1. POLISH DECENTRALIZATION 1990 – 2005 MILESTONES: (I) Political changes – 1989 (II) Municipalities – 1990 (III) The Cities Act – 1996 (IV) Constitution – 1997 (V) Counties and regions – 1999

2. I. Decentralization process (first stage)  Decision to create basic level of self-go- vernment: municipalities  Political agreement = no serious obstacles  Role of partners (politicians, experts, civic committees, media)  Pattern – European standards  Quality of results of the first stage

3. II. Municipalities (first level) (1)  Outcome of the Process: First democratic election in Poland – 1990 First democratic election in Poland – 1990 2490 municipalities (38,2 mln inhab.) 2490 municipalities (38,2 mln inhab.) Average size – 15.000 inhabitants (similar to European average) Average size – 15.000 inhabitants (similar to European average) 65 cities with county rights (similar to German „Kreisfreistädte” (12,8 mln inhab.) 65 cities with county rights (similar to German „Kreisfreistädte” (12,8 mln inhab.) 300 towns and 530 town-rural municipalities 300 towns and 530 town-rural municipalities 1600 rural municipalities 1600 rural municipalities

4. II. Municipalities (first level) (2)  All local responsibilities (land-use planning, environment, public transportation, local roads, water supply, sewage treatment, solid waste management, basic education, social welfare, local culture, open health care, local development, basic administration services);  Municipal council (15 – 45 members), directly elected for a 4-year term; in municipalities of more than 20.000 inhab. – proportional, in smaller – one-seat districts;  Since 2002 – direct election of mayor (previously - election by council) for the same term

5. II. Municipalities (first level) (3)  Municipal finances (2004): a) in 2425 municipalities – 1615 PLN / per capita b) in 65 cities with county rights – 2505 PLN / pc  Structure: a) direct income (local taxes and fees) 34,9 % b) shares in PIT and CIT 20,4 % c) general subsidies 32,9 % d) task transfers 11,8 %

6. III. The Cities Act (1996-8)  Process: 1994 – pilot county project (some tasks of future counties delegated to 46 cities by individual bilateral agreements including financing conditions); 1994 – pilot county project (some tasks of future counties delegated to 46 cities by individual bilateral agreements including financing conditions); 1996 – special law transferring set of tasks of future counties to 46 cities, establishing special financial transfers for these tasks; 1996 – special law transferring set of tasks of future counties to 46 cities, establishing special financial transfers for these tasks;  Outcome: since January 1st, 1999 – these 46 plus additional 19 cities became „cities with county rights”.

7. IV. New Constitution  Subsidiarity in the Constitution’s preamble,  Municipality – basic level of self-govern- ment, other tiers defined by law;  Chapter 7 - Self-government (includes all basic statements od European Charter of Local Self-Government).

8. V. Decentralization process (second stage)  Decision to create other levels of self- government: counties and regions  Obstacles of the process (main – central administration’s negative behavior)  Role of partners (politicians, experts, civic organizations, media)  Advocacy role of municipal associations  Quality of results of the second stage

9. V. Counties (second level) (1)  Outcome: First election – October 1998; First election – October 1998; Beginning of legal acting – January 1st, 1999; Beginning of legal acting – January 1st, 1999; 307 counties; 8 new added in 2001; 307 counties; 8 new added in 2001; 65 cities with county rights (municipalities exercising all county responsibilities, receiving both municipal and county financial resources); 65 cities with county rights (municipalities exercising all county responsibilities, receiving both municipal and county financial resources);

10. V. Counties (second level) (2)  Those local responsibilities which are „over- municipal” (administration services, environ- ment, county roads, secondary education, employment policy, social welfare, culture, basic public hospitals, fire protection, local safety);  County council (15 – 29 members), directly elected for a 4-year term in proportional elections;  County board (executive body) elected by council for the same term;

11. V. Counties (second level) (3)  County finances (2004): a) in 315 counties – 500 PLN / per capita b) in 65 cities with county rights – 2505 PLN / pc  Structure (since 2004): a) direct income (local fees) 14,2 % b) shares in PIT and CIT 10,7 % c) general subsidies 50,9 % d) task transfers 24,2 %

12. V. Regions (third level) (1)  First election – October 1998;  Beginning of legal acting – January 1st, 1999 ;  16 regions (voivodships);  Regional council (30 – 48 members), directly elected for a 4-year term in proportional elections;  Regional board (executive body) elected by council for the same term;

13. V. Regions (third level) (2)  Regional finances (2004): in 16 regions (av.) – 185 PLN / per capita  Structure (since 2004): a) direct income (local fees) 3,2 % b) shares in PIT and CIT 55,9 % c) general subsidies 18,5 % d) task transfers 22,4 %

14. Decentralization of public finances Some indicators: - decentralization degree – 10,3% of GDP - decentralization degree – 10,3% of GDP ( Denmark – 32 %, Sweden – 25 %, Germany, Nether- lands – 10 - 11 %, France, UK, all other new EU members – less than 10% ); ( Denmark – 32 %, Sweden – 25 %, Germany, Nether- lands – 10 - 11 %, France, UK, all other new EU members – less than 10% ); - structure of public finances (2004): - structure of public finances (2004): - central budget 197,7 bln PLN (43,6 %), - central budget 197,7 bln PLN (43,6 %), - local and regional budgets 91,5 bln PLN (20,3 %), - local and regional budgets 91,5 bln PLN (20,3 %), - National Health Fund 31,4 bln PLN (6,9 %), - National Health Fund 31,4 bln PLN (6,9 %), - other task funds 133,0 bln PLN (29,3 %). - other task funds 133,0 bln PLN (29,3 %).

15. Structure of decentralized public finances (2004, bln PLN)  Municipalities 40,94 (44,8%)  Cities with county rights 32,14 (35,2%) altogether (80,0%) altogether (80,0%)  Counties12,44 (13,6%)  Regions 6,00 (6,4%) TOTAL91,52 (100 %)

16. Local and regional investment (bln PLN)  Municipalities 7,47 (49,2%)  Cities with county rights 4,71 (31,0%) ( altogether) (80,2%) ( altogether) (80,2%)  Counties 1,27 (8,4%)  Regions 1,74 (11,4%) TOTAL 15,19 (100%) = 4 bln Euro