NSW Environment Minister Rob Stokes announced the grants earlier this week, handing out $2.4 million across the state.

Wollongong received $79,000 for ‘‘protecting and improving estuarine habitats’’ of Lake Illawarra and $110,000 for lake health monitoring.

Cr Bradbery said the money, while welcome, paled in comparison to the funds the government previously gave to the Lake Illawarra Authority (LIA), which was dismantled last year.

‘‘In the past, the state government put in around $1 million per year [to the LIA], and the budget was about $2 million, with the other million put in by Wollongong and Shellharbour councils,’’ Cr Bradbery said.

‘‘These estuary management grants will be used basically to improve the quality of the water and look after the water itself, but the rest of the money we’re still missing out on covers things like the paths, jetties and other infrastructure.’’

He said the councils would be left scrambling to to make up the shortfall.

‘‘We could possibly apply to things like [Regional Development Australia] or there might be other things like recreational or tourism programs,’’ he said.

‘‘But basically, we’ve got to get out and hunt for these things and then compete with everyone else instead of getting a specific amount which clearly set the budget for what we could do and achieve.’’

Wollongong councillors have been highly critical of the government’s axing of the LIA, complaining it had taken control of any money-making land and left the council to deal with costly environmental assets without funding.

‘‘This is cost shifting and we’re worse off, because who is going to have to pick up the shortfall? It’s the ratepayers of Wollongong,’’ Cr Bradbery said.

Mr Stokes also announced $800,000 worth of coastal management grants this week, with Wollongong receiving $160,000 for dune management and a Whartons Creek study.

Shellharbour Council was allocated $15,000 for Warilla beach dune rehabilitation.