The article considers the current state of decentralization reform and prospects for reforming the territorial organization of government in Ukraine. The need to reform local self-government, territorial organization of government and administrative-territorial organization is beyond doubt. In 2014, decentralization reform began in Ukraine, which is one of the most successful domestic reforms. Thus, in the first step, territorial communities were encouraged to unite through various forms of inter-municipal cooperation. The next step was the adoption of the Law of Ukraine On Voluntary Association of Territorial Communities. According to the norms of this Law, several territorial communities were united and one united territorial community was created. Due to the proposed changes in the legislation, communities have significantly increased managerial powers (education, culture, sports, medicine, etc.), and the state has provided not only the transfer of powers, but also the appropriate financial resources (medical subvention, educational subvention, other targeted transfers). At the beginning of 2020, the second stage of the reform began, as a result of which the renewed administrative-territorial structure of Ukraine at the basic level was approved. However, the functioning of 490 district state administrations in all administrative-territorial units of the district level of Ukraine remained unregulated. The need to update the legislation on local state administrations led to the submission of Bill №4298, which aims to create legal preconditions and foundations for the functioning of local state administrations of the prefectural type. As a conclusion of the research it can be noted that the change in the territorial organization of power is long overdue, certain decisions were made, but the level of such decisions did not ensure their full legitimacy in accordance with the Constitution of Ukraine. Therefore, the adoption of the bill will continue the second stage of reform of local government and territorial organization of power. Key words: decentralization, reform of the territorial organization of government, inter-municipal cooperation, united territorial communities, local state administrations, prefects.
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