Municipal Budget Research Articles

Manipulating municipal budgets: unveiling opportunistic behavior of Italian mayors

Manipulating municipal budgets: unveiling opportunistic behavior of Italian mayors

Demand for urban public transport in the Czech Republic

Abstract The research aims to analyse the influence of selected factors on the demand for urban public transport in the Czech Republic. Urban public transport is important publicly provided service worldwide. In the Czech Republic this means public ownership of transport companies and massive subsidies from municipal budgets. In line with the literature, we tested the effects of the fares, the quality of services offered, the population´s income, car ownership, the urban population´s size and employment level. Using cointegration and regression analyses of data for 2004 to 2019, we constructed unique demand models for selected cities. Our analysis revealed a positive effect of quality, fuel price (as a cost associated with car ownership), and the urban population´s size. In contrast, unemployment and the price of fares have a negative effect on demand. The income effect depends on whether the transport company operates vehicles that cope better with traffic congestion.

Municipal special budget adjustments in response to negative impact of COVID-19 in South Africa

Municipal special budget adjustments in response to negative impact of COVID-19 in South Africa

Подходы к определению эффективности реализации муниципальных программ

In the municipality of Tula, there is no phased and systematic audit, as well as internal (by the Tula City administration) and external (by the Control and Accounting Chamber of the Ministry of Defense of Tula) audit of the implementation of municipal programs. This audit should be carried out to assess the achievement of the goals, objectives, indicators of the municipal program, activities to achieve the results of its implementation, the ratio of results with the resources spent to ensure the effective use of municipal budget funds.

The Effect of Training and Development Effectiveness on Jordanian Municipalities

Purpose: This study investigates the impact of training and development effectiveness on Jordanian municipality's performance. It aims to understand the relationship between training programs and municipal outcomes, with a focus on employee performance and organizational effectiveness.
 
 Theoretical framework: The study employs a descriptive analysis approach to explore its objectives. It relies on a questionnaire-based data collection method, targeting all workers in Jordanian municipalities and the Greater Amman Municipality. The research uses statistical analysis software SPSS for data analysis and hypothesis testing.
 
 Design, methodology, approach: The study's design involves surveying 7043 employees across various job titles in Jordanian municipalities and the Amman municipality. The questionnaire serves as the primary data collection tool. The research utilizes the SPSS program for statistical analysis and hypothesis validation. Descriptive statistics and analytical methods are employed to assess the effectiveness of training and development programs.
 
 Findings: The study reveals that the majority of employees are male, aged 40 or younger, with less than 15 years of service. Around 78.5% of employees hold a diploma or higher qualification. The research indicates an average level of approval regarding the performance of municipalities and employees. It establishes a significant impact of training and development effectiveness on municipal and employee performance, influenced by factors such as academic qualification and age.
 
 Research, practical & social implications: The findings emphasize the need for tailored training programs, especially for younger employees and newcomers. The study advocates for comprehensive training preparation, evaluation based on predefined criteria, and the allocation of financial resources in municipal budgets for ongoing training and development initiatives. These insights have practical implications for enhancing municipal employee performance and, consequently, the overall functioning of Jordanian municipalities.
 
 Originality: This study contributes original insights by investigating the specific context of Jordanian municipalities. It sheds light on the effectiveness of training and development programs, highlighting their influence on employee and municipal performance. The research provides unique recommendations, emphasizing the importance of targeted training for specific employee groups and the necessity of financial allocation for sustained training efforts.

Determination of Directions to Increase the Efficiency of Municipal Budget Funds Spending

The article deals with the issue of increasing the efficiency of spending local budgets. Such a study is relevant in modern conditions, when the own budget revenues of the vast majority of municipalities do not cover the costs, and many local budgets receive more than half of the funds from higher budgets. Given the difficult socio-economic situation that has developed in recent years, the search for tools, methods and directions for optimizing local budget expenditures is becoming a priority.The purpose of the study is to determine the areas of spending budget funds, measures aimed at optimizing which could bring the greatest effect. The result of the work was the identification of the most “typical” (classical) municipalities (in the context of each of their main types), the structure of expenditures of which is similar to the average structure of municipal budgets, determined on the basis of an analysis of the entire sample. Based on the subsequent analysis, the main elements of the budget costs were identified, the work on which could bring the greatest savings. All this is supplemented by optimization measures and proposals for the main areas of spending, determined on the basis of the results of scientific literature analysis, the use of which will significantly increase the efficiency of budget expenditures.

Analysis of Budgets of Some Communities of the Martuni Province in 2019-2021

Key words: state budget, municipal budget, special income, own income, expenses, interest, implementation This article presents the planned and actual budgets of some communities of Martuni province, as well as the subsidies allocated from the state budget. The pre-war/2020/ and post-war periods were studied, including those communities that remained occupied by the enemy after the war. The article includes the private incomes of the studied communities, which are important in the formation of budget incomes. In 2019, the total revenues of the 35 municipal budgets of Martuni province amounted to 96.4% of the plan, of which the own revenues actually made up 98.2%, the planned provision was 144075.8 thousand drams, 134,500.0 thousand drams were financed from the state budget: the implementation is 93.4%. The expenses in the specified time-period were planned for 388411.2 thousand drams, as a result 354325.2 thousand drams or 91.2% were used. In 2020, the total revenues of the budgets of the communities of Martuni province actually amounted to 69.8% compared to the plan. At the same time, the implemantation of own revenues was 42.9%. Allocations from the state budget made up 99.9%. The expenses of the communal budgets actually amounted to 75.6% of the plan. It should be noted that the pandemic since the beginning of the year, the war in Karabakh on September 27 affected the formation and use of municipal budgets. In 2021, the income implementation of the budgets of 35 rural areas of Martuni province was actually 80.9%, of which only 66.4% compiled the own incomes. 95.2% of subsidized allocations were made. In 2021, out of the planned 410689.0 thousand drams, 343646.8 thousand drams were actually used for the expenses of the budgets of the communities of the Martuni province; the implementation was 83.7%.

The Role of Municipalities in Renewable Energy Transition: Providing Drinking Water Supply of Kocaeli Province with Renewable Energy

The cost of electricity constitutes a significant part of municipal budgets. The decrease in renewable electricity generation costs allows municipalities to reduce their electricity costs and greenhouse gas emissions by investing renewable energy. A renewable energy transition facilitated by municipalities will positively affect and accelerate the energy transition in Turkey. In this study, the case of meeting the drinking water pumping station electricity consumption of Kocaeli Metropolitan Municipality Water and Sewerage Administration (ISU) from renewable power plants owned by ISU is analyzed. The amount of avoided emissions from renewable power generation has been calculated. 37.06% of ISU's electrical energy in the drinking water supply is consumed in drinking water pumping stations. ISU has renewable power plants with a total installed capacity of 8.50 MW. The rate of meeting the electricity consumed by the electrical energy obtained from the renewable power plants owned by ISU and the electrical energy consumed in the drinking water pumping stations is increasing. While the ratio of electricity from renewable energy sources (RESE) to meet the electrical energy consumed in drinking water pumping stations was 19.27% in 2019, this ratio reached 31.74% in 2022 with investments in renewable energy power plants. As a result of RES-E, 32,225 tons of CO2 emissions have been avoided.

The problem of the modernisation of land and building register in Poland as exemplified by the village of Rejowiec

The right of ownership is the broadest and one of the most basic property rights, which allows the owner to use and dispose of possessions without the participation of third parties. Therefore, the process of modernising the land and building register (MLBR) is extremely important considering, for example, that the data contained in this register is the basis for the subsequent calculation of public-legal obligations associated with the owned property, such as taxes. According to the current legislation, the data collected in the land and building register (cadastre) on the type of land use in combination with the soil classification of agricultural and forest land, the use of the property, its purpose and other information, are the basis for determining the agricultural, forest and real estate taxes by the competent authority. In Poland, in most cases, we have to deal with a situation in which the data appearing in the register differs from the actual state. Municipal budgets suffer losses because of this, and owners of properties of similar area and value sometimes pay completely different taxes. In this paper, the authors show a practical example of MLBR and the problems existed with it.

People and the Budget: What Does the Future Hold for Civil Finance?

Can the society forgo the state participation of the state in the management of state and municipal budgets, or its own funds? What is “civil finance” and how is it related to participatory budgeting? We are about to find out in this material.

PROGRAM ORIENTATION OF MUNICIPAL BUDGETS

The purpose of the article is to show the necessity of developing program-oriented municipal budgets. The view of different authors on the subject is presented, as well as good practices of other countries. The existing practice of developing strategic documents and budgets in Bulgarian municipalities is described. A sociological survey was made of the opinion of business organizations as partners of local authorities, regarding their participation in the budget process and in the development of strategic documents for the development of municipalities. The results show a rather skeptical attitude towards the possibilities of business organizations to influence local policies and the development of budgets. A proposal is made in the national legislation and in the local normative base of the municipalities to establish the requirement for coordination of the strategies, plans and programs developed at the municipal level with the annual budgets. Program budgeting at the municipal level is not only possible, but also imperative, due to its efficiency, transparency, opportunity for wider citizen participation in the budget process and in the development and implementation of local policies.

Stimulative monetary policy of Russia and its instruments in the context of the sanctions war

Aim. To develop guidelines and instruments of the stimulating monetary policy of the Russian Federation (RF), contributing in the conditions of the sanctions imposed to increase the rate of economic growth and its efficiency.Tasks. Analysis of the state of the Russian economy, the main directions of its further de­velopment and regulation mechanisms; study of the financial potential of the Russian econ­omy (savings and investments) in conditions of closing access to financial markets and to in­ternational payment and settlement systems of developed countries; study of the ongoing monetary policy of Russia, its main components — monetary and fiscal policy, their impact on economic growth; analysis of modern monetary theory, existing views of Russian and for­eign economistsMethods. The authors applied the method of analysis in the process of studying the practice of monetary and fiscal regulation in Russia and abroad, carried out economic analysis. The ar­ticle reflects the research data of Russian and foreign specialists. A systematic approach, which provides for the interdependence of monetary, fiscal policy and macroeconomic regulation of the economy, investment and innovation development, was used.Results. The need to combine the ongoing restraining anti-inflationary monetary policy with a soft budget policy, providing incentives for modernization of enterprises, domestic demand and supply at the expense of targeted budget financing within the adopted state programs of socio-economic, structural and innovative development with reasonable limits of budget deficit and public debt has been established.Conclusions. In a stagflationary environment, it seems appropriate to pursue a strict anti- inflationary monetary policy of the Bank of Russia, restraining credit issuance and stimulat­ing the growth of savings. Closed access of RF residents to financial markets of developed countries with excessive monetary resources, limited opportunities for growth of domestic savings and savings, insufficient inflow of foreign investments due to high risks of Russian residents to foreign markets increases the importance of targeted budget financing in the context of state programs to expand and modernize production, structural reforms and in­novation development. To justify the limits of the deficit of state and municipal budgets and debts, it is necessary to apply the indicators of fiscal gaps. As the key rate of the Bank of Russia decreases, the financial market stabilizes, and the targets of targeted programs are met, budget financing is replaced by private investment, bank and commercial lending.

Are Municipal Budget Cycles Political? Evidence From Ontario, Canada

In this paper, we examine whether a political budget cycle exists in municipal governments that fall under tight financial and institutional regulation by senior orders of government. For other levels of government, there is evidence that politicians initiate popular programs in election years and delay the unpopular tax increases after the election. Using a sample of 444 Ontario municipalities, with few exceptions, no such evidence was found. The results are the same regardless of the length of the term (three or four year), municipal size (small, medium, or large), and the governance system (one or two-tier). The paper concludes with possible explanations as to why there are no opportunistic manipulations of municipal budgets.

Social Waste or Outcomes Achievement? Exploring the Impact of Performance Budgeting on Municipal Fiscal Health

Performance budgeting is a contentious area in public administration literature. While performance budgeting systems are widely adopted with promises of better fiscal outcomes, public administration theory implies that this practice may generate social waste. Most empirical research that finds null or negative effects of performance budgeting focuses only on how performance budgeting affects resource allocations and cost savings. This study aims to fill the gap in the literature by conducting a quantitative panel-data analysis to determine whether the inclusion of performance information in municipal budgets contributes to better fiscal outcomes. An ordered logit regression analysis in the context of 125 large U.S. cities over a 12-year span (2008–2019) demonstrates that performance budgeting is positively associated with municipal fiscal health.

Analysis of urban slum infrastructure projects financing in Ghana: A closer look at traditional and innovative financing mechanisms

Rapid urbanisation in developing countries has engendered unregulated slum development to provide residences for economic migrants who travel to cities to pursue hopes of a secure future. The development of new financial approaches could play a critical role in unravelling the issues associated with slum development, particularly in emerging economies such as Ghana. Hence, this study investigates slum emergence in Ghana and assesses traditional and innovative financing mechanisms to drive the country’s re-development. Specifically, the study assessed critical indicators of city-urban slums, established critical city-urban slums infrastructure requirements, and examined the traditional and innovative tools of financing city-urban slums to develop more socially equitable and inclusive infrastructure. This research adopted a quantitative research strategy couched within a positivist paradigm and deductive reasoning. Surveys were used to solicit responses from selected stakeholders using purposive sampling. Data was analysed using mean score ranking, one sample t-test and relative importance index (RII). Emergent findings revealed that ‘housing quality’ was the most critical measure of city-urban slum conditions, followed by ‘access to improved sanitation’. Additionally, the findings also asserted ‘virtuous sanitation’ was the most important infrastructure requirement, followed by ‘appropriate disposal of waste facilities’. Cumulatively, the findings suggest that the most prevalent and effective traditional financing tool was to incorporate a slums infrastructure development fund and use taxes and empower urban local bodies (ULB) with increased municipal budgets. Finally, in relation to innovative forms for financing, public–private partnership (PPP) was found to be most effective, followed by municipal bond. In conclusion, the study recommends the participation of industry professionals and governing agencies in the pursuance of these financing options to drive the re-development of slums to meet the UN’s sustainable development goals (SDGs) of ensuring sustainable cities by 2030.

Специфика стратегического развития крупных городских агломераций

The social and economic development of the country largely depends on the level of social and economic development at each level of the budget system, especially at the level of municipalities as basic administrative territorial units. The article is aimed at studying and systematising specific features of strategic development of large urban agglomerations. The research involves methods of comparison, analysis, synthesis, and induction. The article analyses academic and normative approaches to the use of terms “strategic planning,” “strategic management,” “strategic development,” formulates the structure of the relationship between concepts, reflects the system of documents, on strategic development at each level of the budget system. As a result of the analysis, the article reveals the problem of identification of the concepts of “strategic management” and “strategic development.” The author specifies the concept of “strategic development” and establishes the structure of the relationship between concepts. The article describes a complex of factors that influence the social and economic development of a large urban agglomeration, substantiated the existence of the relationship between factors of internal and external influence, analyses the main strategic documents, identifies the main directions of strategic management and development. The article identifies the role of the municipal budget in social and economic development, describes trends in economic development, the level of financial independence of large cities, interrelations between economic and strategic development. The article studies characteristics and tendencies of development of large urban agglomerations, identifies strengths and weaknesses, formulates measures aimed at improving the quality of management of social and economic development. The practical significance of the study lies in the possibility of its application by local governments of large urban agglomerations in the decision of strategic development issues.

Defunding the police through shared service agreements: The impact on cost savings, staffing, and public safety using a bias‐corrected synthetic control analysis

AbstractResearch SummaryNew Jersey (NJ) is home to more than 460 municipal police departments, including close to 60 with fewer than 11 officers. In total, the state spends around $3 billion per year on policing, 20% of the typical municipal budget. In recent history, seven NJ municipalities have disbanded their local force and contracted services with a neighbor. Using the bias‐corrected synthetic control method, results from this study reveal these locations saved on average $143 per person per year, close to $300,000 per municipality. There were fewer officers in the contracting force per capita postcontracting, but no effects on public safety. Contracting agencies also gained new services including a K‐9 Unit and full‐time detectives. However, the monies municipalities saved were largely used to cut taxes and fund capital improvements, not to fund reform efforts called for after the murder of George Floyd. Contracting thus was a way to maintain the status quo.Policy ImplicationsInterlocal police shared service agreements offer one promising model to defund the police without public safety collateral consequences. More municipalities can be encouraged to share police services by changing civil service rules and amending NJ state law, which currently limits the ability to realize cost savings. Contracts should also be required to clearly delineate service delivery and set minimum standards of service delivery.

Financial and Structural Prospects of Local Government Reform in Russia

The reform of local self-government (LSG), which started over 30 years ago, has not been completed at the moment, and the regulatory and legislative activities of Russian deputies to bring legislation into line with the new version of the country's Constitution are in progress. From the point of view of the impact on the state of local self-government, it is important to consider the impact of constitutional amendments regarding the exclusion of the mandatory settlement basis of the organization of local self-government on the prospective structure of the LSG; and also to assess the potential financial implications for municipal budgets and local self-government in general of the idea of embedding local self-government at the third level in the system of public authority. It is shown that the issue of the structure of the LSG and the economic feasibility of the consolidation of municipalities remains poorly developed. The paradox is that the need to assess the progress and results of the merger of municipalities not only with qualitative arguments, but also with quantitative calculations, is generally recognized, but there is currently no quantitative assessment of the effectiveness of the merger of municipalities in Russia, as in most foreign countries. The analysis of the reform transformations of the LSG and the improvement of regulatory and legislative acts regarding the regulation of the LSG of Russia has shown that local self-government, formally remaining an institution of public authority, in practice turns into “public administration within municipal borders”, known since Soviet times. The situation is complicated by the denunciation of the European Charter of Local Self-Government, implemented by the State Duma on the proposal of President Vladimir Putin in February 2023. The scientific novelty of the work consists in substantiating theoretical and practice-oriented proposals for improving the structural and financial components of the reform.

ПОВЫШЕНИЕ ЭФФЕКТИВНОСТИ ИСПОЛЬЗОВАНИЯ ЗЕМЕЛЬ СЕЛЬСКОХОЗЯЙСТВЕННОГО НАЗНАЧЕНИЯ НА ОСНОВЕ СОВЕРШЕНСТВОВАНИЯ ПРАВОВОГО МЕХАНИЗМА (НА ПРИМЕРЕ РЕСПУБЛИКИ ТАТАРСТАН)

The study was carried out in order to analyze the regulatory legal acts regulating land relations in agriculture in order to improve the efficiency of the use of agricultural land. In the Republic of Tatarstan, their area at the beginning of 2022 amounted to 4 625.90 thousand hectares, of which 1 814.50 thousand hectares is a share fund. On 65.9% of the area of unclaimed land shares, the right of municipal property is registered. The existing legal uncertainty in identifying their owners, the lack of funds in the budget of municipalities for carrying out cadastral work makes it difficult to formalize the right of municipal ownership of these shares and transfer them to lease or property to agricultural producers. Against the background of a significant decrease in the area of agricultural land in the republic, 67.8 thousand hectares of agricultural land are not used. In 2021, 829 owners and tenants of unused land were prosecuted with fines in the amount of RUB 6.1 million. There is legal illiteracy among the majority of land users in the construction of capital facilities, the conclusion and termination of lease agreements, holding auctions, etc. The amendment to the Land Code of the Republic of Tajikistan adopted in pursuance of Federal Law No. rural areas and the development of farms in sparsely populated municipal areas. The state program “Integrated Development of Rural Territories” is mainly aimed at promising areas for the development of the agro-industrial complex, and not at depressed, sparsely populated rural areas. As of October 2022, the borders of 20% of settlements have been registered in the republic, which may complicate the procedure for providing land for the construction of industrial agricultural facilities. The Land Code of the Russian Federation does not directly regulate the construction of capital facilities on agricultural land, which requires that appropriate amendments be made to the existing land legislation.

A hybrid MCDA approach for delineating sites suitable for artificial groundwater recharge using drywells

Artificial recharge in urban aquifers is of vital importance due to the increase in urbanization resulting in a reduction in natural recharge along with groundwater overdraft in many regions across the globe. Despite existing several managed aquifer recharge (MAR) technologies, land availability for installation and limited municipal budget restrict their usage, especially in urbanized areas. Hence, drywells were introduced as a vadose zone recharge (VZR) facilitating the recharge of stressed aquifers with low land impact and financial resources. Also, identifying suitable sites for drywell implementation is complex due to the number of driving factors involved. In this paper, the integrated fuzzy analytical hierarchy process (FAHP) and technique for order of preference by similarity to ideal solution (TOPSIS) approach was proposed to delineate a site suitability map for artificial groundwater recharge using drywells in the city of Kayseri, Turkey. Nine decision criteria were selected and the weights of each (sub-) criterion were determined through the FAHP. The results indicated that hydraulic conductivity, depth to groundwater, soil texture, and land use/land cover were the most determining criteria with 33.9%, 17.8%, 11.2%, and 10.1% of weights, respectively. Also, the stability and robustness of the criteria weights attained were validated through sensitivity analysis within the FAHP framework. Finally, the study area was divided into 54 sub-regions based on the road-network and the TOPSIS was applied to prioritize the sub-regions to help identify promising areas for the vadose zone wells construction. Here, a similar approach can be adopted by municipalities lacking guidelines and standards for sitting drywells.