COST shifting is where the Victorian Government adds responsibilities or changes financial conditions for Victorian councils, the committee said.
 Its report said the inquiry was provided with a number of examples where the proportion of government funding for valued services, such as libraries or maternal and child health, had declined. Other examples were given of extra fees or new responsibilities imposed on councils without consultation. Cost shifting exacerbates financial sustainability concerns caused by constrained revenue.
The committee said it believed there was significant scope for the Victorian Government to improve its consultation and engagement in these areas through a revival of the Victorian State-Local Government Agreement.
“Broadly, the committee heard that cost shifting is the practice whereby the Victorian Government delegates responsibilities, adds regulations, sets fees, or reduces financial support for Victorian councils. The result of which causes financial burdens for Victorian councils.”
The Municipal Association of Victoria told the enquiry the MAV estimate that library funding gap between was now $83 million annually and growing that councils challenging to keep up with library funding in a way that ensured consistency in levels of service