Fiscal Decentralization Task Force meeting in Skopje, 28-29 June 2010

On 28th-29th of June 2010 the NALAS Task Force on Fiscal Decentralization meeting took place in Skopje, Macedonia. The main topic on the meeting’s agenda was the presentation and discussion of the NALAS Final Report on Developing a Municipal Finance Database in South Eastern Europe: the Preparatory Phase. During the meeting, the report was improved with the input of the participants and two ideas for follow-up phases were developed.  

Fiscal Decentralization, Options for Donor Harmonisation

Since the beginning of the 1990s, most developing countries have embarked in a process of subsequent decentralization, combining political, administrative and fiscal aspects. In this context, the Secretariat of the Development Partners Working Group on Local Governance and Decentralization (DPWG-LGD) has commissioned a desk study in the area of Fiscal Decentralization with a focus on local taxation, in order to produce recommendations on two levels: (i) Simplification and optimisation of fiscal systems and (ii) harmonisation of development partners’ interventions. The desk study has been conducted by an individual consultant from Germany and  used sources of information provided by the working group members as well as other sources from her professional experience. Reference is made to positive as well as negative experience in a range of countries, including states at different stages of fiscal decentralization. With regard to revenue generation at sub-national levels, the focus is on real property tax and market fees and taxes. Selected examples regarding innovative modalities for performance-based grants, sub-national borrowing and public-private partnerships are also analysed.

Disaster for the municipalities

Pforzheim is a town of nearly 119 000 inhabitants in the state of Baden-Württemberg, southwest Germany. It is world-famous for its jewelry and watch-making industry. Because of that it gained the nickname "Goldstadt" or Golden City. It has an area of 98 km² and is situated between the cities of Stuttgart and Karlsruhe. Unfortunately, lately the city is becoming famous for another thing. On 5 January 2010, "Die Welt" published a story of a long struggle of the town Mayoress and her ciry treasurer that may lead to a legendary loss of 77.5 million euro in the years 2014-2017. The translated vesrion of the story is available at the link below.

Resolution of the Presidium of the German Association of Towns and Municipalities of 1 December 2009

The impacts of the financial and economic crisis are increasingly being felt in the cities and towns. Tax revenues heavily drop, while social expenditure is exploding. Municipalities are to look after children and ensure security, rehabilitate schools and eliminate waste water, pay social welfare benefit and strengthen local crafts - in short, provide an attractive environment. The gap between the collapsing revenues and skyrocketing costs of the municipalities will become wider in the next few years. The financial crisis is already determined policy decisions. Given this precarious situation, the German cities and municipalities are calling for a recue system and sustainable municipal consolidation package. Click below to read the whole document.  

Cost Estimation of Municipal Services of South East Europe

As a result of the awareness of the new needs od local authorities in South East Europe, the NALAS Task Force on Fiscal Decentralisation gathered experts and resources to develop cost estimation model of mainstream municipal services. This publication offers methods of cost estimation of municipal services that include operational (investment) costs, are simple and relatively easy to apply and still allow country-specific adjustments.

Recession support for councils

The Local Government Association has gathered and published very valuable resources for adressing the current crisis by the local councils. The resources include frequently asked questions, policy and lobbying, research by LGA and guidelines on this topic.  

Improvement of Local Property Tax Administration in South East Europe

This publication contains guidance on the most critical tasks needed to improve local tax administration with a comparative analysis of the situation in SEE. It provides practical advice by specifying methods used for property identification, assessment of property and techniques of local property tax collection and enforcement. It presents good practices on property administration within the countries of South East Europe. Recent successful international programs in some SEE countries are also described.