1. Poland The structural reform – local and regional finances Andrzej Porawski (Association of Polish Cities)

2. Polish decentralisation (1990/1998) 1st stage (1990) – municipal reform: 2478 municipalities, including: 307 cities and towns (urban units), 582 urban – rural units, 1589 rural. 2nd stage (1998) – regional reform: 16 regions (voivodeships); supplementary local level – counties: 315 counties, 65 large cities received county’s rights.

3. Public finances reforms 1990 – provisional munic. revenues act 1993 – final municipal finances act 1998 – LRG revenues act 1999-2000 and public finances act 2003 – LRG revenues act (final) 2006/7 – changes in PIT law (- 6,8 bn) 2010 – new Public finances act (new limit of LRG debt

4. Legal framework Constitution (art. 167, 168/217) - adequacy, typology, autonomy (fiscal) Local government acts - self-taxation, responsibilities, transparency Public finances act - general rules, individual limit of debt LRG units revenues act - revenues

5. Main types of revenues Municipalities - Local taxes and fees - Other fees - Income from services - Income from property - PIT share (39,34 %) - CIT share (6,71 %) - General subsidy - Designated grants (incl. EU) Counties and regions - NO - Other fees (county) - Income from services - Income from property - PIT share (10,25 % / 1,60 %) - CIT share (1,40 % / 14,75 %) - General subsidy - Designated grants (incl. EU)

6. Municipalities main actors in local development: spatial planning; local development strategies; local sectorial policies (environment, waste disposal, energy supply, social strategy, schools network, public housing) water, sewage, solid waste; environment; local roads; local public transportation; basic education; local cultural activities; social welfare; open health-care; sport, recreation, basic administrative services;

7. Counties supplementary local level: secondary education (colleges), other local cultural units, social welfare (supplementary, advanced), organisation of basic hospitals, county roads, fire protection, building administration, other local administrations (geodesy);

8. Voivodeships (regions) regional policy subjects: regional development strategies / policies; regional roads and railways; ERDF planning and distribution (since 2007); (also an important part of ESF); high education; organization of regional hospitals; regional cultural units (theatres, phil- harmonic orch., regional museums etc.) regional environmental policy; practically no administrative services.

9. Relations (%) between revenues categories UNITMunicipalityCountyVoivodship own income33,715,48,0 PIT & CIT shares22,218,233,9 general subsidy24,842,411,6 designated grants19,324,046,5 (EU funds)5,63,430,3

10. Financial autonomy Local taxes ( only municipalities ) – limited Creating other local revenues – only self-taxation - referendum) Spending own income and subsidy – YES ( obligation to fulfil legal standards ) Spending dedicated grants – NO Control – Regional Account Chambers

11. Total public budgets’ ex- penditures (mn zlotys) Units199920072015% Municipalities (2413) 32 35756 07485 944 43,8 Cities with county rights (66) 19 96245 87769 824 35,5 Counties (315) 9 78416 07023 444 11,9 Regions (16) 3 26511 09217 203 8,8 Total decentralised budgets 65 368129 113196 415 100 Central budget 138 401252 300331 743 x

12. Total public budgets’ ex- penditures (PLN/capita) Units 2015 Municipalities (2413) 3400 Cities with county rights (65) 5600 Counties (315) 920 Regions (16) 445 Total decentralised budgets 5110 Central budget 8630

13. Degree of decentralization