Текст книги "25 Questions on Initiative Budgeting: manual"

Question 10
What are the social effects of IB?

In contrast to the implementation of conventional investment projects, for example, the construction of roads, parks, cultural centers, during the implementation of projects of initiative budgeting, additional effects appear, the most important of which are:

• Identifi cation and resolution of the most acute social problems of settlements. If a dialogue with citizens is established, it is possible to find those issues that are not always obvious to officials, but solution of which is critical for the community. For example, within the framework of the PPMI in the Republic of Bashkortostan, an unexpected discovery was the fact that citizens in a number of villages, as priority projects, selected issues on the improvement of cemeteries: the construction of fences around burial sites. These problems escaped the attention of officials, but for the villagers turned out to be the most acute.

• Minimization of corruption due to maximum transparency of the project and genuine public control over the progress of projects. Since the selection of priorities and the implementation of the project are carried out with the direct participation of citizens, it is difficult to steal money within the framework of information security. At all stages, from budgeting to acceptance of work from the contractor, citizens are actively involved in the project and conduct public control.

• Social capital of settlements is formed. Civil activists and the population develop the skills and competencies necessary to represent the public interest. One of such skills, in particular, is the ability to conduct a public discussion and openly discuss the problems of the local community for the public good.

• Joint activity of the government, business and the population is activated, general involvement and responsibility, which implies co-financing from the public and business, is formed. The introduction of even the minimum amounts for the implementation of the project includes the proprietary attitude to community affairs, increases the involvement of citizens in the implementation of projects.

• Self-organization of citizens is stimulated and the dependent moods are minimized. Participating in the affairs of settlements, citizens see the practical result of their actions, they begin to believe in the opportunity to change the life around themselves.

• Public confidence in the activities of the authorities is increased through a constructive dialogue between the population and municipalities. This effect is a consequence of the fact that citizens see how budgetary funds are spent and that the government hears its citizens.

• There are local communities of citizens living side by side and united by the need to solve common problems. Joint implementation of projects of initiative budgeting leads to the formation of one of the most important elements of urban social fabric – neighborhood relations.

Reference

What is co-financing of projects?

Co-financing means additional, along with the allocation of state subsidies from the budget of the Russian Federation, financing of projects supported by citizens. Financing from the budget of the constituent territory of the Russian Federation is on average up to 65 % of the cost of projects, from municipal budgets and from citizens – the remaining 35 %, in equal shares. In many regions, the share of co-financing by citizens does not exceed 4–5 % of the total cost of projects.

PPMI FINANCIAL INSTRUMENTS

Question 11
What are the economic effects of IB?

If the immediate results of the implementation of IB are considered to be constructed or repaired infrastructure facilities, then a number of results accompanying the implementation of initiative budgeting projects should be more correctly called economic effects. Among them are the following:

• Reduction in the cost of projects, increase in the efficiency of spending budgetary funds.

• As practice shows, the cost of projects implemented through the IB is significantly lower than projects implemented without the participation of citizens. Since it is not often for local citizens to solve the problem of their community directly, they try to get the most out of this opportunity and spend money economically, but effectively. In this sense, citizens take on the role of an extremely interested and strict public controller.

• Improving the quality of work performed through public control. Local citizens who voted for a particular project and, in particular, who made co-financing, even if small, are interested in the project to be implemented with quality. Specifi c examples from the practice of the local initiatives support program show how citizens, within the control of contractors, independently measure the width of the paved asphalt on roads and the depth of excavated trenches demanding the correction of identifi ed violations.

• Increase in the life of the facilities.

• When choosing a project, citizens do not just show interest in its appearance, but are involved in its creation as active participants. The attitude of “common means nobody’s” is replaced by a caring proprietary attitude to the objects of infrastructure, vandalism is minimized. For example, in Sosnovy Bor citizens themselves created a public patrol to supervise one of the children’s playgrounds created within the framework of the project.

• Co-financing of projects is an important resource for the development of public finances. At the same time, it is not so much the amount of funds raised that is important, but the very participation of citizens in projects by the ruble. A person, who has made a small but personal monetary contribution, feels his/her involvement in the problems being solved.

• Raising the level of budget awareness of the population.

• Budget awareness is equally important for citizens, along with getting the basics of financial awareness. Participation in budget decisions is the most important condition for the formation of a “responsible citizen”. Reducing the cost of projects, increasing the efficiency of spending budgetary funds.

Question 12
What is the Initiative Budgeting Project Center?

The Initiative Budgeting Project Center (PC) is created to ensure the implementation and support of the development of the practice of initiative budgeting.

The main forms of work of the IBPC: providing assistance to state authorities of the constituent territories of the Russian Federation, municipalities, citizens in matters of development of initiative budgeting, preparation of projects for IB development programs; conducting training seminars for heads and specialists of municipalities and representatives of the public; participation in meetings of the population; consulting and methodological assistance to the project participants at all stages of its implementation. The PC keeps records, processes the documents of municipalities submitted to receive subsidies from the regional budget for co-financing of initiative budgeting projects, as well as counseling on the competitive selection of projects.

The PC keeps track of the parameters implemented with its participation of the projects, and submits this information to the Federal Design Center.

The PC does not participate in the allocation of funds sent to municipal entities for the implementation of projects in the form of subsidies from the regional budget.

Question 13
How much time does it take from the moment of an idea of the initiative budgeting project to its implementation?

The timeframes for the implementation of IB projects range from one to one and a half year.

Actions performed during this time period:

• Discussion and development of the general design of the initiative budgeting program.

• Inclusion of funds for IB projects in the expenditure part of the budget.

• Information campaign for citizens.

• Development of regulatory and legal documentation necessary for the implementation of projects.

• Training of representatives of local authorities in the basics of project management.

• Holding meetings on nominating and discussing projects.

• Advising representatives of state and municipal authorities on initiative groups of citizens.

• Competitive selection of projects.

• Fundraising for co-financing.

• Allocation of subsidies from the budget of a constituent territory of the Russian Federation to municipalities where there are winners of the competitive selection.

• Conducting procurement procedures for the selection of contractors for the execution of work.

• Public control and citizens’ participation in projects.

• Opening ceremony for new facilities.

The optimal time to start work on IB projects is June of the year preceding the year of implementation. In this case, in accordance with the algorithm of the budgetary process, the allocation of government subsidies will occur in the spring of next year.

Question 14
What is the role of local authorities in the IB process?

In Russia, the IB is organized in such a way that all procedures are built into the administrative, budgetary and tax systems at the local level, because the financial basis of IB projects is the subsidy allocated by the regional government. Since the decision to distribute part of the state budget with the participation of citizens is taken at the level of a constituent territory of the Russian Federation, the participation of government bodies is an indispensable element. Local authority represented by the head and employees of municipalities become a key organizer of the process at sites and a guarantor of the legality of all procedures.

Area of responsibility of local authorities:

• Decision-making on the intention to participate in the IB program.

First of all, this presupposes readiness to co-finance the initiative of citizens from the budget of the municipality.

• Information to citizens about the IB program and organization of an announcement about forthcoming meetings and gatherings, and setting the ground for general discussion.

• Conducting initial selection of initiatives during consultations and public opinion polls.

• Participation in the discussion of projects providing citizens with the necessary information for decision-making.

• Together with the representatives of the initiative groups, preparation of the project providing the necessary documents, and guarantee of the legality of the project implementation in the territory of the municipality.

• If the project wins, assistance to the initiative group in arranging co-financing from local businesses and citizens.

• Accumulation of all funds for the implementation of the project: a subsidy from the regional budget, citizens’ funds, business sponsorship and other donations.

• Announcement and conduct of competitive procedures for the selection of a contractor. Monitoring of the progress of work, if the contractor does not fulfill its obligations, organization of repeated competitive procedures.

• Together with citizens, acceptance of the work of the contractor and final organization of the grand opening of the facility.

Local authorities should be interested in the successful implementation of IB projects, because citizens help the authorities to resolve issues that are the responsibility of the municipality. In the event of wining, the municipal budget attracts additional financial resources, and the facilities constructed or repaired put on the balance sheet of the municipality. In addition, the local authorities are responsible for the quality of the preparation of the application for competitive selection, which is decisive to win the project. After all, even the most original idea of citizens proceeded in violation of the rules and without taking into account the most important competitive criteria will not have a chance of winning. In order for the officials of the municipality to manage better with these tasks, they are provided with training. For example, in the Tver Region, the training takes place in the form of the annual PMMI School, during which they are introduced the program’s innovations and information system, learn how to fi ll out application forms, prepare design estimates and organize work with the public.

Question 15
What projects can be implemented through the IB mechanism?

All projects implemented through the IB mechanism should be within the competence of local authorities – municipal district, county, settlements. Each region has its own practice. The program is designed by the regional authorities, which determine the maximum possible cost of the project for different types of settlements and the amount of the regional subsidy.

In the form in which the IB now exists, it solves the issues of public infrastructure (roads, water supply, places of leisure and other material facilities). Firstly, this is due to the fact that these facilities are the most popular among population of those territories where initiative budgeting is implemented, and secondly, due to the peculiarities of intergovernmental fiscal relations. However, the list of facilities may differ slightly in different regions, again due to local features. It is expected that as decisions of these kinds of issues are taken, the list of needs and the corresponding facilities and solutions will be expanded. So, if there is a desire to make a local project that is not part of the existing list of facilities, there is a possibility to enter into negotiations with the administration and jointly develop a mechanism for its inclusion in the initiative budgeting programs.

Thus, there are two limitations – the competence of municipality and the cost.

Due to these restrictions, a number of projects, such as bridges, schools, hospitals, stadiums, cannot be implemented (built or renovated) if they are not included in the competence of municipality, or the estimate of such a project exceeds its maximum cost laid down in the program. Nevertheless, in a number of regions, there are opportunities to implement large-scale projects that do not fit into the standard typology.

Question 16
I have an idea I would like to implement through the IB mechanism. What should I do?

All IB programs are localized in the constituent territories of the Russian Federation and implemented at the lowest level of government – municipalities of settlements, cities, towns and districts.

Any person living in a settlement participating in the IB program has the right to declare his/her project idea, gather like-minded people and get involved in the preparation and implementation of the project.

If you do not know if there is IB in the region and the territory of your residence, then the first step from which to start is to visit a website of a local authority or call the administration. In the event that the local government does not have information, it is worth exploring the portal of the regional government in detail or sending the corresponding question in an official manner.

There are two possible situations:

There is an IB program in the region, but your municipality does not participate in the program. In this case, any of your activity will contribute to the emergence of IB in your municipality and push local authorities to action.

There is no IB yet in the region. In this case, it makes sense to gather a group of like-minded people and write an official letter to the representatives of the authority of a constituent territory of the Russian Federation declaring your desire and willingness to participate in such programs. An official is obliged to respond to your request and explain your position in a reasoned manner. Such appeals can be sent to your deputy, head of the municipality, the media. Any activity will signal to the authorities about the relevance of IB, about the desire of citizens to participate in solving problems through the IB mechanism.

Question 17
Can public organizations act as initiators of projects?

The technology for implementing IB programs is such that any project idea, which, of course, has an author, should be supported either by the community, by the majority of citizens of the settlement, or nominated on behalf of the association of citizens residing in the territory of the municipality.

In the PPMI practice and in most IB programs, the choice of the problem is made at the general gathering/meeting of citizens, where different ideas are considered and a common solution is found. This form of nomination is most often used in rural settlements where citizens know each other. The more people participate in determining the problem, the more points will be received by the settlement application in the competition. Therefore, the motion of the meeting is recorded, video and photo is made, in order to avoid falsifi cation of the decision of the meeting or additions. There, at the meeting, an initiative group of citizens is selected, which subsequently accompanies the project and works with the authorities to implement the same.

In cities and large settlements, it is impossible to gather all the citizens for a general meeting, and even more so to agree and choose a project that satisfi es the majority. Therefore, the organizers envisage the possibility of initiatives from various communities of townspeople living in the same municipality: local public government (LPG) or the union of several LPGs, a homeowners association (HOA), a housing cooperative (HC), a street committee. Either the initiators can be groups of citizens united on a social basis: disabled people and their families, veterans, children’s and youth organizations, including socially-oriented NPOs. If this is stipulated by the conditions of a specific IB program, then initiators can also be horticultural, dacha, gardening non-profit partnerships. It is important to emphasize that the union of citizens for the nomination and preparation of the project, and implementation of the initiative, must be legally registered (to have a legal entity and a settlement account with the bank), but this is not excluded.

For urban and rural IB projects, the same rules apply for the preparation of a bid. The initiative group of citizens can offer a wonderful idea, but to win the contest the project should get the maximum support from the target group, whose problem it is called upon to solve, which also has to be documented. Here, the same principle operates – the more people consider your project relevant, the higher the probability of winning and getting funding for its implementation.

Current information on which associations, what kind of projects and how many projects can be announced from one municipality needs to be clarified in official documents of the IB program of the constituent territory of the Russian Federation.

Question 18
Practices of public participation have been applied in Russia for a long time. What are the characteristics of the IB?

The novelty and short history of IB in Russia creates the prerequisites for blurring the concept of “initiative budgeting”. Misconceptions are found not only among municipal officials, but also among experts.

In addition to the IB programs implemented in a number of constituent territories of the Russian Federation since 2007, the involvement of citizens in the budget process most often takes place within the framework of the regional programs “Budgets for Citizens”, public hearings, local public government, the institution of rural headmen, the practice of self-taxation of citizens. In order to implement off – budget private initiatives of citizens, the mechanism of crowdsourcing is actively used. Forms of interaction of government agencies and citizens less well-known, but with significant potential application, while unusual for Russians: participatory (or co-operating) design and participatory management.

Related practices have their own goals, objectives, scope, legislative regulation, but cannot be attributed to the IB, even if they contain certain features of the IB: discussion of budget issues, participation of government officials, a serial implementation process, public discussion involving citizens, organization of public reporting, co-financing, participation of citizens in project implementation and integration into the budget process.

Nevertheless, the approaches developed in the Russian regions to financing and development of separate forms of citizens’ participation and mechanisms of local government can be considered as a factor in the emergence of new IB regional programs. Adjacent practices can be built in as a tool in IB programs, or certain participatory procedures can create the potential for transforming related practices. In each of the constituent territories of the Russian Federation, it is possible to seek and implement their own innovative approaches relying on local experience of solving significant problems for regional authorities. We cannot abandon the mechanisms that have been developed, but we should not forget how difficult it is to get rid of the “rutting effect”.

Reference

Comparative Analysis of the Correspondence of Related Practices to the Features of Initiative Budgeting

Self-taxation of citizens – is the practice of voluntary participation of the population in expenditures for local economic needs provided for by this Federal Law. As a rule, the procedure is initiated by the local government authorities. The decision on the introduction of payment is taken at a referendum or a meeting, is a one-off event and is subject to mandatory execution throughout the territory of the corresponding municipality. Selftaxable funds come in the municipal budget in the form of gratuitous payments of citizens. The amount of payments is set equal for all citizens, but for certain categories of citizens (no more than 30 % of the total number of citizens of a municipality) it can be reduced. In the situation of shortage of own incomes, the practice is used to fulfill the powers of local government authorities to support the facilities of critical infrastructure of settlements.

Promotion of practice is hampered by the imperfection of the procedure for deciding whether to impose self-taxation: high administrative costs, the equation of the amount of payment, the exclusion of citizens from the process of formulating the referendum question, co-financing the solution of the local problem of a single settlement by all citizens of a municipality. IB offers a more effective mechanism: citizens themselves form an actual agenda, participate in the design of solutions, control competitive procedures and the course of practical implementation of projects. IB allows determining the priorities for spending budgetary funds already provided for at the regional and local level, solving problems of local importance, but also stimulates citizens to help through actions or money.

Public hearings (PHs) – are practice of public discussion of drafts of municipal legal acts on issues of local importance and other issues of public interest (draft local budget and a report on its implementation, decisions on urban development). This is a whole complex of activities aimed at informing, organization of public discussion, also providing for the generalization of media publications, proposals and comments of citizens, exchange of opinions, consultations of experts, holding of meetings.

Mechanism: PHs can be initiated by both citizens and local government authorities. The procedure for organizing and holding public hearings is determined by municipality charter and/or regulatory legal acts of the representative body, which stipulate notification procedures on the place and time of hearings, provide for a form of advance familiarization with the draft legal act and the publication of results. Given the complexity and significance of the information to be submitted for discussion, the PHs require careful preparation, involvement of specialists and experts, as well as various groups of the public, in order to obtain a comprehensive assessment and achieve a public consensus.

The right to participate in the PHs is more in demand when the citizens’ priority problems are affected, in other cases local government authorities face organizational difficulties. Unlike the IB, which creates real opportunities for the practical implementation of citizens’ own initiatives, the results of the PHs are recommendatory in relation to already prepared projects and development plans submitted for discussion by the authorities. Procedural subtleties create opportunities for manipulating public opinion and emasculate the mechanism for public discussion of meaningful projects.

Local Public Government (LPG) is a social practice of independent and responsible implementation of the population’s own initiatives on issues of local importance.

Having passed the procedure of official registration as a legal body (NCO), LPG can represent the interests of the population, ensure the implementation of decisions taken at meetings and conferences of citizens, submit to municipal authorities the drafts of municipal legal acts. But most importantly, the legal status allows the LPG receiving on contractual terms funds from municipal budgets for solving local problems (economic activities for keeping housing stock, landscaping, other economic activities aimed at meeting the needs of citizens).Problems typical for the LPG: uneven development of LPG in municipal districts and urban districts, lack of citizen initiative, low resource availability of LPG, lack of knowledge and awareness of participants, lack of federal state support. The main disadvantage of the legislative regulation of the LPG’s activities is that only organizational procedures (the procedure for creating, drafting the statute, approving borders, registering with local government authorities) are detailed; at the same time, the opportunities offered to citizens are not explained at all in solving problems and tasks of the territory.

The LPG’s functions are limited to local issues, but the potential of practice can be significantly increased and become a powerful resource for the socioeconomic development of settlements. The most important role belongs to the desires, motivations of members of territorial communities, motivation to participate in LPG. However, the solution of problems depends on the efforts of local authorities. So far, at the regional level, the following forms of support for LPG are proposed: the creation of a legal framework, the organization of tenders for grants, the development of advisory formats or resource programs. LPG exists in 79 of 85 regions of the country. In total, about 28 thousand of them are registered.

The creation of the possibility for the LPG to participate in IB programs can become one of the forms of funding the LPG, which implies a real opportunity for local government, since the IB provides the right to manage part of the budget and determine the priorities for its expenditure. In the IB practices, the LPG mechanism allows for initiatives, organizing discussion procedures, monitoring the progress of projects, and thus seeking solutions to local problems.

Institute of Village Headmen. Legislation defines practice as a different form of citizen’s participation in the implementation of local government. The Institute of Village Headmen is called upon to ensure the broad representation of citizens in the relations with the authorities, consolidate the villagers in solving the problems of the improvement of settlements, mobilize the material and labor resources of citizens and businesses for local development, form and develop elements of civil society in rural areas.

Mechanism: a headman can act as a public assistant to the head of a municipality, or represent the local administration in the relevant territory. The issue of remuneration or ways of encouraging the headmen for their activities is left to the discretion of local authorities, as well as the rules of procedure. The local community itself must figure out what it wants from a village headman, what kind of requirements this person must meet. As a rule, regional authorities take upon themselves the responsibility to materially support the initiatives of the population to address issues of local importance to settlements, which is formalized by special legal acts. In addition to focusing on the problems of the population and choosing financing projects, taking into account the opinion of citizens residing in small villages, the advantage of practice is that it empowers local activists, opinion leaders with socially significant status and provides a mechanism for solving problems. The combination of the institution of elected headmen in small settlements and the use of local budgets can be the basis for the emergence of new IB practices.

The global trend to involve citizens, which involves joint solution of problems and the development of joint solutions, most clearly manifested itself in crowdsourcing, participatory management and participatory design.

The ideology of joint implementation of projects is clearly expressed in the practices of crowdsourcing and crowdfunding (as a sort of crowdsourcing).

Materials from the initiative budgeting prospect

Due to the spread of the Internet and the rapid development of mobile technologies, practices are becoming increasingly popular allowing the implementation of socially significant projects in business, science and the nonprofit sector.

Crowdsourcing – is a technology for the joint creation of a project or the search for the solution of a task by an indefinite multitude of volunteers forming for this period a temporary virtual community.

Crowdfunding – Crowdfunding – is a crowdsourcing mechanism that allows the project or organization to attract financial as well as other types of support from individuals or legal entities without the participation of banks and other financial intermediaries.

The principles of crowdsourcing are consonant with the ideology of the IB (publicity and openness of the project implementation process), but are intended for projects of a different level. In some cases, such projects may interact with authorities on the basis of public-private partnership. The mechanism has a significant potential for the development of IB; in particular, technological solutions used in crowdsourcing, being integrated into various IB practices, will allow modernizing the discussion procedures, as well as significantly expanding the typology of the problems to be solved and the audience of beneficiaries of projects. Undoubtedly, this is an urgent task for developers of IB practices intended for urban areas.