Queensland is receiving the smallest share of federal funding since the Rudd Government took office, independent analysis for the Local Government Association of Queensland (LGAQ) has shown.

"We realise the government has been blown off-course by the global financial crisis in its early days, but Queenslanders had expectations of a catch-up after decades of missing out," LGAQ president, Cr Paul Bell, who commissioned the study, said today.

"This is bound to be a real issue in voters’ minds, come the next federal election," Cr Bell said.

Analysis conducted by Morton Consulting, showed that Queensland received 19.8 per cent of funding for 2009/10, down from 20 per cent in 2006/7. New South Wales’s share is 30.6 per cent and Victoria’s 22.6 per cent.

"It’s clear the allocation process, which is based on the numbers of councils in the states, is flawed," Cr Bell said. "We are suffering because last year’s amalgamations reduced our council numbers by more than half.

However, Queensland’s share of National Roads Network funding from the Nation Building Find increased from 24.5 per cent in 2004/05 to 31.2 per cent in 2008/09, an increase of 27.15 per cent.

No other state received a significant increase in funding share.

"The LGAQ, on behalf of Queensland councils, will undertake the same analysis after the next federal budget," Cr Bell said. 

"As honest brokers, we will always join with our councils to fight to ensure our communities get a fair share of federal expenditures."