The Union of Municipalities (ZOCG) is preparing a set of measures that it will propose to the Government and the Assembly in order to systematically solve the problem of financing local self-governments, "News" from this institution said.
A new problem for underdeveloped municipalities is the signing of the Branch Collective Agreement four days ago, which increased the wages of employees in the public administration by about 30 percent. This collective agreement also applies to employees in municipal administrations.
The problem is that the municipalities planned and adopted the budgets at the end of last year, when they used the coefficients of the time for the amounts of expenses for salaries, and their representatives were not even involved in the negotiations between the Union of Administration and Justice and the Government that lasted for the past two months.
"The community of municipalities did not participate in the drafting of the text of the Branch Collective Agreement, nor did it have any insight into it, although it has repeatedly requested that its representatives be included in this process," the ZOCG stated.
They said that one of the Community's priorities is to look for ways in which municipalities can apply the new Branch Collective Agreement for the administration and judiciary.
"That is not the only problem of municipalities. The fact is that this contract only contributed to the complication of the problem of illiquidity of the budget of a number of municipalities, which was originally caused by the application of a set of reform tax regulations. This is because the amendments to the Law on Financing of Local Self-Government in 2022 did not fully compensate for the losses in their incomes", the ZOCG announced.
The "Europe Now" program introduced a non-taxable portion of earnings up to 720 euros, which caused municipalities to lose a significant portion of their income, as part of the earnings tax went to them, as well as the entire amount of the surtax.
"In such circumstances, the Association is finalizing a package of other normative measures that it intends to propose to the competent state authorities in order to systematically solve the problem of financing municipalities in a way that will enable the realization of their functions and the full protection of the rights of employees. The final solution to this issue depends on the response of the state authorities. As before, the Association will continue to insist on respecting the imperative obligations of the proponents of laws and other regulations to consult municipalities in the process of their drafting and to analyze the impact of regulations on the municipal budget, in order to prevent these and similar consequences from occurring," they stated from ZOCG.
They would not survive without the state, most of the budget goes to salaries
For many underdeveloped municipalities in the north, existing obligations for the payment of wages represent a great burden.
For example, in the budget of the Municipality of Plav for this year, current revenues amount to 1,4 million euros, while the cost of gross wages is 1,2 million. They receive an additional 1,8 million euros from the state budget and the Equalization Fund. This aid and grant makes up to 56 percent of the budget of this municipality.
Current revenues of the Municipality of Petnjica amount to 584 thousand euros, and only for gross salaries, according to calculations before signing the branch contract, 530 thousand euros are needed. In order for this new municipality to function, they receive an additional 1,1 million euros from the state and the Equalization Fund. Grants make up 62 percent of the municipal budget.
The municipality of Rožaje receives 3,4 million euros from municipal taxes and fees, and two million euros are needed to pay salaries. They receive four million euros from the state and the Equalization Fund.
The municipality of Mojkovac has current revenues of 2,2 million euros, and 1,3 million is needed for salaries. Subsidies from the state amount to one and a half million euros.
In the Municipality of Šavnik, current income is 1,1 million, and 646 thousand is needed for gross earnings. This municipality receives 1,6 million euros in grants from the state.
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