Labor leader Rebecca White on Tuesday raised comment from a contribution the minister made at a TasCOSS budget briefing in which he expressed the belief the funding for community organisations wasn't adequate, wasn't what he asked for or wanted, but only what he could deliver.

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Captured on video in response to a question from Colony 47 chief executive Dianne Underwood, Mr Street said:

"I'm sorry that the boost to community services organisations was only what it was.

"It's not what was asked for, it's not what I wanted either.

"That fact that we're going to spend more next year doesn't mean it's going to be adequate."

Premier Jeremy Rockliff said the government recognised community service organisations were feeling the impact of rising operational costs due to inflation.

He said there would be a $2.1 million boost to funding for these organisations, which amounted to indexation of 4 per cent.

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Mr Street said indexation was just one element of the work the government needed to undertake with community service organisations.

"They've asked for longer term funding agreements as well which is something that we will review and work with the community sector on over the next 12 months," he said.

"What they've made clear is that short term funding means that they are not as appealing as an employer of choice in a very tight labor market.

"We know that by extending those funding agreements, we will be able to give the people that work for this community service organisations a more a more solid footing inside those organisations."

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