| 
Local Government in Slovenia
by Stanka Setnikar-Canka, Stane
Vlaj and Maja Klun
1. Legal and Constitutional Basis
The development of local democracy requires regulations that
will support organizational, financial, material and territorial
reforms in local self-government; local populations must manage
their own affairs either directly or through bodies of local
self-government. From the view of democratic management, it
would be ideal for the people of a community to address their
affairs directly—that is, to participate in all decision making.
In practice, this is impossible in a modern local community
as such issues are too various, complicated and frequent to
include the entire population. If local self-government is to
be democratic, however, it must respond to the needs of the
local population. This is only possible if the population directly
influences the formation of the most important local bodies—that
is, representative bodies elected by the local community—which
make the most important decisions on behalf of the inhabitants
based on their interests. The operation of such self-government,
the stabilization of relations among representative bodies and
utilization of direct democracy is also vital.
The Constitution of the Republic of Slovenia establishes local
government autonomy and states that its citizens exercise local
government powers and functions through representative bodies
and other organizations. The Law on Local Self-government, enacted
in 1993 and revised six times since, defines the operations,
rights and authority of local self-governments and their relationship
to the state.
The constitution defines self-government on both municipal and
regional levels, but to date only the former exists in practice.
Laws creating regions as the second level of local selfgovernment,
regulating regional development and redefining the status of
municipalities are in preparation. The areas of local self-government
competence are defined and revised regularly through legislation
that conforms with the European Charter of Local Self-government,
which was ratified by Slovenia in 1996 and enacted in 1997.
1.1 Legal Basis for Self-government
The Constitution of the Republic of Slovenia protects the autonomy
of local self-government and states that the Slovene people
exercise such authority and functions through self-governing
units (municipalities and regions). A municipality may comprise
a single settlement or a number of settlements, the inhabitants
of which are bound together by common needs and interests.
The Law on Establishing Municipalities and Determining Their
Territory and the Law on Local Self-government stipulate that
municipal councils, local community councils or citizens’ assemblies
must participate in decisions to change or create the territorial
structure of a municipality. In accordance with the Law on Referendums
and People’s Initiatives, a municipality may be established
following a local referendum that ascertains public opinion
in the affected area. On the basis of initial research and the
referendum, the National Assembly (parliament) legally recognizes
such new administrative units and approves the demarcation of
their territories. A municipality generally has at least five
thousand inhabitants, although exceptions may be made due to
geographic location or for national, historical or economic
reasons. In 1994, 147 new municipalities were established, and
another 45 were added in 1998. Slovenia’s administrative structure
currently is comprised of 192 municipalities, eleven of which
are urban municipalities. The breakdown of municipalities by
population is presented in Annex 9.2.
Narrower constituencies of a municipality may be established
on its territory (local, village and ward communities). Prior
to establishing these subunits or altering their territories,
the municipal council must determine by means of a town meeting
or referendum the interests of the population of the areas in
which a constituent part is to be created.
A municipality’s duties include local matters affecting its
inhabitants, which the municipality independently may determine.
The state may invest such functions in municipalities and wider
local self-government bodies through legislative acts, subject
to their consent and to the provision of the financial means
necessary for performing such duties. The constitution provides
that the municipality may raise its own revenues. Municipalities
that are unable to meet all required expenditures in performing
their duties due to poor economic development are eligible for
additional financial assistance from the state. The services
provided by municipal local governments are presented in section
2.3.
The constitution also introduces the concept of “urban municipalities.”
The urban municipality is a compact settlement or group of settlements
in a unified area where towns and villages are linked by the
daily commuting of the population. A town or city may acquire
the status of an urban municipality if it has at least twenty
thousand inhabitants, is the place of employment of fifteen
thousand individuals and is the geographic, economic and cultural
center of the area. The National Assembly founds urban municipalities
through legislative acts and determines their territories and
names. Statistics on the number of urban municipalities in Slovenia
and their populations are presented in Annex 9.2.
Specific duties and functions relating to urban development
may be assigned by the state to urban municipalities (described
in section 2.3). An urban municipality may perform regional
administrative functions if so determined by the municipalities
of the region. In addition to local matters of public importance,
urban municipalities must also perform specific tasks that fall
under national jurisdiction and that apply to the development
of towns.
Finally, the Law on Local Self-government provides for the establishment
of special status municipalities due to specific conditions
with regard to location or level of development. Procedures
for establishing such municipalities will be outlined in the
Law for the Promotion of Regional Development, which is currently
under preparation.
1.2 Legal Basis for Regional Self-government
As mentioned above, the constitution also provides for the establishment
of regional selfgovernment bodies. Such regional governments
will be established on the basis of the Law on Regions, which
is under preparation and which will introduce legal norms and
procedures for founding regions and will facilitate their functioning.
The Slovene government has submitted draft legislation to this
effect to the National Assembly for preliminary review. Regions
will become the second level of local self-government and will
serve as obligatory, multipurpose facilitators of cooperation
among several municipal self-government bodies. In accordance
with the constitution and the Law on Local Self-government,
the region performs duties of wider interest determined by the
municipalities themselves related to community services; economic,
cultural and social development of the territory; and strengthening
and developing local self-government. The region will also perform
duties assigned by the state. The law on the transfer of duties
from state jurisdiction to regional jurisdiction will determine
the method of funding the implementation of these duties.
Currently, the constitution allows municipalities to independently
and voluntarily form regions by integrating into communities
or forming alliances of two or more municipalities in order
to regulate and perform local tasks of broader interest.
1.3 Relationship between the State
Administration and Local Government
There are fifty-eight state administrative units in Slovenia,
which are territorial bodies with their own fields of operation,
competence, functions and authority. They have jurisdiction
over one or several municipalities with regard to competencies
delegated by the state. Advisory committees are formed in order
to ensure cooperation and coordination between municipal bodies
and administrative units. Members of these committees are appointed
and dismissed by municipal councils.
The Law on Administration and the Law on Local Self-government
determine the competence of state authorities. Administrative
units of the ministries at the local level monitor local communities
in their own specialized areas. Ministries and state administrative
units may comment on matters of municipal competence when an
act is not in accordance with the constitution or law and may
suggest an appropriate solution. If the municipal body fails
to harmonize its decision with such legislation, the supervisory
body must advise the government to initiate proceedings with
the Constitutional Court. The supervisory body, however, does
not have the power to invalidate or amend decisions made by
municipal bodies; this is possible only through the Constitutional
Court or administrative courts. In some cases, the supervisory
body may temporarily perform the duties of the municipal body
in order to ensure the regular provision of civil services to
its inhabitants.
The regulation of municipal bodies is different concerning duties
assigned by the state. In such cases, ministries review the
work of municipal bodies and ensure the appropriate and uninterrupted
performance of state duties. In order to ensure quality, the
supervisory body may dictate reorganization of the project,
job conditions or other instructions. If the ministry discovers
that the municipal body did not perform the duties invested
in it, a decree is issued ordering the implementation of specific
measures or, after issuing numerous warnings, the ministry advises
the government to initiate procedures to withdraw duties assigned
to the municipality. In such cases the municipality may appeal
the allegations in court.
Monitoring the effectiveness of municipal bodies is primarily
the responsibility of the mayor, as the official who proposes
the most important municipal acts and administers the municipal
budget. The mayor is obliged to ensure the lawfulness of his
or her proposals and has the right to prevent the municipal
council from issuing regulations that are unconstitutional or
illegal. The municipal council also is responsible for ensuring
the legality of its own actions.
A municipality may file an administrative dispute against a
supervisory body if the municipality maintains that the supervising
body has not acted legally or appropriately. The municipality
may submit a request to the Constitutional Court to consider
the constitutional and legal character of decisions and regulations
issued by a state body if such legislation restricts its autonomy
as defined by the constitution and law.
2. Local Politics, Decision Making
2.1 The System of Local Elections
The Law on Local Elections and the Law on Local Self-government
regulate local elections. The former addresses procedures for
the elections of municipal councils and mayors, regional councils
and councils of town, village and ward communities. General
municipal council elections are held every four years, although
they may be called earlier. The president of the National Assembly
announces regular elections, and the mayor calls early elections.
All inhabitants of a local community of legal age who are citizens
of Slovenia have the right to vote. The election law establishes
a majority electoral system for municipalities with less than
twelve council members and a proportional electoral system for
municipalities with more than twelve council members. Citizens
vote for individual candidates in accordance with the majority
system, and for lists of candidates where the proportional system
is utilized.
The council is the representative body of the municipality and
is directly elected by inhabitants, in line with modern standards
of democracy. In addition to the council, which makes the fundamental
decisions in a municipality, the mayor, elected directly with
a four-year mandate, also has the status of an official body
of the municipality. The mayor is elected by simple majority.
Since a candidate rarely receives the required majority in the
first round of elections, a second round generally is held between
the two candidates with the most votes. Candidates and lists
of candidates can be endorsed by political parties or by the
voters in an electoral unit. The Law on Local Elections establishes
that voters nominate candidates by petition or at voters assemblies.
During the latter, candidates are selected after being proposed
by voters. Each voter may propose at most the same number of
candidates as there are seats on the council. Nominated individuals
are selected if at least thirty citizens—or if the electoral
unit has fewer than five hundred residents, at least fifteen
citizens—voted at the assembly in the electoral unit. The Law
on Local Self-government stipulates that the National Assembly
may dissolve a municipal council and announce early elections
if the council fails to achieve a quorum after being called
at least three times in a six-month period, or if the municipal
council fails to enact a budget for two consecutive years. Legislation
also allows the National Assembly, on proposal of the government,
to dissolve a municipal council in the event that it passes
unconstitutional or illegal acts, fails to execute the rulings
of competent courts, does not fulfill its legal duties or otherwise
violates the law and fails to correct such violations.
A proposed amendment to the Law on Local Self-government would
allow the National Assembly to relieve the mayor and deputy
mayor of their duties and appoint a temporary manager in the
event that a municipal council is dissolved. Until the election
of the new bodies of the municipality, the temporary manager
would conduct the responsibilities of the mayor. If a municipal
council is dissolved, the National Assembly would announce early
elections for the mayor and municipal council.
The Law on Political Parties regulates the financing of election
campaigns and determines the method of providing financial support
for parties, but not for individual candidates. According to
the law, parties acquire funds from membership fees, private
contributions from organizations and individuals, revenue from
assets, donations and bequests and profits from the income of
enterprises owned by a particular party. A party whose candidates
are elected to the National Assembly is eligible for financial
support. The cost of conducting local elections is otherwise
covered by the municipalities. The Law on Election Campaigns
regulates matters concerning campaigning through the public
media and other forms of communication, organizating election
rallies and financing election campaigns.
The term of office of elected members of the municipal council
is four years. According to the law, resignation is possible,
although procedures are not specified. Current legislation does
not provide for the recall of the mayor or members of the municipal
council.
The political participation of both genders in Slovenia is not
a question of “fair” representation but a matter of different
perceptions and approaches. Women have the same rights as men
to stand as candidates and establish themselves in politics.
Nonetheless, women are represented poorly in politics. There
is no regulation that establishes quotas for women in parliament
or other bodies of authority.
2.2 Forms of Direct Democracy
The Constitution of the Republic of Slovenia and the Law on
Local Self-government define the forms of citizen participation
in decision making on local public affairs, including citizens’
assemblies, local referendums and people’s initiatives.
A citizens’ assembly is called, in accordance with municipal
statutes, by the mayor, by the municipal council or the council
of a constituent part of the municipality, or by five percent
of the voters in a municipality or one of its constituent parts.
In accordance with the law and the municipality’s statutes,
citizens discuss individual matters in the competence of the
municipality and make proposals or pass decisions at these assemblies.
Various types of referendum can be held in local communities.
Preliminary referendums are called by the National Assembly
to establish a municipality and define or alter its territory,
change the name or seat of a municipality and establish regions.
The municipal council may, following a request by voters, call
an advisory referendum on an issue of special importance to
the local community or on acts concerning the municipality’s
affairs, with the exception of those concerning the budget,
municipal taxes and other duties. The outcome of a referendum
is binding for all municipal bodies until the expiry of their
mandates. All citizens who have the right to elect members of
the municipal council have the right to participate in referendums.
A decision is adopted by referendum if supported by a majority
of those who voted.
The issuance or cancellation of a general act within the competence
of the municipal council or other municipal bodies may be enacted
through people’s initiatives by no less than five percent of
a municipality’s voters. The body to which such an initiative
is addressed must decide on the matter within the deadline defined
by municipal statutes or no later than within three months.
2.3 Distribution of Powers among
Different Levels of Local Government
The Law on Local Self-government clearly determines the responsibilities
that are performed independently by the municipality. Such duties
are defined in each municipality’s statutes and by law. In addition
to the duties performed by all municipalities, urban municipalities
also have functions related to the development of the town or
city.
The basic needs of the population that the municipality is obligated
to address include:
- primary education;
- primary health care;
- provision of essential utilities;
- municipal services;
- postal and banking services;
- library facilities;
- premises for local administration;
- public transportation
- public space maintenance and use.
In addition to the duties of municipalities, those with city
status must:
- regulate local public transportation;
- regulate public spaces and the construction of facilities;
- perform tasks in the area of geodesic services;
- administer a public network of primary, secondary, vocational
and higher education institutions and libraries in their territories;
- ensure secondary public health service in their territories,
including the administration of hospitals;
- provide a network of civil services;
- establish telecommunications centers and specialized information
documentation centers, as well as local radio and television
stations and press;
- support cultural activities (theaters, museums, archives)
and sport and recreation facilities;
- administers all housing matters in accordance with the Housing
Law, including maintenance of registers and contracts, monitoring
of rents and issuance of construction permits and building inspections.
2.4 Internal Structure of Local
Government Decision Making
Municipal bodies that exercise local self-government include
the municipal council, the mayor, the supervisory board and
the elections commission.
The municipal council is the highest decision-making body on
all matters concerning the rights and duties of the municipality.
The council passes general acts, approves the municipal budget
and supervises the performance of the mayor and the municipal
administration to ensure implementation of council decisions.
The municipal council performs the following functions:
- adopts statutes, decrees and other municipal acts according
to which the rights and obligations of organizations and individuals
in the municipality are regulated;
- adopts land and other development plans;
- adopts the budget and final financial report of the municipality;
- gives consent when particular duties are transferred from
state jurisdiction to the municipality;
- appoints and dismisses members of the supervisory committee,
members of commissions and committees of the council, representatives
of the municipality in the advisory committee of the head of
the state local administrative unit and other representatives
of the municipality in public enterprises, institutions, foundations,
et cetera and appoints, upon proposal of the mayor, the deputy
mayor(s) and the secretary of the municipal administration;
- communicates its opinion on the appointment of the head of
the administrative unit;
- decides on the acquisition and divestment of municipal property
(if the mayor is not authorized to do so by municipal act);
- decides on other matters determined by law and by the statutes
of the municipality.
The municipal council is comprised of between seven and forty-five
members proportionate to the number of inhabitants in the municipality
who are elected by citizens on the basis of general and equal
voting rights at free and direct elections by secret ballot.
Members of municipal councils are elected according to the majority
or proportional system depending on the number of members of
the municipal council (the majority system applies in cases
of up to twelve members, and the proportional system for more
than twelve); representatives of minority communities are elected
according to the majority system.
The mayor represents the municipality, and he or she is its
legal representative. The mayor proposes the municipal budget,
decrees and other acts within the jurisdiction of the council
and is responsible for the implementation of council decisions.
The mayor is the head of the municipal administration. On the
basis of the Act on the Organization and Field of Operation
of the Municipal Administration, the mayor determines the structure
of the municipal administration, appoints and employs municipal
administrative staff and organizes and heads the municipal office.
Neither the mayor nor the municipal council has the right to
demand the resignation of another municipal body.
The supervisory board regulates the management of municipal
assets, ensures the purpose and efficiency of budgetary expenditures
and monitors financial operations. Supervisory board members
are appointed and dismissed by the council and may not be members
of the council, municipal administrators, public employees or
members of the management of budgetary organizations. The council
appoints the municipal elections commission, which is responsible
for ensuring the legality of municipal council elections, approving
candidates, establishing polling stations, appointing elections
boards, assessing election results, et cetera.
2.5 Ethnic Issues, Multicultural Government
Due to the constitutional provisions on representation of members
of recognized ethnic communities, the law on Local Self-government
stipulates that in ethnically mixed areas, the Italian or Hungarian
communities must have at least one representative on the municipal
council. The transitional provisions of the Law on Local Elections
stipulate that one-tenth of all municipal councilors represent
minority groups. In addition to these two ethnic groups, the
Roma community also has representatives in municipal councils
in areas where this community is indigenous. Such councilors
specifically are responsible for representing ethnic groups
on acts that relate to the exercising of special rights of the
Italian or Hungarian minorities.
2.6 Local Government Associations and International Contacts
According to the provisions of the Law on Local Self-government,
local authorities cooperate among themselves on the principles
of free will and solidarity. They may collect funds and designate
common bodies and organizations for the performance of common
duties. Municipalities may also integrate into other communities
or form alliances of two or more municipalities in order to
regulate and perform matters of interest to a broader territory.
Their statutes determine the manner of integration and the status
of these communities. Such communities and alliances and their
common bodies and organizations have status equal to that of
municipal administrations and organizations in relations with
the state administration. Local governments may cooperate freely
with foreign local communities and with local community international
organizations. Municipalities collaborate on local self-government
development and local service implementation.
The Slovenian municipalities appointed a working group, the
Permanent Conference of Local Communities, that in April 1997
initiated changes and additions to the Law on Local Selfgovernment.
The Local Government Office stated that certain provisions of
the current Law on Local Self-government caused unnecessary
difficulties in practice and therefore needed to be changed
or amended. However, this mostly addressed provisions that were
difficult to implement because they systemically were incompatible
with the nature of exercising of local authority.
3. Local Administration, Service
Provision
3.1 Structure and Operation of Local Administration
There are no legal provisions concerning the internal structure
of municipal administration. The organization of services and
departments within an office depends on the size of the municipality.
In small municipalities, the structure of the office is based
on functional principles; a single municipal authority is created.
In large municipalities, departments are formed that are responsible
for particular spheres (public activities, economic activities,
finance, et cetera). Urban municipalities are organized according
to the departmental principle.
The municipal council adopts standing orders on its work and
on the organization of the municipal administration. Within
a month after adopting this resolution, the mayor issues an
act on the systemization of jobs in the municipal administration
in accordance with the Local Administration Act and the Law
on State Administration Employees. These acts represent the
basis for the employment and legal status of workers and specify
conditions for acquiring jobs. The mayor, or the secretary of
the municipal administration with the authorization of the mayor,
decides on the appointment or employment of senior administrative
staff, administrative staff and expert technical staff. The
exceptions are, of course, the deputy mayor(s) and secretary
of the municipal administration, whose appointments are the
responsibility of the municipal council upon nomination by the
mayor.
It may be determined by statute or decree on the organization
of the municipal administration that the secretary heads the
municipal administration. The secretary of the municipal administration
is a functionary whose duty is expert guidance of the municipal
administration. The secretary is appointed and dismissed by
the municipal council upon nomination by the mayor and reports
to the mayor.
There are four categories of personnel in the municipal administration:
functionaries, senior administrative staff, administrative staff
and expert technical staff. The Law on Local Self- government
categorizes members of the municipal council, the mayor, the
deputy mayor and the municipal secretary as municipal functionaries.
Senior administrative staff (advisors to the mayor, senior advisors)
are appointed by the municipal council upon nomination by the
mayor but do not hold the status of functionaries. Administrative
staff (clerks, other public staff) are appointed by the mayor
as prescribed in the employment structure. Expert technical
staff (expert employees, administrators, junior clerks) are
not appointed but are posted to their relevant positions by
mayoral decree.
Regulations on employment and salaries for employees in the
state administration are applicable to all municipal administration
employees. The legal status and employment conditions for local
community personnel are regulated by the provisions of the Law
on Employment and the Law on Salary Ratios in Public Institutions,
State Bodies and Local Community Bodies. Provisions of executive
regulations issued by the government also are applicable to
local governments, particularly the Decree on Common Grounds
for the Internal Organization and Systemization of Jobs in Administrative
Bodies, the Decree on the Quotients for Determining Basic Salaries
and Allowances for Employees in the Services of the Government
of the Republic of Slovenia and in Administrative Bodies, and
Regulations on the Promotion of State Administrative Personnel.
3.2 Control, Audit and Supervision
of Local Governments
Municipalities appoint boards, the responsibilities of which
are to:
- supervise the management of municipal assets;
- supervise the appropriate and efficient use of the budget;
- supervise the financial operations of users of the budget.
Supervision involves assessing activities and ensuring their
conformity with legislation and specified budgetary objectives.
If commissioned by a municipal body, audits are performed by
independent licensed auditors and by the Accounts Court of the
Republic of Slovenia. The Accounts Court performs audits in
accordance with its program; that is, it performs audits upon
the initiative of the municipal body, rather than annually.
The most common cases brought to the Court of Auditors in the
last four years follow.
1. Fees paid to local elected officials were too high. Amounts
were highest in 1994 and have decreased since. The amount of
overpaid fees in the last four years totaled approximately USD
705,000 in only twenty-two local authorities. The Court of Auditors
estimated that only ten percent of that amount was paid back
to local budgets. The main problem is that the Court of Auditors
does not have the power to impose obligatory changes on local
governments. In such situations, the legal framework in Slovenia
does not provide for the repayment of income tax or contributions
to the pension fund.
2. Reserves were lower than stipulated by law. According to
the Law on the Financing of Local Government, local governments
should keep at least 0.5 percent of revenues as reserves to
cover unpredicted local community costs.
3. Local property was mismanaged. Local authorities do not update
rental contracts for municipal property or charge regular rents.
The Court of Auditors found that some local governments do not
collect all charges or fees that they are entitled to according
to law and therefore lose additional revenue.
4. Local authority borrowing was inappropriate; they borrowed
too much or for purposes not permitted by law, or they made
guarantees to nonpublic companies and institutions. An amendment
to the Law on Financing of Local Government will determine a
wider range of purposes for which a local community may borrow.
Two laws guarantee citizen influence on the management of local
public services: the Law on Local Self-government and the Law
on Commercial Public Services. The Law on Local Selfgovernment
provides that municipalities establish a consumer protection
council as a mandatory body. This is a committee of citizens
who participate in the decision-making process of the municipal
council when it considers matters pertaining to commercial (municipal
services, road maintenance, gas pipelines, public transport,
et cetera) and social (schools, kindergartens, homes for the
elderly, et cetera) public services. The body submits comments
and proposals regarding the performance of local commercial
companies.
The Law on Commercial Public Services stipulates that bodies
submit comments and proposals pertaining to the performance
of public services to the competent authorities of the Republic
of Slovenia and of the local community, which must inform them
of measures taken on such proposals. The Law on Commercial Public
Services also regulates the protection of the rights of individual
consumers. In the event of a breach of contract by the provider
of a commercial public service, a consumer may request a competent
authority of the Republic of Slovenia or of the local community
to issue a decision on the consumer’s complaint and to order
the provider or contractor to act accordingly.
3.3 Local Service Delivery
Annex 9.4 shows that the role assumed by local authorities in
the provision of social care, education, health care and housing
management differs from field to field. Some social programs
and services are provided directly by local communities; others
are provided indirectly through public institutes or private
individuals. Since there are no special regulatory mechanisms
for coordinating local social services management, cooperation
takes place mostly in the provision of specific services, such
as coordination of groups for dealing with child neglect and
abuse (the police, the justice system, social affairs and the
education system). Associations of public institutes that operate
at a local level have also been founded, which join institutions
on the basis of common interests, such as the Community of Kindergartens,
the Community of Social Institutes and the Community of Social
Work Centers. Together with public and private community services
and voluntary organizations, local communities occupy an increasingly
important position in the provision of services for the needs
of individuals and families.
Provisions of health care services is established by the Law
on Health Service. The Health Care Plan, which is currently
being considered by parliament, specifies the network of public
health care services at the local and national levels. In accordance
with the Law on Health Care and Health Insurance, the Health
Insurance Institute of Slovenia finances health care, the rates
of which are fixed by parliament. The Health Insurance Institute
signs contracts directly with health care service providers
at all levels.
Responsibility for health care is divided between the state
and local communities as follows:
- primary health care (basic health care services and pharmaceutical
practices) is the responsibility of the local community and
is provided by medical clinics, medical centers, pharmacies
and private medical workers;
- at the secondary level, health care services are the responsibility
of the state through hospitals and health resorts;
- medical prevention is entirely the responsibility of the local
community;
- emergency medical services are the responsibility of either
the state or local government.
The Law on Health Service stipulates that primary-level medical
institutions be founded by the local community. The duties of
a local community are:
- to develop and implement programs to strengthen the health
of the population on its territory and to secure budgetary funds
for such programs;
- to ensure the execution of sanitation and epidemiological,
statistical and sociomedical services for its territory that
are not included in the national program;
- to develop and carry out activities to maintain a healthy
environment;
- to ensure health care for the members of the civil protection
forces, general rescue teams, national defense forces and municipal
communication units, unless this has been organized in some
other manner;
- as the founder of public health care centers, to provide investment
and other funds prescribed by the law and the founding act;
- to run a coroner’s office.
Local authorities may sign concession contracts with private
doctors to provide medical services in private or public medical
centers. The supervision of health care is conducted through
internal mechanisms of medical centers; the Medical Chamber
of Slovenia, which addresses professional issues; the Ministry
of Health, which regulates administration; and the Health Insurance
Institute of Slovenia, which monitors financial activities.
Preschool education is regulated by the Law on the Organization
and Funding of Education and the Law on Kindergartens. Kindergartens,
preschools and nurseries founded by the local community provide
a public service. The local community manages these institutions
or appoints public or private subcontractors, including nonprofit
associations, to provide programs for preschool children (this
can be accomplished by several local communities together, if
they so agree). This network must be organized in a manner that
allows parents and children access to and a choice of the most
suitable program. The Law on Kindergartens also contains a provision
guaranteeing all children the right to a place in a public program.
Where there are no kindergartens in the place of residence or
where there are not enough vacancies to satisfy public demand,
the local community must secure additional vacancies in a public
kindergarten or publish a call for concession bids to establish
new programs within thirty days. The parents of children who
are unable to attend kindergarten due to illness may exercise
the right to preschool education administered at home.
Preschool educational programs are funded by state funds, the
resources of the local community, payments made by parents,
donations and other sources. Fees are regulated by the Regulations
on Payment for Kindergarten Programs. The amount is determined
by the local community that, in accordance with the law, must
secure public funding for kindergarten students. The cost includes
education, care and food, and parents pay between fifteen and
eighty-five percent of the price. The remaining costs are covered
from the local community’s public funds. The amount to be paid
by individual parents is determined according to income level,
property value and number of children enrolled in such programs.
Family support services in social care are organized in compliance
with the Law on Social Care. Two proposed programs, the National
Program of Social Care and the Program of Development of Care
for the Elderly, are currently being discussed by parliament.
These programs will specify public social care services, including
family support at the local level. The program of social care
for the elderly contains not only institutional care, but also
a plan for the development of services in the home environment
that will reach fifteen percent of the elderly population. Such
care envisages housing, day centers, residential homes for the
elderly, home assistance, long distance services and the founding
of home assistance centers as a part of the network of public
social and health care services. These new initiatives, which
local communities are already developing, will complement current
services. Both programs place special emphasis on pluralization
of social services delivery within the local community.
The local community funds such programs on the basis of the
Law on Local Self-government, which stipulates that it is the
responsibility of local government to provide services for the
socially underprivileged, the disabled and the elderly. On the
basis of this law, municipalities allocate funding for benefits
not prescribed by the Law on Social Care, such as the purchase
of schoolbooks, heating benefits, et cetera. Users pay the full
commercial price for most forms of home assistance; depending
on the financial situation of the user, such services may be
subsidized by the municipality.
The following public institutes (founded by the state) provide
social services for the needs of a local community:
- social work centers;
- homes for the elderly;
- homes for the mentally and physically handicapped;
- homes for children and young people deprived of a normal family
life; - institutions for training and care of children and young
people with mental handicaps.
Social services have hitherto been provided exclusively by public
social care institutes, but on 12 December 1997 the new Regulations
on Concessions in Social Care came into force, which stipulate:
- procedures to be followed when awarding concessions;
- conditions for applicants for concessions;
- other regulations concerning concessions.
Local communities may, in compliance with the Law on Social
Care, award a concession for personal assistance and family
assistance at home, which means that the local community must
provide a public service network for these two services. The
concessions for all other services are awarded by the ministry
responsible for social care. Each subcontractor must satisfy
all technical, personnel and professional standards established
by the state that apply to social service providers. The state
also ensures the professional monitoring of the provision of
these services.
The state and local communities also fund various programs that
complement public services; these are generally provided by
nongovernmental organizations (NGOs). The number of NGOs operating
in the area of social care (around two thousand) has increased
since the 1992 amendment of the Law on Social Care, which defines
charity organizations, self-help organizations and organizations
for the disabled as providers of social services.
The state administers the Housing Fund of the Republic of Slovenia,
which enacts the national housing program and encourages the
construction, renovation and maintenance of housing. The criteria
for social housing allocations are established by standing orders
drafted jointly by the Ministry of Labor, Family and Social
Affairs and the Ministry of the Environment and Physical Planning.
The resources of the Housing Fund are available to citizens
who are firsttime buyers or builders or whose housing has become
unsuitable, residents trying to resolve housing problems by
investing in renovation or extensive maintenance work, and nonprofit
housing organizations. The Housing Fund currently does not grant
loans for social housing. However, the Ministry of the Environment
and Physical Planning is planning to promote the construction
of social housing, whereby it would be possible to obtain loans
from the Housing Fund. The Law on Housing stipulates that it
is the duty of local communities to provide social housing,
the construction of which is funded from municipal budgets and
from commercial loans, meaning that the number of new social
apartments depends on the economic standing of an individual
municipality. Local communities have the following responsibilities
and duties in the area of housing:
- to adopt and implement municipal housing programs;
- to secure funds for the construction and acquisition of social
housing and to cover the difference between the rent determined
by contract and other costs incurred under the Housing Law;
- to monitor the average rent in the municipality by category,
type and location of housing;
- to secure conditions for the development of various forms
of construction and renovation work by applying appropriate
land planning policies;
- to adopt guidelines for the design, construction and renovation
of apartments based on local standards;
- to maintain a housing register.
Nonprofit organizations are being founded that address housing
management. A nonprofit organization that provides social housing
can be registered legally with the Ministry of the Environment
and Physical Planning. The conditions and rent for nonprofit
housing are determined by the state. Eligibility for social
housing is based on income; young families, families with many
children and the disabled are given priority.
Employment and adult education services are established in accordance
with the Law on Employment and Insurance in the Event of Unemployment.
The form, content, conditions, rules and procedures for carrying
out programs, training and employment measures are stipulated
by the Regulations on the Execution of Active Employment Policy
Programs and the Regulations on the Execution of Active Employment
Policy Measures. The latter also prescribes the research, development
and execution of experimental programs in the labor market.
The National Employment Office is an independent legal entity
with the status of a public institute that receives funding
from the state budget. The Law on Employment and Insurance in
the Event of Unemployment lays down the foundations for the
National Employment Office. There are five government representatives
on its fifteen-member management board, its supreme body. The
board proposes elements for the adoption of an employment development
policy; employment policies, programs and implementation measures;
scholarship policies; et cetera. The National Employment Office
performs professional tasks related to job placement, employment
programs, vocational counseling, the awarding of grants, and
education and training for the unemployed and the disabled.
The office is organized and functions on three levels: the main
office, which includes the head office and the central service;
ten regional units; and fiftynine local offices throughout Slovenia.
Local employment offices directly provide clients with jobs,
employment advice, careers guidance, on-going training and other
employment services. Regional units conduct professional and
operational tasks and are in charge of advising and monitoring
the work of local employment offices. Local authorities work
together with regional employment units on the formulation of
local development programs and joint funding. The active employment
policy for 1998 placed local communities among the four largest
target groups. The promotion of local employment initiatives,
which is already taking place in cooperation with the Ministry
of Economic Affairs and other government departments, was intended
to develop a network and mechanisms for setting up local social
and development partnerships, especially in regions in which
the local economy is in decline. Forty-eight agreements on local
development coalitions have been signed and five regional centers
founded to date. Public work programs include home assistance
to the elderly. The service providers employing people on a
public work program vary.
Funding comes from the national budget, the budgets of the municipalities
that requested the particular public work project and contributions
by users. Active employment and adult education programs are
implemented and funded by the state (the Ministry of Labor,
Family and Social Affairs and the National Employment Office).
Unemployment insurance funds are provided mostly by the national
budget (around eighty-five percent), as contributions are extremely
low (0.14 percent of a worker’s gross wage and 0.06 percent
of the total gross wages paid by the employer). Individual active
employment policy programs receive partial funding from local
communities; up to fifty percent of the funding for public works
and between five and ten percent of the funding for business
workshops, et cetera, are provided by municipalities. A number
of public and private learning centers provide officially recognized
educational programs for adults. The system of adult education
and employment guarantees multilayer links between the central
and local authorities. The Ministry of Labor, Family and Social
Affairs consults its social partners and the representatives
of employers and workers on all important issues relating to
employment and adult education policies. The ministry and the
National Employment Office also work in close cooperation, as
the latter is well informed of the situation in individual communities
through its local offices, which deal directly with the unemployed
and with commercial companies. When a crisis situation develops
(the bankruptcy of a large company, for example) cooperation
occurs between the representatives of the company and the trade
union, local authorities, the National Employment Office, the
Ministry of Labor, Family and Social Affairs and the Ministry
of Economic Affairs. In the past, private employment agencies
only were allowed to perform professional services on the basis
of concession grants. Amendments to the Law on Employment and
Insurance in the Event of Unemployment will attempt to improve
the overall efficiency of the employment system. The new provisions
will allow private agencies to conduct job placement, develop
employment plans and implement active employment measures.
4. Local Finance, Economic Development
4.1 Revenues
Local government finances are highly centralized in Slovenia.
The central government determines almost all local revenues;
only ten percent of public revenues are allocated to municipalities.
The 1994 Law on Financing of Local Government regulates the
local budget, types of taxes that local authorities may collect,
reserves, local government borrowing, financial equalization
and financial transfers. The types of taxes that local authorities
may impose include gift and inheritance tax, tax on gambling
machines, tax on the use of goods and property tax. Local authorities
are not entitled to introduce any new taxes, and rates are determined
by the central government with the exception of property tax;
from 1996, local councils can raise this tax by up to five times
its assessed legal basis. The Tax Office assesses, levies and
collects taxes on behalf of local governments. In August 1998
an amendment to the Law on Financing of Local Government was
adopted.
The amendment introduced significant changes to the current
law.
1. The concept of guaranteed expenditure was changed to relevant
expenditure—that is, support for the performance of local government
duties that are determined by the constitution and law. The
amount for local relevant expenditure per capita is determined
by a formula introduced by the amendment, which considers local
population figures, the size of the territory and the length
of local roads.
2. Previously the law determined how local revenues were allocated
to support guaranteed expenditures and other expenditures. The
amendment determined that all tax and nontax revenues should
be used for local expenditures in general.
3. The extent of local borrowing was regulated by the amendment.
Individual local government loans may have a value equal to
ten percent of the previous year’s local revenue or more if
the loans are used to finance housing, water supply or waste
disposal. Interest payments cannot exceed three percent of actual
revenues.
4. The amendment established a new ratio for shared income tax.
Previously, seventy percent of such revenues were allocated
to the state and thirty percent to the local government. The
amendment changes these proportions to sixty-five percent and
thirty-five percent respectively. 5. The amendment established
a scale for special grants. Dependent upon revenues from income
tax, local governments can receive special grants totaling up
to seventy percent of the amount of resources necessary to fund
a project.
In 1998 tax revenue represented 41.2 percent of the total revenue
of local authorities (the structure is shown in table 9.1).
Property tax, an exclusively local tax, represented 0.4 percent,
and income tax, 37.4 percent of all local revenues, or ninety-one
percent of all local tax revenues in 1997. Property tax is not
used by all local governments and is prohibitively low. The
reason for this is that the definition of the tax base for property
is poor, there are numerous exemptions, and taxpayers are individuals
and not companies. In practice property tax is primarily imposed
on weekend houses in municipalities where tourism is well developed.
Local councils can raise taxes by up to five times its assessed
legal basis, but this base is low and, therefore, revenues collected
from this source are not high.
The government is preparing a new law on property taxation to
give local authorities the opportunity to collect higher revenues.
The new tax on real estate will replace the current property
tax and contributions for the use of buildings and land. It
will be imposed on all buildings and land in Slovenia and on
companies as well as individuals. The primary problem in relation
to this new program is that exact ownership records of houses
and land do not yet exist. Nevertheless, revenues from property
tax and contributions for the use of buildings and land increase
gradually every year.
Local governments also may collect nontax revenues. Rates and
fees vary among local governments. Nontax revenues represented
35.7 percent of local revenues in 1997. In small local governments,
these revenues represented only five percent of funds available
for public spending, whereas in large ones, this proportion
was as high as forty percent. Contributions for the use of buildings
were an important share of these revenues, representing twelve
percent of all local revenues and thirty percent of all nontax
revenues in 1998. Other fees and contributions represented only
6.8 percent.
Other important nontax revenues are derived from property sales,
rental fees, leases and residential funds. Because there is
no systematic record of revenues from these sources, the data
is grouped in a common category, constituting 18.8 percent of
all local revenues and 52.6 percent of all nontax revenues in
1997. Such revenues are the only independent source of funds
for municipalities, and their spending is not centrally determined.
Unfortunately most municipalities are not able to collect or
use these sources in an effective manner, predominantly due
to a lack of financial management expertise.
Transfers include grants for the financing of current expenditures
and of investment expenditures. These grants are managed and
allocated monthly by the Ministry of Finance based on projections
of guaranteed spending and, in the future, on projections of
relevant expenditures and local proper revenues. Proper revenues
comprise all tax and nontax revenues, excluding those from managing
local property (property sales, rents and leases; current revenues
from residential funds; interest). They are calculated according
to rates established by the state or by local government. The
actual amount is then determined by agreement among the Ministry
of Finance, the Tax Office and each municipality. A local government
receives financial equalization if its proper revenues are not
sufficient to cover assessed relevant expenditures. The Ministry
of Finance guarantees additional funds to those local governments
whose actual revenues are lower than originally assessed.
Transfers from the state represented 18.4 percent of local revenues
in 1998. Since these transfers were allocated together with
revenues from income tax, independence over the spending of
this type of funding was almost impossible. In the future, they
will be transferred to local authorities separately.
In addition to general grants, special grants also may be allocated
by individual ministries on the basis of a local authority’s
application for financial support for specific projects (such
as general infrastructure, heating plants and water supply).
Local authorities submit appropriate documentation for the whole
investment plan with corresponding permits and confirmation
that a certain amount of their proper funds have been allotted
to the project. The terms on which local communities can obtain
funds are established by systematic laws or by regulations of
individual ministries for specific areas of funding. Specific
grants comprised 3.1 percent of local revenues in 1998.
According to the Law on Financing of Local Government, municipalities
can borrow from any national credit institution. Municipalities
must inform the Ministry of Finance of such loans, but state
authorization is not required. The amount of municipal borrowing
is also limited. Legislation does not permit borrowing from
foreign public agencies or on a foreign capital market. If diverse
foreign bodies or banks have approved a certain amount of funds,
they are regarded as part of the overall balance of public spending
on the state level. Such funds then are made available to individual
ministries, which can grant nonreturnable funds or funds in
the form of loans at a much lower interest rate than domestic
banks. Municipalities have the right to issue local bonds according
to the Law on Financing of Local Government, but there is no
law regulating such activities, and thus this method remains
unused. In 1998 local governments borrowed SLT 1.68 billion,
or 1.2 percent of all local revenues.
Local governments collect revenues from different sources. “Controlled
revenues”—those determined by the central government—must be
spent on expenditures determined by the central government,
and local governments do not have any influence in raising these
revenues. Controlled revenues represented 45.3 percent of all
local revenues (borrowing excluded) in 1998, or 66.8 percent
if transfers from the central budget are included.
The Law on Financing of Local Governments allows local governments
to identify, determine and levy the rates of other sources of
“discretionary revenues” within the framework established by
law. Therefore, discretionary revenues provide some financial
independence for local governments. Such revenues represented
only 18.6 percent of local revenues in 1998. The most important
source of discretionary revenues is contributions for the use
of buildings and land. The only tax that is part of discretionary
revenues is property tax. Comparing 1996 to 1998, the proportion
of discretionary revenues increased, thus providing greater
financial independence for local governments. On the other hand,
this also means greater responsibility and the need to improve
financial management at the local level.
4.2 Expenditures
The majority of local expenditures are determined by the central
government. Municipalities must provide “guaranteed” or, according
to the new law, “relevant” expenditures at the local level.
According to the amendment to the Law of Financing Local Government,
municipalities will spend not only limited revenues but also
nontax revenues for relevant expenditures. “Other” expenditures
generally foster public and private business and support cultural
associations, sport clubs, et cetera. In 1998 local expenditure
increased in all fields of spending, as illustrated in table
9.3.
a. Sublocal communities will not receive special transfers from
1999.
More than 55.1 percent of local revenues is spent on administration,
protection and public institutions. If one considers public
sanitation, roads and fire protection as public companies, then
even more is spent on public purposes. Other transfers to local
economies represent six percent of total local expenditures;
this proportion varies from one percent to sixteen percent among
individual local governments. Some local governments spend the
most on fostering small and medium private enterprises, others
on agriculture. Therefore, these figures do not provide the
full picture on discretionary spending.
5. Next Steps in the Transition
Process
A review of the current division of jurisdiction between the
state and municipalities is being prepared and will constitute
the basis for amendments and supplements to the Law on Local
Self-government. These should provide municipalities with greater
authority in physical planning, the environment, agriculture,
small business and other areas. The goals of modifying and amending
the law are listed below.
1. Cooperation between the municipal council and the mayor and
among other municipal bodies will be improved. According to
the proposed amendments, the municipal council remains the highest
decision-making body in the municipality, and the mayor, who
heads the council, is responsible for implementing its decisions
and representing the municipality.
2. The rights and obligations of individual municipal officials
will be detailed, and municipal functions will be entrusted
only to directly elected officials. According to current proposals,
all municipal officials are to be elected directly. In systemic
terms this is regulated in such a way that deputy mayors are
elected from among the members of the municipal council, and
the municipal secretary is no longer an official.
3. Forms of cooperation among municipalities will be defined,
ensuring that they will be able to address specific common tasks
and interests in a more economical manner through communities
and associations.
4. The special status of urban municipalities will be adjusted
to ensure the implementation of constitutional provisions.
One of the most important goals of modifying the law is to minimize
conflicts related to transferring duties from state jurisdiction
to municipalities, as it is in the interest of the state to
seek more rational and effective means of successfully addressing
public needs. These transfers must have a suitable legal basis,
which will allow the state:
- to transfer some tasks related to local public issues to municipalities,
where the municipal bodies positively will effect the overall
implementation of programs and the development of local self-government
without unnecessarily burdening municipalities with administration;
- to determine which tasks can be addressed by all or selected
municipalities, based on the geographic, economic, cultural
or other characteristics and special features of individual
municipalities;
- to organize direct cooperation with citizens in adopting decisions
in a municipality;
- to supplement the system of supervising municipal bodies,
primarily in carrying out mandatory tasks; the current system
does not allow for effective action from the government and
ministers in cases where harm is done to an individual, legal
entity or a local community due to the illegal activities of
municipal bodies.
The purpose of initiating amendment to the Law on Financing
Municipalities is to harmonize the system of financing Slovenian
local self-government with the directives of the European Charter
of Local Self-government. The main goal of these amendments
will be to facilitate greater financial independence of municipalities.
Foreseeable amendments include the following objectives.
1. Local finances will become uniform, and municipal revenues
will no longer be separated into guaranteed income and other
income.
2. Income for guaranteed use will be referred to as the “appropriate
volume of funds for financing local affairs of public importance.”
This should ensure the normal functioning of municipalities.
3. The government will provide additional assistance for municipalities
in the form of general grants. Uniform criteria will be determined
that will apply to all municipalities.
4. Special grants will be developed for those areas in which
the government has special interest.
5. Mayors will have greater jurisdiction regarding municipal
budgets.
6. To address excessive municipal debt, credit will only be
granted on the basis of the adopted budget and with the approval
of the Ministry of Financial Affairs.
7. Municipalities will improve the collection of data necessary
for the preparation of relevant annual budgets.
Recent Publications on Local Government
in Slovenia (in English)
Council of Europe. Structure and Operation of Local and Regional
Democracy: Slovenia’s Situation in 1997. Strasbourg: Council
of Europe Publishing, 1997.
Local Self-government in Slovenia. Ljubljana: 1998.
Local Democracy. Ljubljana: Office for Local Self-government,
Republic of Slovenia, 1998.
Report on the Current Situation in the Area of Local Self-government
in the Republic of Slovenia. Ljubljana: Office for Local Self-government,
Republic of Slovenia, 1998.
Regions: A Second Tier of Local Government. Ljubljana: Office
for Local Self-government, Republic of Slovenia, 1997.
Vlaj, Stane. The Introduction of Local Self-government in the
Republic of Slovenia: Current Situation and Outlook. Ljubljana:
1995.
—. The Reform of Local Self-government in the Republic of Slovenia,
Sustainable Development of Rural Areas: From Global Problems
to Local Solutions. Klagenfurt: Institut für Geographie der
Universität Klagenfurt, 1995.
Annex 9.1 Major General Indicators
Note: All data from 1997.
Size of territory 20,256 square kilometers
Population density 98 inhabitants per square kilometer
Population
1,984,923
Major ethnic divisions Hungarians 0.4 percent
Italians
0.2 percent
National budget 44.6 percent of GDP
Local governments
4.8 percent of GDP
Pension fund 13.3 percent of GDP
Health insurance
6.8 percent of GDP
Unemployment rate 7.4 percent
Inflation rate
9.4 percent
Annex 9.2 Settlements, Population
and Administrative Units
Annex 9.3 Major Laws on Public
Administration and Local Government
The following laws regulate public administration and local
government in Slovenia (presented in order of adoption; date
of adoption is given in brackets):
Law on Local Self-government
(Official Gazette of the Republic of Slovenia, no. 72/93, no.
57/94, no. 14/95) l Law on Local Elections (Official Gazette
of the Republic of Slovenia, no. 72/93)
Law on the Procedure for the Establishment of Municipalities
and for Determining Their Territory
(Official Gazette of the Republic of Slovenia, no. 44/96) l
Law on the Establishment of Municipalities and on the Determining
of their Territory (Official Gazette of the Republic of Slovenia,
no. 60/94, 69/94)
Law on the Financing of Municipalities
(Official Gazette of the Republic of Slovenia, no. 80/94) l
Law on the Administration (Official Gazette of the Republic
of Slovenia, no. 67/94) l Law on the Organization and Jurisdiction
of Ministries (Official Gazette of the Republic of Slovenia,
no. 71/94)
Law on Assuming State Functions
(Official Gazette of the Republic of Slovenia, no. 29/95)
Law on the Procedure of the Establishment of Municipalities
and on the Determining of their Territory
(Official Gazette of the Republic of Slovenia, no. 44/96)
Annex 9.4 Responsibilities of
Administrative Tiers
About this Report
This report was prepared with the assistance of Anita Hocevar-Frantar,
Ministry of the Environment and Physical Planning; Vlasta Drnovsek
and Helena Petek-Kos, Ministry of Health; Vladka Komel, Department
of Employment, Ministry of Labor, Family and Social Affairs;
Geni Ruric´, Department of Social Care, Ministry of Labor, Family
and Social Affairs; Jadranka Vouk-Zeleznik, Department of International
Cooperation and European Affairs, Ministry of Labor, Family
and Social Affairs.
Contact
School of Public Administration Contact: Dr. Stanka Setnikar-Cankar
Address: University of Ljubljana, Kardeljeva pl. 5, 1000 Ljubljana,
Slovenia Phone: (386-61) 168-63-74 Fax: (386-61) 168-63-74
Counselor to the Government: Mag. Stane Vlaj Address: Trzaska
42, 1000 Ljubljana, Slovenia Phone: (386-61) 123-15-00, 123-23-12
Fax: (386-61) 123-32-203 University of Ljubljana Address: Kardeljeva
pl. 5, 1000 Ljubljana, Slovenia Phone: (386-61) 168-61-23 Fax:
(386-61) 168-61-23
Mag. Maja Klun Address: University of Ljubljana, Kardeljeva
pl. 5, 1000 Ljubljana, Slovenia Phone: (386-61) 168-63-74 Fax:
(386-61) 168-63-74
Office of the Government of Slovenia for Local Government Minister:
Mag. Bozo Grafenauer Address: Trzaska 42, 1000 Ljubljana, Slovenia
Phone: (386-61) 123-15-00, 123-23-12 Fax: (386-61) 123-32-203
State Under-secretary: Milan Zeleznik Address: Trzaska 42, 1000
Ljubljana, Slovenia Phone: (386-61) 123-15-00, 123-23-12 Fax:
(386-61) 123-32-203
State Under-secretary: Vesna Juvan-Gotovac Address: Trzaska
42, 1000 Ljubljana, Slovenia Phone: (386-61) 123-15-00, 123-23-12
Fax: (386-61) 123-32-203
|
