County Councils across the north west will be hit by staggering budget cuts following a decision to link the compliance rate of those who have paid the household charge with the its budgets.
As a result, 1.3 million euro will be slashed from Sligo County Council's budget - with 25% of this figure being deduced immediately and the remainder in September.
Leitrim will also suffer a drop in funding of over 1.1 million euro equating to a 10% shortfall in its annual budget.
The Department of the Environment says Minister Phil Hogan has had to revise the payment profile of general purpose grants, as full Household Charge compliance has not yet been achieved.
Sligo North Leitrim Fianna Fail Senator Pascal Mooney, says this is a savage blow to local authorities that are already under serious financial pressure.