Victoria's finances are in serious trouble
Victoria's net debt is approaching $200 billion, the highest of any state.
The interest on that debt costs $8.9 billion a year. That is the cost of six new hospitals, every year.
Put another way, Victoria pays $24 million a day in interest. Two days of interest payments would fund a brand new primary school.
Every dollar that goes on interest payments is a dollar that can't go to our schools, our hospitals, road maintenance and vital public services like police.
Labor got us into this debt, and it has no plan to get us out.
The Liberals would make it worse
Victorians might hope the Opposition has the answer. Independent economists who have looked at the Liberal plan say it does not add up.
Opposition Leader Jess Wilson has promised a cash surplus by 2032, partly paid for by a 10 year freeze on public service hiring. At the same time, the Liberals have promised to cut a wide range of state taxes and levies.
Independent experts have analysed the plan and said it doesn't add up. RMIT public policy professor David Hayward counted about $7 billion in tax cuts over four years, against $6.4 billion in spending cuts and $3.4 billion in new spending. By his estimate, that leaves a $9 billion hole in the state's finances.
Independent economist Saul Eslake says the Liberals cannot reach a cash surplus by promising tax cuts while continuing to spend. He says the Liberals must come clean on their plans, or they will have to break promises made during the election campaign once they are in office.
Labor has no plan to get us out of debt. The Liberals have a plan that does not add up. Victorians deserve better than both.
My record on managing budgets
I know what responsible budgeting takes, because I have done it as a Councillor and Deputy Mayor of Boroondara.
Delivering a budget surplus. We lived within our means, and your rates were spent on what mattered most.
Cancelling projects we couldn't afford. We cancelled the demolition of Kew Library. Some projects sound good, but if the community can't afford them, the responsible thing is to say no.
Renovating rather than rebuilding. Where we could, we renovated facilities instead of rebuilding them, giving residents a facility that works well at a lower cost to ratepayers.
Cutting wasteful spending. We moved major facilities off of expensive gas to electric heating, cutting both emissions and running costs.
Giving residents a say. We developed a process for community input on the Council budget, because locals should have a say in how their taxes are spent.
Backing local business. I established and led the Vibrant Shopping Precincts Advisory Committee, giving local traders a direct voice in decisions that affect them.
What I will fight for in Parliament
Victoria needs fiscal rules that make governments live within their means. Here is what I will fight for.
1. Ten year budget projections
Victorian councils are required by the State Government to produce long term financial plans. The Commonwealth does the same with its budget. The State should hold itself to the same standard. I will fight for the Victorian Budget to include ten year projections, so Victorians can see where their money is going and what today's decisions will cost tomorrow.
2. Legislated debt targets
Victoria's borrowing needs a clear limit and a plan to repay the debt load. That means three things.
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A legislated cap on debt as a share of the economy. Instead of a raw dollar figure, the law would tie net debt to the size of Victoria's economy, measured as Gross State Product (GSP). If the economy shrinks, the government would have to slow its borrowing.
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Mandatory pay down triggers. Any windfall revenue, such as an unexpected GST boost from the Commonwealth or higher resource royalties, would automatically go towards paying down debt.
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Stronger powers for the Auditor General. To audit state spending and issue a red alert if a government risks breaching its debt limits.
A cap on spending growth
An annual limit on how fast government spending can grow, so spending cannot run ahead of the economy.
A credible mix of savings and revenue
Every government makes big promises at election time. I will push for a system that makes sure they add up.
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No unfunded tax cuts. Large tax cuts that leave a permanent hole in the budget just shift the bill to our children and grandchildren. I will not support them.
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Fully costed and sequenced promises. Every election commitment would be independently costed by the Parliamentary Budget Office before voters go to the polls. New spending would only go ahead when the matching savings have actually been delivered, instead of being weighed against savings that may never arrive.
I will also push for public spending that is transparent, well targeted and accountable, and for support that reaches the households and small businesses that need it most.
For Hawthorn - Representation that answers to you, not a party room. I will bring the same fiscal discipline to Parliament that I brought to Council.