By Deanne Jeffers
BEHIND the vibrant façade of our local Neighbourhood Houses lies a harsh reality: chronic underfunding threatens their ability to serve those most in need. From youth programs to senior services, statewide these vital hubs are operating on shoestring budgets, hindering their potential impact.
In over 400 Neighbourhood Houses across Victoria, dedicated staff and volunteers tirelessly provide vital services, particularly in regional areas. Despite facing floods, pandemics and soaring living costs, centres like Mooroopna Education & Activity Centre (MEAC) have persisted in meeting community needs. However, insufficient funding has failed to keep pace with inflation, clouding their future.
MEAC manager, Jan Phillips, shared, “In the last 10 years our funding has dropped by around 20 per cent, while demand has surged, leading to about 80 per cent more work. Neighbourhood Houses address a wide range of complex needs, including food security where demand has surged. Despite our efforts, essential areas lack adequate funding support.
“With 80 per cent of our funding allocated to wages and barely covering our expenses, sustaining our operations becomes increasingly challenging.”
Neighbourhood House Victoria (NHV) highlighted the staggering costs associated with food relief, estimating $1.37M for food alone, excluding other expenses like labour and utilities. Additionally, wages amount to approximately $3.5M across the sector to sustain food relief efforts.
Despite funding from the Department of Families, Fairness, and Housing, known as the Neighbourhood Houses Coordination Program (NHCP), rapidly growing demand has strained resources, with NHCP facing over a decade of indexation well below the actual costs incurred. Further, there’s no provision for supporting new Houses, despite Victoria’s expanding population.
NHV is appealing for an additional $2.5M in funding, to be distributed across the Network in the 2024-25 state budget, with a proposal for a growth fund to establish five new Houses annually over four years to meet escalating demand.
Referring to a 2022 Deloitte study, Jan underscored the remarkable value output of Neighbourhood Houses, where every $1 investment yields $5-$10 return. During the hard lockdown, Jan said MEAC delivered an astounding $16 return for every $1 invested. Through the more recent $250 Power Saving Bonus, they put $750,000 back into local peoples’ pockets and were able to employ an additional staff member.
“No matter how you look at it, the Government is getting five times its investment from Neighbourhood Houses,” said Jan. “Community houses are so important to towns here and everywhere, but without funding they won’t be able to continue.”
