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The plenary session on Thursday discussed the need for reform of local financing model (22/09/2008)

09/22/1908.

The Councillor for Finance, Salvador Gomez, presented at the next plenary meeting an urgent motion to request the central Government for urgent reform of local financing to reduce non-local revenue transfers from the State General Budget 2009.

Among the reasons for this proposal is that "the overall drop in the Spanish economy has a particular impact on municipal coffers where, for example, local revenues related to urban development are diminishing, and there is a difficulty in accessing credit and difficult to meet the requirements of budgetary stability. "

To this we must add, in the words of mayor Salvador Gomez, "the problem of local funding that is being dragged in Spain during the last 30 years for services normally provided by municipalities without its jurisdiction, as the administration more nearest neighbors and more responsive to their demands. "

Regarding the current economic situation and the need for reform of local financing, the finance council has stressed that "the increase in registered unemployment rate that affects mainly in construction and related sectors, weak job creation in other sectors, the reduction in GDP growth forecasts, are coupled with forecasts for 2009 growth of only 1%. "

The plenary will be considered by the proposal of the Government of Spain claiming an agreement for urgent reform of local financing parallel to the regional financing and to establish the bases of the Local Agreement, so that local authorities may have before the end of the year with clear and precise rules to suit their real financial needs.

Similarly, the motion urging the Government proposes that the future reform of the Basic Law on Local Government to address definitively the precise delineation of the responsibilities of the municipalities in order to avoid the current situation of improper assumption of jurisdiction.

Source: Ayuntamiento de Caravaca de la Cruz

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