The Local Government and Shires Association of New South Wales is celebrating a back-down by the state government.
The Minister for Emergency Services has acknowledged an error was made in the funding formula for council contributions to the Rural Fire Service Levy.
The LGSA had been lobbying the government to address its concerns about a recent 18.7 per cent spike in the mandatory payments.
Minister Steve Whan says the amount will be adjusted in the fourth quarter.
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