SOUTHERN Downs ratepayers can easily expect a rates rise around the 10 per cent mark next month thanks in part to the “slash and burn” State Budget handed down yesterday.

While details on reductions in State subsidies to local councils are still to come after yesterday's budget speech by Treasurer Andrew Fraser, Mayor Ron Bellingham was scathing about foreshadowed cuts, not to mention the scrapping of the State's fuel subsidy worth around $200,000 a year to council.

Cr Bellingham said it was unclear if the State would make good on the $5 million bill it received from our council for the full cost of amalgamation but confirmed the Small Communities Assistance Program (SCAP) was already gone.

It was SCAP funding which met half the cost of the Yangan pipeline and Cr Bellingham said SCAP had financed up to 80 per cent of water and sewerage programs for councils in past years.

“We'll be picking through the details as they come to light in the next few days, but if we get away with a rates rise of under 10 per cent we'll be doing damned well,” the mayor said.

“It is not clear what will happen in terms of reductions in State subsidies, but what I can say is that more than half of our budget is made up of grants and subsidies from higher levels of government.

“This is the traditional model but it remains woefully inefficient in my view.

“The scrapping of the fuel subsidy will impact on all sorts of levels in our community including council's own operations.”

Yesterday's flood of budget media releases to regional news outlets appeared to contain nothing in the way of new funding for the Southern Downs region, only “re-badged” existing projects such as the Wood Street underpass to link the split campuses of St Mary's School.

Deliberations on the council's own budget due next month have begun, with councillors due to receive a confidential briefing about Superannuation Guarantee Levy commitments to staff today.

Cr Bellingham said the big challenge this year would simply be “funding the status quo” of council services and facilities.

State-wide details on the new budget - page nine.