability plan to tackle the deficit, which will be voted on by council at a later date.

What’s in the works? 

• $15 million for new roads, footpaths and drainage;

• $17.3 million to maintain existing roads and road infrastructure;

• $5.2 million for new parks and playgrounds;

• $5.6 million to continue to maintain parks, gardens and open spaces;

• $600,000 for a range of environmental issues, such as the management of native fauna and for energy efficiency programs;

• $390,000 for reroofing of the Bairnsdale Aquatic & Recreation Centre, and;

• $320,000 to maintain community facilities.

For the budget

Deputy Mayor Tom Crook conceded the budget wasn’t perfect, flagging he wanted more spent on environmental management, transport and homelessness.

Crook argued raising rates wasn’t ideal but it was financially responsible for the council to do so. 

Councillor John White said despite the 2.5 percent rate rise the council is still focused on reducing the financial burden on residents.

🗣️ “We still need to look for savings but we need to move slowly.”

Against the budget

Councillor Eastman led the dissent, arguing the council was directing millions of dollars into projects based on optimistic and uncertain economic assumptions, while core infrastructure and everyday community needs struggle.

Councillor Sonia Buckley voted against the budget as well, but aimed her fire at the state government over "cash grabs" with pet registration, waste and the fire services levy.

The budget was voted through 6-3.