October 29, 2012

Warsaw, Sejm RP, Sala Kolumnowa

S T A N O W

Following the First Local Government Conference organized in the Sejm of the Republic of Poland on 10 January 2012 by the Law and Justice Parliamentary Club, we would like to remind you of the still valid 10 postulates adopted by the assembled local government officials:

1. Restoring the principle of compensating for financial losses in own income of territorial self-government units (JST), which are the result of legal changes.
2. Coverage protection costs of operating education.
3. Inclusion in educational subsidy expenditures incurred for running kindergartens and pre-schools.
4. Introduction VAT recovery on investments carried out by TSU for capital expenditures.
5. Changing the mechanism granting of a balancing subsidyThe first one, which should take into account not only equal distribution of revenues of territorial self-government units, but also different costs of performing the tasks (related to the mechanism of payments to the budget, the so-called Janosikowego).
6. Forwarding new tasks in a legally structured manner, taking into account a reliable valuation of the task costs and their full coverage, as well as defining the standards for task implementation.
7. Finding spending rule principles with local governments and postponing its implementation.
8. Procedure deficit reduction should take into account the possibility of TSU development, including the implementation of projects with the participation of EU funds.
9. Giving local government organizations the right to file a constitutional complaint in the scope of tasks of TSU.
10. Provide not op health care for children and adolescents in educational institutions.

As a result of the First Local Government Conference, the Law and Justice Parliamentary Club submitted to the Speaker's desk a draft resolution of the Sejm on calling the Government of the Republic of Poland to take active measures to improve the financial situation of local government units, in which it expresses its concern over the significantly deteriorating condition of local government finances.

The resolution was rejected by the votes of the government coalition MPs.

As a very important step leading to cleaning up local government finances we recognize the civic bill on revenues of local government unitswhich meets the postulates made during the conference in January. We consider the establishment of ecological subsidies for municipalities as an interesting solution.

We particularly appeal to the Polish Parliament to consider the bill as soon as possible.

In the context of the current 2013 state budget proposal special attention should be paid to the fact that it is a stagnant budget, oriented mainly towards fiscal consolidation, i.e. reduction of budget expenditures. This has a direct negative impact on local governments' fiscal position and local development.

During the discussion experts, representatives of local government corporations, parliamentarians pointed to the underfunding of local governments in many areas.

It is estimated that 30% will lack funds for education, health care, social assistance, family assistance, unemployment prevention, it will not be possible to implement many infrastructure investments, including roads, flood protection, waste management, as well as housing construction.

As a result of violation of Article 28 paragraph 1 of the Act on the income of local governments and Article 167 paragraph 4 of the Constitution of the Republic of Poland, in this year's budget the educational part of the general subvention is understated by about PLN 1.2 billion. We urge you to take legal action to eliminate violations of the law in the preparation of the 2013 budget bill.

We also call for the Labor Fund (PLN 7 billion) to be allocated for statutory purposesand not grow in the deposit of the Minister of Finance. We demand that it be used to employ young people who are now forced to emigrate. In addition, attention should also be drawn to the failure to use the Guaranteed Employee Benefit Fund (PLN 4 billion) for the development of entrepreneurship.

In view of the above, the assembled representatives of local governments appeal to the Sejm of the Republic of Poland to carefully analyze the financing of local government tasks during further work on the budget and introduce changes to ensure the implementation of tasksthat local governments are responsible for.

It is also necessary to repair the tax system, de-bureaucratize the economy and support the development of local entrepreneurship.

Negotiations on the new financial perspective 2014-20 are nearing their end. We appeal to the Government to adopt solutions within the framework of the negotiations that will ensure adequate funds for the development of technical and social infrastructure, and equal conditions for Polish farmers to compete in European markets.

At the same time, the ability of local governments to utilize European funds must also be maintained.

We also recognize the wide disparity in local government revenues, so we propose a return to the constitutional principle of balanced development.

In connection with the presented situation of Polish local governments, the participants of the Second Local Government Conference appeal to the Government of Poland and the Parliament of Poland to find solutions as soon as possible to restore balance in local government budgets.