The mayor of Singleton says she is "devastated" the Resources for Regions grant program has been slashed in the NSW budget.
The program provides funding to mining communities that generate coal royalties for the government. More than $25 million was injected into the Singleton local government area through rounds 7, 8 and 9 of the program.
A spokesperson for NSW Treasurer Daniel Mookhey said existing commitments under the Resources for Regions program would be honoured and were included in the budget for the Department of Regional NSW.
"Over time the NSW government will move away from opaque grant funding and provide more targeted and transparent funding for projects people need," the spokesperson said.
Singleton mayor Sue Moore said Resources for Regions had a "positive impact" on Singleton and it was extremely disappointing that the program had been omitted from Tuesday's budget.
"Resources for Regions has proved to be a successful mechanism to deliver a fair return to our community for the daily and unavoidable impacts of mining," she said.
"Issues including air quality, traffic congestion, visual impairment and reputation are matters that affect us so much more as a result of being where the mining activity actually occurs."
"Considering the significant amount of royalties generated from our region, and given the government will raise coal royalties by an estimated $2.7 billion over the next four years, it's only fair that communities like Singleton, who are so affected by this industry, be adequately compensated."
Singleton Council said it had worked closely with the NSW government in recent years to reform the program, and lobbied for changes such as the removal of a co-contribution and benefit costs ratios, a fixed percentage of the total pool for mining-affected communities based on the level of mining activity, and the introduction of programs and infrastructure projects that provided employment and skills training for job seekers, assistance for small businesses and community support.
Cr Moore said she hoped the creation of the $350 million Regional Development Trust Fund to support communities in rural and regional NSW would deliver funding for Singleton.
"As a mining community, it's important that state government funding flow back into Singleton as an acknowledgement of the integral role we play in the continued prosperity of NSW, and to help us on the path to the economic and social evolution for generations to come, building our region for a time when mining may be a smaller component of our economic output," she said.
"We will continue to work with the state government to identify funding opportunities to improve the liveability, amenity and infrastructure of the Singleton community."
Singleton and Muswellbrook account for a combined total of 43 per cent of NSW's coal mining output.
