Participatory Budgeting & Public Finance Planning in New Zealand
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Participatory Budgeting & Public Finance Planning in New Zealand

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Presentation for the 2nd Conference on Participatory Budgeting in the US and Canada (3-5th May 2013, Chicago).

Presentation for the 2nd Conference on Participatory Budgeting in the US and Canada (3-5th May 2013, Chicago).

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  • What is it?a creature of statutea body corporate with perpetual successiona sphere of government in its own right providing goods and services and an important constitutional check and balanceWhy local government?closer to the community than central government and better able to reflect local interests, preferences and prioritieslocal voters better able to assess performance of local representativesopportunities for community participation strengthen democracya mechanism for fostering innovation and piloting new policies
  • The LTP sets the Council’s strategic direction for the next Ten Years listing projects, services and activities and how these are going to funded having considered future possible impactsThe Annual Plan sets out the budget for the year. This is based on what is proposed in the Ten Year Plan but also highlights any change or variance that is projected to occur which is not currently accounted for in the Ten Year Plan.

Participatory Budgeting & Public Finance Planning in New Zealand Presentation Transcript

  • 1. Public Finance Planning inNew Zealand LocalGovernmentManu Caddiewww.manu.org.nz
  • 2. 1. Introductions2. PB in NZ3. Local Government Structure4. Legislative Environment5. Planning & Reporting Cycles6. Trends in Public Participation7. Opportunities for ImprovementPublic Finance Planningin New Zealand LocalGovernment
  • 3. 1. Introductions
  • 4. 1. Introductions
  • 5. 2. PB in NZ“New Zealand tops the Open Budget Index with a score of 93 out of100. New Zealand‟s score indicates that the governmentprovides the public with extensive information on the nationalgovernment‟s budget and financial activities during the course of thebudget year. This makes it possible for citizens to hold the governmentaccountable for its management of the public‟s money.”
  • 6. 2. PB in NZ“Research and advocacy experience of civil society has demonstrated thattransparency by itself is insufficient for improving governance.Transparency along with opportunities for public participation in budgeting canmaximize the positive outcomes associated with open budgeting… TheInternational Budget Partnership recommends that New Zealand expandpublic engagement in budgeting after considering the Open Budget Surveyindicators on which the country performs poorly…”
  • 7. 2. PB in NZHistorical- 1980s & 90s: Christchurch City Council public servicesreform: „participation for modernisation„- 1993 won „best run city‟ Carl Bertelsmann prize for citizen-friendly modernisation (including privatisation andparticipatory budgeting)- subsequently influenced Germany‟s adoption of PB- focus on neighbourhood level funds and local boards and atcity/district level more on community outcomes and majorprojects with proposed budget and opportunities for publicinput via submissions and hearings before Council makesfinal decisions- contributed to Local Government Act 2002
  • 8. 2. PB in NZRecent- Giovanni Allegretti Tour (Nov 2012):- Green Party leadership & public meeting- Wellington City Council, Wellington Regional Council &Auckland Council (2 million)- National Radio- participatory budgeting & decision-making softwaredevelopment
  • 9. NZ Central GovernmentMain functions: law & order, defence, foreignaffairs, health, education, social security, public housing, nationaleconomic development, state highways, conservation estate, etc.3. Local Government Structure11 Regional CouncilsMain functions:environmental management(air, water, soil), landtransport planning, publictransport, air/ports, regionalpolicy/planning13 City, 54 DistrictCouncilsMain functions: utilities, localroads, parks & reserves, recreation& cultural facilities, local economic& communitydevelopment, community strategicplanning and land use planning.+ local community boards5 Unitary CouncilsCombined responsibilities of Regional &District
  • 10. 3. Local Government Structure0% 20% 40% 60% 80% 100%DenmarkNorwayFinlandAustraliaNew ZealandLocal GovernmentCentral GovernmentInternational Comparison of Public Expenditure
  • 11. 3. Local Government Structure3%27%9%5%7%5%9%18%17%Average Council SpendProperty & Commerical AssetsRoading & TransportWastewaterEnvironmental ProtectionDrinking WaterSolid WasteRegulation & PlanningCulture & RecreationGovernance
  • 12. 4. Legislative Environment“Balancing the budget is like going to heaven.Everyone wants to do it, but nobody wants to dowhat you have to do to get there.” - PhilGramm, US Senator- Local Electoral Act 2001- Local Government Ammendment Act 2012- Local Government (Rating) Act 2002- Resource Management Act 1991- Local Government Official Information Act 1987
  • 13. 5. Planning & Reporting Cycle
  • 14. 5. Planning & Reporting Cycle(contd.)OCTOBER:Pre-Consultation+ Expense &Income EstimatesMARCH:Draft AP/LTPApproved &PublishedAPRIL:SubmissionPeriod & PublicMeetingsJUNE:Plan Revised& ApprovedAUG-JUN:QuarterlyVarianceReporting
  • 15. 6. Trends in Public Participation- philosophy of governance:representative vs.participatory- traditionallyolder, whiter, wealthiercitizens- limited staff resourcescommitted to effectiveengagement- slow shift to onlineengagement- slow shift away from formalpublic meetings to informalneighbourhood public placeevents
  • 16. 7. Opportunities for Improvement1. Councils should:• formalise commitment tocitizen empowermentthrough goal setting andreporting requirements onpublic participation (Māorionly at present)• establish a matching fundand/or allocate aproportion of the totalbudget to particulargeographic/interestgroups2. Central government supportfor PB in local government