Krynica 2024: Love, partnership, subordination – Krzysztof Kwiatkowski on the financing of local governments

Luc Williams

The history of self-government in Poland: from love to subordination Senator Kwiatkowskibased on his many years of experience in local government, divided the evolution of the relationship between local government and the government into three phases: “love”, “partnership” and “subordination”.

  • The phase of love occurred in the early 1990s, when the government actively transferred competences to local governments, supporting their development and creating the basis for financing.
  • The partnership phase began at the turn of the 1990s and 2000s. Jerzy Buzek’s government introduced a reform that established new levels of local government: counties and voivodeships. According to Kwiatkowski, this reform was crucial for the effective use of EU funds and regional development.
  • The phase of subordination, which began with the rule of Law and Justice, was characterized by the centralization of power and control over the financing of local projects. The senator pointed out that local governments often did not receive sufficient financial support, and decisions on the distribution of funds were made centrally, without taking into account local needs.

The Impact of the Polish Deal on Local Government Finances One of the main topics of the discussion was the impact of the Polish Deal on local government finances. Senator Kwiatkowski emphasized that this reform contributed to significant financial losses for local governments. For example, tax changes, such as exempting young people from taxes or promoting the flat-rate tax, significantly reduced local government revenues, which are dependent on participation in PIT and CIT taxes. Kwiatkowski noted that these decisions were made without appropriate compensation for losses for local authorities, which in many cases hindered the implementation of local investments and projects.

Amendment of the Act on Local Government Finances In response to the difficult financial situation of local governments, the government is working on an amendment to the Act on Local Government Finances. This project, as Kwiatkowski noted, aims to transfer more funds to local governments, which will allow them to function better and implement local investments. In the first year of the Act’s operation, local governments are to receive PLN 25 billion, and over the course of a decade – several hundred billion.

Kwiatkowski expressed hope that the Sejm and Senate will actively work on this project, taking into account the voices of local government officials. Although changes to the main assumptions of the act may be difficult due to the excessive budget deficit, the senator emphasized his readiness for dialogue with local government representatives in order to work out the best possible solutions.

Prospects and challenges

In the conversation, Senator Kwiatkowski noted that strengthening local governments is a priority for all the ruling coalition partners. Although individual parties may differ in terms of priorities – for example, PSL may place greater emphasis on the needs of rural communes, and the Civic Coalition on large cities – all political circles agree on the need to improve the financing of local government units.

One of the key aspects in the upcoming debate will be the role of President Andrzej Duda. Kwiatkowski expressed hope that the president will sign the bill, although he noted that President Duda’s decisions may be motivated by political interests, not substantive ones.

The conversation with Senator Krzysztof Kwiatkowski shows that the financial situation of local governments in Poland is largely the result of central decisions that did not always take into account the needs of local communities. The amendment to the Act on Local Government Finances may be the first step towards improving this situation, but further legislative actions and cooperation with local government officials will be key. As the senator pointed out, strong local governments are the basis for an efficiently functioning state, and their strengthening should be a priority for all political forces.

About LUC WILLIAMS

Luc's expertise lies in assisting students from a myriad of disciplines to refine and enhance their thesis work with clarity and impact. His methodical approach and the knack for simplifying complex information make him an invaluable ally for any thesis writer.