Councillors warned that the issue was costing Greater Bendigo millions each year, saying the issue was only growing.

The council voted at a Monday meeting to endorse an item of business for a Municipal Association of Victoria council meeting.

The motion calls for the state government to increase its contributions to services and programs undertaken jointly with local government.

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Councillor Rod Fyffe pointed to libraries, saying in Bendigo the cost was initially split 50-50, but the state government now paid only 17 per cent.

Cr Fyffe said the cap on council rate rises also added to the burden.

"It really is frustrating when we go in good faith with the state government to provide projects for our community," he said.

"We seem to be picking up more and more cost, and also we seem to be picking up more and more of the flak if anything goes wrong."

The April 19 agenda report warned there had been a steady decline in government contributions for joint services and programs.

The report stated the motion's aim was to press the Victorian government to restore fairness and equity to funding arrangements for important community services which it had agreed to provide in partnership with local council. These were increasingly being funded by council, the report said.

April 19 council meeting:

Councillor Margaret O'Rourke said council was more and more seeing cost shifting from other levels of government.

She pointed to the issue of new legislation about pools, saying councils were only notified the weekend it was announced, but were besieged with enquiries immediately.

Councillor Andrea Metcalf said the cost shifting was happening at the same time as the state government imposed rate caps.

"The state government one one hand can't reduce the ability for councils to raise income, at the same time as reducing their contribution for the delivery of service," she said.

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