Cash splash for hospitals, schools

Mark McGowan has in the past bristled at the characterisation that it was Ben Wyatt, his government's now retired treasurer, who had instilled economic discipline in his government.

Having now presented his second budget as treasurer and premier, Mr McGowan has taken the opportunity to assert his economic credentials, not least of all with a projected operating surplus of $5.7 billion in FY2022.

That’s only marginally lower than last time around, when the state racked up a $5.8 billion operating surplus.

Successive operating surpluses have allowed Mr McGowan to begin servicing debt in advance of expected interest rate rises, as well as remind voters about the previous Liberal government’s role in racking up said debt in the first place.

As with any budget, though, stakeholders will likely be more interested in where the government is spending its windfall earnings, with $2.5 billion in health commitments likely to draw significant interest in the coming days.

Health has been one of few difficult policy areas for Mr McGowan’s government since coming to office, with widespread reports of ambulance ramping exposing capacity constraints at WA’s hospitals.

WA Health will be the biggest beneficiary, with budget papers indicating spending growth of $1.4 billion to 2025.

Budget papers indicate most of that will go towards procuring RATs for widespread use by the public.

A further $369 million of that will go towards hospital services, $161 million will be set aside for community health services and $55 million has been earmarked to aid Commonwealth-funded health programs.

Election commitments from the 2021 will also receive a fair share of funding, with $36 million to aid, among others, additional paid paramedics in regional WA and expanded health services in Albany and the Pilbara region.

Ironically, one of the biggest beneficiaries of this budget will be Roger Cook, who late last year exchanged the health portfolio for an array of economic roles headlined by tourism and state development.

Mr Cook will receive an $80 million boost to the investment attraction fund in what Mr McGowan is indicating will be a strong focus on economic diversification in the years to come.

His other role as tourism minister will also get a boost, with $5 million in annual events funding through to the middle of the 2020s.

Destination marketing will receive $21.1 million over the next two years, while additional funding will also be set aside to support development of touring options in the state’s national parks.

Education, which is traditionally a strong policy area for Labor governments, will also receive a fair share of new funding, with $505 million earmarked for increased education and training spending.

That will include continued funding for the state government's ‘Lower Fees, Local Skills’ initiative at WA's TAFEs, as well as $142 million for the national preschool reform agreement, which, alongside federal funding, will cover 30 hours per week for all preschool students.

Primary schools in Hamersley, Caversham, Harrisdale, Alkimos and Brabham will also benefit from millions of dollars in infrastructure spending, while $3.8 million will be set aside to buy land for the state’s school building program.

International education, which is now David Templeman’s responsibility, will also get some dollars sent its way, with $41.2 million set aside to help repair the state’s flow of overseas students.

Central to that is the creation of $6 million worth of scholarships, as well as $4.5 million for StudyPerth.