Offaly has far less to spend on services than other counties according to report

Offaly has less money to spend on services such as housing, roads and water than most councils in the country according to figures in a report published by NUI Galway. Researchers from the Whitaker Institute at the university have launched the 2022 edition of the local authority finances website.

Compiled by economics lecturers, Dr Gerard Turley and Stephen McNena, the 2022 report aims to improve the transparency and accountability of local authorities. 

Though Offaly has a smaller population (82,668 people) than our neighbours, Laois (91,657) and Westmeath (95,840). There is quite a difference in the council budget when judged on a per-person basis. In 2022, Offaly County Council has a budget of €72.0m or €923 per person. Laois has a budget of €88.3m or €1,043 per person and Westmeath €90.5m or €1,019 per person.

Offaly has prioritised spending on roads and water services, when compared to our neighbouring counties of Kildare (population of 246,977), and Westmeath. Only Laois spends more per person on roads, which also includes parking and lighting, while also having a higher population than Offaly. The categories to lose out in Offaly as a result, appear to be housing and recreation & amenities.

Under the heading of water supply and waste water management, Offaly spends €66.28 per person while the national average is €85.10. Though Offaly spends considerably more on a per person basis than its neighbouring counties of Laois €54.27 and Westmeath €49.46.

For roads, which includes maintaining local roads, public lighting and parking facilities, the spend in Offaly is €270.17 per person. Westmeath spends €237.24 and only Laois exceeds Offaly’s spending with €290.90 per person.

Housing is the first category where there is a sizable disparity in money spent on a per person basis. €167.05 per person in Offaly, compared to a national average of €480.97 (though this figure would be inflated by the cost of housing in Dublin and other cities).

Laois spends €250.84 and Westmeath €249.90. To put Offaly’s €167.05 in context, according to Daft’s latest June 2022 report the average cost of a house in Westmeath is €262,369 or about 110% the cost of the Offaly average. The average cost of a house in Laois is actually lower than Offaly at €235,939 - yet they spend 150% more per person.

Recreation Amenities, which include leisure services and libraries is the second category where Offaly falls well behind. The county’s per person spend is €60.68 compared to the national average of €112.12. Laois spends €64.98 and Westmeath, which spends far more than its neighbours at €125.22 per person.

Environmental services, which include fire services, waste and litter management services is an area where Offaly falls down. €113.02 per person is spent in the county compared to the national average €167.81.

The break down of how the budget is divided in Offaly is as follows:

Housing - this includes Local Authority and Traveller Housing - €167.05 per person compared to the average of €480.97

Roads,- maintaining local roads, public lighting and parking facilities, the spend is €270.17 per person compared to the average of €251.28

Water - Water supply and waste water management, €66.28 the national average is €85.10. Laois €54.27, Westmeath is €49.46.

Development Management - planning, tourism and heritage and local economic development -€138.53 per person, the average being spent by councils is €112.22

Environmental Services - fire services, waste and litter management services - €113.02 per person compared to the average €167.81

Recreation Amenities - leisure services and libraries - €60.68 per person compared to the average of €112.12.

Other - administration of commercial rates and motor taxes, local representatives salaries, and expenses. €107.08 per person in Offaly compared to the average of €107.01

So where does the money come from?

€16.91m or 23.5% of the budget comes from rates which are charges levied on the owners of commercial properties based on their value.

€3.68m or 5.1% of the budget comes from what’s known as the equalisation fund this is a top up payment to the local property tax paid to local authorities with a lower local property tax base.

Local property tax - €4.72 million or 6.6% of the budget. This is Discretionary Local Property Tax (minus Loca Property Tax Self-Funding)

€17.10 million or 23.8% comes from goods and services and includes charges, fines and levies for certain council services.

€29.58m or 41.1% of the budget comes from grants and subsidies received from central government to fund specific local activities and services.