Galway must make do with less from central funding

GALWAY County Council has adopted a record €203.3 million budget for 2026 – despite formal objections from Independent Ireland…and only after tense exchanges over a €612,000 cut to the equalisation fund from Government.

That’s because Galway County Council’s equalisation funding dropped from €5.01 million in 2024 to €4.5 million in 2025 and €4.4 million in 2026 – a total reduction of over €612,000.

At this month’s budget meeting, Cllr Tom Welby (Ind) urged caution in expecting Central Government assistance. “The man from Dublin with the magic tree and the magic money is not coming today,” he said.

Director for Finance, Katie O’Connor, expressed her disappointment at the cut – and her remarks drew spontaneous applause across the Chamber

“Galway is significantly underfunded,” she said.

“We have worked very hard to improve on that. We were disappointed with the baseline figure from the Department. What I see is a shortfall from the equalisation fund. We are costing the Government less and we all wanted to see more.

“We have done everything in our power to fight for Galway, and we will continue to do that.”

The equalisation fund is the State’s system for redistributing central Government resources to Councils.

Several Councillors argued that the process is systematically failing Galway, despite the County’s size and growing population.

Cllr Shaun Cunniffe (Ind Ire) told the meeting that Galway had now lost €1.2 million over recent years. “I implore every TD and Senator from this County to fight harder,” he said.

By comparison, Mayo received €11.8 million and Leitrim €8.5 million this year.

Speaking to the Connacht Tribune, Cllr Cunniffe explained how Councillors increased commercial rates and property tax last year, with the understanding they would receive more funding from central Government.

“We were hoping for six or seven million,” he said. “We hadn’t made increases in a long time and we expected the equalisation fund would increase. That was the deal. We have received no extra funding and that is devastating.”

Cllr Dermot Connolly (SF) questioned whether he was “living in a different country to Fine Gael and Fianna Fáil” given that Galway County Council already had a deficit of €11 million going into budget talks.

Cllr Michael Connolly (FF) described the matter as ‘the elephant in the room’.

“Comparative Councils like Tipperary, Mayo and Donegal have been getting €10m and we get €3 or €4 million,” he said. “We have to get parity with the equalisation fund.”

Chief Executive, Liam Conneally, insisted they would not relent. “We will not stop looking for a fair equalisation fund for County Galway,” he said.

“It’s an ongoing battle and we do need assistance from every elected member. The heavy lifting has been done, but we need the see-saw to be balanced.”

He also warned Councillors about serious recruitment pressures, saying the private sector was offering salaries the Council could not match.

Despite the funding setback, Councillors broadly welcomed key elements of the budget, including €33.38 million for housing, plans to deliver 1,717 new social homes by the end of 2026, an increase to €1.5 million for the Disabled Persons Grant, €444,652 to turnaround vacant properties, and €1 million to expand staff numbers.

The Chamber heard from the Finance Director that the budget was ambitious and expansionary - increasing by €10 million compared to 2025 - and represented the best possible financial plan under challenging circumstances.

Debate, however, intensified late in the meeting when Cllr Andrew Reddington (FG) criticised some colleagues for raising major objections “at three o’clock in the afternoon after weeks of engagement.”

Cllr Dermot Connolly (SF) strongly rejected that suggestion, saying he was “serious about standing up for the people of Galway” while Independent Ireland Cllr Noel Thomas confirmed his party’s objection to the budget, and stated that “we object to the current budget as it is.”

Funded by the Local Democracy Reporting Scheme.

Pictured: Director for Finance, Katie O’Connor