1. Local self-government in Croatia

2. INTRODUCTION: A unitary state. A parliamentary democracy.
TWO TIERS OF LOCAL SELF-GOVERNMENT:
Municipalities.
Counties.
PROCESS OF DECENTRALIZATION:
1992: Local self-government and administration Act.
1997: European Charter of Local Self-Government.
2000: Constitutional amendments: principle of subsidiarity + importance of local and regional government.
2001: Law on local self-government.

3. The Local Government System
A. Local Government Law
A right enshrined in the constitution
March 28, 2001: the Constitution is reformed:
Article VI on local and regional autonomy
- Affirmed principle of separation of powers
- Importance of local and regional government
- Provisions modelled on the European Charter of Local Self-Government
- Local authorities’ rights at the constitutional level

4. 2. The direct participation of citizens in the decision-making process
Local / Regional Referendums
- The power belongs to the people as a community of
free and equal citizens.
- A law may be adopted by referendum
Other Forms of Direct Participation
- Advisory referendum
- Local assembly of citizens
- Complaints from citizens

5. B- LOCAL GOVERNMENT ORGANIZATION
- Municipalities : Towns and Communes
Deliberative body
Under 3,000 inhabitants
3,000 to 10,000
10,001 to
30,000
Over 30,000
Zagreb
Town/Municipality Councils.
Members elected for 4 years.
Direct Universal Suffrage.
Proportional Representation System
Number of members on the Council
7 to 13
9 to15
13 to 19
19 to 35 51
Executive authorithy
Individual Executive Power (Town and Commune Mayor)
with one or two vice-mayors depending on the size of local units
(under or over 10,000 inhabitants).
Direct Election by the citizens. 5

6. B- LOCAL GOVERNMENT ORGANIZATION - Counties
Deliberative Body The County Council
Election
Elected for 4 years, direct universal suffrage,
proportional representation system
Prerogatives
County Representation and County Affairs
Number of Members
from 31 to 51councillors
Council Chairman
Elected among its members.
Head of the county assembly
Executive Body
The County Mayor and Two Deputy-Mayors,
directly elected by the citizens

7. Region Zagreb Regional assembly Election
Elected for 4 years, direct universal suffrage, election on a proportional basis
Prerogatives
Regional representation and regional stuff, affairs
Number of members
Odd number, between 31 and 51
Chairman of the assembly
Elected among its members, head of the regional assembly
Executive authority
Odd number of members (between 7 and 13), elected by the regional assembly
Zagreb
Municipalities
Regions
17 districts, a council is elected by the inhabitants of each district
Same organisation as for the other regions
The affairs of the two scale local self-government:
Council (Mayor + two members of the town council + the regional assembly chairman + two members of the regional assembly

8. 2-Right of the minorities and status of the local elected councillors.
LOCAL COUNCILLORS’ RIGHTS AND DUTIES
Charter of local self-government
Regulations of the council

9. Local Policy A- Local Government Responsibilities
CONSTITUTION :
Right to local and regional self-government.
Provisions defining the respective powers of the local and regional.
LOCAL SELF-GOVERNMENT ACT, 2001 :
Responsibilities are devolved from the central government
Public affairs are local self-governments’ own responsibility

10. Local Policy B- Local Government Budget and Finance
Local Government Expenditures
Main types of expenditure (as in 2001):
- housing (69%)
- administration (21%)
- transport, sport and culture (13%)
- education (11%)
Total expenses in 2007: HRK 11.9 billion (11.7% increase with regard to 2006).
Compensation of employees: 25% of total expenses,
Use of goods and services: 39%,
other expenses and donations: 19%
others (subsidies, grants, social benefits and interests): 17%.

11. 2) Revenues
According to the law, local freedom in the use of
non-tax revenue
Total amount of revenues of cities and counties
in 2007: HRK 15.5 billions (a 14.3% increase compared to 2006)
Most important sources of revenue (as in 2007):
- tax revenue : 59%
- non-tax revenue: 34%
- grants : 6%
- loans : 1 %

12. Own tax revenue
- 8% of total local revenue
- Cities freely determine the rate of their local taxes.
- Cities have many tax revenues
Shared tax revenue
- 84% of total tax revenue
- 3 types of shared taxes :
- income tax is shared by the central government, regions and cities
- business tax is shared by the central government and cities
- tax on property sale is shared by the central government and cities

13. Non-tax revenues
- From concessions for the exploitation of mineral waters, spas and drinking water
- Loans
- Other revenues
Central Government Grants
- 6% of total local revenues
- Shared allocations of non-tax revenue
Transfers and subsidies
- unequal assignment
- some special statuses still exist

14. CONCLUSION Some resistance experienced during the first step in
the decentralization reform
In 2002 the Senate’s mission assessed the difficulties in the decentralization reform:
- co-operation with the central government is difficult
- a priori control is still in practice
- tax revenues vary too much among communities
- transfers from central to local government are insufficient