Friday, October 10, 2008

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Ten ways to preserve the investment capacity of communities

How can local communities continue to meet the demands of society, while the state of their finances does little more leeway? They are at the foot of the wall. However, given its importance in public investment - About three quarters - and essential services it funds local public investment can "serve as an adjustment variable", says Institute of decentralization in a report * on "local public investment and control of public expenditure " presented October 8.

This vast area explored by the rapporteur of the study, Bernard Fritsch, a senior lecturer at the Institute of Geography, University of Nantes. "When local communities are facing a demand for public services, they argue automatically in terms of supply of new equipment without putting this solution against other possible options such as upgrading of existing equipment. "The university also criticized a system of financing the subsidies' pushing communities to build new facilities rather than the rationalization of existing facilities" . And adds: "We do not know the geography of spillover from public facilities." Thus, the economic balance sheet - after building a convention center, for example - or environmental reports are rare.

Proposals

known advocate of a "revision of the modes of local public action, the Institute decentralization ten proposals. To find new financial resources, we must seek more users through pricing, used more widely, but a "case by case," the PPP (public service delegations, partnership agreements, etc.), or change the tax regime affecting communities a greater share of taxation on cars and by initiating reforms in rental values.

A second set of proposals aimed at improving the efficiency of government interventions. Again, the study calls on local decision-makers to think differently, putting the focus of their reflection the concept of "services" rather than of "equipment". Other tracks: optimizing the management of existing assets, the more frequent use of the evaluation, or development of engineering capabilities of local communities.

The report finally addresses a modest institutional issues. To cope with the crumbling communal Institute of decentralization suggests a boost from "urban" the process of fusion-association of municipalities and strengthen the skills of intercommunal. Considers it necessary to clarify the relationship between local authorities, without taking a position on a possible solution. It must be said that the institute had addressed this issue at length in June 2006, in a report entitled "Rethinking local responsibilities." He called the questioning of the general clause of skills of the departments and regions (see our article: "The general competence clause in question ).

* The report is to be ordered Institute of decentralization the price of 15 euros.


Posted October 9, 2008, by Thomas Beurey, Institute of decentralization

Source: http://www.localtis.info

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