POLISH DECENTRALIZATION 1990 2005

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POLISH DECENTRALIZATION1990 2005

• MILESTONES
• (I) Political changes 1989
• (II) Municipalities 1990
• (III) The Cities Act 1996
• (IV) Constitution 1997
• (V) Counties and regions 1999

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I. Decentralization process (first stage)

• Decision to create basic level of
  self-go-vernment municipalities
• Political agreement no serious obstacles
• Role of partners (politicians, experts, civic
  committees, media)
• Pattern European standards
• Quality of results of the first stage

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II. Municipalities (first level) (1)

• Outcome of the Process
• First democratic election in Poland 1990
• 2490 municipalities (38,2 mln inhab.)
• Average size 15.000 inhabitants (similar to
  European average)
• 65 cities with county rights (similar to German
  Kreisfreistädte (12,8 mln inhab.)
• 300 towns and 530 town-rural municipalities
• 1600 rural municipalities

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II. Municipalities (first level) (2)

• All local responsibilities (land-use planning,
  environment, public transportation, local roads,
  water supply, sewage treatment, solid waste
  management, basic education, social welfare,
  local culture, open health care, local
  development, basic administration services)
• Municipal council (15 45 members), directly
  elected for a 4-year term in municipalities of
  more than 20.000 inhab. proportional, in
  smaller one-seat districts
• Since 2002 direct election of mayor (previously
  - election by council) for the same term

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II. Municipalities (first level) (3)

• Municipal finances (2004)
• a) in 2425 municipalities 1615 PLN / per
  capita
• b) in 65 cities with county rights 2505 PLN /
  pc
• Structure
• a) direct income (local taxes and fees) 34,9
• b) shares in PIT and CIT 20,4
• c) general subsidies 32,9
• d) task transfers 11,8

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III. The Cities Act (1996-8)

• Process
• 1994 pilot county project (some tasks of future
  counties delegated to 46 cities by individual
  bilateral agreements including financing
  conditions)
• 1996 special law transferring set of tasks of
  future counties to 46 cities, establishing
  special financial transfers for these tasks
• Outcome
• since January 1st, 1999 these 46 plus
  additional 19 cities became cities with county
  rights.

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IV. New Constitution

• Subsidiarity in the Constitutions preamble,
• Municipality basic level of self-govern-ment,
  other tiers defined by law
• Chapter 7 - Self-government (includes all basic
  statements od European Charter of Local
  Self-Government).

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V. Decentralization process (second stage)

• Decision to create other levels of
  self-government counties and regions
• Obstacles of the process (main central
  administrations negative behavior)
• Role of partners (politicians, experts, civic
  organizations, media)
• Advocacy role of municipal associations
• Quality of results of the second stage

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V. Counties (second level) (1)

• Outcome
• First election October 1998
• Beginning of legal acting January 1st, 1999
• 307 counties 8 new added in 2001
• 65 cities with county rights (municipalities
  exercising all county responsibilities, receiving
  both municipal and county financial resources)

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V. Counties (second level) (2)

• Those local responsibilities which are
  over-municipal (administration services,
  environ-ment, county roads, secondary education,
  employment policy, social welfare, culture, basic
  public hospitals, fire protection, local safety)
• County council (15 29 members), directly
  elected for a 4-year term in proportional
  elections
• County board (executive body) elected by council
  for the same term

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V. Counties (second level) (3)

• County finances (2004)
• a) in 315 counties 500 PLN / per capita
• b) in 65 cities with county rights 2505 PLN /
  pc
• Structure (since 2004)
• a) direct income (local fees) 14,2
• b) shares in PIT and CIT 10,7
• c) general subsidies 50,9
• d) task transfers 24,2

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V. Regions (third level) (1)

• First election October 1998
• Beginning of legal acting January 1st, 1999
• 16 regions (voivodships)
• Regional council (30 48 members), directly
  elected for a 4-year term in proportional
  elections
• Regional board (executive body) elected by
  council for the same term

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V. Regions (third level) (2)

• Regional finances (2004)
• in 16 regions (av.) 185 PLN / per capita
• Structure (since 2004)
• a) direct income (local fees) 3,2
• b) shares in PIT and CIT 55,9
• c) general subsidies 18,5
• d) task transfers 22,4

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Decentralization of public finances

• Some indicators
• - decentralization degree 10,3 of GDP
• (Denmark 32 , Sweden 25 , Germany,
  Nether-lands 10 - 11 , France, UK, all other
  new EU members less than 10)
• - structure of public finances (2004)
• - central budget 197,7 bln PLN (43,6 ),
• - local and regional budgets 91,5 bln PLN
  (20,3 ),
• - National Health Fund 31,4 bln PLN (6,9
  ),
• - other task funds 133,0 bln PLN (29,3 ).

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Structure of decentralized public finances (2004,
bln PLN)

• Municipalities 40,94 (44,8)
• Cities with county rights 32,14 (35,2)
• altogether (80,0)
• Counties 12,44 (13,6)
• Regions 6,00 (6,4)
• TOTAL 91,52 (100 )

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Local and regional investment (bln PLN)

• Municipalities 7,47 (49,2)
• Cities with county rights 4,71 (31,0)
• (altogether) (80,2)
• Counties 1,27 (8,4)
• Regions 1,74 (11,4)
• TOTAL 15,19 (100)
• 4 bln Euro