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Participatory Budgeting & Public Finance Planning in New Zealand

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Participatory Budgeting & Public Finance Planning in New Zealand

  1. 1. Public Finance Planning in New Zealand Local Government Manu Caddie www.manu.org.nz
  2. 2. 1. Introductions 2. PB in NZ 3. Local Government Structure 4. Legislative Environment 5. Planning & Reporting Cycles 6. Trends in Public Participation 7. Opportunities for Improvement Public Finance Planning in New Zealand Local Government
  3. 3. 1. Introductions
  4. 4. 1. Introductions
  5. 5. 2. PB in NZ “New Zealand tops the Open Budget Index with a score of 93 out of 100. New Zealand‟s score indicates that the government provides the public with extensive information on the national government‟s budget and financial activities during the course of the budget year. This makes it possible for citizens to hold the government accountable for its management of the public‟s money.”
  6. 6. 2. PB in NZ “Research and advocacy experience of civil society has demonstrated that transparency by itself is insufficient for improving governance. Transparency along with opportunities for public participation in budgeting can maximize the positive outcomes associated with open budgeting… The International Budget Partnership recommends that New Zealand expand public engagement in budgeting after considering the Open Budget Survey indicators on which the country performs poorly…”
  7. 7. 2. PB in NZ Historical - 1980s & 90s: Christchurch City Council public services reform: „participation for modernisation„ - 1993 won „best run city‟ Carl Bertelsmann prize for citizen- friendly modernisation (including privatisation and participatory budgeting) - subsequently influenced Germany‟s adoption of PB - focus on neighbourhood level funds and local boards and at city/district level more on community outcomes and major projects with proposed budget and opportunities for public input via submissions and hearings before Council makes final decisions - contributed to Local Government Act 2002
  8. 8. 2. PB in NZ Recent - 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 software development
  9. 9. NZ Central Government Main functions: law & order, defence, foreign affairs, health, education, social security, public housing, national economic development, state highways, conservation estate, etc. 3. Local Government Structure 11 Regional Councils Main functions: environmental management (air, water, soil), land transport planning, public transport, air/ports, regional policy/planning 13 City, 54 District Councils Main functions: utilities, local roads, parks & reserves, recreation & cultural facilities, local economic & community development, community strategic planning and land use planning.+ local community boards5 Unitary Councils Combined responsibilities of Regional & District
  10. 10. 3. Local Government Structure 0% 20% 40% 60% 80% 100% Denmark Norway Finland Australia New Zealand Local Government Central Government International Comparison of Public Expenditure
  11. 11. 3. Local Government Structure 3% 27% 9% 5% 7%5% 9% 18% 17% Average Council Spend Property & Commerical Assets Roading & Transport Wastewater Environmental Protection Drinking Water Solid Waste Regulation & Planning Culture & Recreation Governance
  12. 12. 4. Legislative Environment “Balancing the budget is like going to heaven. Everyone wants to do it, but nobody wants to do what you have to do to get there.” - Phil Gramm, 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. 13. 5. Planning & Reporting Cycle
  14. 14. 5. Planning & Reporting Cycle (contd.) OCTOBER: Pre-Consultation + Expense & Income Estimates MARCH: Draft AP/LTP Approved & Published APRIL: Submission Period & Public Meetings JUNE: Plan Revised & Approved AUG-JUN: Quarterly Variance Reporting
  15. 15. 6. Trends in Public Participation - philosophy of governance: representative vs. participatory - traditionally older, whiter, wealthier citizens - limited staff resources committed to effective engagement - slow shift to online engagement - slow shift away from formal public meetings to informal neighbourhood public place events
  16. 16. 7. Opportunities for Improvement 1. Councils should: • formalise commitment to citizen empowerment through goal setting and reporting requirements on public participation (Māori only at present) • establish a matching fund and/or allocate a proportion of the total budget to particular geographic/interest groups 2. Central government support for PB in local government

Editor's Notes

  • 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.

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