Post-great recession municipal budgeting and governance: A mixed methods analysis of budget stress and reform

The Great Recession hit several U.S. cities hard. Facing large revenue losses, these cities undertook dramatic spending cuts and utilized rarely used restructuring tools. This led some to speculate that these were exemplars of austerity urbanism. Subsequent work has contested this interpretation, arguing instead that cities have generally pursued pragmatic, not austere, reform. This paper seeks to move beyond this impasse, developing a mixed methods longitudinal analysis of quantitative and qualitative municipal budget data. Quantitative data is drawn from the U.S. Census of Local Government (2006–2016) and is used identify statistical relationships between budget health and budget composition in a nationwide sample ( n = 1,449) of municipalities. Then follows a qualitative analysis of budget narrative data from the six most fiscally distressed large and medium sized U.S. cities. The paper therefore identifies commonalities in post-Great Recession urban governance (i) in a large nationwide sample of cities and (ii) within a small group of extreme cases. The research found weak nationwide trends in budgetary change and divergent budget narratives in cases of severe municipal fiscal distress. We argue this means three things for understanding U.S. urban governance. First, the tracing of superficially similar “local” budget reforms to a single political economic descriptor is misplaced. Second, U.S. municipal budgetary reforms are relational, outcomes of both local and extra-local diagnosis, interpretation, and mediation. Third, and finally, decisions to introduce local austerity policies stem not just from “outside.” This paper therefore shows the potential intellectual returns of in-depth, case-study research on U.S. urban governance and finance.

The Paradoxes of the Law and Judicial Practice Involving the Lease of Land Plots

Introduction: the paradox of the judicial practice on claims of the municipal authorities on forcing the conclusion of lease agreements of land plots with the owners of parking spaces in the underground parking lots (garages). The Tax Code of the Russian Federation (Article 15 of the Tax Code of the Russian Federation) establishes a fee for the use of land. The forms of payment for the use of land are land tax and rent. Article 15 of the Tax Code of the Russian Federation establishes that the land tax refers to local taxes and the payment for it goes to the local budget of the municipality in whose territory the tax was introduced. The right of ownership of land (real estate) is registered and is publicly available. The tax authorities immediately issue payment receipts and the owners pay the tax, so the payment for the use of land is observed. Nevertheless, the municipal authorities (the departments of municipal property of the DMI) require owners to conclude lease agreements, lease their property and pay a fee to the local budget. The courts satisfy such claims and create a paradox that does not meet the requirements of the Constitution of the Russian Federation (Article 36), the requirements of the Civil Code of the Russian Federation, which establishes that the landlord can only be the owner or a person authorized by law or the owner to lease the property (Article 608 of the Civil Code of the Russian Federation). It is paradoxical, but that’s the fact that the owner of his property becomes both a landlord and a tenant of his property. And the departments receive double payment for the use of land in the form of a local tax and in the form of rent. It is necessary to formulate the norms of the Tax Code of the Russian Federation and the Civil Code of the Russian Federation more clearly and expressly so that there is no possibility of a paradoxical interpretation of the procedure for their application. In addition, the courts recognize the owner as unreasonably enriched, since the registered ownership of the land plot is not considered a sufficient legal basis to use his property. The purpose of the study is the author’s attempts to show contradictions in the judicial practice on the application of the norms of the Constitution of the Russian Federation, the Tax Code of the Russian Federation, and the Civil Code of the Russian Federation. Methods: in the process of the research, the method of a systematic approach to the study of legal concepts, comparative legal analysis, and synthesis was used. Results: the author clearly shows the conflict of interests of the owners of land plots and the departments of municipal property. As a result of the study, it is shown that the wording of the norms of the Tax Code of the Russian Federation and the Civil Code of the Russian Federation allows them to be interpreted differently and, accordingly, applied differently. Conclusions: the author proposes the rules for the exact interpretation of the norms of law and changes in the judicial practice in such cases.

Legal regulation of tourist tax: some problems

The search for effective sources of filling local budgets leads to the establishment of various local tax payments. The legislator defined the tourist tax as a local tax, the funds from which are credited to the local budget. Is it possible to recognize a certain payment as a «tourist tax» if there are signs of belonging and direction of funds? The article is devoted to some problems of legal regulation of tourist tax in Ukraine. The work focuses on establishing the legal content and essence of the tourist tax, as well as the rules governing the collection of this tax payment. The views of scholars on the legal content of the tourist tax are considered. Based on the analysis of the provisions of the legislation, the peculiarities and some shortcomings of the legal regulation of the collection of tourist tax are revealed. It was found that the normatively defined definition of «tourist tax» does not allow to reveal the essence and highlight the specific features of this mandatory payment. The tourist tax does not belong to the tax payments that are subject to mandatory establishment by local governments, the decision on this payment depends on the discretion of the local government. The substantiation of the establishment of the tourist tax should correspond to the objective needs of a certain territorial-administrative unit, and the definition of the circle of payers of this tax payment should be in accordance with the constitutional bases of guaranteeing the right of ownership. The article provides a list of current regulations governing the collection of tourist tax. The peculiarities and criteria for determining the preconditions for the obligation to pay the tourist tax are revealed. It is noted the need to define and form a conceptual framework that characterizes the essence of the tourist tax and amendments to the Tax Code of Ukraine, which will reflect the updated model of tourist tax. The results of the study can be used in lawmaking and law enforcement, as well as further research.

THE AIMS AND TRENDS OF THE SUSTAINABLE LAND TENURE FORMATION IN UKRAINE: THE SPATIAL ASPECT

The spatial aspect of the challenge of the sustainable land tenure formation has been scrutinized in the article. There is a set of unresolved issues at the point where interests of land owners, land users and the government clash, that witnesses the absence of effective mechanisms of the formed land tenure system improvement. At the transition to the market relations, with the private land property environment, new effective approaches to land redistribution and rational land use support are necessary. The research objective is the development of a complex approach to the land tenure spatial improvement for the sustainable development. Substantiation is carried out for the transition economy with Ukraine as an example. Land redistribution aiming at urban settlement area optimization and agricultural land tenure in the context of the social environment and economic benefit has been substantiated. The effectiveness of the spatial land improvement in the context of the national and local budget land fee revenues has been substantiated.

Algorithms and business models of financial outsourcing for sustainable development in industry

The work is devoted to the study of the use of business models of financial outsourcing in the institutional support of sustainable development. It is shown that a significant role in the sustainable development of the economy and environmental management can belong to clients of financial outsourcing services - small and medium-sized businesses (SMEs). The paper proposes to include an outsourcing company of financial outsourcing services in the infrastructure for supporting sustainable economic development of united territorial communities (UTC), which will increase the volume of revenues to the local budget and provide additional financing for SMEs, incl. whose activities are aimed at improving the environmental situation. A methodology for monitoring the revenue side of local budgets has been developed by processing monthly data “Openbudget” and “Opendata” by methods of predictive analytics. The proposed methodology has been tested on the example of the budget of Mariupol (Ukraine), as a city with a poor environmental situation, in which monitoring of the local budget will reveal additional sources of financing for the activities of SMEs - clients of financial outsourcing services aimed at improving the environment, as well as ensuring sustainable development of the economy of the territories and the country.

Assessing and strengthening budgetary security of regions and their amalgamated hromada in an unstable economy: A case for Ukraine

An essential determinant of the economic growth of regions and amalgamated hromada is budgetary security, the weakening of which causes the strengthening of financial imbalances of territories and the emergence of budget risks and threats in different time lags. The paper aims to assess budgetary security of regions and amalgamated hromada in Ukraine in an unstable economy. The assessment of budgetary security and risks of areas and amalgamated hromada is carried out based on a multidimensional statistical analysis of budget indicators, calculation of the aggregate indicator of budget risks, and the level of budgetary security by a multiplicative method. The study sample included the regions of Ukraine and 22 amalgamated hromada in terms of cities of regional significance, urban, township, and rural territorial assemblies, which are represented by different areas in Ukraine. According to the assessment, Poltava, Kyiv, Zaporizhzhia, Dnipropetrovsk, and Mykolaiv oblasts are characterized by a low level of budget risks, which indicates high budget stability. On the other hand, the strengthening of budget imbalances, deterioration of the strength of local budgets, in particular in 2019–2020 in urban amalgamated hromada (Druzhbivska and Malovyskivska (6-8 points)); in village areas (Malynivska (5 points), Steblivska (7-7 points)); in rural amalgamated hromada (Chmyrivska (8-7 points)). The study results can serve as an analytical basis in the practice of local governments in the development and justification of regional and local budget policies, the nature of inter-budgetary relations, the formation of regional development strategies, etc. AcknowledgmentsThe study has been conducted within the framework of Applied Research “Financial determinants of the provision of economic growth in the regions and Amalgamated hromada based on the behavioral economy” with the support of the National Research Foundation of Ukraine (M. Dolishniy Institute of Regional Research of National Academy of Sciences of Ukraine, the Grant Reg. No. 2020.02/0215, 2020–2022).

Prospects for decentralization in Ukraine: the experience of Poland

This article is an overview of local government reform processes in Ukraine. We focus on two key issues - the current state of decentralization and the problems of its further implementation. It is necessary to ensure a decentralization process that includes legislation, organization and society at the same time. We paid special attention to the process of creation of amalgamated territorial communities and highlighted its advantages and future risks. We also analysed such issues as local budget revenue in the context of decentralization of financial resources, problems of creating the financial base of local communities. Finally, the regional features of the association of territorial communities and problems with shaping the basic level of local self-government in Ukraine were analysed.

THE IMPORTANCE OF THE UNIVERSITY FOR THE CITY ECONOMY: AN EXAMPLE OF THE IMPACT OF A DISPLACED UNIVERSITY

The article considers the importance of a displaced university for the economy of the host city. The main directions of the impact of the displaced university on the local economy are analysed. The role of the displaced university for the revenue of the budget of the host city is considered. The example of Donetsk National Technical University shows the importance of displaced university for employment of the local population and reducing the rate of migration. The study aims to determine the impact of displaced universities on the economy of host cities (on the example of Donetsk National Technical University and Pokrovsk city). As a result of moving to the territories controlled by the Ukrainian authorities, the displaced universities, on the one hand, lost a significant part of their assets and found themselves in a difficult situation due to limited resources to continue their core business (training future professionals). On the other hand, the relocation of such universities was the impetus for the further development of host cities. The displaced university provides local youth with the opportunity to obtain higher education without leaving for other cities. Through their activities, displaced universities are creating new jobs for locals. Also, displaced universities are becoming big taxpayers to the local budget. That is why the support of displaced universities by the state and international organizations (granting certain preferences, financial assistance, etc.) will contribute not only to the “survival” of such universities but also to the socio-economic development of host cities. The study found that Donetsk National Technical University as a displaced university has a positive impact on the economy of the city of Pokrovsk: the university uses and pays for utilities provided by local businesses, buys goods and food from local producers. The university pays local taxes and fees to the local budget. Also, the local budget receives the taxes from university staff. Thanks to the activities of the university, about 400 jobs were created in the Pokrovsk city.

FORMATION OF LOCAL BUDGET REVENUES IN THE CONTEXT OF BUDGETARY AND FISCAL REFORMS IN UKRAINE

The article investigates the problem of local budget revenues formation in the context of fiscal reforms in Ukraine. The authors provide definitions of such concepts as "local budget", "budget revenues", "own and fixed revenues of local budgets". The composition of local budget revenues is determined and the peculiarities of their change due to budgetary and tax changes during 2001-2020 are considered. Relevant in this paper is the separation of these changes in a table, which is related to the new versions of the Budget Code, as well as the division of revenues into own and fixed. The impact of budget and tax reforms on filling the revenue side of local budgets, especially revenues from local taxes and fees, is described. The significance of the decentralization process for local budgets in terms of stages of its implementation has been studied. The importance of the personal income tax as the main budget-forming tax in the fixed revenues of local budgets and the change in the norms of its deduction to different levels of local budgets in the process of budget and tax reforms are highlighted. The importance of associations of territorial communities in order to increase their financial independence is described. Emphasis is placed on the importance of adopting a number of bills on the procedure for paying personal income tax, which contribute to the fair distribution of this tax between different territorial communities. The research is to determine the dependence of changes in local budget revenues on changes in budget and tax legislation of Ukraine.