QUARTERLY REPORT for the Implementation of the PULSE Project

QUARTERLY REPORT for the implementation of the PULSE Project

JANUARY – MARCH, 2019 (I² QUARTER OF US FISCAL YEAR 2019) QUARTER THIRTEEN OF THE PROJECT IMPLEMENTATION QUARTERLY REPORT for the implementation of the PULSE Project

QUARTERLY REPORT for the implementation of the PULSE Project

January – March, 2019 (IІ Quarter of US Fiscal Year 2019)

Quarter thirteen of the Project implementation

2 January – March, 2019

TABLE OF CONTENTS

List of abbreviations 4

Resume 5

Chapter 1. KEY ACHIEVEMENTS IN THE REPORTING QUARTER 5

Chapter 2. PROJECT IMPLEMENTATION 7

ER 1: Decentralisation enabling legislation reflects local government input 7

1.1. Local government officials participate in sectoral legislation drafting 8 grounded on the European sectoral legislative principles

1.1.1. Preparation and approval of strategies for sectoral reforms 8

1.1.2. Preparation of sectoral legislation 22

1.1.3. Legislation monitoring 27

1.1.4. Resolving local government problem issues and promotion of sectoral reforms 28

1.2. Local governments and all interested parties are actively engaged and use 31 participatory tool to work on legislation and advocating for its approval

1.2.1 Support for approval of drafted legislation in the parliament: 31 tools for interaction with the VRU

Support to approval of resolutions and directives of the Cabinet of Ministers: 35

1.3. Local governments improved their practice and quality of services because 49 of the sound decentralised legislative basis for local governments

1.3.1. Legal and technical assistance 49

1.3.2. Web-tools to increase the efficiency of local government activities 50

1.3.3. Feedback: receiving and disseminating 51

ER 2: Resources under local self-governance authority increased 53

2.1. Local self-governance own resources are increased ensuring local government 55 financial autonomy

2.1.1. Tools to increase own resources of local governments 55

2.1.2. Dissemination of best practices and replication of experience 56

2.2. Tools for local government to access additional financial resources are in place and 58 utilised

2.2.1. Capacity building for local government officials 58

2.2.2. Promotion of access to resources 58

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ER 3: Capacity of stakeholders increased 59

3.1. Local governments and stakeholders are informed and capable of carrying out 60 new roles and responsibilities flowing from decentralisation reform

3.1.1. Capacity building for local officials at the local level 60

3.1.2. Capacity building for local officials at the oblast and rayon level 69

3.1.3. Training for NGOs’ representatives and librarians as the communicators of reforms 71

3.2. Communication and outreach of decentralisation reform is enhanced 73

3.2.1. Creating communication channels for central authorities outreach and messaging 73

3.2.2. Strategic messaging through different media 74

3.3. Increased public awareness of reform successes and trust in local governments 82

3.3.1. Supporting Offices for Reform Implementation Support 82

3.3.2. Promotion of reform successes 84

3.3.3. Engaging young people and teenagers to decentralisation 86

Chapter 3. IMPLEMENTATION PROBLEMS AND BARRIERS 89

Chapter 4. SUCCESS STORIES 90

Chapter 5. COOPERATION WITH OTHER PROJECTS 101

Chapter 6. SUGGESTED PLAN OF ACTIVITIES FOR THE COMING QUARTER 106

Annexes 107 Annex А. Calendar of events of the PULSE Project conducted in January – March, 2018 Annex В. List of sub-agreements with PULSE Project sub-partners Annex С. Cohort of teams of library and NGO representatives who were selected for funding to conduct informational events involving citizens (from April, 2019 till September, 2019)

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LIST OF ABBREVIATIONS

AUC – Association of Ukrainian Cities AUC RO – Regional Office of the Association of Ukrainian Cities CAS – Center for Administrative Services CEC – Central Elections Commission CMU – Cabinet of Ministers of Ukraine CSEA – central state executive authorities CTC – consolidated territorial community HCE – health care establishments HEE – Higher Educational Establishment HMU – housing and municipal utilities sector IRC – inclusive resource center ITA – international technical assistance KSSA – Kyiv City State Administration LED – Local Economic Development LGC – local government caucus (Parliamentary Inter-Faction Local Government Support Group) MCU – Ministry of Culture of Ukraine MESU – Ministry of Education and Science of Ukraine MFAU – Ministry of Foreign Affairs of Ukraine MFR – Municipal Fiscal Register MFU – Ministry of Finance of Ukraine MHC – Ministry of Health Care MLSPU – Ministry of Labour and Social Policy of Ukraine MOTIDPU – Ministry of Temporarily Occupied Territories and Internally-Displaced Persons of Ukraine MRD – Ministry of Regional Development, Construction, Housing and Municipal Utilities of Ukraine NGO – non-governmental organisation NRDF – National Regional Development Fund NSS – National Social Standards NSSN – National Social Standards and Norms OSA – Oblast State Administration PIT – Personal Income Tax RSA – Rayon State Administration RSG – Reform Support Group SASU – State Audit Service of Ukraine SFS – State Fiscal Service SMCA –State Military and Civilian Administration STSU – State Treasury Service of Ukraine UAROC – Ukrainian Association of Rayon and Oblast Councils UTG – Unified Tariff Grid USAID –U.S. Agency for International Development

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RESUME

PULSE Project is working to develop a proper legal framework for decentralisation reform in Ukraine, ensuring that local governments contribute to decentralisation policy development and implementation, increase resources under local government authority and improve local government capacity to effectively use them enhancing the capacity and raising the professional level of key reform stakeholders involved.

This report provides the information about the Project implementation in October - December, 2018. The main achievements are presented in Chapter 1. Calendar (list) of events is presented in Annex A. List of sub-agreements concluded by AUC with the Project sub-partners is presented in Annex В.

Chapter 1. KEY ACHIEVEMENTS IN THE REPORTING QUARTER AND CALENDAR OF EVENTS

During Quarter I, 2019:

x PULSE Project was engaged in the establishment of new consolidated territorial communities, 2 territorial communities of cities of oblast significance annexed 2 village and 1 town territorial communities. Now, there are 782 CTCs in Ukraine that have conducted their initial local elections and 26 communities of cities of oblast significance, which have annexed the adjacent villages and towns; x PULSE Project participated in preparation of 25 draft regulatory and legal documents; x The Verkhovna Rada of Ukraine and the Cabinet of Ministers approved 16 regulatory and legal documents of importance for local self-governance, which were prepared with the participation of PULSE Project experts; x PULSE Project experts prepared 43 expert opinions to draft regulatory and legal documents the AUC received for concurrence from central state executive authorities; x PULSE Project experts prepared 32 expert opinions on draft regulatory and legal documents, which are being considered by committees of the Verkhovna Rada of Ukraine; x PULSE Project experts participated in 20 meetings of 7 parliamentary committees; x PULSE Project experts participated in 12 meetings of the Cabinet of Ministers of Ukraine, and 24 meetings of Cabinet of Ministers Committees; x In the course of the discussion of draft agendas of the Cabinet of Ministers and its committees, PULSE Project experts monitored 652 draft regulatory and legal documents, in particular: 51 draft laws, 21 presidential decrees and directives, 499 resolutions and directives of the Cabinet of Ministers, 81 expert opinions on draft legislation, legislation implementation plans, etc. The draft regulatory and legal documents PULSE Project experts worked with included 456 (54.6%) documents dealing with local government issues; x PULSE Project organised and conducted 2 working sessions of AUC Professional Groups (80 participants); x PULSE Project organised and conducted 2 sectoral forums (228 participants); x PULSE Project regional consultants provided 2,441 consultations on legal and financial issues and local economic development issues, which contributed to the process of territorial community consolidation; x PULSE Project organised and conducted 35 legislation application laboratories with the participation of 680 local government representatives; x During the reporting year, PULSE Project continued the introduction of four distance learning courses on the Prometheus online platform (www.prometheus.org.ua) prepared in previous years and introduced a new course on for local council members of consolidated territorial communities. All the courses demonstrated high attendance. The course on gender responsive budgeting demonstrated the highest attendance: 7,666 (!) students, with 5,851 of them receiving their certificates (76.32%). All in all, since the beginning of these courses, more than 18,757 persons participated in them, with 7,890 receiving their certificates;

6 January – March, 2019

x PULSE Project organised and conducted 15 expert workshops for 334 representatives of rayon and oblast councils including 190 males and 144 females; x PULSE Project continued its cooperation with partner projects and organisations; x PULSE Project participated in working session of the Decentralisation Donor Board and in meetings of coordination boards of partner projects, as well as invited their representatives to its events; x the IREX/PULSE team organised and conducted an interactive training for library teams and non- governmental organisations form 71 pilot communities (total –145 participants) in the city of Kyiv; x the IREX/PULSE team organised and conducted a webinar for 64 participants on how to get grants; x the IREX/PULSE team organised and conducted a webinar on education in consolidated territorial communities with the support from AUC experts fro all PULSE Project participants. The webinar was conducted for 71 PULSE participating communities to support the decentralisation reform in Ukraine; x the IREX/PULSE team organised and conducted 8 meetings (193 participants) for representatives of four types of media (TV, Internet publications, print media, and radio) and communities by AUC regional consultants and press club librarians; x PULSE Project organised and conducted 10 press tours for regional mass media with the participation of 133 representatives of local and regional mass media; x PULSE Project organised and conducted 1 study tour at the national level with the participation of 32 local government representatives and 9 study tours to AUC Regional Offices with the participation of 178 local government representatives within the framework of the “Itinerary of Successes” nation-wide exchange study tour Project component; x PULSE Project published the Local Government Best Practices publication based on the "Itinerary of Successes" nation-wide exchange study tour Project component in 2018; and, x PULSE Project published a BOOK OF SUCCESSES – a collection of about the life and activity of communities after the consolidation (Quarter 1, 2019).

The calendar of the PULSE Project events held in January – March, 2018 is presented in Annex A

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Chapter 2. PROJECT IMPLEMENTATION

Expected Result 1: Decentralisation enabling legislation reflects local government input

Overview of the overall context of implementation of the local government reform and reform of the territorial arrangement of government institutions

In January, 2019, the Cabinet of Ministers of Ukraine announced the transition to a new phase of the decentralisation reform, which involves consolidating the achievements that have already been made and completion of the establishment of capable communities, changing the territorial arrangement, clear delineation of powers and oversight functions of various levels of government, and promotion of forms of local democracy. On January 23, 2019, the Cabinet of Ministers endorsed Directive # 77-р to approve an action plan for the implementation of a new phase of the local government reform and reform of territorial arrangement of government institutions in Ukraine for 2019 - 2021.

During the reporting quarter, 78 CTCs were waiting for the CEC to schedule their initial elections, but the CEC did not do so. These consolidated territorial communities included 45 communities where the initial local elections did not take part due to the introduction of the martial law, which lasted until December 26, 2018. The Verkhovna Rada of Ukraine also failed to approve a single law aimed at advancing the reform. Despite the fact that on the eve of the first meeting of the spring parliamentary session on February 05 Verkhovna Rada Speaker Parubiy called to schedule the local elections, the process of community consolidation in the pre-election period almost stalled. In the reporting quarter, initial elections to consolidated territorial communities were not scheduled and not conducted. Reforms in other areas have also practically stopped. During the reporting quarter, the Cabinet of Ministers of Ukraine changed the formula to calculate the education subvention and eliminated the shortcomings of the previous year, namely: took into account the lower number of schoolchildren in classes in certain cities and peculiarities of inclusive education in the transfers for local budgets. The government is considering the possibility of transferring the education subventions to privately-owned educational establishments in the amount of the financial standard of budget sufficiency per one pupil. At the same time, educational establishments have more opportunities to use their premises. In the first quarter of 2019, the Verkhovna Rada of Ukraine specified the delineation of powers between local governments and state executive authorities in the new wording of the Law "On Social Services". The Cabinet of Ministers of Ukraine extended the powers of local governments in consolidated territorial communities to perform monitoring of recipients of state benefits and subsidies. Legislation now regulates the register of cases of domestic violence and the register of social services provided by local governments to victims of domestic violence. During the reporting period, the parliament set the legislative framework to introduce the tools for exchange of medical, financial and statistical data, which are necessary for the functioning of a unified national health care space at the level of primary care (primary health). The Cabinet of Ministers is preparing the needed regulatory framework for the implementation of a pilot project to introduce state health care guarantees of the population within the framework of the program of health care guarantees for secondary (specialised) health care in the Poltava oblast. The government is also introducing monetisation of housing subsidies at the consumer level. In other words, this means elimination of financial relationships between the state and service providers (in particular, housing and municipal utility companies). Citizens will now be paying the full cost of consumed housing and municipal utility services by themselves. The process of transferring state-owned agricultural lands located beyond the boundaries of populated areas to communal ownership continued. In 2019, the State Cadastre Agency and the State Land Cadastre Center concluded an agreement was for taking inventory of lands in 141 CTCs for the purpose of their subsequent transfer into communal ownership. In the reporting period, the Cabinet of Ministers of Ukraine focused its efforts on simplification of the registration of land parcels. From now on, such registration can be done on-line. The Cabinet of Ministers of

8 January – March, 2019

Ukraine continued the pilot project for conducting electronic auctions to sell state-owned and communally- owned land parcels.

Activity 1.1. Local government officials participate in sectoral legislation drafting grounded on the European sectoral legislative principles

1.1.1. Preparation and approval of strategies for sectoral reforms

Each sector has the responsible expert to follow up on the sectoral profile: Each sectoral profile includes: - a list of regulatory and legal documents Regulating the sector, - a long-term sector development strategy (for the next 7 - 10 years) and legislative map of its implementation, - a list of problem issues of sector which is regularly updated, and, - a list of ways to solve certain problems, which is also regularly updated. The sectoral profile will serve as the basis for the preparation the relevant legislation both for the implementation of the sectoral development strategy and for resolving specific problem issues.

Progress in strategy implementation: During the reporting quarter, the Project managed to succeed in the following operational goals:

Regarding the Land Resources and Communally-Owned Property Strategy

• with regard to the achievement of Operational Goal 2.4. "Promote conditions for the implementation of public control over management of communally-owned property":

On January 01, 2019, the Cabinet of Ministers enacted the national normative monetary valuation of agricultural lands located beyond the boundaries of populated areas, which was endorsed by Directive of the Ministry of Agrarian Policy of Ukraine # 552 of November 16, 2018. All data in the electronic format will be aggregated into one pool officering free access and opportunity to make an online calculation of land parcels. Thus, the public has been given access to the information about the price of the agricultural land, which is one of the key public resources. Regarding the Social Protection Strategy

x with regard to the achievement of Operational Goal 1.1. "Organise the continuous assessment of community needs in social assistance", the Verkhovna Rada of Ukraine approved the Law of Ukraine "On Social Services" of January 17, 2019 (to be signed by the President), which regulates the definition of the needs of the population as the basis for the organisation of the provision of social services. x with regard to the achievement of Operational Goal 1.2. "Set up local electronic registers of persons who need social services and assistance and to consolidate them with the National Register", the Verkhovna Rada of Ukraine approved the Law of Ukraine "On Social Services" of January 17, 2019 (expected to be signed by the President), which envisions setting up the national level Register of Suppliers and Recipients of social services. The Cabinet of Ministers of Ukraine endorsed the Procedure for the formation, maintenance and access to the Unified State Register of Cases of Domestic Violence and Gender Based Violence (Resolution # 234 of March 20, 2019), which provides the legislative framework for functioning of the register of cases of domestic violence and the register of social services provided to victims of domestic violence. x with regard to the achievement of Operational goal 2.1. "Plan expenditures from local budgets and National Budget and to attract donor funding for improving the material base of the Center activities", the Cabinet of Ministers of Ukraine endorsed Directive # 91-p of February 27, 2019 to approve the distribution in 2019 of the subvention from the National Budget to local budgets to perform the works related to opening, maintenance and functioning of Centers for Administrative Services including social services, in the "Transparent Office" format. The document distributed 60.5 million UAH of the National Budget funds for the construction of 8 "transparent offices”.

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x with regard to the achievement of Operational goal 5.1. "Delineate the powers of the national government and local governments in the sphere of social protection and ensure their financial support", the Verkhovna Rada of Ukraine approved the Law of Ukraine "On Social Services" of January 17, 2019 (expected to be signed by the President), which clearly delineates the powers of state executive authorities and local governments with due regard to the capacity of local budgets. Cabinet of Ministers of Ukraine endorsed Resolution # 68 of January 30, 2019, which stipulates that the Municipal Nanny Program is to be financed exclusively from the National Budget of Ukraine. x with regard to the achievement of Operational goal 5.2. "Introduce an effective institution of oversight entities in the sphere of social protection" the Cabinet of Ministers of Ukraine endorsed Resolution # 18 of January 16, 2019 "On Introducing Amendments to the Regulation on the Main State Social Inspector and the State Social Inspector", which vests executive bodies of the councils of consolidated territorial communities with the right to perform assessment of living conditions of households to be able to grant them various types of state privileges and benefits. Also, thanks to the PULSE Project, executive entities of councils of consolidated territorial communities will be able to assess such conditions only in cases stipulated by law, rather than upon the decision of the rayon state administration. x with regard to the achievement of Operational goal 5.3. "Optimise the number of benefits and categories of their recipients; monetise the maximum number of privileges possible" the Cabinet of Ministers of Ukraine approved Resolution # 62 of February 06, 2019 "On Introducing Amendments to Certain Resolutions of the Cabinet of Ministers of Ukraine", which provides for the complete monetisation of housing subsidies at the user level. The Cabinet of Ministers of Ukraine endorsed Resolution # 233 of March 20, 2019 "On Some Issues of State Assistance to Certain Categories of Citizens", which abolished the monthly compensation allowance for a work able but not working person who rakes cares of a Disability Group I person, as well as of a person who has reached the age of 80 as the latter payment lost its sense. x with regard to the achievement of Operational goal 5.4. "Involve citizens in controlling and providing social services (social request), promote the volunteer movement", the Verkhovna Rada of Ukraine approved the Law of Ukraine "On Social Services" of January 17, 2019 (to be signed by the President). The document has improved the legislative framework for the preparation of social request, payment of compensation to physical persons for the provision of social services.

Regarding the Public Education Strategy x with regard to the achievement of Operational goal 1.1. "Specify in the Law new requirements and rules for the public education sector" the government enacted the Law of Ukraine "On Introducing Amendments to Article 80 of the Law of Ukraine "On Education" Regarding the Support to the Education Process with Proper Conditions for Work and Studying" (Registration # 2661-VIII of December 20, 2018). The document includes the provisions suggested by the PULSE Project expert. The law grants permission to lease educational institutions to render the services that can not be provided directly through educational institutions and that directly support the educational process or serve the participants of such process. x with regard to the achievement of Operational Goal 1.2. "Modernise the content of education" the Cabinet of Ministers of Ukraine endorsed Resolution # 41 of January 23, 2019 "On Endorsing the Regulation for the Provision of Textbooks and Manuals for Students Who Seek Competed Comprehensive Secondary Education and Teachers". The Regulation outlines the mechanism for the provision of free textbooks and manuals (at the expense of the National Budget) for students who seek complete comprehensive secondary education and for teachers who are issued for the state budget. This will provide opportunities to updating the textbooks in educational institutions taking into account new national standards. x with regard to the achievement of Operational Goals 1.5."Hire new teachers" and 2.4. "Update the material and technical base of educational institutions", the CMU endorsed Resolution # 130 of February 27, 2019 "On Certain Issues of the Provision of the Subvention from the National Budget to Local Budgets to Ensure High Quality, Modern and Affordable New Ukrainian School Comprehensive Secondary Education in 2019”. From now and on, the Resolution provides the opportunity to purchase multimedia content and musical instruments for educational institutions and to give compensation to experts who perform expert evaluation of teachers in the course of their certification. x with regard to the achievement of Objective 2.1. "Clearly delineate the powers of the central government and municipalities in managing educational institutions", the Cabinet of Ministers of Ukraine endorsed Resolution # 11 of January 10, 2019 "On Endorsing the Criteria for Assessing the Risk Level of Commercial Activities in the Sphere of Pre-School Education and Determines the Frequency of Regular State Oversight Activities (control) by the National Education Quality Service". The approval of this

10 January – March, 2019

Resolution will promote transparent relations between pre-school educational institutions, which are engaged in economic activities, and state oversight (control) entity. x with regard to the achievement of Operational Goals 2.2. "Ensure Physical Access to High Quality Educational Services" the Cabinet of Ministers of Ukraine endorsed Directive # 26-р of January 23, 2019 "On Introducing Amendments to Directive of the Cabinet of Ministers of Ukraine # 871 of December 06, 2017". The document has reduced the numerical criteria for additional slots in educational institutions for pre-school children according to the actual needs in each region of Ukraine. In addition to this, the Cabinet of Ministers of Ukraine endorsed Resolution # 193 of February 27, 2019 «On Introducing Amendments to the Regulations and Conditions for the Provision of the Education Subvention from the National Budget to Local Budgets". The amendments provide for the transfer of education subvention to privately-owned educational institutions in the amount of the financial standard (taking into account the corresponding corrective ratios) of budget sufficiency per one pupil who seeks completed comprehensive secondary education. In addition to this, the document provides for broader areas the outstanding funds of the education subvention may be used in. For example, one can use these funds for the construction of new, reconstruction of the existing, capital and scheduled repairs of toilet facilities in comprehensive secondary education institutions where at least 20 children study. These funds can also be used for the relevant sanitary and hygienic equipment and preparation of the technical design documentation. This will provide opportunities to expand the network of educational institutions, improve their conditions and provide students with access to various forms of education. The Cabinet of Ministers of Ukraine endorsed Resolution # 221 of March 06, 2019 «On Endorsing the Regulation on the Specialised School and the Regulation on Training and Rehabilitations Center» to support persons with special educational needs and give them access to proper conditions for obtaining education. For example, the document outlines the main tasks of specialised schools and educational and rehabilitation centers, describes their types, structure, and peculiarities of their organisational aspects and educational process, etc. x with regard to the achievement of Operational goal 2.3. "Ensure comfortable conditions for the provision of high quality educational services", the Cabinet of Ministers of Ukraine endorsed Resolution # 65 of February 06, 2019 «On Introducing Amendments to the Formula to Distribute the Education Subvention between Local Budgets». The amendments to the formula for the distribution of education subventions prepared with the participation of the PULSE Project expert has envisioned ratios for certain cities with schools in rural areas and reduced the estimated number of schoolchildren in classes; splitting classes into groups for studying certain subjects; mechanisms to calculate payments for staff in inclusive and resource centers; introduced the concept of "financial standard of budget sufficiency"; and, increased the available funding for salaries of teacher assistants to improve inclusive education. In addition to this, Resolution of the Cabinet of Ministers of Ukraine # 129 of February 27, 2019 «On Certain Issues of the Use of the Subvention from the National Budget to Local Budgets for the Provision of the State Assistance to Persons with Special Education Needs in 2019» has earmarked 504.5 million UAH in the 2019 National Budget for the development of inclusive education including 353.3 million UAH to go to support children with special educational needs in schools. Also, the Resolution has earmarked for the first time 37.2 million UAH for inclusive education in kindergartens and 24.8 million UAH to support special groups in vocational training institutions. The Cabinet of Ministers of Ukraine endorsed Resolution # 211 of March 06, 2019 "On Introducing Amendments to the Procedure for Using the Funds Envisaged in the National Budget to Issue Graduation Documents on Education" regulates obtaining graduation documents, such as a certificate of primary education after graduation from the 4th form; a certificate of basic secondary education after the 9th form; and, a certificate of completed secondary education after the graduation of the school after the 11th (12th) form. To ensure that all these documents are available to visually impaired persons, they will be made with the Braille font. The Cabinet of Ministers of Ukraine endorsed Directive # 191-р of March 27, 2019 "On the Distribution of Amount of the Education Subvention from the National Budget to Local Budgets in 2019" to increase the resources of selected local budgets. All in all, the overall amount of the education subvention for 7 consolidated territorial communities and 2 cities was increased by 41,220.9 thousand hryvnyas. These resources will come from reserve funds of the education subventions and budgets of certain rayons. This move will provide opportunities to pay salaries to school teachers.

What is being implemented:

11 QUARTERLY REPORT for the implementation of the PULSE Project

x with regard to the achievement of Operational Goal 1.1. "Specify in legislation the new requirements and rules for the education sector", on March 13, 2019, the Cabinet of Ministers of Ukraine approved the draft of the Law of Ukraine "On Completed Comprehensive Secondary Education" prepared with the participation of the PULSE Project expert. The Verkhovna Rada of Ukraine is expected to register this draft law. In addition to this, the Cabinet of Ministers is expected to approve the draft Law of Ukraine "On Vocational (Professional and Technical) Education" prepared with participation of a PULSE Project expert and the draft Law of Ukraine "On Introducing Amendments to the Law of Ukraine "On Out-of-School Education", which is expected to take into account the proposals submitted by the PULSE Project expert.

Regarding the Health Care Strategy x with regard to the achievement of Operational Goal 1.3. "Implement a mechanism for reimbursement of medicine at the national, regional and local levels", which envisages the introduction of targeted assistance for purchase of medicine, the National List of Essential Medicine, and the categories of people who suffer from diseases specified in a special list. The list of medicine subject to reimbursement is constantly expanding and being updated. The Ministry of Health Care of Ukraine issued Directive # 148 of January 21, 2019 to introduce an updated Register of Medicine subject to compensation as of January 21, 2019. x with regard to the achievement of Operational Goal 2.3. "Introduce the state-guaranteed scope of free health care", the Cabinet of Ministers endorsed Resolution # 1117 of December 18, 2018 "On Certain Issues of Implementation of State Guarantees for Health Care Service to the Population within the Framework the Program of Health Care Guarantees of Primary Health Care in 2019", the government introduced basic tariffs applicable in 2019, namely: the capitalisation rate per one patient during the calendar year at the following level: for one patient included in the green list - 370 UAH per year with adjustment ratios; for one patient included in the red list - 120 UAH. Starting with 2019, the government will introduce a provision, whereby family doctors, therapists and paediatricians will be able to have patients above the prescribed limit. If the upper limit of the declarations is exceeded by 10%, the lowering ratios will apply. In the meantime, the population has signed 26.4 million declarations with 21,823 doctors (74.1% family doctors, 14.9% of therapists, and 10.9% of paediatricians) in 1,322 health care establishments. The Resolution of the Cabinet of Ministers of Ukraine # 131 of February 27, 2019 envisages the implementation in 2019 of a pilot project for state guarantees of health care of the population within the framework of the program of health care guarantees for secondary (specialised) health care in the Poltava oblast. This means that 56 health care establishments will provide the guaranteed scope of secondary health care, with the payment being made for a case-based treatment based on diagnostic-related groups (DRGs). x with regard to the achievement of Operational Goal 2.4. "Optimise (re-orient) the network of health care institutions", which envisions the establishment of a network of health care institutions to ensure affordable and high quality primary and secondary (specialised) health care, the Cabinet of Ministers of Ukraine endorsed Resolution # 391 of March 28, 2018 to outline the requirements for health care establishments providing health care to the population, while the Ministry of Health Care of Ukraine issued Directive # 178/24 of February 02, 2018, to set up a sustainable network for primary health care services. As of the end of March, 2019, the government reorganised 1,372 primary health care institutions. This is almost 2 times more than by the end of 2018. The optimisation of the network of health care institutions providing secondary (specialised) health care takes place through the establishment of hospital districts. It also takes place based on the Hospital District Development Plan prepared for a period of three to five years to serve as a basic program document for optimising the network of health care establishments in the region. Now, Ukraine has 94 hospital districts in 24 oblasts. Thanks to the efforts of the PULSE Project, it was possible to defend the position of cities of the Sumy oblast and to establish six hospital districts in the oblast according to CMU Directive # 17-p of January 16, 2019. with regard to the achievement of Operational Goal 3.2. "The development of a modern medical information management system within the framework a unified national health care space", the government envisioned the introduction of electronic tools for exchange of medical, financial and statistical data necessary for the functioning of a unified national medical space (such as: electronic registers, data exchange protocols, diagnosis and procedure coding systems, etc.). Starting with April 01, 2019, the circulation of documents associated with the concluding, modification and termination of contracts for reimbursement of medicine has been performed through the electronic health care system and exclusively through electronic prescriptions as envisioned Resolutions of the CMU # 134 and # 136 of February 27, 2019.

12 January – March, 2019

Regarding the Local Finance Strategy with regard to the achievement of Operational Goal 1.1 "Preservation and Expansion of the Resource Base", the Verkhovna Rada of Ukraine took into account a number of proposals from the AUC in the course of the approval of Law of Ukraine "On the National Budget of Ukraine for 2019" # 2696-VIII of February 28, 2019. The approved Law specifies the indicators of inter-budget transfers envisioned in the National Budget of Ukraine for 2019 for local budgets of the city of Pokrov and the city of Marhanets of the Dnipropetrovsk oblast, the city of Berdyansk of the Zaporizzhya oblast, the city of Kolomyia of the Ivano- Frankivsk oblast, the city of Lozova of the Kharkiv oblast, the city of Kaniv of the Cherkasy oblast, the city of Nizhyn of the Chernihiv oblast, and the budget of the Krasylivska Consolidated Territorial Community of the Khmelnytskyi oblast.

Regarding the Organisational Aspects of Local Government Activities and Professional Development Strategy x with regard to the achievement of Operational Goal 1.3 "Finalising the local government reform and reform of territorial arrangement of government institutions", V. Groisman, Prime Minister of Ukraine, presented a new action plan on decentralisation reform for the period of 2019 - 2020 at the meeting of the Cabinet of Ministers on January 23. The document envisages strengthening the successes achieved and conducting local elections in 2020 on a new legislative and territorial basis. x with regard to the achievement of Operational Goals 2.2 and 2.4 "Ensuring the conditions for regular improvements of professional expertise of local government officials", the Cabinet of Ministers endorsed Resolution # 106 of February 06, 2019 "On Endorsing Regulations on the System of Professional Training of Civil Servants, Heads of Local State Administrations, Their First Deputies and Deputies, Local Government Officials and Members of Local Councils", which was prepared based on the new Concept. The Regulations envision, in particular, the system to place request for capacity building of local government officials and the procedure for funding the relevant services. x with regard to the achievement of Operational Goal 4.2 "Ensuring broad opportunities for citizen participation in resolving issues of local importance", the Verkhovna Rada Committee on State Building, Regional Policy and Local Self-Governance together with the AUC prepared and registered Draft Law # 10158 “On Introducing Amendments to Certain Ukrainian Legislation Regarding Forms Direct Citizen Participation Resolving Issues of Local Importance and Statutory Document Drafting” of March 15, 2019. At the same time, the Ministry of Regional Development together with the AUC prepared and published Methodological Recommendations to prepare local community charters, which offer suggestions how to specify in community charters ways to apply local democracy tools in line with the legislation. x with regard to the achievement of Operational Goal 4.3 "Participation of local youth in the matters of territorial communities and resolving local issues", in January, the Cabinet of Ministers published Resolution # 1198 "On Endorsing Model Regulations on Youth Consultative and Advisory Bodies" endorsed on December 18, 2018. The document introduces, inter alia, Model Provisions on the Youth Advisory Body at the Local Level, which can be applied in territorial communities.

Regarding the e-Governance and Public Services Strategy x with regard to the achievement of Operational Goals 1.1. "Eliminating substantial and procedural issues of the legislation on access to public information" and 1.2 "Promoting the environment for starting an official web site of the local government in each territorial community", the Cabinet of Ministers of Ukraine endorsed Resolution # 56 of January 30, 2019 "On Certain Issues of Digital Development". This document has improved the legislative framework for the introduction of web sites of local governments and provision of online services in communities, as well as increased the role of the "digital by default" principle. x with regard to the achievement of Operational Goals 2.2 "Optimisation of existing public services to reduce the number of applications", 2.4 "Simplification of procedures for the provision of public services (application, processing, obtaining the result)", 2.5 "Automation of public services", 3.3 "Preparing and maintenance of e-governance systems in all local governments", 3.1 "Ensuring 100% feeding and constant update of public registers and databases", the CMU issued Directive # 37-p "Action Plan for the Implementation of the Concept for Development of the Electronic Service System in Ukraine for 2019 - 2020" of January 30, 2019, which set priorities for 2019, in particular, with regard to the implementation of the one-stop-shop principle for the provision of electronic services to physical and legal persons, integration of web portals electronic services are provided through with the integrated system of electronic identification and authentication.

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x with regard to the achievement of Operational Goals 2.2 "Optimising the existing public services to reduce the number of appeals", 2.4 "Simplification of procedures for the provision of public services (application, processing, obtaining a result)", 2.5 "Automation of public services", the Cabinet of Ministers supported the draft law "On Introducing Amendments to Certain Laws of Ukraine to Promote Favourable Conditions for Receiving Services Associated with the Birth of a Child". The document offers a suggestion to provide the services in one package and with the help of an electronic service. Thus, one unified application will combine the services of registration of the place of residence, childbirth allowance, registration of the birth of a child in the electronic health system, registering the child as a taxpayer and obtaining a certificate of large family parents and a large family child. The services can be obtained through an e-cabinet, with no extra documents and no need to visit various offices. The initiative was called the Electronic Baby and gave rise to the preparation of integrated services called "Life Related and Business Situations." Also, the government partially resolved the problem with the absence of an electronic medical information exchange system. CMU Resolution # 135 "On Certain Issues of Reimbursement for Medicine" of February 27, 2019 introduces as of April 01, 2019 reimbursement for medicine exclusively through electronic prescriptions issued through the electronic health care system. CMU Resolution # 136 "On Certain Issues of Reimbursement Agreements" of February 27, 2019 stipulates that the flow of documents related to concluding, modification and termination of the contract is to be performed through the electronic health care system in compliance with the requirements of the legislation on electronic documents and electronic document turnover. During the reporting period, changes and updates were made to sectoral profiles.

Regarding the Housing and Municipal Utilities Strategy x with regard to the achievement of Operational Goal 1.9 "Implement the targeted mechanism for the provision of privileges and subsidies for housing and municipal utility services, which will provide incentives to reduce the consumption of such services", the Cabinet of Ministers of Ukraine endorsed Resolution # 62 of February 06, 2019 "On Introducing Amendments to Certain Resolutions of the Cabinet of Ministers of Ukraine", which introduces a mechanism to provide housing subsidies to certain population in cash. Thus, there will be two parallel models for monetisation of subsidies. Based on the successes of the models, the government will make the final decision on the mechanism to provide targeted assistance to the population.

The Project updated the Current Legislative Framework sections of the following sectoral profiles (See Table 1.1): Table 1.1. Updates to the current legislative framework for sectoral profiles

Technical area Titles of regulatory and legal documents Titles of regulatory and legal documents added excluded Decrees of Decrees of instructions instructions the CMU CMU the CMU CMU Laws of Laws of President resolutions directives President resolutions directives ministries ministries of Ukraine of Ukraine Local finance 0 2 2 0 0 0 0 2 1 3 Public 0 3 8 3 2 0 1 1 0 0 education Social 0 1 5 0 0 0 1 1 0 0 protection Organisational 0 0 3 0 0 0 0 5 0 0 aspects and professional development Housing and 0 0 0 1 0 0 0 0 0 0 municipal utilities E-governance 0 0 1 1 0 0 0 0 0 0 and public services Land relations 0 0 0 0 2 0 0 0 0 0

14 January – March, 2019

Of the problem issues, which were resolved during the reporting period, one should mention the following:

In the sector of social protection: Completely resolved: x The problem with untimely reimbursement from the National Budget to providers of housing and municipal utility services for the benefits and subsidies provided to consumers. Resolution of the Cabinet of Ministers of Ukraine # 62 of February 06, 2019 "On Introducing Amendments to Certain Resolutions of the Cabinet of Ministers of Ukraine" provides for complete monetisation of housing subsidies at the user level. In other words, the financial relationships between the state and service providers (in particular, municipal utility companies) have been eliminated. Citizens will pay the full cost of consumed housing and municipal utility services by themselves.

In the sector of public education: Completely resolved: x The problem with the lack of funds to support inclusive resource centers was resolve with the help of CMU Resolution # 65 of February 06, 2019 "On Introducing Amendments to the Formula to Distribute the Education Subvention between Local Budgets”. The amendments to the formula to distribute the education subvention, in particular, provide for the calculation of funds for the remuneration of employees of inclusive resource centers. Also, these funds have been included in the education subvention in accordance with the Law of Ukraine "On the National Budget of Ukraine for 2019" and directed to oblast budgets. The decisions on the distribution of the funds between local budgets to support inclusive resource centers will be made by oblast authorities during the period of the formation of their network. x The problem with the insufficient regulatory and legislative framework to garget permits to use property for non-educational purposes to ensure the education process was resolved with the help of Law of Ukraine # 2661-VIII "On Introducing Amendments to Article 80 of the Law of Ukraine "On Education" of December 20, 2018, which entered into force in the reporting period. The law resolves the issue of granting permission to lease educational institutions for the purpose of rendering services that can not be provided directly by educational institutions and that are related to ensuring the education process or to rendering services to participants of the education process.

Partially resolved: x The need to transfer the responsibility to fund vocational training institutions to the oblast level has been included in the strategy for reforms in the system of vocational education. For example, on March 25, 2019, the Strategic Committee of the Cabinet of Ministers supported the political initiative of the Ministry of Education and Science of Ukraine on the implementation of the national policy in the sphere of vocational education, which envisions a phased transition to providing the financial support for vocational training institutions located in oblast center cities from oblast budgets. The political initiative has taken into account the decision of the AUC Board (Protocol # 3 of February 04, 2019) to introduce amendments to the Budget Code of Ukraine and to provide the financial support from oblast budgets to vocational training institutions as those that are transferred to common territorial ownership of oblast territorial communities. x The problem with the lack of funds for updating the material and technical base and to refurbish educational institutions was partly resolved for certain communities through endorsement of CMU Resolution # 14-р of January 16, 2019 "On Distribution of the Additional Subsidies for the Transfer of Expenditure Categories Shifted From the National Budget for Educational and Health Care Establishments between Local Budgets in 2019". In addition to this, Resolution of the CMU # 193 of February 27, 2019 "On Introducing Amendments to the Regulations and Conditions for Provision of the Education Subvention from the National Budget to Local Budgets" envisions broader areas where the balance funds of the education

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subvention can be used. For example, these funds can be used for the construction of new toilet premises, reconstruction, capital and scheduled repairs of such premises in comprehensive secondary educational institutions numbering at least 20 children, as well as for furnishing them with sanitary and hygienic equipment, or the preparation of the relevant design documents. Also, Resolution of the Cabinet of Ministers of Ukraine # 130 of February 27, 2019 "On Certain Issues of the Provision of the Subvention from the National Budget to Local Budgets to Ensure High Quality, Modern and Affordable New Ukrainian School Comprehensive Secondary Education in 2019” provides an opportunity to local governments to purchase multimedia content and musical instruments for educational institutions on the principles of co-financing from the National Budget and local budgets. x The problem with the insufficient education subvention due to the flawed formula to calculate the education subvention was partly resolved with the help of CMU Resolution # 65 of February 06, 2019 "On Introducing Amendments to the Formula to Distribute the Education Subvention between Local Budgets”. The amendments to the formula for the distribution of the education subvention were prepared with the participation of a PULSE Project expert. They introduced: ratios for certain cities with schools in rural areas and reduced the estimated number of schoolchildren in such classes; splitting classes into groups for studying certain subjects; mechanisms to calculate payments for staff in inclusive and resource centers; the concept of "financial standard of budget sufficiency"; and, increased the available funding for salaries of teacher assistants to improve inclusive education. The endorsement of the resolution helped to increase local budget resources in proportion to the increase of the education subvention. At the same time, the problem with the shortage of the education subvention was not resolved completely, because the formula does not take into account the actual number of students and envision funds for individual forms of education. In addition to this, Law of Ukraine # 2696-VIII "On Introducing Amendments to the Law of Ukraine "On the National Budget of Ukraine for 2019"” of February 28, 2019 brings the volume of inter-budget transfers, in particular the education and health care subventions, basic and reverse subsidies, for local budgets in line with the requirements of Article 26 of the Law of Ukraine "On the National Budget of Ukraine for 2019". For example, the law unlocked salary payments to teachers in 10 oblasts of Ukraine were initial local elections did not take place on December 23, 2018 because of the introduction of the martial law. x The problem with the failure of the Verkhovna Rada of Ukraine to approve the Law of Ukraine "On Comprehensive Secondary Education" was partially resolved with the approval by the Cabinet of Ministers of Ukraine on March 12, 2019 of the draft special Law of Ukraine "On Completed Comprehensive Secondary Education", which was developed with the participation of the PULSE Project. The draft law is currently being prepared for registration in the Verkhovna Rada of Ukraine.

In the sector of health care: x The government resolved the problem health care establishments faced when paying drug stores for medicine. The problem was that only “public fund spending units” in were able to make such payments with the funds of the National Budget subvention, while in accordance with the reform in the health care sector the status of health care establishments changed from “public fund spending units” to “public fund receiving units”. The endorsement of Resolution of the Cabinet of Ministers of Ukraine # 141 of February 27, 2019 resolved this issue by changing the procedure for drug stores to get reimbursement for the medicine prescribed in health care establishments and introduced direct payments between the National Health Service of Ukraine and drug stores.

Partially resolved: x The problem with insufficient regulatory and legislative framework for health care guarantees for the secondary care. The Cabinet of Ministers of Ukraine endorsed Resolution # 131 of February 27, 2019 "On Certain Issues of the Implementation of the Pilot Project for State Health Care Guarantees for the Population within the Framework of the Program of Health Care Guarantees for Secondary (Specialized) Care Aid in the Poltava Oblast”. x The problem with the refusal to issue licenses for economic activities in the health care sector because of the absence of accreditation. Resolution of the Cabinet of Ministers # 215 of March 13, 2019 introduced amendments to resolutions of the Cabinet of Ministers of Ukraine # 765 of July 15, 1997 and # 285 of March 02, 2016 to reduce the list of documents accompanying the health care establishment application for accreditation, reduce the timeframe of the first accreditation, as well as to provide an opportunity to re-register the accreditation certificate of a health care establishment, which was reorganised into a municipal non-profit organisation.

16 January – March, 2019

x The problem with the absence of the electronic medical information exchange system. Resolution of the Cabinet of Ministers # 134 of February 27, 2019 introduced amendments to a number of resolutions: # 410 of April 24, 2018, # 117 of April 23, 2014, and # 1548 of February 25, 1996 to simplify the procedure of concluding health care contracts within the framework of the program of health care guarantees. In particular, the list of electronic documents submitted to the NSHU has been reduced, the number of annexes has been reduced, the pre-payment for specialised care has been introduced, the data published on the NSHU web site have been depersonalised, etc. Resolution # 135 of February 27, 2019 introduces reimbursement for medicine issued exclusively through electronic health care prescriptions system starting as of April 01, 2019. Resolution # 136 of February 27, 2019 introduces the procedure for concluding, modifying and termination of the reimbursement agreement and the model format of the reimbursement agreement. All document flow will be carried out through the electronic health care system.

In the sector of local finance: Completely resolved: x The problem with choosing the mechanism to direct part of excise tax collections to the general fund of local government in 2019 was resolved through Resolution of the Cabinet of Ministers of Ukraine # 259 of March 27, 2019"On Certain Issues of Crediting Part of the Excise Tax on Fuel Produced in Ukraine and Imported on the Customs Territory of Ukraine to the General Fund of Local Government Budgets in 2019".

Partially resolved: x The problem with clarifying indicators of inter-budget transfers was partially resolved through Law of Ukraine # 9476 of January 16, 2019 "On Introducing Amendments to the Law of Ukraine "On the National Budget of Ukraine for 2019"”. The approved Law clarifies indicators of inter-budget transfers envisioned in the National Budget of Ukraine for 2019 for local budgets of the city of Pokrov and the city of Marhanets of the Dnipropetrovsk oblast, the city of Berdyansk of the Zaporizzhya oblast, the city of Kolomyia of the Ivano-Frankivsk oblast, the city of Lozova of the Kharkiv oblast, the city of Kaniv of the Cherkasy oblast, the city of Nizhyn of the Chernihiv oblast, and the budget of the Krasylivska City Consolidated Territorial Community of the Khmelnytskyi oblast.

The Local Finance Sectoral Profile was updated on the basis of the collected up-to-date information on local government problem issues following the Dialogue Day with the Government conducted on September 24 – 25, 2018 in the city of Ternopil and the meeting of the AUC Local Finance Professional Group conducted on March 14 – 15, 2018 in Lviv, as well as based on local government consultations/appeals.

In the sector of organisational aspects of local government activities and professional development of their employees: Completely resolved: x The problem with non-compliance of the existing Regulations on the system of professional training of local government officials and local council members with the Concept for reforms of the relevant training approved in December, 2017. The updated Regulation on the System of Professional Training of Civil Servants, Heads of Local State Administrations, Their First Deputies and Deputies, Local Government Officials and Members of Local Councils was endorsed CMU Resolution # 106 of February 06, 2019. x The problem with the lack of methodological guidance for territorial communities for preparation and implementation of local ordinances on citizen participation in resolving issues of local importance. On February 20, the Ministry of Regional Development published Methodological Recommendations guidelines prepared with the participation of the AUC for the preparation of the territorial community charter.

Based on the consideration of the appeal of the Balta City Council, the list of problems to be resolved was supplemented with the need to delete from Paragraph 5 of Article 17 of the Law "On Local Elections" the second paragraph, which stipulates the need for formation of at least one territorial election constituencies in the villages belonging to the city consolidated territorial community, which leads to a substantially lower level of representation of city residents in the council as compared with rural residents. In the sphere of housing and municipal utility services: Completely resolved:

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x The problem with the termination of the period of reduced level payments for consumed natural gas during the heating season. Resolution of the Cabinet of Ministers of Ukraine # 263 of March 27, 2019 "On Certain Issues of the 2018/19 Heating Season" extended the period of reduced level payments for consumed natural for thermal energy producers until May 01, 2019, thus ensuring the uninterrupted 2018/2019 heating season. x The problem with inconsistencies between regulatory and legal documents and the new version of the Law of Ukraine "On Housing and Municipal Utility Services", which will take effect on May 01, 2019 is resolved through Resolution of the Cabinet of Ministers of Ukraine # 318 of March 27, 2019 "On Introducing Amendments to Certain Resolutions of The Cabinet of Ministers of Ukraine". The Resolution clarifies the mechanisms for solid waste companies to provide solid waste management services, for local governments to regulate tariffs for these services, and for the procedure for conducting tenders for solid waste disposal service provision. Partially resolved: x The problem with lack of a system of incentives to recycle solid waste. Directive of the Cabinet of Ministers of Ukraine # 117-p of February 20, 2019 "On Endorsing the National Plan for Solid Waste Management till 2030" envisions the development of a regulatory and legislative framework in the solid waste management sector, as well as a set of organisational activities that will provide incentives for recycling solid waste.

Table 1.2. Current status of problem solutions by each sectoral profile over the reporting period

Resolved or removed As of the due to optimisation of As of the end of Sectoral profile beginning of the Added the reporting reporting period previously identified period problems Local budgets and 21 0 1 20 financial foundations of local self- governance Housing and 47 1 2 46 municipal utilities Land relations 25 0 0 25 Organisational 27 1 2 26 aspects and capacity building Social protection 18 1 1 18 Health care 15 0 3 12 Public education 29 1 2 28 Local economic 15 0 0 15 development E-governance and 19 0 0 19 public services

Meetings of AUC Professional Groups Land Relations, Urban Development and Communally-Owned Property Professional Group February 07 – 08, 2019, city of Yaremche Ivano-Frankivsk oblast. The event brought together 38 participants including representatives from 27 cities of 10 oblasts of Ukraine (directors of structural subdivisions of city councils on land resources, urban planning and communally- owned property), as well as the leadership of the Main Directorate of the State Land Cadastre Agency in the Ivano-Frankivsk oblast, State Land Cadastre Agency of the city of Yaremcha, and the leadership of the Yaremche City Council. The PULSE Project expert familiarised the participants with new provisions of the legislation governing land relations, urban development and communal property. Particular attention was paid to increased local government powers in managing land resources. In particular, the discussion focused on the Law of Ukraine # 2498-VIII of August 19, 2018 "On Introducing Amendments to Certain Ukrainian Legislation Regarding the Issue of Collective Land Ownership, Improving Land Use Rights for Agricultural Lands, Prevention of

18 January – March, 2019

Raidering and Stimulating Irrigation in Ukraine"; Law of Ukraine # 2628-VIII of December 10, 2018 "On Introducing Amendments to the Tax Code of Ukraine and Certain Other Ukrainian Legislation Regarding Improvements of the Administration and Revision of Rates of Certain Taxes and Fees" that were prepared with the participation of the PULSE Project and others. Following the discussion of the legislation amendments, the event participants formulated proposals to the legislation to reflect the needs and problems local governments face in three areas (land, urban development and communally-owned property). The most relevant suggestions were: 1. Lack of resources (communally-owned land parcels) to be transferred to citizens for free including to participants of the Anti-Terrorist Operation and other socially vulnerable groups of the population. The binding nature of land transfer to citizens has been stipulated by laws. The central government does not keep a record of citizens who have taken the advantage of their right for free privatisation of state-owned and communally-owned land parcels. The participants decided: to take steps to increase the capacity of the Unified Register of Property Rights by entering into it the additional information about the reasons for obtaining rights to the land parcel (free of charge privatisation, buying, selling, etc.) and give access to local governments for entering such data and obtaining the relevant information to verify what citizens have made use of their property right. 2. The timeframe for privatisation of communally-owned property specified in the Law of Ukraine “On Privatisation of State-Owned and Communally-Owned Property” is not in line with the timeframe for making public draft local government ordinances as specified in the Law of Ukraine “On Public Information”. The participants decided: to initiate introducing amendments to the Law of Ukraine “On Public Information” to shorten the timeframe for making public draft local government ordinances related to privatisation of communally-owned property. 3. The enactment of the new national normative pecuniary valuation of lands as of January 01, 2019 has reduced collections from land fees to certain local government budgets. The participants decided: review such cases with the help of all AUC Regional Offices; conduct a working meeting with representatives of the State Land Cadastre and the main authors of such valuation; prepare proposals to prevent local budget losses; and provide clarifications for local governments.

Local Finance Professional Group March 14 - 15, 2019, city of Lviv The event brought together 42 participants from 25 cities in 16 oblasts including deputy city mayors, directors of financial departments of local councils, and local council members. The meeting participants raised a number of key local finance issues. In particular, they discussed the following: - participation of the Association of Ukrainian Cities in the 2018 budget process, and further directions of AUC activities in the local finance sector; - changes in the budget process in the context of the introduction of multi-year budget planning; - sufficiency of the subvention for the public education and health care sectors and the distribution of the additional subsidy to cover the expenditure categories transfer from the National Budget to local budgets to maintain public education and health care establishments; - prohibition of placing temporarily unused local budget funds on bank deposit accounts; - ensuring the payment of the personal income tax to the budgets of territorial communities where companies, institutions, and organisations are actually located; - financial support for the construction, reconstruction, repairs and maintenance of communally- owned streets and roads in populated areas; - opportunities to increase the scope of local government posers and functions in administering local taxes and fees, etc. In the course of the discussion, the participants agreed on the need to: 1. Specify a provision in the budget and tax legislation about the compensation to local budgets of the collections from the excise tax, which will be abolished in 2020, in the form of an increased share of deductions coming to local budgets from the personal income tax; 2. Ensure the implementation of the provision of the Tax Code of Ukraine requiring the State Fiscal Service of Ukraine to provide local governments with the information about paid taxes and fees on the respective territories and amounts of the tax debt with regard to each taxpayer by granting local governments access to the Tax Section Automated System;

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3. Prevent the biased distribution of public funds and ensure compliance with the principle of fairness and impartiality in the budget system, in particular, with regard to the distribution of the additional subsidy to cover the expenditure categories transfer from the National Budget to local budgets to maintain public education and health care establishments by specifying the Budget Code the proportion for the distribution of the total amount of this subsidy between budgets at different levels and criteria for such distribution, or by increasing the share of deductions to local budgets coming from the personal income tax; 4. Ensure the payment of the personal income tax to the budgets of territorial communities where companies, institutions, and organisations are actually located by giving an instruction to the State Fiscal Service to conduct unscheduled inspections of companies, institutions, and organisations to find out their actual location and verify whether the appropriate amount of taxes have been paid to the corresponding budge in 2018 – 2019 and to use the findings of such unscheduled inspections to make the payers of the personal income tax pay their due taxes to the relevant local budgets; 5. Prevent transferring to local budgets the expenditure categories of financing a number of social functions, such as payment of the compensation for the lost immovable property at the expense of local budgets; shifting the responsibility to pay allowances for certain categories of citizens (orphaned children and children deprived of parental care, or similar categories of citizens) for housing to local budgets, etc.

The meeting took place in the round table discussion format and provided the opportunity for the participants to discuss most controversial problem issues of local budgets. In addition to this, the participants had an opportunity to share their experience, best practices and achievements. In the course of the discussions, the participants focused their attention on the following issues: budget process in the context of the multi-year budget planning; future prospects for increased functions and powers of local governments in the sphere of administering local taxes and fees; impact of the prohibition to place temporarily unused funds of local budgets on bank deposit accounts; and preservation of the current capacity of local budget resource base and strengthening the capacity of local governments, in particular, with regard to the sufficiency of the subventions to the public education and health care sectors, excise tax on the retail sales of excisable goods, writing off debts on mid-term loans, etc.

1.1.2. Preparation of sectoral legislation During the reporting quarter, PULSE Project experts prepared 25 draft regulatory and legal documents including: x 2 draft regulatory and legal documents prepared exclusively by PULSE Project experts; x 14 draft regulatory and legal documents, with comments and proposals to them submitted in the course of the concurrence of these documents in the manner specified by the Law of Ukraine “On Local Government Associations”, or as expert opinions; and, x 9 draft regulatory and legal documents, which prepared within the framework of working group at central state executive authorities.

During the reporting quarter, the Cabinet of Ministers and Verkhovna Rada of Ukraine approved 16 regulatory and legal documents, which are important for local self-governance. PULSE Project experts participated in the preparation of these documents: 1. The Law of Ukraine "On Social Services" of January 17, 2019 (expected to be signed by the President). The law introduces a new philosophy for the provision of social services. A PULSE Project expert was involved in the preparation of this law and lobbying for its approval. The lobbying work, in particular, included preventing the approval of the provisions, which imposed gave expenditures categories on local budgets in the amount of 1.5 billion hryvnyas. 2. The Law of Ukraine "On Introducing Amendments to the Law of Ukraine "On the National Budget of Ukraine for 2019" # 2696-VIII of February 28, 2019. The law incorporates PULSE Project proposals to clarify the indicators of inter-budget transfers envisioned in the National Budget of Ukraine for 2019 for the local budgets of the cities of Pokrov and Marhanets of the Dnipropetrovsk oblast, city of Berdyansk of the Zaporizzhya oblast, city of Kolomyia of the Ivano-Frankivsk oblast, city of Lozova of the Kharkiv oblast, city of Kaniv of the Cherkasy oblast, city of Nizhyn of the Chernihiv oblast, and the budget of the Krasylivska City Consolidated Territorial Community of the Khmelnytskyi oblast. 3. Law of Ukraine "On Introducing Amendments to Article 80 of the Law of Ukraine «On Education» Regarding Supporting the Education Process with Proper Conditions for Work and Studying” # 2661-VIII of December 20, 2018. The law provides regulation for permits to lease educational institutions for providing the services that can not be provided directly by educational institutions and that ensure the education process or services to the participants of the education process. The PULSE Project expert participated in the

20 January – March, 2019

discussion of the draft law and submitted the relevant proposals to the Verkhovna Rada Committee on Science and Education through AUC Letter # 5-261 of June 11, 2018. 4. CMU Resolution # 18 of January 16, 2019 "On Introducing Amendments to the Regulation on the Main State Social Inspector and the State Social Inspector". The Resolution vests executive entities of local councils of consolidated territorial communities with the right to perform inspection of the material and living conditions of households to grant them various types of state privileges and allowances. A PULSE Project expert participated in the preparation of the Resolution. Thanks to the participation of the PULSE Project expert, any local government official including the starosta may perform the inspection. Also, thanks to the PULSE Project, executive bodies of councils of consolidated territorial communities will conduct the examination only in cases stipulated by law, rather than upon the decision of the rayon state administration. 5. CMU Resolution of # 32 January 10, 2019 "On Introducing Amendments to the Resolutions of the Cabinet of Ministers of Ukraine # 950 of July 18, 2007 and # 330 of May 11, 2016". The Association of Ukrainian Cities managed to include in Section 2 of Paragraph 28-5 of the Regulation of the Cabinet of Ministers of Ukraine on the standing (upon he decision of the Committee Chairman) participation of the authorised representative of all-Ukrainian local government associations in committee meetings. Thus, the AUC strengthened the position of local governments in the policy dialogue with the Cabinet of Ministers and specified the possibility of participation of a representative of local government associations of in the work of Cabinet of Ministers Committees. 6. CMU Resolution # 65 of February 06, 2019 "On Introducing Amendments to the Formula to Distribute the Education Subvention between Local Budgets". The amendments to the formula for the distribution of education subvention envision ratios for individual cities with schools in rural areas, as well as the reduced the expected number of schoolchildren in classes; splitting classes into groups for studying certain subjects; calculation of remuneration for teachers working in inclusive resource centers; introduce the concept of the "financial standard of budget sufficiency"; and increased the number of teachers assistants for inclusive education. Also, the document provides for the calculation of the subvention for comprehensive secondary education in vocational training institutions and Accreditation Level І - ІІ higher educational establishments. The endorsement of the Resolution provided opportunities to increase the resources of local budgets in proportion to the increase of the education subvention. A PULSE Project expert participated in meetings of the working group of the Ministry of Education and Science to elaborate the formula for the distribution of the education subvention. 7. CMU Resolution # 106 of February 06, 2019 "On Approving Regulation on the System of Professional Training of Civil Servants, Heads of Local State Administrations, Their First Deputies and Deputies, Local Government Officials and Members of Local Councils", which envisions, in particular, a system to request and finance by local councils training of local government officials and local council members according to special curricula on the market of education services. 8. CMU resolution # 234 of March 20, 2019 «On Endorsing the Regulations for the Formation and Access to the Unified State Register of Cases of Domestic Violence and Gender Based Violence". The resolution provides the regulatory and legislative framework for the register of cases of domestic violence and the register of social services provided to victims of domestic violence. A PULSE Project expert participated in the preparation of the Resolution. The Resolution was prepared by the working group of the Ministry of Labour and Social Policy. 9. Resolution of the Cabinet of Ministers of Ukraine # 318 of March 27, 2019 "On Introducing Amendments to Certain Resolutions of the Cabinet of Ministers of Ukraine". Tanks to the endorsement this Resolution, Ukraine has got the regulatory and legislative framework for the new version of the Law of Ukraine "On Housing and Municipal Utility Services". 10. Directive of the CMU # 17-p of January 16, 2019 "On Endorsing the List and Composition of Hospital Districts of the Sumy Oblast”. Thanks to the efforts of the PULSE Project, the document reflects the position of cities of the Sumy oblast to establish six hospital districts. 11. Directive of the Cabinet of Ministers of Ukraine # 27-p of January 23, 2019 "On Approving the Concept for Reforming the System of Provision of Cultural Services to the Population". The Directive endorsed the principles to reform the system of service provision in the sphere of culture for the period of 2019 - 2022. The draft of this document was concurred with by a PULSE Project expert through AUC Letter # 5-533 of November 12, 2018, while AUC proposals were taken into account in the part of the document dealing with the provision of state guarantees of the scope of cultural services. 12. Directive of the CMU # 77-p of January 23, 2019 "On Approving the Action Plan for the Implementation of the New Phase of the Local Government Reform and Reform of the Territorial Arrangement of Government Institutions in Ukraine for 2019 - 2021" takes into account PULSE suggestions about the necessity of preparing an act, which will extend the powers of local governments to perform local government in control of the use of lands.

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13. Directive of the CMU # 117-p of February 20, 2019 "On Endorsing the National Plan for Solid Waste Management till 2030", which defines a list of activities and timeframe for their implementation to ensure the implementation of the National Strategy for Waste Management, and in particular, reflects AUC comments regarding the participation of local governments in implementing the plan. 14. Directive of the Ministry of Finance of Ukraine # 130 of March 29, 2019 "On Endorsing Methodological Recommendations for the Preparation of Local Budgets for the Multi-Year Term in 2019". A PULSE Project expert participated in the preparation of the directive and offered suggestions during consideration of the document by the Ministry of Finance. 15. Directive of the Ministry of Education # 1221 of 09.11.2018 "On Endorsing Regulation on the Inter- School Resource Center". Local governments and educational institutions now have new opportunities for developing the optimal modern infrastructure of schools including natural science laboratories, gyms, as well as other opportunities for serious and in-depth education for students. A PULSE Project expert provided her proposals to the text of the regulatory act and participated in meetings of working groups. The AUC provided its official concurrence with the draft document through Letter # 5-497 of October 29, 2018. All proposals of the PULSE Project expert were reflected in the document. 16. Methodical recommendations for the preparation of the territorial community charter, which define the ways to prepare local community charters. The document was published on the web site of the Ministry of Regional Development.

The Verkhovna Rada of Ukraine registered 6 draft laws prepared with the participation of the PULSE Project: 1. Draft Law “On Introducing Amendments to Certain Laws of Ukraine Regarding Submission and Consideration of Electronic Petitions” (Registration # 10133 of March 07, 2019), which improves the mechanisms for submitting and consideration of electronic petitions sent to local governments. In particular, the draft law regulates the number of citizen signatures in support of electronic petitions to local governments and the timeframe to collect them, sequencing and timeframe for local councils and executive entities of local councils to consider petitions, mechanisms for recalling signatures, combining identical electronic petitions into one, etc. 2. Draft Law “On Introducing Amendments to the Tax Code of Ukraine Regarding Improvements of Administration of Local Taxes and Fees (Registration # 10154 of March 14, 2019). A PULSE Project expert participated in the preparation of the draft law as a member of a working group at the State Fiscal Service. 3. Draft Law “On Introducing Amendments to Certain Ukrainian Legislation Regarding the Forms of Direct Participation of Citizens in Resolving Issues of Local Importance and Statutory Drafting” (Registration # 10158 of March 15, 2019). A PULSE Project expert participated in the preparation of the draft law as a member of the working group of Verkhovna Rada Committee on State Building, Regional Policy and Local Self-Governance. 4. Draft Law “On Introducing Amendments to the Budget Code of Ukraine Regarding the Financial Support for Territorial Road Funds” (Registration # 10186 of March 26, 2019). A PULSE Project expert participated in the preparation of the draft law in cooperation with National Deputies. 5. Draft Law “On Introducing Amendments to the Law of Ukraine "On the Protection of Childhood" Regarding the Implementation of the "Child and Youth Friendly Community" International Initiative (Registration # 10189 of March 27, 2019). The document offers a suggestion to specify in the legislation the possibility for territorial communities of Ukraine to join the "Child and Youth Friendly Community" international initiative and receive additional collections from the personal income tax. A PULSE Project expert participated in the preparation of the draft law. 6. Draft Law “On Introducing Amendments to Chapter VI of "Closing and Transitional Provisions" of the Budget Code of Ukraine (Regarding additional collections to budgets of cities and consolidated territorial communities that joined the "Child and Youth Friendly Community" International Initiative) (Registration # 10190 of March 27, 2019). The draft law offers a suggestion to increase in the share of personal income tax deductions to local budgets of the territorial communities recognised as candidates to receive the status of the "Child and Youth Friendly Community" of the communities, which have received or confirmed the "Child and Youth Friendly Community" status. A PULSE Project expert participated in the preparation of the draft law. In particular, thanks to work of the PULSE expert, the capital of Ukraine received the right to get the state support.

Table 1.3. Distribution of draft regulatory and legal documents by sector

Sector Number of Number of draft

22 January – March, 2019

draft documents documents prepared since prepared in the the beginning of reporting the Project quarter Local finance 3 74 Housing and municipal utilities 2 20 Land and communally-owned property 1 13 Organisational aspects of local government activities and capacity 9 50 building for their officials Social protection 5 48 Health care 0 7 Public education 2 38 Administrative services and e-governance 1 3 Sustainable economic development and urban development 2 25 TOTAL 25 278

Table 1.4. List of prepared draft regulatory and legal documents

Registration Title of the draft law Subject matter number Draft amendments to the Law Envisions regulation of the procedure for conducting of Ukraine "On Voluntary regular elections to village, town, city, and rayon Consolidation of Territorial councils on the territories where consolidated Communities” territorial communities from different rayons have n/a consolidated into one community or where territorial communities have merged with communities of cities of oblast significance, while the boundaries of rayons have not been changed. Amendments to Resolution of Includes Paragraph 28-5 into Clause 2 of the By- the CMU # 950 of July 18, Laws of the Cabinet of Ministers of Ukraine 2007 "On Endorsing the By- regarding the permanent (upon the decision of the n/a Laws of the Cabinet of Committee Chair) participation in committee Ministers of Ukraine" meetings of the authorised representative of Ukraine- Wide local government associations. (specifying the existing practice in the legislation)

Draft regulatory and legal documents, to which corrections and proposals were submitted, in the course of their approval in the manner prescribed by the Law of Ukraine "On Local Government Associations", or when expert opinions were provided: 1. Draft Law of Ukraine "On Introducing Amendments to the Law of Ukraine "On Out-of-School Education”. 2. Draft Law of Ukraine "On Pre-School Education". 3. Draft Law of Ukraine "On Introducing Amendments to Certain Legislative Acts Regarding the Protection of Residential Rights of Orphaned Children and Children Deprived of Parental Care, and Persons of Similar Categories". 4. Draft Law of Ukraine "On Introducing Amendments to the Law of Ukraine "On Local Self- Governance in Ukraine" (Registration # 7071 of September 06, 2017). 5. Draft Law of Ukraine "On Introducing Amendments to the Laws "On Culture" and "On Local Self- Governance in Ukraine" (regarding sectoral decentralisation in the sphere of culture).

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6. Draft Law "On Introducing Amendments to the Law of Ukraine “On Transferring State-Owned and Communally-Owned Facilities”” (Registration # 9459 of January 02, 2019). 7. Draft Law of Ukraine «On Introducing Amendments to Certain Ukrainian Legislation Regarding the Reform the System of Institutional Care and Upbringing of Children”. 8. Draft Law of Ukraine "On Sewerage". 9. Draft Resolution of the Cabinet of Ministers of Ukraine "On Issues of Remuneration of Employees of Local Governments". 10. Draft Resolution of the Cabinet of Ministers of Ukraine "On Introducing Amendments to Resolution of the Cabinet of Ministers of Ukraine # 877 of November 15, 2017". 11. Draft CMU Directive "On Endorsing the Action Plan to Ensure the New Phase of the Implementation of the Concept of the Local Government Reform and Reform of the Territorial Organisation Arrangement of Government Institutions in Ukraine for 2019 - 2021". 12. Draft CMU Resolution "On Endorsing the Action Plan for the Implementation of the Concept for the Provision of Cultural Services to the Population". 13. Draft Resolution of the CMU "On Introducing Amendments to the Long-term Perspective Plan for the Formation of Community Territories of the Poltava Oblast". 14. Draft Directive of the Ministry of Finance of Ukraine "On Endorsing Methodological Recommendations for the Preparation in 2019 of the Draft Decision on the Local Budget for 2020 and a Local Budget Forecast for 2021 - 2022".

PULSE Project experts provided the following comments and edits to the following draft legislation in the course of its preparation in various working groups set up at government authorities: 1. Draft Law of Ukraine "On Introducing Amendments to the Budget Code of Ukraine Regarding the Elimination of the Unnecessary Concurrence from the Central State Executive Entity for the Scope of Road Repairs Funded from Territorial Road Funds, Guarantees for Directing Funds from Territorial Road Funds to Municipal Roads, as well as Regarding Specifying at the Legislative Level the Possibility to Finance Manufacturing Facilities of Road Maintenance Organisations" (Registration # 10186 of March 26, 2019). 2. Draft Law of Ukraine "On Introducing Amendments to Certain Laws of Ukraine Regarding the Provision and Payment for Housing and Municipal Utility Services". 3. Draft Law of Ukraine "On Introducing Amendments to Certain Laws of Ukraine Regarding Submission and Consideration of Electronic Petitions". 4. Draft Law of Ukraine "On Introducing Amendments to Certain Ukrainian Legislation Regarding the Reform of the System of Institutional Care and Upbringing of Children". 5. Draft amendments to the Action Plan for the implementation of the Strategy for Reforms in the Public Finance Management System for 2017 - 2020. 6. Draft CMU Resolution "Criteria for Assessing the Admissibility of State Assistance to Economic Entities for Environmental Protection". 7. Draft regulatory and legal documents: a draft action plan aimed at preventing and countering bulling, a draft directive on the procedure for responding to cases of bulling, and a draft directive on using correctional means. 8. Draft Directive of the Ministry of Regional Development «On Introducing Amendments to the List of Construction Objects Whose Design does not Require Urban development conditions and Limitations". 9. Methodical recommendations for the preparation of the territorial community charter.

In addition to this, the Project continued the work (providing expert opinions and participating in working groups on 4 draft regulations, which started in the previous reporting periods: 1. Draft Law “On Introducing Amendments to the Law of Ukraine "On Regulation of Urban Development Activities" (Registration # 6403) during the preparation for the second reading in the Verkhovna Rada Committee on Construction, Urban Development, Housing and Municipal Utilities. 2. Draft Law of Ukraine "On Completed Comprehensive Secondary Education". 3. Draft Law of Ukraine "On Introducing Amendments to Certain Laws of Ukraine Regarding Submission and Consideration of Electronic Petitions" aimed at streamlining the issues of implementation of citizen rights to appeal to public authorities in the form of electronic petitions. The PULSE Project provided comments and suggestions to the author of the draft document, in particular, about the wording of the new article "Electronic Petitions to the Law of Ukraine "On Local Self-Governance in Ukraine"”. 4. Draft Law of Ukraine “On Social Dialogue in Ukraine”.

24 January – March, 2019

1.1.3. Legislation monitoring

During the reporting period, the Association of Ukrainian Cities received 43 draft regulatory and legal documents submitted by central agencies of the state executive for concurrence including: National Service for Labour of Ukraine 1 National Service for Emergencies of Ukraine 1 Cabinet of Ministers of Ukraine 1 Ministry of Culture of Ukraine 4 Ministry of Regional Development, Construction, Housing and Municipal Utilities of Ukraine 18 Ministry of Labour and Social Policy of Ukraine 8 Ministry for Temporarily Occupied Territories and Internally Displaced Persons of Ukraine 1 Ministry of Finance of Ukraine 3 Ministry of Justice of Ukraine 1 Ministry of Health Care of Ukraine 1 Verkhovna Rada Committee on Science and Education 1 Ministry of Economic Development and Trade 1 State Financial Service 1 Ministry of Environment Protection and Natural Resources 1

25 of these draft regulatory and legal documents were concurred with without reservations, 16 were concurred with reservations, and 2 – not concurred with.

PULSE Project experts prepared and submitted 32 expert opinions to the draft legislation under consideration in Verkhovna Rada of Ukraine Committees and central agencies of the state executive including: x positive opinions - 14; x expert opinions with comments and proposals – 18 including 11 negative expert opinions with a suggestion to reject the draft regulatory and legal document.

The expert opinions were submitted to: Anti-Monopoly Committee of Ukraine 1 Verkhovna Rada of Ukraine Budget Committee 3 Verkhovna Rada Committee on Construction, Urban Development, Housing and Municipal Utilities 3 Cabinet of Ministers of Ukraine 2 Ministry of Culture of Ukraine 1 Ministry of Labour and Social Policy of Ukraine 3 Ministry of Finance of Ukraine 1 Ministry of Education and Science of Ukraine 4 Verkhovna Rada Committee on State Building, Regional Policy and Local Self- Governance 3 Verkhovna Rada Committee on Science and Education 3 Verkhovna Rada Committee on Fuel and Energy Complex, Nuclear Policy and Nuclear Safety 3 Verkhovna Rada Committee on Social Policy, Employment and Pensions 3 Verkhovna Rada Committee on Economic Policy 1 National Energy and Utilities Regulatory Commission 1

1.1.4. Resolving local government problem issues and promotion of sectoral reforms

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Preventing additional expenditure categories shifted to local budgets in the amount of UAH 1.5 billion to fund social workers On January 17, 2019, the Verkhovna Rada of Ukraine approved the Law of Ukraine "On Social Services" # 4607, which is a fundamental law in the sphere of social security. The law delineates the powers of the Ministry of Labour and Social Policy, state executive authorities, and local governments. For two years, the Association of Ukrainian Cities had been actively participating in the elaboration of the draft law together with the Parliamentary Committee for Veterans, Combatants, Participants of the Anti- Terrorist Operation and Persons with Disabilities, as well as with the Ministry of Labour and Social Policy. In the course of the elaboration of the draft law for the second reading, the Ministry of Labour and Social Policy used several National Deputies to lobby for the provision, which outlines the requirements to local governments to hire a certain number of employees in the sector of social protection, namely: 1 social manager per 10 thousand persons; 1 social work per 1,000 persons living in the city, and per 500 persons living in a village or town. According to PULSE Project experts, this provision fails to take into account the peculiarities of populated areas and population density, and would have resulted in additional expenditures from local budgets amounting up to 1.5 billion UAH to keep such staff. A PULSE Project expert did not support this provision of the draft law. Thanks to the cooperation of the AUC with the parliament, Representative of the Chairman of the Association of Ukrainian Cities in the parliament, in the course of the consideration of the draft law National Deputy Oksana Prodan informed that the AUC wanted to exclude this provision. National Deputies of Ukraine supported the position of the PULSE Project expert during the vote. The final version of the Law of Ukraine "On Social Services" of January 17, 2019 (expected to be signed by the President) was approved without the norm that could have led to additional expenditures from local budgets in the amount of UAH 1.5 billion.

The New Ukrainian School Reform In the reporting period, the New Ukrainian School Reform focused on improvements of the material and technical conditions of comprehensive secondary education institutions and on the provision some resources to local budgets. At the same time, a PULSE Project expert lobbied for the issue related to managing the property of educational institutions and the powers founders of such institutions, since the provisions of the Law of Ukraine "On Education" prohibited from using the premises of educational institutions for non-educational purposes. This made is impossible to provide high quality utility services and services that are important for comfortable stay of children in schools. In the first quarter of 2019, the government managed to resolve this problem thanks to the enactment of Law of Ukraine # 2661-VIII "On Introducing Amendments to Article 80 of the Law of Ukraine «On Education» Regarding Supporting the Education Process with Proper Conditions for Work and Studying On Introducing Amendments to Article 80 of the Law of Ukraine" of December 20, 2018. The document resolved the issue of granting permissions to lease educational institutions for the purpose of rendering services that can not be provided directly by educational institutions and that are related to the education process or to services to participants of the education process. This will provide opportunities for local governments, being founders of educational institutions, to effectively manage communally-owned property. The lack of indoor school restrooms remains a problem in many Ukrainian communities. To promote comfortable conditions for children in educational institutions, the Ministry of Education and Science of Ukraine issued Directive # 81 of January 28, 2019 "On Approving the Methodological Recommendations for the Use of Education Subvention Funds" and resolved the issue of purchasing teaching supplies, educational equipment and ensuring proper sanitary and hygienic conditions in premises of comprehensive secondary education institutions in compliance with the directions specified in Directive of the Cabinet of Ministers # 1012 of December 18, 2018. Availability of textbooks and manuals in schools is important for ensuring the educational process. CMU Resolution # 41 of January 23, 2019 "On Endorsing the Regulation for Provision of Textbooks and Manuals for Students Who Seek Competed Comprehensive Secondary Education and for Teachers" outlined the mechanism of free (at the expense of the National Budget) provision of textbooks and manuals for students who seek completed comprehensive secondary education and for teachers. Such textbooks and manuals will be provided at the expense of the National Budget funds. In addition to this, the Resolution as introduced the cap amount for the reserve fund of textbooks and manuals.

Reform of vocational education In the reporting period, the Ministry of Education and Science worked to outline strategic directions to reform the system of vocational education. To this end, on March 25, 2019, the Ministry of Education and Science presented a political initiative for the implementation of the national policy in the field of vocational

26 January – March, 2019

education during the meeting of the Strategic Committee of the Cabinet of Ministers. This document envisions reforms in the system of vocational education, in particular, it offers a suggestion to change the mechanisms for funding. In particular, it represents a phased transition to financing vocational education institutions located on the territory of cities of oblast significance from oblast budgets. Oblast center cities also supported the transfer of funding to the oblast level. Based on the discussion during the meeting of the AUC Board, this position was sent to the Cabinet of Ministers of Ukraine. The Strategic Committee of the Cabinet of Ministers of Ukraine approved the political initiative of the Ministry of Education and Science, which takes into account the position of the AUC.

Financial support for the education sector During the reporting period, the Cabinet of Ministers of Ukraine endorsed CMU Resolution # 65 of February 06, 2019 "On Introducing Amendments to the Formula to Distribute the Education Subvention between Local Budgets". The amendments to the formula for the distribution of the education subvention were prepared with the participation of a PULSE Project expert and introduce ratios for selected cities with schools in rural areas, as well as the reduced the expected number of schoolchildren in classes; splitting classes into groups for studying certain subjects; calculation of remuneration for teachers working in inclusive resource centers; introduce the concept of the "financial standard of budget sufficiency"; and increased the number of teachers assistants for inclusive education. In addition to this the document provides for the calculation of the subvention for comprehensive secondary education in vocational training institutions and Accreditation Level І - ІІ higher educational establishments. The endorsement of the Resolution provided opportunities to increase the resources of local budgets in proportion to the increase of the education subvention. At the same time, the document failed to resolve the issue of the taking into account the actual number of students in the calculation of the subvention. Also the formula does not stipulate the remuneration for teachers who train students on an individual basis, etc. Given this, in the first quarter of 2019, some local governments continued to experience shortages of the education subvention. To solve this problem, the Cabinet of Ministers of Ukraine came up with a suggestion to redistribute funds of the education subvention on a case by case basis. For example, on March 27, 2019, the Cabinet of Ministers of Ukraine endorsed Directive # 191-p "On the Distribution of the Amount of the Education Subvention from the National Budget to Local Budgets in 2019". The total amount of the education subvention for 7 consolidated territorial communities and 2 cities was increased by 41,220.9 thousand hryvnyas. The reserve funds of the education subvention and budgets of selected rayons were chosen to be the sources of funds to cover such expenditures. At the beginning of the reporting period, the Verkhovna Rada of Ukraine approved Law of Ukraine # 2696-VIII "On Introducing Amendments to the Law of Ukraine "On the National Budget of Ukraine for 2019"” of February 28, 2019 to bring the volume of inter-budget transfers, in particular the education and health care subventions, basic and reverse subsidies, for local budgets in line with the requirements of Article 26 of the Law of Ukraine "On the National Budget of Ukraine for 2019". This law unlocked salary payments to teachers in 10 oblasts of Ukraine were initial local elections did not take place on December 23, 2018 because of the introduction of the martial law. Another important event in the first quarter of 2019 was the resolution of the issue of using balance funds of the education subvention. To fulfill this task, the Cabinet of Ministers of Ukraine endorsed CMU Resolution # 193 of February 27, 2019 "On Introducing Amendments to the Regulations and Conditions for Provision of the Education Subvention from the National Budget to Local Budgets". The remaining funds of the education subvention can now be directed for the construction of new toilet premises, reconstruction, capital and scheduled repairs of such premises in comprehensive secondary educational institutions numbering at least 20 children, as well as for furnishing them with sanitary and hygienic equipment, or the preparation of the relevant design documents. In addition to this, the document envisions the opportunity to transfer the education subvention to privately-owned educational institutions within the amount of the financial standard (taking into account the corresponding corrective ratios) of budget sufficient per one student who studies in a comprehensive secondary education establishment.

Activity 1.2. Local governments and all interested parties are actively engaged and use participatory tool to work on legislation and advocating for its approval

1.2.1. Support for approval of drafted legislation in the parliament: tools for interaction with the VRU

27 QUARTERLY REPORT for the implementation of the PULSE Project

During the reporting period, the PULSE Project utilised the tool to interact with the parliament including supporting the work of the Inter-Faction Local Government Support Group (local government caucus), participation in the work of parliamentary committees, preparation of expert opinions on draft laws, and conducting Regional Policy Dialogue Platforms.

Local government caucus and cooperation with parliamentary factions Thanks to the cooperation of PULSE experts with National Deputies, the Verkhovna Rada of Ukraine approved the Law of Ukraine "On Social Services" of January 17, 2019 (expected by the President) without a provision that could have led to additional expenditures from local budgets in the amount of 1.5 billion UAH. In the course of the vote in the Verkhovna Rada of Ukraine, National Deputies did not support the amendment, which shifted the expenditure categories mentioned above to local budgets. A PULSE Project expert, in cooperation with National Deputies, participated in the preparation of the Draft Law “On Introducing Amendments to the Budget Code of Ukraine Regarding the Financial Support for Territorial Road Funds” (Registration # 10186 of March 26, 2019). Participation in the work of parliamentary committees During the reporting period of Project implementation, PULSE Project experts participated in 20 meetings of 7 parliamentary committees:

Verkhovna Rada of Ukraine on Family Issues, Youth Policy, Sports and Tourism – 1; Verkhovna Rada of Ukraine Committee on Science and Education - 5; Verkhovna Rada of Ukraine Committee on Agrarian Policy and Land Relations – 4; Verkhovna Rada of Ukraine Committee on Health Care – 2; Verkhovna Rada of Ukraine Committee on State Building, Regional Policy and Local Self-Governance – 3; Verkhovna Rada of Ukraine Budget Committee – 3; and, Verkhovna Rada of Ukraine Committee on Construction, Urban Development, Housing and municipal Utilities – 2.

During the reporting period, thanks to the participation of PULSE Project experts, it was possible to achieve the following main results in cooperation with committees, namely:

Verkhovna Rada of Ukraine Committee on Social Policy, Employment and Pension Support On February 19, the Committee of the Verkhovna Rada of Ukraine on Social Policy, Employment and Pension Support conducted to discuss the provision of housing subsidies in cash. During the meeting, a PULSE Project expert outlined the problems local governments face while providing subsidies in cash. Also, the meeting participants highlighted the problems of court litigation from private utility providers to local social security bodies in connection with late payment of state guaranteed subsidies. According to discussion at the meeting, the Committee prepared recommendations for the Cabinet of Ministers and line ministries, which will also include proposals of the Association of Ukrainian Cities.

Verkhovna Rada of Ukraine Budget Committee On February 27, the Cabinet of Ministers of Ukraine distributed 60.5 million UAH of the subvention from the National Budget to local budgets for opening local "Transparent Offices". In accordance with the Ukrainian legislation, such distribution should be approved by the Budget Committee of the Verkhovna Rada of Ukraine. The Committee met twice to review this decision of the Cabinet of Ministers, since during the first meeting, representatives of the Cabinet of Ministers were not able to justify their decision on the distribution. Aiming at supporting communities, the PULSE Project prepared a justification for the distribution of the subvention in the volumes amount specified by the Cabinet of Ministers of Ukraine. As a result, on February 20, 2019, the Budget Committee approved the proposed subvention allocation by the Cabinet of Ministers of Ukraine. Committee of the Verkhovna Rada of Ukraine on Science and Education On January 16, 2019, during the Committee meeting, a PULSE Project expert informed members of the Committee about the position of oblast center cities about the future funding for vocational (technical) education institutions. The discussion was about city rights to manage the property of these institutions being ignored and about transferring the funding to support them to the oblast level. Following the discussion, the Committee took into account the position of the AUC and came up with a decision to submit for consideration by the Verkhovna Rada of Ukraine the draft Law of Ukraine "On Introducing Amendments to

28 January – March, 2019

the Budget Code of Ukraine Regarding the Financing of a Regional Request for Training Specialists and Blue Collar Workers at the Expense of Expenditures from Oblast Budgets". The PULSE Project expert during a meeting of the Committee on February 06, 2019 expressed his position on the support of the AUC of the draft Law of Ukraine "On the Introduction of Amendments to the Law of Ukraine" On the Regulation of Urban Development Activities" (regarding the mandatory construction of social sector public service facilities for the population)" (Registration # 9118 of September 09, 2018, National Deputy I. Suslova, at all). The draft law envisions the obligation of the developer to provide public service facilities (pre-school establishments, institutions of comprehensive secondary education, health care institutions) while doing the integrated development of the territory and construction of residential facilities. The Committee came up with a decision to support this draft law. On February 6, 2019, the Committee came up with a decision to introduce amendments to the Closing Provisions of the Law of Ukraine "On Introducing Amendments to Certain Ukrainian Legislation" (Registration # 5040 of August 23, 2016, National Deputies A. Derkach and V. Dubil). The draft law offers a suggestion exclude the provision of Law of Ukraine # 911-VIII "On Introducing Amendments to Certain Ukrainian Legislation" of December 24, 2015, which stipulates that starting with September 01, 2016, the funding for comprehensive secondary educational institutions (except for primary schools) whose number of pupils less than 25 people, will not be done through the education subvention. The PULSE analyst expressed the position of the AUC to support this draft Law of Ukraine, because the funding for such institutions will be provided through the education subvention. This will provide opportunities for local governments to independently determine the need for such educational institutions in accordance with the needs of communities. On February 27, 2019, in the course of the Committee meeting, the PULSE Project expert presented proposals of local governments regarding improvements of the legislation governing meals for children and students in educational institutions. Following the discussion, the Committee took into account all suggestions from the AUC and included them in its decision. In particular, with regard to amendments to the Law of Ukraine "On Public Procurement", State Sanitary Rules and Standards for equipping and maintenance of comprehensive secondary education institutions, organisational aspects of the educational process, Model Standard Staffing Levels of comprehensive secondary education institutions, and harmonisation of standards for one-time meals for of students of comprehensive secondary education institutions. In addition to this, the Committee came up with a decision to take measures steps to increase accountability of food suppliers for the quality of foodstuffs and for refusing to execute contracts concluded based on trendier results. On March 13, 2019, the Committee supported the draft Law of Ukraine "On Introducing Amendments to the Law of Ukraine "On Comprehensive Secondary Education" Regarding Obtaining Comprehensive Secondary Education by School Age Children Who are Stay in In-Patient Facilities and Health Care Establishments" (Registration # 10087 of February 26, 2019, National Deputies O. Bilozir, O. Spivakovskyi, S. Shakhov, T. Bakhteyeva, O. Sotnyk, and O. Ledovskykh). The draft law provides legislative regulation of the mechanism of obtaining comprehensive secondary education by school-age children who are on in-patient treatment in health care institutions. The PULSE Project expert expressed the view that the draft law would resolve certain powers of local governments in the sphere of education and health care. Following the discussions, the Committee came up wit a unanimous decision to give a recommendation to the Verkhovna Rada of Ukraine to approve the draft law in the first reading and as law. On March 20, 2019, the Committee considered the Draft Law of Ukraine "On Introducing Amendments to the Budget Code of Ukraine" (Registration # 7268-1 of November 27, 2017, National Deputies I. Konstankevych, T. Batenko, O. Shevchenko and others). The law has a provision of great importance for local governments: the payment of bills for municipal utility services and energy resources by state-owned and communally-owned professional (vocational) training institutions is to be provided from the National Budget of Ukraine. This will provide opportunities to save considerable funds of oblast center city budgets and to direct them for other needs, as the transition period for transferring the funding mechanism for vocational education to oblast budgets is currently underway. Following the discussion, the Committee has supported the approval of this draft law, which completely reflects the AUC position. Committee Verkhovna Rada of Ukraine on State Building, Regional Policy and Local Self-Governance On January 16, at its meeting, the Committee together with the participation of the PULSE Project expert considered and postponed, taking into consideration the European experience, the draft Law "On Introducing Amendments to the Law of Ukraine “On Local Self-Governance in Ukraine”" regarding the grounds for the

29 QUARTERLY REPORT for the implementation of the PULSE Project

pre-term termination of powers of the village, town and city council, which was supported by the AUC Board. On February 06, the Committee together with the participation of the PULSE Project expert considered Draft Law # 8213 "On Introducing Amendments to Article 10 of the Law of Ukraine "On Voluntary Consolidation of Territorial Communities"" prepared by the Cabinet of Ministers of Ukraine. The Committee failed to present its opinion on the draft law sent it to the Verkhovna Rada for consideration. The draft law stipulates a more detailed regulation of state support to consolidated territorial communities, which the AUC has proposed to return the developer for elaboration. On March 21, the Committee reviewed the Draft Law "On Amendments to Article 46 of the Law of Ukraine "On Local Self-Governance in Ukraine" (Registration # 7071, revised version), which is being finalised by the authors with the participation of a PULSE Project expert, and came up with a recommendation for the Verkhovna Rada to approve it in the first reading. Committee of the Verkhovna Rada of Ukraine on Construction, Urban Development, Housing and Municipal Utilities

In the course of the workshops organised by the members of the Committee on February 02, 2019 and on March 13, 2019, a PULSE Project expert supported the necessity of amending the Law of Ukraine "On Housing and Municipal Utility Services" and other laws aimed at improving the legislative provisions regulating housing and municipal utility services. In addition to this, such amendments should ensure the provision of utility services during the transitional period (from the moment of the enactment of this Law and until the co-owners of all apartment blocks (regardless of the management form chosen for their management) have made the decision on what model of contractual relations with communal services providers (except for electricity and natural gas supply services) they choose. At these meetings, the Project expert provided justification of inadmissibility and impracticality of including the draft law mentioned above, whereby the National Energy and Utilities Regulation Commission is vested with the rights to set tariffs for waste disposal services. Following these meetings, the Committee approved the previous version of the bill, and currently the Committee National Deputies are examining the possibility of submitting it for registration in the Verkhovna Rada of Ukraine.

Working sessions of Regional Policy Dialogue Platforms A regional policy dialogue platform is a joint meeting of mayors of AUC Regional Office member municipalities, oblast leadership, and National Deputies who were elected from the given region, which are conducted with the purpose of supporting the approval in the parliament of the legislation including the draft laws prepared by AUC experts aimed at resolving local government problem issues in selected regions. The Project is planning to conduct two meetings of regional policy dialogue platforms every year.

During the reporting period, the Project conducted 2 working sessions of regional policy dialogue platforms in 3 oblasts, namely: in the: Kyiv, Poltava, and Chernihiv. 4 National Deputies of Ukraine participated in these meetings. Table 1.5. Information about meetings of regional platforms Date, venue, topic, and participants of Brief description of the event the event Meeting of the Kyiv Regional Policy The participants discussed the issues of improving the current Dialogue Platform, legislation of Ukraine on social protection of vulnerable groups March 12, 2019, city of Kyiv and ATO participants. Following the discussion, the participants of the meeting Topic: Improvement of the legislative appealed to the National Deputies who were present at the event framework on social protection of with a request to support in the Verkhovna Rada of Ukraine the vulnerable groups and ATO following: participants. Monetisation of - AUC suggestions regarding the implementation of the system privileges. of targeted monetisation of state-guaranteed privileges; - increasing the amount of the subvention for health resort Participants: village, town and city treatment of ATO participants, as in 2018 only 39% of the mayors, CTC mayors, representatives actually needed funds was allocated; and, of the Oblast State Administration and - proposals to introduce amendments to Resolution of the Oblast Council, regional Project Cabinet of Ministers of Ukraine # 200 of March 31, 2015 "On

30 January – March, 2019

Date, venue, topic, and participants of Brief description of the event the event consultants, and National Deputies of Endorsing the Procedure for Using the Funds Envisaged in the Ukraine S. Sazhko and H. National Budget for Granting Health Resort Treatment to Meparashvili. Victims of the Revolution of Dignity and Participants of the Anti-Terrorist Operation " and Resolution of the Cabinet of Ministers of Ukraine # 446 of April 17, 2011 "Procedure for Granting Vouchers for Treatment in Health Resort Facilities to Military Servicemen, Veterans of War, Veterans of Military Service and Internal Affairs Bodies and Some Other Categories of Persons and Their Families" in the parts dealing with giving these persons the right to a free choose of a health resort facility for health improvement. Meeting of the Chernihiv Regional The participants discussed the issues of the work of consolidated Policy Dialogue Platform, territorial communities in terms of their regulatory and March 27, 2018, city of Chernihiv legislative framework and implementation of their powers. Following the discussions, the participants approved a number Topic: Regulatory and legal aspects of of proposals and submitted them to the National Deputies who CTC activities in current conditions. were present at the event to get support for them in the Problem issues of the implementation Verkhovna Rada of Ukraine: of the local government powers. - to allocate funds from the National Budget for construction, Participants: village, town and city reconstruction and repairs of public roads of local importance mayors, CTC mayors, representatives and municipal roads based on their length; of the Oblast State Administration and - aiming at effective use of funds of the NRDF, retaining the Oblast Council, regional Project funds not spent during the budget period on accounts of consultants, and National Deputies of spending units to be able to make the relevant expenditures in Ukraine O. Kodola and A. Yevlakhov. the next budget period with due regard to their original intended purpose; and, - to ensure fair distribution of subventions from the National Budget to local budgets for maintenance of educational and health care institutions using data prepared by PULSE Project experts; To facilitate the approval of the following draft laws of Ukraine: - "On the Principles of the Administrative and Territorial Arrangement of Ukraine" (Registration # 8051); - "On Introducing Amendments to the Law of Ukraine "On Service in Local Governments" (Registration # 8369); and, - "On Introducing the Amendments to the Budget Code of Ukraine" (Registration # 9084).

1.2.2. Support to approval of resolutions and directives of the Cabinet of Ministers: tools to interact with the Cabinet of Ministers of Ukraine

During the reporting quarter, the PULSE Project continued to use various tools to interact with the Cabinet of Ministers. They included: the Dialogue Day, participation in meetings of the Cabinet of Ministers and Cabinet of Ministers Committees, sectoral forums, cooperation with line ministries, and drafting of expert conclusions and drafts regulatory and legal documents.

Interaction with the Cabinet of Ministers Participation in meetings of the Cabinet of Ministers and its Committees

In the reporting quarter, the Association of Ukrainian Cities actively engaged in cooperation with the Cabinet of Ministers of Ukraine. In particular, being a representative of territorial communities, the AUC safeguarded their interests at the national level. In the course of meetings of the Cabinet of Ministers and its Committees, AUC Executive Director O. Slobozhan served as the official representative of the AUC.

31 QUARTERLY REPORT for the implementation of the PULSE Project

PULSE Project experts provided constant monitoring of draft government regulations that were considered at the meetings of the Cabinet of Ministers Committees and the Cabinet of Ministers itself. They provided comments, suggestions and conclusions to draft laws, regulations, directives, national level programs and other documents of the Cabinet of Ministers related to local governments. The most important innovations include the establishment of the Strategic Cabinet of Ministers Committee during the first Cabinet of Ministers meeting in 2019. The purpose of the Committee is to formulate policy and Cabinet of Ministers decisions in the context of Ukraine's transition to multi-year budget planning. The main tasks of the Committee include preparation and implementation of Cabinet of Ministers priority reforms, preparation of conceptual, strategic and program documents, as well as endorsement of policy proposals from line ministries. In addition to this, the agenda of the Committee includes Cabinet of Ministers priority action plans and reports on their implementation, reports of ministries and other central state executive authorities on the implementation of the Cabinet of Ministers priority reforms, draft laws on the National Budget and relevant amendments. All members of the Cabinet of Ministers are the Committee members. The Association of Ukrainian Cities managed to include in Point 2 of Paragraph 285 of the Cabinet of Ministers Regulation a provision on permanent (according to the Chairman's decision) participation of an authorised representative of Ukraine-wide local government associations in Committee meetings. Thus, this move has strengthened the position of local governments in their dialogue with the Cabinet of Ministers, and provided to specify at in regulatory framework the possibility of participation of a representative of Ukraine- wide local government associations in the work of the newly established Cabinet of Ministers Committee. During the reporting period representatives of the PULSE Project: - participated in 12 Cabinet of Ministers meetings and 24 meetings of Cabinet of Ministers Committees, in particular: on economic policy issues - 11; on social and humanitarian policy - 8; and, on regional development - 5 (see Table 1.6); - monitored 652 regulatory and legal documents and provided comments on 356 draft Cabinet of Ministers regulations with regard to their impact local self-governance (see Table 1.7). PULSE Project monitoring covered 51 draft laws of Ukraine prepared by the Cabinet of Ministers, 21 draft Directives (Instructions) of the President of Ukraine, 333 draft resolutions and 166 draft directives of the Cabinet of Ministers, 33 legislation and decree implementation plans, and 48 expert opinions to other draft laws (see Table 1.7). Table 1.6. Participation in the meetings of the Cabinet of Ministers and its Committees (January – March, 2019)

Month Cabinet of Ministers Committee on Cabinet of Meetings, economic total Ministers total: policy January 4 3 2 9 4 13 February 4 3 2 9 4 13 March 3 2 1 6 4 10 Total: 11 8 5 24 12 36

Table 1.7. PULSE monitoring of draft regulatory and legal documents of the Cabinet of Ministers (January – March, 2019)

Month Laws Decrees or Resolution Cabinet of Implementatio Conclusions to Total: Instructions of s of the Ministers n plans for draft the President Cabinet of Directives laws, decrees, legislation Ministers etc. of Ukraine January 17 9 116 54 18 26 240 February 17 8 136 77 12 17 267 March 17 4 81 35 3 5 145 Total: 51 21 333 166 33 48 652

32 January – March, 2019

The 562 regulatory and legal documents the Cabinet of Ministers and its Committees considered during Quarter 1 included 54.6%, which dealt with local government stipulates including 92.7% supported by PULSE Project experts and 7.3% not supported by them (see Table 1.8). Table 1.8. PULSE Project expert support for drafting Cabinet of Ministers regulations (January – March, 2019)

Month Cabinet of Ministers regulations Draft Cabinet of Ministers regulations on local PULSE Project worked on government issues Total Including those on Supported by PULSE Not supported by PULSE local government experts experts issues January 240 108 96 12 February 267 131 123 8 March 145 117 111 6 Total: 652 356 330 26

This fruitful cooperation resulted of the Cabinet of Ministers endorsement of 42 important legal and regulatory documents that fostered decentralisation, enhanced the capacity of communities, and strengthened the financial foundations of local governments. In particular, the most important Cabinet of Ministers regulations endorsed by the Cabinet of Ministers of Ukraine, which were prepared by PULSE Project experts include: Laws of Ukraine: 1. Law # 2696-VIII “On Introducing Amendments to the Law of Ukraine "On the National Budget of Ukraine for 2019" of February 28, 2019, which partially took into account the proposals of the AUC to increase the volume of inter-budget transfers, in particular, the education and health care subventions, with regard to the needs of urban territorial communities, which annexed rural communities in 2018, and to revisit the volume of inter-budget transfers and change budget codes for budgets of some consolidated territorial communities. 2. Draft Law “On Introducing Amendments to Certain Ukrainian Legislation Regarding the Reduction of the List of Types of Economic Activities Subject to Licensing” (Registration # 10135 of March 07, 2019), which simplifies the role for licensing and reduced the list of activities subject to licensing. 3. Draft Law “On Introducing Amendments to the Law of Ukraine "On Local Self-Governance in Ukraine" (concurred by the Cabinet of Ministers on January 23, 2019), which empowers the Cabinet of Ministers to determine the territories of the communities and to submit draft laws to the Verkhovna Rada of Ukraine on the establishment and liquidation of rayons until the law on the administrative and territorial arrangement of Ukraine has been approved. 4. Draft Law “On Introducing Amendments to Section ІI "Closing and Transitional Provisions" of the Law of Ukraine "On Introducing Amendments to Certain Ukrainian Legislation on Strengthening Social Protection of Children and Supporting Families with Children" (Registration # 9523 of February 01, 2019), which provides the legislative mechanism for the development of patronage over children and provides financial support during the period of 2019 – 2027 for local government expenditures for the payment of childcare services at the expense of subventions from the National Budget to local budgets based on the "money follows the child" principle. 5. Draft Law “On Introducing Amendments to Certain Laws of Ukraine Regarding Promoting Favourable Conditions for Receiving Services Related to the Birth of a Child (Registration # 10134 of March 07, 2019), which expands the list and simplifies access to electronic administrative services available for parents of newborns to get the state registration of birth. 6. Draft Law “On Introducing Amendments to Certain Laws of Ukraine Regarding the Submission and Consideration of Electronic Petitions (Registration # 10133 of March 07, 2019), which improves the mechanisms for submission and consideration of electronic petitions submitted to local governments. In particular, the document specifies the number and timeframe for collecting signatures of citizens in support of electronic petition to local governments, sequencing and timeframe for consideration of petitions by local councils and executive committees of councils, mechanisms for withdrawing a signature, combining identical electronic petitions into one, etc. 7. Draft Law “On Introducing Amendments to the Tax Code of Ukraine Regarding Improvements of Administration of Local Taxes and Fees (Registration # 10154 of March 14, 2019), which envisions the introduction of a unified form for local governments to submit the information in the electronic format to the

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State Fiscal Service about rates and privileges of local taxes and fees, abolition of the requirement for local governments to make annual decision on local taxes and fees, exclusion of local government decisions on setting local taxes and fees from the list of regulatory documents, and the timeframe for local governments to make decisions on setting local taxes and fees. 8. Draft Law “On Introducing “Only a year ago, we, together with UNICEF and the Association Amendments to the Law of Ukraine of Ukrainian Cities, signed a memorandum about our joint "On the Protection of Childhood" intention to disseminate this practice throughout the country. But Regarding the Implementation of the now is the time to prepare the laws that would encourage local International "Child and Youth communities to be child friendly, and would encourage children Friendly Community" Initiative and young people to take the opportunity to be included in the (Registration # 10189 of March 27, decision-making process at the local level and to participate in all 2019), which offers the definition of a programs that support community development.” child and youth friendly community Speech of Prime Minister of Ukraine V. Groisman and introduces the financial support at a meeting of the Cabinet of Ministers of Ukraine for communities that are receiving or March 20, 2019 have received the status of the "Child and Youth Friendly Community". 9. Draft Law “On Introducing Amendments to Chapter VI of "Closing and Transitional Provisions" of the Budget Code of Ukraine (regarding additional revenues to budgets of cities and consolidated territorial communities that joined the "Child and Youth Friendly Community" initiative)”, Registration # 10190 of March 27, 2019), which provides for increasing by 1% the share of personal income tax collections directed to local budgets for the communities recognised as candidates for receiving the status of the "Child and Youth Friendly Community" and 3% for the communities that have received the status of the status of the “Child and Youth Friendly Community”. Resolutions of the Cabinet of Ministers of Ukraine: 1. Resolution # 18 of January 16, 2019 "On Introducing Amendments to the Regulation on the Main State Social Inspector and the State Social Inspector". The resolution grants executive bodies of councils of consolidated territorial communities with the right to perform examination of the material and living conditions of the families for the purpose of granting various types of state benefits and welfare to them. A PULSE Project expert participated in the preparation of this resolution. Thanks to the work of the PULSE Project expert, any local government official including the starosta may perform such examination. Also, thanks to the PULSE Project, executive bodies of councils of consolidated territorial communities will be able to perform the examination only in cases stipulated by law, rather than upon the decision of the rayon state administration. 2. Resolution # 32 of January 10, 2019 "On introducing Amendments to Resolutions of the Cabinet of Ministers of Ukraine # 950 of July 18, 2007 and # 330 of May 11, 2016", which established a new Cabinet of Ministers, namely, the Strategic Committee to improve the formulation and implementation of the Cabinet of Ministers policy in the context of the transition to multi-year budget planning. A representative of Ukraine-wide local government associations may participate in the work of the Committee on a permanent basis. 3. Resolution # 41 of January 23, 2019 "On Endorsing the Regulation for the Provision of Textbooks and Manuals for Students Who Seek Competed Comprehensive Secondary Education and for Teachers", which endorsed the procedure for the provision of free textbooks and manuals for students who seek comprehensive secondary education and for teachers (including electronic ones) that were published at the expense of National Budget funds. 4. Resolution # 53 of January 23, 2019 "On Introducing Amendments to the Regulations for Placement of Temporarily Unused Funds of the General Fund of Local Budgets on Bank Deposits", whereby the Cabinet of Ministers issued a prohibition for placing temporarily unused funds of the general funds of local budgets on bank deposits in state-owned banks by the end of 2019. 5. Resolution # 62 of February 06, 2019 "On Introducing Amendments to Certain Resolutions of the Cabinet of Ministers of Ukraine", which introduces a mechanism for granting housing subsidies to the population in cash for consumed housing and communal services. 6. The Resolution # 65 of February 06, 2019 "On Introducing Amendments to the Formula to Distribute the Education Subvention between Local Budgets", which introduced the mechanism for the distribution of the education subvention between local budgets for expenditures taking into account the level of remuneration of teachers, splitting of classes into groups for studying certain subjects, and the number of schoolchildren in classes. 7. Resolution # 68 of January 30, 2019 "On Certain Issues of Providing Childcare Services to Children under Three Years Old “Municipal Nanny”", which defines the procedure for reimbursement of the

34 January – March, 2019

cost of this service, in particular, monthly reimbursement of the cost of the service to the mother/father, or guardian of a child under three years old in the form of the compensation payment, the amount of the payment at the level of the subsistence minimum for children under the age of six years old introduced on January 01 of the respective year, and the conditions for the payment of compensation (upon the availability of a childcare agreement/contract with the recipient of the payment). 8. Resolution # 72 of February 06, 2019 "On Endorsing National Social Standards for Availability of Public Libraries for Population in Ukraine", which introduced indicators of the minimum level of the availability of the public library network for the population in villages, towns and cities and consolidated territorial communities. 9. Resolution # 106 of February 06, 2019 "On Endorsing Regulations on the System of Professional Training of Civil Servants, Heads of Local State Administrations, Their First Deputies and Deputies, Local Government Officials and Members of Local Councils", which outlines the organisational and legal the mechanism and recommendations for local governments on how to improve professional qualifications of local council members and local government officials, as well as envision, starting from 2020, funds in local budgets to cover expenditures for these purposes in the amount not less than 2% of the salary fund. 10. Resolution # 129 of February 27, 2019 "On Certain Issues of the Use of the Subvention from the National Budget to Local Budgets for the Provision of State Assistance to Persons with Special Educational Needs in 2019", which provides 504.5 million UAH from the National Budget for the development of inclusive education including 353.3 million UAH to support of children with special educational needs, 37.2 million UAH for inclusive education in kindergartens, and 24.8 million UAH for supporting special groups in vocational training institutions. 11. Resolution # 130 of February 27, 2019 "On Certain Issues of Provision of the Subvention from the National Budget to Local Budgets to Ensure High Quality, Modern and Affordable New Ukrainian School Comprehensive Secondary Education in 2019", which envisions new spheres for using funds of the National Budget subvention (purchases of multimedia content, musical instruments, and remuneration of experts) on co-financing terms with local governments. The total amount of the subvention constitutes 1.2 billion UAH including 950 million UAH for school equipment. 12. Resolution # 132 of February 27, 2019 "On Introducing Amendments to the Procedure for Transferring Inter-Budget Transfers", which streamlines issues of retaining the unused funds of certain subventions on local budget accounts for the relevant expenditures in the next budget period for the original intended purposes. 13. Resolution # 193 of February 27, 2019 "On Introducing Amendments to the Regulations and Conditions for the Provision of the Education Subvention from the National Budget to Local Budgets", which provides the opportunity to use the balance funds of the subvention for construction of new restroom facilities, reconstruction, capital and current repairs of new facilities in comprehensive secondary education establishments. 14. Resolution # 221 of March 06, 2019 "On Endorsing the Regulation on the Specialised School and the Regulation on the Training and Rehabilitation Center", which outlines the main tasks of specialised schools and educational and rehabilitation centers, their types and structure, and peculiarities of their organisation and education process. 15. Resolution # 228 of March 20, 2019 "On Approving the Procedure and Conditions for Providing the Subvention from the National Budget to Local Budgets for the Implementation of Environmental Activities at Communally-Owned Facilities", which determines the mechanism for the provision of the subvention for environmental protection activities at communally-owned facilities with the purpose of environmental protection, improvements of the environmental situation, and reducing threats to life and health of the local population. 16. Resolution # 234 of March 20, 2019 "On Endorsing the Regulations for the Formation and Access to the Uniform State Register of Cases of Domestic Violence and Gender Based Violence". The resolution introduces the regulatory framework for the register of cases of domestic violence and the register of social services provided to victims of domestic violence. A PULSE Project expert participated in the preparation of the resolution. The resolution was prepared within the working group at the Ministry of Labour and Social Policy. 17. Resolution # 268 of 27.03.2019 "On Approving the Procedures and Conditions for the Provision in 2019 a Subvention the National Budget to Local Budgets for Construction on New and Renovation of the Current Sports Palaces and Completion of Construction Works Started in the Previous Period for Construction/Reconstruction of the Palaces of Sports", which outlines the mechanism for co- financing from local budgets and other sources in 2019, as well as the requirements for the facilities whose construction is to be funded from the subvention funds.

35 QUARTERLY REPORT for the implementation of the PULSE Project

18. Resolution # 256 of March 27, 2019 "On Introducing Amendments to the Procedures and Conditions for the Provision of the Subvention from the National Budget to Local Budgets for Infrastructure Improvements in Consolidated Territorial Communities", which takes into account the gender aspect in the course of the preparation of projects that will be financed with funds of the subvention for infrastructure improvements in consolidated territorial communities. 19. Resolution # 259 of March 27, 2019 "On Certain Issues of the Crediting of the Excise Tax on Fuel Produced in Ukraine and Imported on the Customs Territory of Ukraine to the General Fund of Local Government Budgets in 2019", which defines the principles for the distribution of a part of excise tax collections and mechanism of to direct it to local government budgets. 20. Resolution # 263 of March 27, 2019 "On Certain Issues of the 2018/19 Heating Season", whereby the Cabinet of Ministers extended until May 01, 2019 the term of validity of the conditions for heat and electricity producers to ensure the payment for at least 78 – 60 % of energy resources, which will guarantee heat supply companies with gas supply for uninterrupted heating season. 21. Resolution # 318 of March 27, 2019 "On Introducing Amendments to Certain Resolutions of the Cabinet of Ministers of Ukraine". This Resolution brings the regulatory framework for the solid waste management sector in compliance with the provisions of the new version of the Law of Ukraine "On Housing and Municipal Utility Services", which will take force on May 01, 2019.

Directives of the Cabinet of Ministers of Ukraine: 1. Directive # 26-р of January 23, 2019 "On Introducing Amendments to Directive of the Cabinet of Ministers of Ukraine # 871 of December 06, 2017", which updated the action plan for 2017 – 2019 for the gradual increase of additional slots in educational institutions for children of pre-school age in communities. 2. Directive # 27-p of January 23, 2019 "On Approving the Concept for the Reforming the System of Provision of Cultural Services to the Population", which defined the general principles and objectives to reform the system of providing population with high quality and affordable cultural services and set tasks for central state executive authorities, local authorities to cooperate with local governments and Ukraine-wide local government associations to develop am action plan for the implementation of the concept. 3. Directive # 39-p of January 23, 2019 "On Certain Issues of Distribution in 2019 of the Subvention from the National Budget to Local Budgets for Activities Aimed at Social and Economic Development of Certain Areas”, which endorsed the distribution of 2019 of funds of the subvention for social and economic development of certain territories between local budgets by facilities (projects) in the amount of 824.5 million UAH, as well as the distribution of 208.3 million UAH of the subvention for social and economic development of certain territories. 4. Directive # 77-р of January 23, 2019 "On Approving the Action Plan for the Implementation of the New Phase of Local Government Reform and Reform of the Territorial Arrangement of Government Institutions in Ukraine for 2019 - 2021", which outlined the tasks and activities necessary for further reforms of local governments and territorial arrangement of government institutions in 2019 - 2021, and introduced the organisational and legislative framework for conducting local elections in 2020 on a new territorial basis. 5. Directive # 37-р of January 30, 2019 "On Approving of the Action Plan for the Implementation of the Concept for the Development of the Electronic Services System in Ukraine for 2019 - 2020", which envisions improvements of the quality of administrative services, increased efficiency of performance work central state executive authorities and local governments in providing them, reduced risk of corruption in the course of administrative service provision, and incentives for the development of the information society in Ukraine. 6. Directive # 91-р of February 27, 2019 "On Approving the Distribution in 2019 of the Subvention from the National Budget to Local Budgets for the Work Related to the Establishment and Functioning of Centers for Administrative Services Including Social Services in the Transparent Office Format", which endorsed the allocation of the subvention in the amount of 60.5 million UAH for opening and maintenance of such centers in 6 cities of oblast significance and 2 consolidated territorial communities. 7. Directive # 117-р of February 20, 2019 «On Endorsing the National Plan for Solid Waste Management till 2030", which outlines the list of activities and the timeframe of their implementation to ensure the implementation of the National Waste Management Strategy, and, in particular, reflects AUC comments regarding participation of local governments in the implementation of the plan. 8. Directive # 141-p of March 13, 2019 "On introducing Amendments to Annex 7 to Directive of the Cabinet of Ministers of Ukraine # 14 of January 16, 2019", which introduced amendments to the distribution of the additional subvention from the National Budget to local budgets of the Zaporizzhya oblast for 2019 to maintain educational and health care establishments in the amount of 603 million UAH.

36 January – March, 2019

9. Directive # 191-р of March 27, 2019 "On the Distribution of the Amount of the Education Subvention from the National Budget to Local Budgets in 2019", which increased the total amount of the education subvention for nine territorial communities by 41.2 million UAH to resolve the problem with shortage of the education subvention to pay teacher salaries. In addition to this, during the reporting period, the Cabinet of Ministers issued 6 directives to amend long- term perspective plans for the formation of community territories of 6 oblasts: Zaporizzhya (Directive # 51- p of February 06, 2019), Volyn Oblast (Directive # 65-р of February 13, 2019), Odessa (Directive # 99-р of February 27, 2019), Luhansk (Directive # 169-p of March 20, 2019), Rivne (Directive # 182-p of March 27, 2019), and Lviv (Directive # 193-p of March 27, 2019). Also, the MU issued Directive # 17-p of January 16, 2019 to endorse the list and composition of hospital districts of the Sumy oblast. Thanks to the active work of representatives of the AUC in the Cabinet of Ministers and its Committees, the Cabinet of Ministers managed to reject and/or mitigate the negative impact of 1 regulation on local government issues. Also, upon the initiative and/or with the support of the AUC, the Cabinet of Ministers of Ukraine rejected the following draft regulatory and legal documents during the reporting quarter: 1. On 27 February, the Cabinet of Ministers considered a draft resolution "On Endorsing the Procedure to Return the Property or Reimburse Its Value to Deported Persons, or, in the Event of Their Death to Heirs of Such Persons", which envisioned the reimbursement of the value of property to deportees or their heirs at the expense of own local budget funds. Having taken into consideration comments of a PULSE Project expert about shifting expenditure categories from the National Budget to local budgets on state guarantees envisioned in Article 7 of the Law "On Restoration of Rights of Persons Deported on National Grounds", the Cabinet of Ministers removed the document from consideration. Unfortunately, during the reporting quarter, local governments had several problems dealing with the Cabinet of Ministers that led to the endorsement by the Cabinet of Ministers of Ukraine of a number of regulatory documents that negatively affected the process of decentralisation and considerably deteriorated the financial situation of local budgets: - as compared with 2016 - 2018, there were more cases when the main authors of draft regulatory and legal documents, such as ministries, submitted expanded for consideration by the Cabinet of Ministers without prior discussion in Cabinet of Ministers committees, which deprives PULSE Project experts of the opportunity to analyse, comment and provide suggestions to these documents, as they do not have any opportunity to become familiar with the content of draft regulatory and legal documents, which are have a direct impact on local government interests; - the situation is further aggravated by the fact that, starting in March, 2019, the Secretariat of the Cabinet of Ministers started to introduce a considerable number of items into the Cabinet of Ministers meeting agenda based on oral suggestions without including them in the electronic agenda that is published on the Cabinet of Ministers portal, as well as to agendas and packages of accompanying documents distributed to the participants of the Cabinet of Ministers meetings through the System of Electronic Interaction of the Executive Bodies (CEB). During the Cabinet of Ministers meeting on January 23, 2019, the Ministry of Finance made an oral suggestion to introduce a draft resolution of the Cabinet of Ministers of Ukraine "On Introducing Amendments to the Regulations for the Placement of Temporarily Unused Funds of the General Fund of Local Budgets on Bank Deposits" for consideration. The draft document was not previously published by its authors for public discussion with stakeholders including local governments. Contrary to the Regulations of the Cabinet of Ministers of Ukraine, the draft document was also not considered during the meetings of the technical Cabinet of Ministers committee. Despite the attempts by a representative of Ukraine-wide local government associations to return the draft document for elaboration, the Cabinet of Ministers endorsed it without discussions. Thus, the Cabinet of Ministers of Ukraine issued a prohibition for placing temporarily unused funds of the general fund of local budgets on bank deposits with state-owned banks by the end of 2019. In its turn, the Ministry of Finance came up with a “suggestion” for local governments to purchase internal state loan bonds issued by the Ministry of Finance itself. The potential losses of local budgets from the introduction of such artificial constraints are estimated at a minimum of 1.5 billion UAH. Numerous appeals to the Cabinet of Ministers and the Ministry of Finance by local governments and local government associations still remain unanswered. In the course of the Cabinet of Ministers meeting on February 6, 2019, the Ministry of Education and Science introduced a draft resolution "On Introducing Amendments to the Formula to Distribute the Education Subvention between Local Budgets" without previous publication and discussion in the

37 QUARTERLY REPORT for the implementation of the PULSE Project

Committee. Similarly, bypassing local governments and local government association the Cabinet of Ministers of Ukraine approved a decision about the mechanism for the distribution of the education subvention between local budgets. Taking into account the unresolved problems mentioned above and their negative consequences for the local government reform, the AUC, at the end of March, 2019, appealed to the Secretariat of the CMU with a request to ensure the publication of additional items of Cabinet of Ministers Agenda and accompanying materials to improve the efficiency and quality of cooperation between the AUC and the Cabinet of Ministers of Ukraine.

Sectoral forums Sectoral forums represent a new practice in sectoral policy dialogue. This is a platform to approve the strategy for the development of the sector together with the follow-up monitoring of its implementation and necessary adjustments. In addition to this, this is an opportunity for sectoral specialists to communicate with the line ministry and technical parliamentary committee, National Deputies of Ukraine, other sectoral experts, and representatives of NGOs active in the sector, as well as to exchange of experience in resolving practical issues. The sectoral forum is a platform for the consolidation of positions of state executive authorities and local governments, outlining the common direction for the future development and reforming of the respective sector. Forum of the Association of Ukrainian Cities on Sustainable Development of Territorial Communities March 21, 2019, city of Kyiv 170 participants attended the Forum including city mayors, CTC mayors, directors of city departments of economic development, representatives of central state executive authorities, National Deputies, scientists, and experts. The forum was attended by Deputy Minister of Regional Development, Construction, Housing and Municipal Utilities of Ukraine L. Parkhaladze, Commissioner of the President of Ukraine for human rights of persons with disabilities V. Sushkevych, First Vice-President of the Construction Chamber of Ukraine S. Stashevskyi, Director of the Department of Urban Development, Architecture and Territorial Planning of the Ministry of Regional Development, Construction, Housing and Municipal Utilities of Ukraine S. Bilousov. The work of the Forum continued in meetings of two thematic panels: Panel # 1. "Sustainable economic development and urban development: keys to self-reliance of territorial communities" and Panel # 2. Meeting of the Committee for Environmental Balance of the Meeting of the Committee on Environmental Balance of the Association of Ukrainian Cities. In the course of the Forum, the participants of Panel # 1. The sectoral forum on "Sustainable economic development and urban development: keys to self-reliance of territorial communities" addressed the following issues: - an overview of the new Construction Standard ДБН В 2.2-40:2018 "Inclusiveness of buildings and structures": practical aspects of application, peculiarities of examination of project documentation, ensuring availability of buildings and structures for low-mobility groups of population during their work; - improvements of the legislation governing public procurement; - development of professional skills of officials working in the sphere of public procurement; - review of legislative initiatives of the Anti-Monopoly Committee of Ukraine in the sphere of state assistance to economic entities; - geoinformation systems to support spatial planning and urban development cadastre for populated areas in Ukraine; and, - the state of implementation of the Strategy of the Association of Ukrainian Cities on Local Economic Development. In the course of the Forum, local governments had the opportunity to review important legislative initiatives in various spheres of local economic development, as well as to learn about the possibility of their inclusion in the preparation of comments, proposals to relevant legislative initiatives. According to the results of the Forum, the Association of Ukrainian Cities introduced amendments to its Strategy on Local Economic Development. In particular, the Strategy will be revised in the context of recent legislative changes in the sphere of inclusiveness and accessibility.

Forum of the Association of Ukrainian Cities on Urban Development March 20, 2019, city of Kyiv

38 January – March, 2019

The Association of Ukrainian Cities working within the framework of the PULSE Project together with the Verkhovna Rada conducted in the premises of the Verkhovna Rada of Ukraine together with the Verkhovna Rada Committee on Construction, Urban Development, Housing and Municipal Utilities organised and conducted a round table on the topic: "Territorial development. Urgent urban development issues” and the discussion of the draft Law of Ukraine "On Introducing Amendments to the Law of Ukraine "On Regulation of Urban Development Activities" (Registration # 6403 of April 21, 2017), which is being prepared for the second reading. The meeting was attended by 58 participants, including the Executive Director of the Association of Ukrainian Cities, First Deputy Chairman of the Committee on Construction, Urban Development, Housing and Municipal Utilities, Deputy Chairmen and National Deputies from the Committee on Construction, Urban Development, Housing and Municipal Utilities, members of the Committee on Construction, Urban Development, Housing and Municipal Utilities, Director of the Department for Urban Development, Architecture and Planning of the Territories of the Ministry of Regional Development, representatives of the State Land Cadastre Agency, as well as specialists and directors of oblast and city departments and departments of city planning and architecture from all over Ukraine, main architects of oblasts, rayons, villages, towns and cities, and experts of the Association of Ukrainian Cities. Representatives of cities spoke made speeches and talked about problems in the sphere of urban development, which were important for their regions and together with National Deputies discussed their solutions and options for legislative regulation. The participants noted that to date there is a need to standardise issues related to the improvement of the quality of the development of documentation on spatial planning (urban planning documentation), introducing the procedure for preparation of plans of consolidated territorial communities, introduction of local rules for construction standards to set regulations for planning, construction and other use of territories and facilities, improvement of public hearings to take into account public interests and remove the tension in planning of territories and construction of facilities. Following the event, the participants noted that the issue of preparing documentation on spatial planning for the consolidated territorial communities needs to be resolved in order to establish boundaries between territories of consolidated territorial communities and allocate land plots for urban development purposes. In the course of the round table, the participants also discussed Draft Law # 6403 and came up with the following proposals: • introduce amendments to the Law of Ukraine "On Architectural Activities" and define the status for the "municipal architect"; • introduce amendments to the Law of Ukraine "On Local Self-Governance in Ukraine" to grant permission to set up executive bodies in charge of city planning in consolidated territorial communities (currently there is the relevant provision only with regard to cities of oblast significance); • streamline certain requirements to city-planning conditions and restrictions for various facilities (for housing, industry, etc.) and for various populated areas (depending on the size, nature of economic development and natural resources, etc.); • streamline procedures to exercise control of development and implementation of documentation on spatial planning (urban planning documentation); • outline the accountability for compliance of documentation on spatial planning (urban planning documentation) with the legislation, construction standards, and with higher level documentation; • resolve the issues of integrated urban reconstruction of neighbourhoods, residential areas, other territories, and integrated development and rehabilitation of urban development environment; • eliminate the conflict in the legislation on public hearings (different timeframes for regulations), lack of clear rules; and, • provide the possibility of financing the preparation of spatial planning documents at the expense of other sources. Following the event, the Association sent the proposals to the draft law it prepared in cooperation with local governments to technical parliamentary Committee.

Cooperation with line ministries PULSE experts continued to cooperate with ministries and other central executive authorities. Below are the main achievements in this area in the reporting period:

National Agency for Geodesy, Cartography and Cadastre PULSE Project experts participated in the work to give local governments the powers to conduct state registration of land plots in the database of the State Land Cadastre (participation in a joint meeting on March 22, 2019).

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Ministry of Labour and Social Policy of Ukraine A PULSE Project expert participated in the process of deinstitutionalisation of social institutions: reforms of the social security system and provision of social services in territorial communities. On January 15, the Ministry of Labour and Social Policy hosted a meeting of the working group to prepare a draft a law on deinstitutionalisation. PULSE Project experts provided substantial comments to the draft law proposed by the Ministry of Labour and Social Policy. Based on the discussion at the meeting, its participants decided to take into account the comments presented by the PULSE Project experts and to split on draft law into several draft laws. The individual draft laws will be concurred with by the Association of Ukrainian Cities. The Ministry of Labour and Social Policy of Ukraine prepared amendments to the Law of Ukraine "On Social Dialogue in Ukraine", which, in particular, offer a suggestion to extend the territorial level of social dialogue to the level of consolidated territorial communities, rayons, cities of oblast significance (as currently, it is taking place only at the oblast level). The PULSE Project expert came up with a suggestion not to limit the territorial level at all and to provide the opportunity to conduct social dialogue at the level of the villages, towns and cities. The members of the working group supported the position of the expert. Such changes to the legislation will make it possible to improve labour relations in each administrative and territorial unit. The PULSE Project expert was involved in the preparation of draft regulatory and legal documents prepared pursuant to the Law of Ukraine "On Prevention and Combating Domestic Violence". In cooperation with the Ministry of Labour and Social Policy and other experts, PULSE Project experts prepared the Procedure for the formation, maintenance and access to the Unified State Register of Domestic Violence and Gender Based Violence endorsed by the Cabinet of Ministers on March 23, 2019 # 234. This procedure will govern the functioning of the Unified State Register of Domestic Violence and Gender Based Violence and the Register of social services, which are provided to victims of domestic violence. On May 30, the Cabinet of Ministers endorsed Resolution of the Cabinet of Ministers # 427, which envisioned the introduction as of January 01, 2019 reimbursement of childcare services for children under three years old called "Municipal Nanny" in the amount of the minimum subsistence level on the basis of co- financing from different budgets. This resolution offers a suggestion to provide co-financing from rayon budgets, budgets of cities of oblast significance and budgets of consolidated territorial communities in the amount of 60%. The PULSE Project provided its comments on this provision, as it interpreted this as shifting additional expenditure categories for the implementation of national level programs to local budgets. The Ministry of Labour and Social Policy and the Ministry of Finance supported the position of the PULSE Project and envisioned that the reimbursement of childcare services for children less than three years old called "Municipal Nanny" will be fully funded from the National Budget. The Cabinet of Ministers of Ukraine endorsed the relevant resolution under # 68 on January 30, 2019. Ministry of Education and Science of Ukraine On January 15, 2019, the Ministry of Education and Science of Ukraine Director of the Department of Comprehensive Secondary and Pre-School Education of the Ministry of Education and Science Yu. Kononenko chaired a working meeting to prepare the approaches for the formation of the network of pre- school and comprehensive secondary educational establishments. The event brought together representatives of the Ministry of Regional Development and the Ministry of Education and Science. A PULSE Project expert presented the position of the AUC. The meeting took place to facilitate the implementation of Paragraph 4 of the minutes of the meeting of October 04, 2018 under the chairmanship of Vice Prime Minister of Ukraine H. Zubko under the title: "On settling problem issues of salary payment to teachers ". Representatives of the Ministry of Education argued that the standards do exist, while it is not possible to prepare them in the coast format. In their turn, representatives of the Ministry of Regional Development insisted on the necessity of preparing them, as it would provide opportunities to establish the necessary basis for both accessible and high-quality education. The PULSE Project expert emphasised that Paragraph 10 of the Final and Transitional Provisions of the Budget Code of Ukraine foresees approval by March 01, 2010 of such standards. Every year, communities of Ukraine receive additional powers that do not always correspond with their available resources. That is why it is extremely important at the national level to determine the cost of services provided in the education sector, as well as sources of funding for these services. This will provide opportunities for communities to review their own revenues, forecast the volume of National Budget subventions and, accordingly, implement transparent budgeting for the education sector. In addition to this, having such standards will be useful for promoting rational optimisation of the network of educational institutions in communities. Based on the discussion at the meeting, the Ministry of Education and Science

40 January – March, 2019

and the Ministry of Regional Development started the discussion of the methodology preparing national social standards and requirements in the narrative and cost format. On January 17, 2019, a PULSE Project expert participated in the meeting of the Ministry of Education and Science on setting up educational and training centers based on vocational educational institutions. During the meeting, the participants approved a list of 7 professions to set up educational and training centers in vocational educational institutions in 2019. This will provide an opportunity to improve the material and technical base of such institutions and direct National Budget funds to the purchase of equipment. On February 25, 2019, the PULSE Project expert participated in the strategic session of the Ministry of Education and Science under the title: "Education as a prerequisite for the development of an inclusive society". In the course of the session, the participants prepared a model of inclusive society. Based on the work, the participants identified the main components of the formation of an inclusive society: 1. Culture – implies the establishment of a tolerant society, which respects dignity of each person and promotes opportunities for the implementation of potential of any community representative. For example, it's about informational policy and explanatory work. 2. Policy – implies the development of the legislative framework for the establishment of an inclusive society. 3. Practice – implies the development and implementation of various forms of social interaction in practice. A PULSE Project expert came up with an idea of promoting equal opportunities for parents of children with special needs. It was about the temporary stay of children with special educational needs in the educational space under the supervision of specialists, while the parents of these children would be able to fully engage the professional activities and would not feel isolated from the society. The participants of the strategic session jointly worked out strategic and operational goals, as well as prepared tasks with the ultimate goal of emergence of an inclusive society in the country. A PULSE Project expert, working in accordance with Directive the Ministry of Education and Science of Ukraine # 310 of March 06, 2019, joined the working group for the preparation of regulatory and legal documents on issues of countering and preventing bullying (harassment) in educational institutions that worked during February – March, 2019. Thanks to the participation of the PULSE Project expert in the meetings, the text of the documents clearly delineates the powers of the director of the educational institution, a person authorised by the director, commission, full-age participants of the education process, and founder of the educational institution, as well as a list of entities to respond to cases of bullying in educational institutions. By the end of the first quarter, the following draft documents were prepared: draft Regulations for responding to cases of bullying (harassment) in educational institutions and using educational interventions, and a draft plan of measures aimed at preventing and countering bullying (harassment) in educational institutions. Ministry of Youth and Sports of Ukraine A PULSE Project expert participated in the working group of the Ministry of Youth and Sports of Ukraine to prepare the Strategy for the Formation of a Healthy and Safe Lifestyle for Children and \young People. The working group was set up by Directive of the Ministry of Youth and Sports # 727 of December 02, 2019 "On the Establishment of a Working Group for the Preparation of the Strategy for the Formation of a Healthy and Safe Lifestyle for Children and Young People". The PULSE Project submitted proposals to supplement the Strategy with issues of safe lifestyles for children and young people. The suggestion was taken into account. Ministry of Health Care During the reporting period, a PULSE Project expert joined the working group to prepare the National Action Plan to reduce the radiation and its decay products on the population and, minimise the long-term risks from the spread of radon in residential and non-residential buildings and at workplaces. Such a national plan was prepared by the Public Health Ministry of Ukraine National Center.

Ministry of Regional Development, Construction, Housing and Municipal Utilities of Ukraine On February 04, a PULSE Project expert participated in a meeting under the chairmanship of Vice Prime Minister H. Zubko on key issues of decentralisation whose participants discussed the completion of a phase of the establishment of capable territorial communities before the next local elections in October, 2020. On January 22, and on February 13, a PULSE Project expert participated in a meeting of the working group in the Ministry of Regional Development to discuss the preparation of Methodological Recommendations on the Charter of a Territorial Community.

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In the course of the coordination meeting in the Ministry of Regional Development to discuss comments to the draft Law "On Sewerage", a PULSE Project expert substantiated the need to take into account the proposals the PULSE Project submitted to the draft law. During the meeting, some part of the submitted proposals was taken into account at once, while the other part is being reviewed by the author for the possibility of inclusion. A PULSE Project expert participated in a meeting organised by the Ministry of Regional Development with the participation of central state executive authorities, local authorities, and technical associations whose participants considered the transferring combined heat and power plants to the communal ownership of territorial communities. In the course of the meeting, the PULSE Project representative offered solutions to the problem, as well as focused the attention of the audience on potential threats. On February 28, a PULSE Project expert participated in the coordination meeting to discuss the draft Directive of the Ministry of Regional Development "On Introducing Amendments to the List of Construction Objects Whose Design Does not Require Urban Development Conditions and Limitations". The draft directive offers a suggestion not to issue urban planning documents and limitations for the construction of general purpose military facilities. Based on the discussions at the meeting, its participants agreed that the construction of CC2 and CC3 facilities will be performed under urban planning conditions. On March 01, a PULSE Project expert participated in the coordination meeting to discuss draft laws "On Introducing Amendments to Article 24-1 of the Construction Code of Ukraine (regarding improvement of the mechanism of the financial support for regional development)", "On Providing Incentives for the Development of Regions", and others. The Ministry of Regional Development took into account the position of the AUC with regard to the allocation of funds from the National Regional Development Fund between the oblasts exclusively by their population.

Ministry of Justice of Ukraine On February 05, a PULSE Project expert participated in the coordination meeting in the Ministry of Justice whose participants elaborated the Draft Law “On Electronic Petitions”. Earlier, a Cabinet of Ministers Committee suspended the consideration of the document to take into account the position of the AUC. The Association of Ukrainian Cities provided its comments and suggestions to the author, in particular, the wording of the new article "Electronic Petitions to the Law of Ukraine "On Local Self-Governance in Ukraine"”. Also, upon the request of the Ministry of Justice, PULSE Project experts provided their suggestions regarding the necessary changes to the electoral legislation to ensure the proportional representation of voters of settlements and territorial communities in local councils.

National Agency of Ukraine for Civil Service On March 04, a PULSE Project expert participated in the inter-governmental meeting in the National Agency for Civil Service to discuss funding mechanisms for professional vocational training for civil servants, heads of local state administrations, their first deputies and deputies, and local government officials.

Ministry of Environmental Protection and Natural Resources of Ukraine In the course of the coordination meeting at the Ministry of Environmental Protection to discuss on comments to the draft Directive of the Cabinet of Ministers of Ukraine "On Endorsing the National Solid Waste Management Plan until 2030," a PULSE Project expert focused the attention of the authors on the risks they may encounter when implementing the set of measures envisaged by the document. The authors agreed with the reservations, and agreed on the need for cooperation at the development stage envisaged by the regulation of regulatory acts.

State Property Fund of Ukraine Tanks to well-coordinated cooperation of the PULSE Project with the State Property Fund of Ukraine, the two agencies prepared clarifications to the provisions of the draft Law "On Introducing Amendments to the

42 January – March, 2019

Law of Ukraine on the Transfer of State-Owned and Communally-Owned Facilities" (Registration # 9459 of February 02, 2019). After the approval of the draft law in the first reading in the Verkhovna Rada of Ukraine, thanks to the introduction of clarifications prepared jointly with the State Property Fund of Ukraine during its preparation for the second reading, there will be an opportunity to transfer state-owned combined heat generation plants to the ownership of territorial communities.

National Energy and Utilities Regulatory Commission Thanks to the active position of the PULSE Project, the local governments managed to suspend the approval of the NEURC draft resolution "On Endorsing Changes to Licensing Conditions for the Implementation of the Economic Activity in the Area of Heat Supply", which was approved on February 19, 2019 at its meeting and officially published for discussion. The draft document envisages returning to the NEURC the powers to set tariffs for a significant part of more than 200 municipal heat and power companies. Thanks to the comments submitted to this draft document, as well as thanks to the active support these comments received during the coordination meeting at the NEURC, the endorsement of the document was postponed. On January 30, the chairman of the NEURC and the City Mayor of Nadvirna discussed problem issues with local governments entering the electricity market, namely the purchase of electric energy for outdoor lighting at night.

Office of the Authorised Person of the Verkhovna Rada of Ukraine on Human Rights On February 12, trade unions, State Labour Committee, and the AUC discussed the issue of monitoring visits conducted with the participation of local governments and State Labour Committee. The participants came to an agreement about preparation a plan of joint actions (activities) and on the participation of representatives of the Authorised Person in AUC activities.

Activity 1.3. Local governments improved their practice and quality of services because of the sound decentralised legislative basis for local governments

1.3.1. Legal and technical assistance

During the reporting quarter, the Project continued supporting its network of Reform Offices at AUC ROs consisting of regional consultants on legal and budget issues. Also, the Project supported the work of 6 regional local economic development consultants to focus on rendering priority assistance on local economic development issues in 30 territorial communities from all oblasts. The activities of all these consultants were supported by regional communications consultants. During the reporting quarter, the network of consultants provided, in general, 2,441 consultations for local government officials, local council members and other persons, with the total number consultations provided since the beginning of the project being 228,446. By technical area, the regional consultants provided the following consultations: x on legal issues - 937; x on budget issues – 1,255; and, x on local economic development - 249. With the assistance of AUC reform offices, the following results were achieved in the reporting quarter: 2 territorial communities of cities of oblast significance annexed 2 village and 1 town territorial communities.

1.3.2. Web-tools to increase the efficiency of local government activities

The web-tools prepared by the PULSE Project during Project Year One were integrated into the AUC web site. The main page of the web site provides access to the following tools: x Electronic Law Creator; x Consultations; x e-petitions; and,

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x Fair of Ideas.

The Decentralisation Section provides links to the Sectoral Dialogue page where users may choose to go to 10 Sectoral Platforms.

In the Consultations Section, PULSE Project experts published 36 consultations in the following sectors: local finance – 2, education - 20, health care - 4, personnel and organisational aspects of the work of the local council - 5, and social protection - 5. Inquiries of local nature received from the site through the Consultations Section receive their answers from experts through emails.

Education Reform in Ukraine - PULSE Webinar at the America House in Kyiv On March 26, the PULSE Project organised and conducted a webinar under the title: "Decentralisation reform in the education sector in Ukraine: education in consolidated territorial communities". L. Mozhova, a PULSE Project/Association of Ukrainian Cities education expert provided answers to questions form students. She talked about the main directions of reforms in the education system in Ukraine. In particular, she focused on the reform called the "New Ukrainian School" and the tasks of local governments in its implementation at the community level. In the course of the webinar, the audience put the following in the interactive format to the PULSE Project expert: issues of schools with small number of schoolchildren and prospects for optimising the network of educational institutions; transfer of children and teachers to primary schools and the right of primary school children to receive education near the place of their residence; attraction of young specialists to work in the countryside; areas of state financial support for schools; social protection of teachers who will be released during optimisation of the network; and, teacher remuneration. The webinar is organised based on the outcomes of the All-Ukrainian "REBOOT 3.0" training for grantees of the PULSE Project (February 27, 2019, Kyiv) whose participants expressed their willingness to receive more expert explanations on various aspects of the education reform in the context of decentralisation. The event was conducted by the PULSE Project in cooperation with the America House Kyiv and the International Research and Exchanges Council (IREX). The webinar is available through the link: https://youtu.be/BM5q9ZvF-R4

During the reporting quarter, the AUC web site posted 6 clarifications of central state executive authorities including those received to questions from the AUC or local governments x in the sphere of social protection - 1; x in the sphere of education (including the financial support) - 2; and x in the sphere of health care (including the financial support) - 3.

1.3.3. Feedback: receiving and disseminating

Data collection from regional consultants or from communities

Aiming at protecting the interests of local governments, in January, 2019, A PULSE Project expert gathered information on lawsuits from private utility companies providing municipal services to executive bodies of city councils of cities of oblast significance with regard to collection of arrears/penalties/compensation arising as a result of underfunded privileges and subsidies from the National Budget to local budgets for 2017 - 2018. Based on the collected information, AUC Board prepared an official opinion. At the moment, the issue of arrears/fines/compensation at the expense of the National Budget is being discussed with the Cabinet of Ministers of Ukraine.

In January, 2019, a PULSE Project expert conducted a survey of cities and towns whose pre-school educational institutions should be maintained at the expense of rayon budgets. For example, the PULSE Project reviewed the status of financing of educational institutions in 138 cities and towns of 22 oblasts of Ukraine (except for Dnipropetrovsk and Khmelnytskyi oblasts). According to the survey results, only 18% of

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rayons (25 communities) exercise such powers having spent 100% of rayon budget funds without co- financing with cities of rayon significance and towns. In the remaining 82% of communities, the powers to keep pre-school educational establishments are performed by cities of rayon significance and towns. At the same time, they count on the proper funding from rayon councils and rayon state administrations in accordance with the provisions of the Budget Code of Ukraine. Thus, the PULSE Project revealed the failure of rayon councils and rayon state administrations to properly implementation the provisions of the Budget Code of Ukraine. The analysis findings were submitted to the Ministry of Regional Development and the Ministry of Education for an appropriate response. The issue of underfunded pre-school educational establishments was not resolved by the end of the reporting period.

In the reporting period, the PULSE Project expert conducted a survey of local governments and provided an overview actual labour costs with accruals for teachers and the amount of funds allocated in 2018 from budgets of cities of oblast significance and consolidated territorial communities for the payment of teacher salaries in educational institutions. For example, out of 633 local governments that provided their responses, 222 local governments directed their community resources in the amount of 1.2 billion hryvnyas to pay salaries to teachers. On average, the amount of additional funding provided by local governments to meet the actual need in these communities amounted to 9% of the total amount of the education subvention envisioned for by the Law of Ukraine "On the State Budget of Ukraine for 2018". The relevant expert information was sent to the Ministry of Education and Science.

In March 2019, a PULSE Project expert surveyed local governments about the status of salary payments to teachers at the expense of the funds of the education subvention in 2019. The AUC received 189 letters from cities and consolidated territorial communities. The survey did not include administrative rayons and oblasts. According to the survey findings, in general, as compared to the previous year, the percentage of communities with a shortage of the education subvention almost halved (in 2018, the shortage was reported by 177 local governments, or 76%). This was primarily thanks to the revision of the calculation formula (Resolution of the Cabinet of Ministers of Ukraine # 65 of February 06, 2019 "On Introducing Amendments to the Formula to Distribute the Education Subvention between Local Budgets") and thanks to the increase of the amount of the education subvention in 2019 according to the previous budget period by 13%. According to the information provided, 52% (or 98 local governments) confirmed the availability of the full amount of the education subvention. 33.6% of communities direct their own resources in the total amount of 394.1 million UAH for co-financing of the education subvention to cover the education subvention shortage in 2019. At the same time, 48% (91 local governments) of surveyed local governments experience shortage of the education subvention for paying salaries to teachers in the amount of 9% on average in Ukraine. The overall shortage of the education subvention in their budgets constitutes 740.7 million UAH. According to the results of the survey, the PULSE Project expert prepared an appeal to the Cabinet of Ministers of Ukraine with a request to revise the education subvention amount for 2019 and to take suggestions from local governments in the course of elaboration of its formula calculation. In January - February, given the appeal of the Ministry of Justice regarding the position of the AUC in relation to the provisions of the draft law "On Introducing Amendments to Certain Laws of Ukraine" (concerning the electoral rights of internally displaced persons and other mobile citizens within the country), registration # 6240 of March 27, 2017, which provides for the right to vote at local elections for internally displaced persons and other mobile citizens inside the country in addition to permanent residents of villages, town and cities, the AUC surveyed members of the AUC Board and sent the findings to the Ministry of Justice. In March 2019, a PULSE Project expert conducted a survey of local governments about how the central government provides medical subvention funds in general, and, in particular, for the treatment of patients with diabetes mellitus and renal failure and salaries, excluding expenditures for utilities and energy. The Project reviewed 130 letters from cities and consolidated territorial communities. Based on the analysed material and aiming at preventing wage arrears, shortage of funds for treatment of patients with Type 1 diabetes mellitus and chronic renal failure, PULSE Project experts will prepare an appeal to the Cabinet of Ministers to reconsider the amount of the health care subvention for 2019. Monitoring of the status of local self-governance in the annual report publication.

The PULSE Project prepared and issued "the Status of Local Self-Governance in 2018" annual report. The publication contains 12 articles: 1. Progress of the local government reform 2. Fiscal decentralisation: outcomes for 2014 - 2018 and prospects for 2019

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3. Trends in the introduction of state oversight of local governments 4. Land relations 5. Health care 6. Education 7. Social protection 8. Local self-governance on the way towards equal rights and opportunities for women and men 9. Urban development and environmental protection 10. Communally-owned property management 11. Administrative services and e-governance 12. Housing and municipal utilities

Expected Result 2: Resources under local self-governance authority increased

Impact on Local Government Activities In the first quarter of 2019, 60,435.3 million UAH came from the taxpayers to the general fund of local budgets (excluding inter-budget transfers), which is 8,862.4 million UAH more (+ 14.7%) than for the same indicator for 2018. The volume of collections from the personal income tax in January – March, 2019 amounted to 35,874.9 million UAH, which is 6,698.5 million UAH (+ 18.7%) more than for the same indicator for 2018. Collections from the immovable property tax for January – March, 2019 amounted to 899.8 million UAH, which is 229.0 million UAH more (+ 34.1%) than for the same indicator for 2018. Collections from the land fees for the first quarter of 2019 amounted to 7,779.8 million UAH, while the revenue growth against January - March of the previous year was 1,416.2 million UAH (+ 23.0%). Collections from the flat tax for January – March, 2019 amounted to 8,819.3 million UAH, which is 1,638.6 million UAH more than for the same indicator for 2018 (+ 22.8%).

During January – March, 2019, the state transferred the education subvention to local budgets in the amount of 15,795.1 million UAH (99.6% of the earmarked appropriations), the health care subvention in the amount of 13,997.6 million UAH (100.0% of the earmarked appropriations), the basic grant in the amount of UAH 2,564.6 million (100.0% of the earmarked appropriations), and subvention for social protection in the amount of 29,952.7 million UAH (88.7% of the earmarked appropriations).

However, in the reporting quarter, local governments encountered a number of problem issues that hampered the growth of financial capacity of local governments: On January 16, 2019, the Cabinet of Ministers of Ukraine issued Directive # 14-p "On endorsing the distribution of the additional subsidy between local budgets in 2019 for the expenditure categories transferred from the National Budget to local budgets for maintenance of educational and health care facilities". The overview of this distribution reveals a biased and disproportionate distribution of these funds by oblast state administrations. For example, 45% of the subsidy was reallocated to oblast budgets, although the share of expenditures on education and health care of the general fund of oblast budgets constitutes only 11% in the structure of total allocations of all local budgets by the relevant sectors. And for cities of oblast significance, which keep almost 70% of the total education and health care infrastructure, they will receive only 5% of the total subsidy, while consolidated territorial communities where a quarter of our country's population live will receive only 13.5%. On January 23, 2019, the Cabinet of Ministers of Ukraine issued the Resolution "On Introducing Amendments to the Regulations for Placement of Temporarily Unused Funds of the General Fund of Local Budgets on Bank Deposits", which prohibited the placement of temporarily unused funds of the general fund of local budgets on bank deposits. This will lead to local budget losses from the interest payment otherwise received in the amount of approximately 1.5 billion UAH. Such a prohibition will result in local government spending on current needs, rather than on capital expenditures. Local governments will not be in a position to accumulate funds for the implementation of large infrastructure projects including projects funded from the National Regional Development Fund that require co-financing.

On March 16, 2019, the Verkhovna Rada of Ukraine approved Law of Ukraine # 9476 "On Introducing Amendments to the Law of Ukraine "On the National Budget of Ukraine for 2019" of January 16, 2019", which clarifies the indicators of inter-budget transfers envisaged in the National Budget of Ukraine for 2019 for certain local budgets. However, the Law failed to sufficiently increase the amount of inter-budget transfers, in particular of the education and health care subventions in accordance with the actual needs of

46 January – March, 2019

city territorial communities that have annexed the neighbouring village communities in 2018. The document also failed to envision the appropriate inter-budget transfers for the city of Mukacheve, which would take into account the fact of community annexation.

With regard to the financial support for f construction, reconstruction, repairs and maintenance of communally-owned streets and roads in populated areas, the National Budget for 2019 provides for a subvention of 14.7 billion UAH. According to the Budget Code of Ukraine, the funds of this subvention can be directed to communally-owned roads in the amount of no more than 20% of the total amount of the subvention. However, the lack of a formula based approach to the allocation of the subvention, as has been in the years, leads to a biased distribution of the subvention funds by oblast authorities and, as a result, to the lack of budget resources promised by the Cabinet of Ministers for the repair of communally-owned roads in populated areas.

On March 27, the participants of the meeting of the Cabinet of Ministers approved the Resolution " On Certain Issues of Crediting Part of the Excise Tax on Fuel Produced in Ukraine and Imported on the Customs Territory of Ukraine to the General Fund of Local Government Budgets in 2019”.

The resolution mentioned above introduced the Procedures for directing some part of excise tax collections to the general fund of local government budgets in 2019. The document, in particular, provides for the daily (on the day the excise tax has been received) distribution of some part of excise tax collections (namely, 13.44%) between the local government budgets, unlike in the manner according to the previous version edition of the resolution, which provided for such a distribution on the next working (banking) day after the day of receipt of the excise tax collections. Such innovation will provide opportunities for local government budgets to receive timely and without delay excise tax collections and, accordingly, to effectively use them. The resolution also approved the shares of collections from the excise tax on fuel manufactured in Ukraine and imported into the customs territory of Ukraine in the first half of 2019 to be directed to local government budgets. The shares are determined based on the amount of sales of fuel by business entities in the respective territory for the second half of 2018 and taking into account the data from registries of payments according to the information form the State Fiscal Service and in accordance with the Procedures. However the resolution was endorsed with a 3 month delay, which may have a negative effect on the implementation of local budgets. During the reporting period, the subvention from the National Budget to local budgets for infrastructure improvements in consolidated territorial communities in 2019 was not distributed. Territorial entities of the State Fiscal Service refuse to provide local governments with reports on the amounts of charged and paid taxes and duties, on the amount of the tax debt, taxes paid in excess of the due amount and fees to taxpayers to local budgets, which prevents local governments from processing tax information and using its results for implementation of the budget process.

Activity 2.1. Local self-government resources are increased ensuring local government financial autonomy

2.1.1. Tools to increase own resources of local governments

Municipal Fiscal Register (MFR) Currently, of 15 CTCs that have applied for connection to the Municipal Fiscal Registry software complex, only 5 CTCs are its active users: the Bibrska (Lviv oblast), Oleksandrivska (Donetsk oblast), Khodorivska (Lviv oblast), and Bilopilska (Sumy oblast) CTCs, as well as the city of Brody (Lviv oblast). The real reasons for why the software complex has low level of community coverage include: unresolved issue of security of personal data; high cost of server installing; lack of desire to introduce a new position of an official in charge of maintenance of the database and feeding information into it.

In addition, currently, the Center for the Development of Innovations working within the framework of the "U-LEAD with Europe" Project has launched the URBIO platform (e-solutions for community development) for 30 CTCs aimed at introducing: a utility accounting program "URBIO communal property", accounting of addresses "URBIO address registration", and a computer program "Register of territorial communities". In fact, the "U-LEAD with Europe" Project has duplicated the idea of the software complex "Municipal Fiscal Register" developed under PULSE. Currently, the URBIO platform is being actively deployed. The "U- LEAD with Europe" Project is actively conducting training on how to use the platform and is promoting it.

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The Municipal Fiscal Register is a piece of software that offers information on real estate, communally- owned property, and land plots and ensures processing of these data, preservation and access to information for each individual local budget, as well as offers information on students, pre-school children, and citizens served by health care establishments, citizens who need of social assistance, and registers of privileged persons. The MFR provides an opportunity to optimise the expenditure part of local budgets and ensure better revenue flow to them, analyse the amount of benefits and the justification to provide them, and forecast the necessary amount of funds for complete implementation of the delegated mandate. The introduction of the MFR has become even more important in the context of the transition to monetisation of benefits and privileges.

Formation of the system of national social standards and norms In the first quarter of 2019, compared with 2018, one could observe activisation of the process of reforms in the system of national social standards and norms (further - NSSN). Staring with January 01, 2019, the minimum wage increased from 3,723 UAH to 4,173 UAH (+12%). At the same time, another basic standard, the subsistence minimum, remained unchanged at the level of 1,921 UAH.

In the reporting quarter, the work of PULSE Project experts focused on: x increasing the volume of financial support to local budgets for implementation of delegated powers in the course of the provision education and health care services, x ensuring compliance of central state executive authorities with interests of local governments in the course of preparation and improvements of regulatory and legal documents in the sphere of NSSN, and, x coordination of activities of central state executive authorities and local governments in the course of revision of the system of NSSN.

During the reporting period, Project expert support for improvements of the regulatory NSSN framework included providing conclusions and suggestions to draft regulatory and legal documents that had impact on NSSN in the course of AUC interaction with main authors of these regulatory and legal documents (ministries) and discussions at meetings in the Cabinet of Ministers and parliamentary committees. In January – March, 2019, PULSE Project experts joined the development and approval of 3 regulatory and legal documents, which had a significant impact on the NSSN system.

At the beginning of the year, the Cabinet of Ministers of Ukraine issued Directive # 77-p of January 23, 2019 "On Endorsing the Action Plan for the Implementation of the New Phase of the Local Government reform and Reform of the Territorial Arrangement of Government Institutions in Ukraine for 2019 - 2021", which outlined the following tasks for the establishment of the proper resource base for the implementation of the local government powers and tasks for central state executive authorities: - by January 1, 2020: to develop and submit for consideration by the Cabinet of Ministers draft regulatory and legal documents to introduce national standards and norms in the descriptive and cost formats for each type of the powers delegated to local governments per one administrative and territorial unit; - by April 10, 2020: to make calculations of the cost of service provision in accordance with the NSSN for each type of powers delegated by the state to local governments.

On January 23, 2019, the Cabinet of Ministers of Ukraine issued Directive # 27-р " On Approving the Concept for Reforming the System of Provision of Cultural Services to the Population", which defined the mission, purpose, general principles, goals and objectives of reforms in the system of providing cultural services to the population. The AUC concurred with the draft directive with reservations that were considered by the author of the document.

In February, 2019, PULSE Project experts concurred with the draft Directive of the Cabinet of Ministers "On Approving the Action Plan for the implementation of the Concept for the Provision of Cultural Services to the Population" with suggestions and reservations. The author of the document partially took into account comments from the AUC regarding the need for coordination of goals, tasks, assigned implementers and timeframe of the directive with the action plan for the second phase of the decentralisation and local government reform. Following this, PULSE Project representatives met with the leadership of the Directorate for Strategic Planning and European Integration of the Ministry of Culture and came to an

48 January – March, 2019

agreement to involve PULSE Project experts in the preparation and improvement of NSSN in the sector of culture.

On February 06, 2019, the Cabinet of Ministers, bypassing public discussion, endorsed Resolution # 72 Resolution # 72 "On Endorsing National Social Standards for the Availability of Public Libraries for Population in Ukraine" prepared by the Ministry of Culture. The Ministry of Culture ignored comments and proposals of the AUC. So, the approval of this resolution led to unfunded expenditures (unfunded mandate) in 2019 for the maintenance of libraries in the amount of about 0.4 billion UAH.

Central state executive authorities increasingly demonstrate their understanding of the nature, objectives and organisational aspects of reforms of NSSN. They involve local government experts in preparing standards that communities will have to follow in the future. Accordingly, in 2019, one can expect more intensified cooperation between central state executive authorities and local governments the sphere of NSSN reform.

2.1.2. Dissemination of best practices and replication of experience

Collections of successes and best practices

In the reporting period, the Project published the BOOK OF SUCCESS including short stories about how decentralisation affects community life.

The collection contains 85 success stories in ten thematic sections, namely: Local Finance, Local Economic Development, Energy Efficiency, Housing and Municipal Utilities, Health Care, Education, Social Projects, Administrative Services, Organisational Aspects of the Work of Local Councils and Community Communication, and Community Safety.

The achievements of the communities described in the book became possible thanks to decentralisation. This reform has been recognised as the most successful in Ukraine. During the 4 years of the reform, Ukraine established 882 CTCs that comprised 4,043 communities, which represent 38% of the territory of Ukraine and about 69% of its population. Consolidated communities have received the powers and resources cities of oblast significance have, in particular, the right to direct 60% of the personal income tax to local budgets of consolidated territorial communities for implementation of their own powers. In addition to this, these communities have the right to retain their tax revenues: flat tax, tax on profit of communally-owned companies and financial institutions, and property tax (real estate, land, transportation vehicles). Consolidated territorial communities have direct inter-budget relations with the National Budget, and they are provided with the appropriate transfers for the implementation of powers delegated by the state (subsidies, education and health care subventions, subventions for infrastructure improvements in consolidated territorial communities, etc.). Own revenues of local budgets increased by approximately 200 billion UAH from 2014 to 2018. (from 68.6 billion UAH to 267 billion UAH). It was thanks to the new resources and powers to manage them independently that local governments are making changes and implement projects to improve social sector, improve quality of services, development infrastructure, activate local economic development, etc. The BOOK OF SUCCESSES has been designed to demonstrate these positive changes in the lives of villages, towns, and cities. Obviously, the new finance and new powers communities now get give them new opportunities for the development and progress towards improving the quality of life of Ukrainians.

The publication will be distributed to AUC member communities and will be presented to partners and government authorities. The AUC official web site offers the electronic version of this document.

"Itinerary of Successes. Best local government practices” Collection

The results of the decentralisation reform are manifested through the success of communities that grow stronger and more capable each year. Experience exchange, which provides opportunities for other communities to see the way to achieve real success, as well as to replicate best practices in their own communities, plays an important role in their development. This is why it has been the third year in the row since the Association of Ukrainian Cities has been implementing a nation-wide program of replication study tours for representatives of local governments aimed at disseminating best practices and successful experience in resolving local issues and introducing innovations, in particular due to the growth of local budgets in the context of decentralisation, new powers and.

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Aiming at disseminating the successes communities demonstrated within the framework of the "Itinerary of Successes" nation-wide exchange study tour Project component, the Project published a book under the title "Itinerary of Successes. Best Practices of Local". The publication offers stories about best practices of 8 Ukrainian cities, where study tours took place in 2018, namely: Kharkiv, Ternopil, Ivano-Frankivsk, Vinnytsya, Bucha (Kyiv region), Kamianets-Podilskyi (Khmelnytskyi region), Kyiv, and Odessa. Each of the cities presented its unique experience in implementing successful projects and initiatives in various sectors. Since the collection was completed in early 2019, it contains the latest information on best practices. This provided us an opportunity to see the success of the cities in their dynamics and to assess what has changed since the study visit and how the community develops further.

This publication is distributed to representatives of local government authorities and provides an opportunity to learn about the successes achieved through decentralisation and get inspiration to improve the lives of their communities.

The Itinerary of Successes

During the reporting period, the Project continued the implementation of the national program for success replication study tours for local government officials, which is aimed at dissemination of best practices and successful experience in resolving local problems and innovations, particularly through the growth of local budgets in the context of fiscal decentralisation and new powers in the process of sectoral decentralisation.

During the period from January to March 2019, the Project organised one study visit with the participation of 32 representatives of local governments.

Table 2.1. Information on events under the "Itinerary of Successes" nation-wide exchange study tour Project component

Date, venue, number of Topic Information about the event participants March 05 - 06, 2019, Dnipro as a smart The exchange study tour started with a meeting city of Dnipro city. The in the Dnipro City Council. Acting Director of Participants: experience in the Department of Information Technology M. 32 representatives from 25 digital Sereda opened the event, passed greetings from cities including city transformation of Mayor B. Filatov and presented the city mayors, deputy mayors, the community experience in the implementation of e- secretaries of city councils, governance. Director of the Department of directors and specialists of Administrative Services and Permit Procedures departments and A. Ponomaryov and Director of the Municipal directorates of information "Info-Rada-Dnipro" company D. Tsymyrenko technologies, presented the tools for city authorities to representatives of the communicate with the city. Dnipro City Council, During the study tour, the participants had an regional AUC (PULSE) opportunity to learn about the work of the consultants, Pravoberezhnyi Center for Administrative communications Services and the Situation Center. City coordinator of the Center representatives also learned about the experience for Professional in implementing the Safe School Project on the Development and example of the City Specialised School # 13, Communications of the visited the office of the hotline for citizens of the AMU O. Zmievets, media Dnipro City Council. The second day of the visit representatives, etc. was dedicated to the experience of the city authorities in involving the community in using urban e-technologies and e-services. Following the study tour, the regional prepared 3 publications.

50 January – March, 2019

Activity 2.2. Tools for local government to access additional financial resources are in place and utilised

2.2.1. Training for civil servants During the reporting period, the Project did not conduct any activities under this component.

2.2.2. Promotion of access to resources

PULSE Project experts participates on a regular basis in meetings of the Selection and Evaluation Committee for Investment Programs and Regional Development Projects that to be implemented with the funds of the National Regional Development Fund (further referred to as - the Commission). As of now, the Commission has conducted two meetings and it is members are preparing a draft regulation of the Cabinet of Ministers, which will approve transitional projects carried over from previous years. The relevant draft document will be sent to the AUC for concurrence.

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Expected Result 3: Capacity of stakeholders increased

Impact of the Project on Local Government Activities Reforms, including decentralised and sectoral reforms continue. In 2019, 782 consolidated territorial communities have direct inter-budget relations with the National Budget, in other words, they make use of the "benefits" of the decentralisation reform. Last year, the initial local elections took place in 40 CTCs (on April 29,) and 77 CTCs (on December 23; one should remember there should have been 123 of them, but because of the introduction of martial law in 10 oblasts, the elections were delayed in 45 CTCs and in one CTC election did not take place). Thus, Ukraine entered 2019 with 782 CTCs. In addition to this, at the beginning of 2019, 25 cities of oblast significance had established communities by annexing the surrounding communities. As of the end of March 2019, 12 such cities are still in the process of community consolidation.

Hence, communities have received increased resources and expanded functions and powers, and now it is extremely important to learn how to use them for the benefit of their inhabitants: how to promote comfortable living conditions, improve service quality, effectively plan development and develop strategies that will increase their own revenues and attract investments.

The PULSE task to train local officials, in both new small and large communities. The goal is to increase the ability to perform new powers and functions, to provide public services. The project implements a set of various educational and professional activities for local governments, teaches how to work in the new conditions of decentralisation. It is important for both small and large communities to learn from real cases of transformations and improvements of living conditions thanks to community consolidation. In addition, the success of the new communities serves as an excellent motivation factor for public support to reforms and supportive environment for their further implementation. Taking into account the above, the collection and dissemination of success stories and best practices of local governance in the context of reforms is an important tool.

PULSE activities cover by direct reform participants, stakeholders, and sectoral reforms at all levels. These include: high level government officials, local government officials including those from consolidated territorial communities, media representatives, and the general public.

For state officials and parliamentarians, conclusions are drawn up for draft regulatory and legal documents, the problems of local governments are summarized and proposals for their solutions are provided. At the same time, PULSE provides central state executive authorities with information channels to disseminate messages on national reform policies both through communication with the audience during AUC events, and through the dissemination of their statements and speeches. For example, in the reporting quarter, the AUC distributed its position to high-level government officials and National Deputies during the Community Economic Development Forum and round table discussions in parliamentary committees. For media, the communications component of the Project prepares and distributes press-releases and hot-press releases, and holds press events at the regional level. Numerous messages for the general public are distributed through various media, printed and online media, and social networks.

The Project continues its activities to form a favourable environment for decentralisation reforms in the regions. All AUC Regional Offices work together with PULSE regional consultants in four areas, such as local finance, legal issues, and communications. There are LED consultants working in six local development hubs and cover all oblasts. AUC Regional Offices work as think tanks for reforms in regions implementing activities to promote decentralisation reform and disseminate promote its achievements through study visits under the "Itinerary of Successes" nation-wide exchange study tour Project component to successful communities in its own or neighbouring regions, press tours for regional media, consultations and meetings.

To provide the communications support of this activity, the Project continued the Decentralisation Marathon account in the Facebook networks. This is a reliable source of information about the life of consolidated communities and the status of implementation of the local government reform at the level of local self- governance. This is the resource where communications consultants post information about community

52 January – March, 2019

events, best practices, press tours, regional “Itinerary of Successes” tours, as well as about events taking place in communities.

The PULSE Project has been active in promoting decentralisation successes and community consolidation in the AUC web site Successes section and the Videoteque of Successes on the AUC YouTube channel. With the help of a large-scale TV project intended for a wide audience of nation-wide TV Channels, the Project highlights successes of consolidated territorial communities and presents the expert position of the AUC.

Activity 3.1. Local governments and stakeholders are informed and capable of carrying out new roles and responsibilities flowing from decentralisation reform

3.1.1. Capacity building for local officials at the local level

Regional legislation application laboratories in AUC ROs

Regional legislation application laboratories are one-day training events for local government officials conducted by PULSE in AUC Regional Offices. The purpose of these events is to study and receive clarifications on new provisions in laws and current legislation, as well as to provide opportunities for experience exchange.

During the Project implementation period of January – March, 2019, PULSE planned to conduct up to 5 laboratories in each regional.

The list of topics was put together based on the findings of the monitoring of the training needs conducted by AUC ROs in 2018.

In January - March 2019, the Project conducted 35 legislation application laboratories with the participation of 844 local government officials including 282 males and 398 females.

Table 3.1. Date, venue and participants Topic Information about the event January 11, 2019 Strategic Planning for Local The training event moderator described the Lviv AUC RO, Economic Development: methodology of developing effective local city of Lviv Methodology and Best economic development strategies, highlighted Practices for Communities the peculiarities of the analysis of the Participants: city mayors, CTC community development and its use for mayors, and technical specialists. developing models of local economic development, listed available tools for local economic development, and familiarised the audience with best practices of developing economic development plans and the algorithm for their implementation. The participants exchanged experience in promoting conditions for the development of local businesses and attracting investments. January 18, 2019 Regulatory and legislative The training event moderator provided an Chernihiv AUC RO, framework for public overview of regulatory requirements for public city of Chernihiv procurement and experience in procurement, highlighted the importance of using the ProZorro procurement openness and transparency of the procurement Participants: village, town and city system process, as well as talked about the mayors, CTC mayors, and technical requirements for bidding documents and open specialists. bidding and the procedure for monitoring public procurement. The participants studied the peculiarities of responsibility in the sphere of public procurement and learned practical skills in using the ProZorro procurement system. January 24, 2019 Reforms in the education The training event moderator introduced the Kharkiv AUC RO, sector. New Ukrainian School. innovations in the education legislation, city of Kharkiv Development of inclusive regulatory and legislative framework for the education implementation of the New Ukrainian School

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Participants: deputy mayors, CTC concept and inclusive education, described the mayors, directors and specialists of peculiarities of providing educational services in departments/directorates of the conditions of the New Ukrainian School, education. and emphasised the necessity of promoting a modern educational environment in educational institutions of the city of Kharkiv. The participants visited the Inclusive Resource Center where they became acquainted with the practice of providing educational services and methods for working with children with disabilities. January 29, 2019 Legal aspects of privatisation of The training event moderator familiarised the Khmelnytskyi AUC RO, communally-owned property audience with innovations in the legislation on city of Khmelnytskyi privatisation, spoke about the peculiarities of privatisation of communally-owned property in Participants: CTC mayors, accordance with the phases specified by the law, directors and specialists of outlined the step-by-step procedure and departments/directorates for finance timeframe of the privatisation process, and and economy. familiarised the audience with the peculiarities of the sales of objects through the ProZorro procurement system. She also shared practical experience in privatisation projects at e- auctions. January 31, 2019 Mechanisms for improving the The training event moderator familiarised the Kherson AUC RO, efficiency of land resource audience with new provisions of the land city of Kherson management in territorial management legislation, told about the communities. Problem issues in procedure for transferring state-owned Participants: village, town and city the sphere of land relations agricultural lands located beyond the boundaries mayors, CTC mayors, and of populated areas into the ownership of specialists land managements consolidated territorial communities, told about departments. the problems of implementing delegated powers by local governments in the spheres of using and protecting lands and ways of their solution, and highlighted the peculiarities of the mechanism for normative pecuniary valuation of land parcels. February 05, 2019 Preparation and implementation The training event moderator familiarised the Ivano-Frankivsk AUC RO, of infrastructure improvements audience with legislation governing city of Ivano-Frankivsk and investment promotion investments, reviewed sources of project projects at the expense of financing, focused on the stages and obstacles Participants: deputy village, town subventions from the National of preparation of project applications for donor and city mayors, directors and Budget to local budgets, grant assistance, provided recommendations for specialists of departments for funds, loans, and funds of the improving the writing skills of grant economy. National Regional applications, and presented a training manual on Development Fund territorial community development planning prepared by the AUC. The participants exchanged hands-on experience in preparing regional development projects. February 06, 2019 Preparation and implementation The training event moderator familiarised the Rivne AUC RO, of infrastructure improvements audience with the main requirements of city of Rivne and investment promotion regulatory documents for the preparation of projects at the expense of investment projects, provided the main list of Participants: deputy city and town subventions from the National sources of funding investment projects, mayors, secretaries of local Budget to local budgets, grant disclosed main donor requirements to prepare councils, and specialists of funds, loans, and funds of the and submit applications for international departments of economy. National Regional technical assistance. Development Fund The participants learned about the main problem issues of the preparation and implementation of infrastructure improvements and investment promotion projects at the expense of the subvention from the National Budget to local budgets for infrastructure improvements in consolidated territorial communities. February 08, 2019 Interaction between local The training event moderator described the

54 January – March, 2019

Chernivtsi AUC RO, governments and citizens. legislative framework for involving citizens in city of Chernivtsi Public participation in financial decision-making in territorial communities, decision making. Public budget introduced the practice of implementing the Participants: city mayors, CTC Transparent Budget program in Chernivtsi, and mayors, and deputy directors of outlined activities for involving the public in departments of finance. participation in budget hearings and participation in making financial decisions using the example of the Chernivtsi City Council. The participants learned about the peculiarities of the public project competition in Chernivtsi. February 08, 2019 Preparation and implementation The training event moderator made provided a Kirovograd AUC RO, of infrastructure improvements legislative overview of budget and grant city of Kropyvnytskyi and investment promotion opportunities to attract resources for community projects at the expense of development in 2019 - 2020, provided Participants: village, town and city subventions from the National information on the current grant programs for mayors, CTC mayors, their Budget to local budgets, grant local governments, described the peculiarities of deputies, and specialists of funds, loans, and funds of the applications for submitting calls for proposals departments of finance and National Regional for NRDF funding, and told about the economy. Development Fund peculiarities of inter-municipal cooperation, stages its organisation and the peculiarities of concluding inter-municipal cooperation agreements. February 08, 2019 Reform in the sector of housing The training event moderator described Ternopil AUC RO, and municipal utilities. Hands- amendments to the legislation governing the city of Ternopil on aspects of implementation of sphere of housing and municipal utilities, energy efficiency activities in described the procedures of mandatory energy Participants: village, town and city communities. Legislative certification of buildings and building class mayors, their deputies, directors framework for the work of definitions in accordance with European and specialists of technical condominium associations methods, provided an overview the legal departments and directorates. support of condominium associations, and defined peculiarities of ownership in an apartment building. The participants discussed issues of preparation of energy certificates at the phase of building design. February 13, 2019 Preparation and implementation The training event moderator provided an Zakarpattya AUC RO, of infrastructure improvements overview the main requirements of regulatory city of Uzhgorod and investment promotion and legal documents for the preparation of projects at the expense of investment projects, described the peculiarities Participants: deputy village, town subventions from the National of preparation and presentation of investment and city mayors, and specialists of Budget to local budgets, grant projects that can be implemented at the expense departments for economy and funds, loans, and funds of the of the National Regional Development Fund finance. National Regional and the subvention from the National Budget to Development Fund local budgets for infrastructure improvements in consolidated territorial communities. The participants learned about the list of other sources of financing for infrastructure improvements and investment promotion projects. February 15, 2019 Reforms in the health care The training event moderator introduced the Dnipropetrovsk AUC RO, system. Formation of hospital main changes in the legislation governing the city of Dnipro districts sector of health care, told about the achievements and problems of the sector in Participants: town and city mayors, 2018, outlined the main principles of health care and directors and specialists of financing reform, spoke about how to identify health care departments. sources and determine the amount of financing for primary health care, about the peculiarities of interaction the primary care units in consolidated territorial communities with secondary health care units, and focused the attention on the principles and strategic planning of functioning of the hospital districts.

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February 15, 2019 Legislative and regulatory The training event moderator provided an Chernihiv AUC RO, framework for the work overview the legal aspects of becoming the city of Chernihiv starostas starosta, described the main tasks the starosta has to deal with in resolving social and Participants: CTC mayors, and economic issues of his/her district, described the secretaries of local councils. election and taking office process, provided a list of duties, rights and limitations of the starosta with regard to combining other work, paid attention early termination of starosta powers, and familiarised the audience with model provisions on the starosta. The starosta of the Voloskyi Starosta District shared his experience he learned while working on this position. February 19, 2019 Preparation of local budgets, The training event moderator introduced recent Poltava AUC RO, ways to increase revenues and amendments to the budget legislation, told about city of Poltava the tax base of local budgets, the phases of the budget process and interaction of local peculiarities of funding health care and Participants: village, town and city governments with financial and education sectors in consolidated territorial mayors, CTC mayors, and directors tax authorities communities in 2019, provided a detailed and specialists of departments for overview of changes in the distribution of inter- economy and finance. budget transfers, provided an explanation of the mechanism for checking the effective use of funds inter-budget transfers from the National Budget by the Accounting Chamber, and told about cooperation with financial and tax authorities in the process of preparation of local budgets. February 19, 2019 Legal aspects of privatisation of The training event moderator introduced Vinnytsya AUC RO, communally-owned property innovations in the legislation governing city of Vinnytsya privatisation of communally-owned property, introduced the principles of privatisation, Participants: village, town and city described objects and subjects of privatisation, mayors, their deputies, CTC peculiarities of non-privatised objects, shared mayors, and specialists of technical the experience of the Vinnytsya City Council in departments. introducing electronic auctions, as well as the experience of communities in the oblast in privatising communally-owned property and the increasing the revenue flow to local budgets, and told about the procedure and timeframe of privatisation, as well as about the peculiarities of preparation of documentation for the privatisation procedure. February 19, 2019 Reform of the social protection The training event moderator familiarised the Sumy AUC RO, system. Peculiarities of working audience with the main spheres of reforming the city of Sumy with persons with disabilities, system of social protection, ATO participants, internally He paid special attention to the experience of Participants: deputy town and city displaced persons and other Berezivska CTC of the Hlukhiv rayon in mayors, and directors and categories population participating in the pilot project of the Ministry specialists of technical departments. of Labour and Social Policy of Ukraine on social protection of vulnerable population groups, and spoke about the peculiarities of granting subsidies to the population to reimburse the cost of housing and municipal utility services and about problem issues of social protection of ATO participants living in the territory of the consolidated territorial community. February 19, 2019 Regulatory and legislative The training event moderator described the Mykolaiv AUC RO, framework for public legislative innovations in the procedure for city of Mykolaiv procurement and experience in conducting public procurement, provided using the ProZorro procurement definition of the essence, concepts and basic Participants: deputy town and city system principles of public procurement, highlighted mayors, and directors and the peculiarities of working with the ProZоrrо specialists of technical departments. procurement system, provided useful advice on

56 January – March, 2019

how to plan procurement of goods, works and services using Internet recourses, and focused the attention of the audience on the requirements of legislation with regard to risk indicators in the course of procurement and on peculiarities of the preparation and approval of the annual procurement plan. February 20, 2019 Innovations in urban planning The training event moderator familiarised the Luhansk AUC RO, and architecture, their hands-on audience with the main legal documents in the city of Severodonetsk application in the context of sphere of urban planning and architecture, told decentralisation about the accountability for violating urban Participants: deputy town and city development legislation, spoke about the mayors, directors and specialists of peculiarities of urban development in cities of land management departments and oblast significance, paid attention to the directorates. peculiarities of the development and approval of urban planning documentation for consolidated territorial communities, focused the attention on the main tasks of urban development activities in 2019, and told about the purpose and peculiarities of the Geoinformation system of the city planning cadastre. February 21, 2019 Reform of the social protection The training event moderator familiarised the Zaporizzhya AUC RO, city of system. Peculiarities of working audience with the basic legislative documents in Zaporizzhya with persons with disabilities, the sphere of social protection, work of the ATO participants, internally electronic queuing management system, Participants: deputy village, town displaced persons and other possibility of online signup for an appointment and city mayors, CTC mayors, and categories of population with a departmental officials, and organisation directors and specialists of of facilities to rental technical and other means departments of social protection. of rehabilitation. The participants learned about the experience of the departments for rehabilitation of children with disabilities the territorial centers and about the work of the Family Club for ATO participants at the Center for Social Services for Family, Children and Youth. March 01, 2019 Reforms in the health care The training event moderator provided an Kyiv AUC RO, system. Formation of hospital overview of key amendments in the health care city of Kyiv districts legislation, reported on the current status and future prospects of reforms in the health care Participants: town and city mayors sector in the Kyiv oblast in 2019, formation and and directors of health care peculiarities of functioning of hospitals, departments. emphasised the peculiarities of local government powers in the health care sector, informed about the current status of reorganising of health care institutions providing primary health care to communally- owned non-profit companies. March 01, 2019 Mechanisms for improving the The training event moderator familiarised the Khmelnytskyi AUC RO, efficiency of land resources audience with the legislative documents city of Khmelnytskyi management in territorial regulating land relations, drew attention to the communities. Problem issues in necessity of timely monitoring and control of Participants: village, town and city the sphere of land relations land use, emphasised the need for constant mayors and land surveyors. cooperation with fiscal authorities, drew attention to the ways of improving the efficiency of land resources management, shared hands-on experience in preparing land management documents, described the procedure and conditions for obtaining funds for the using of land plots in violation of the requirements of the legislation. March 05, 2019 Innovations in urban planning The training event moderator familiarised the Lviv AUC RO, and architecture. Their hands- audience with the main provisions of the city of Lviv on application in the context of legislation in the sphere of urban planning and decentralisation architecture, told about the mechanism for Participants: village, town and city granting permits for the preparation of urban

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mayors, and directors and planning documents at the local level, the specialists of technical departments. procedure for its preparation and approval, normative pecuniary valuation, inventory and documents on changing the boundaries of the populated areas, and clarified the procedure of maintaining urban development cadastre. March 12, 2019 Mechanisms for improving the The training event moderator introduced the Rivne AUC RO, efficiency of land resource recent amendments in the land management city of Dubno management in territorial legislation, described the peculiarities of the communities. Problem issues in national normative pecuniary valuation of Participants: town and city mayors, the sphere of land relations agricultural lands, described the details of land deputy city mayors, and land inventory, provided algorithms for improving surveyors. administration of land rent, and familiarised the participants with the problems of land auctions to sell state-owned and communally-owned land parcels and the ways of resolving them. March 14, 2019 Local economic development The training event moderator provided an Kherson AUC RO, tools overview new provisions of the legislation city of Kherson governing the preparation of plans and programs for social and economic development, Participants: town and city mayors, outlined the basic principles of project deputy city mayors, and specialists management and the main sources of additional of technical departments. financing for local economic development, and described the main stages and mechanisms for the preparation and implementation of community social and development programs of the community, main conditions for the selection of investment programs and projects funded through for international technical assistance projects. March 14, 2019 Regulatory and legislative The training event moderator described the Odesa AUC RO, framework for public requirements of the legislation for the procedure city of Odesa procurement and experience in for putting together and endorsing the annual using the ProZorro procurement procurement plan, methodology for calculating Participants: deputy village, town system the expected value of the procurement item, and city mayors, and specialists of procedure for amending the annual procurement departments responsible for public plan, dwelled upon the organisational aspects of procurement. the work of the tender committees and authorised officials, paying a particular attention to the process of drafting tender documentation and annexes thereto, and gave recommendations on how to prevent violations. The participants learned about the peculiarities of work in the ProZorrо procurement system. March 19, 2019 Peculiarities of preparation and The training event moderator provided an Ivano-Frankivsk AUC RO, implementation of budgets of overview amendments to the budget legislation, city of Ivano-Frankivsk consolidated territorial told about the peculiarities of the preparation of communities. Effective local budgets in 2019, provided an overview the Participants: village, town and city management of financial peculiarities of introducing and applying the mayors, CTC mayors, and directors resources. Performance performance program budgeting method, told of departments and directorates for program budgeting about the possibilities of increasing the revenue finance. base budgets of consolidated territorial communities, discussed the regulations and procedure of preparation of budgets in consolidated territorial communities and highlighted the peculiarities of preparing a decision on the budget of the consolidated territorial community, and familiarised the audience with the principles of budget implementation. March 19, 2019 Mechanisms for improving the The training event moderator described changes Luhansk AUC RO, efficiency of land resource in the land management legislation, highlighted city of Severodonetsk management in territorial the peculiarities of preparing urban development communities. Problem issues in documents and maintaining a city planning Participants: town and city mayors, the sphere of land relations cadastre, introduced the mechanism for

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deputy city mayors, and land transferring state-owned agricultural lands surveyors. located beyond the boundaries of populated areas to the ownership of consolidated territorial communities. The moderator also told about the procedure for the setting and changing the designation of land parcels. March 19, 2019 Reforms in the education The training event moderator described the Kirovohrad AUC RO, sector. New Ukrainian School. innovations in the education sector and the city of Kropyvnytskyi Development of inclusive peculiarities of providing education services in education the context of reforms, provided an overview of Participants: village, town and city the legislative framework for the mayors, CTC mayors, and directors implementation of the New Ukrainian School, of departments of education. concept and familiarised the audience with the peculiarities of inclusive education in the city of Kropyvnytskyi. The participants visited educational establishments in the city where they became familiar with the educational environment for the provision of education services for children with special needs. March 20, 2019 Mechanisms for improving the The training event moderator described the Mykolaiv AUC RO, efficiency of land resources legislative and regulatory mechanism for grating city of Mykolaiv management in territorial powers in land management, paid special communities. Problem issues in attention to the use of land under the land lease Participants: village, town and city the sphere of land relations agreement, and familiarised the audience with mayors, CTC mayors, land the requirements of government authorities on surveyors, and directors and control over the use and protection of specialists of land management agricultural lands within the territory departments. consolidated territorial communities. The participants studied the mechanisms for conducting the normative pecuniary valuation of land parcels. March 21, 2019 Investment passport as an The training event moderator familiarised the Sumy AUC RO, instrument of community audience with investment law, provided the city of Sumy economic development information on the mechanisms for setting up and models of functioning of industrial parks Participants: deputy town and city and industrial zones, shared the international mayors, CTC mayors, and experience in preparing investment community specialists of departments for profiles using the example of the Koval Gmina economy. (Poland), focused the attention on importance of sectoral investment profiles (tourist attractiveness profiles, cluster profiles of territories, etc.) and the most common mistakes during the preparation and promotion of the community investment profile. March 22, 2019 Legal aspects of privatisation of The training event moderator provided an Zaporizzhya AUC RO, communally-owned property overview the main amendments in the city of Zaporizzhya legislation on privatisation of communally- owned property, informed about the powers of Participants: village, town and city local governments in the sphere of privatisation, mayors, CTC mayors, and directors and told about the procedure and ways of of legal departments. privatisation, the algorithm of selling small privatisation objects, accountability for violating the legislation on privatisation of property, and mechanisms for conducting electronic auctions. March 26, 2019 Preparation of local budgets, The training event moderator informed about Cherkasy AUC RO, ways to increase revenues and the main changes in the budget and tax city of Cherkasy the tax base of local budgets, legislation, provided information about the interaction of local procedure for the preparation of local budgets, Participants: village, town and city governments with financial and ways to increase the revenue flow and tax base mayors, their deputies, and tax authorities of local budgets, talked about the interaction of directors and specialists of technical local governments with financial and tax departments and directorates. authorities, described additional mechanisms for to get land fees, focused the attention on the

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peculiarities of applying performance program budgeting method, and presented the public budget of the city of Cherkasy. March 27, 2019 Regulatory and legislative The training event moderator familiarised the Zakarpattya AUC RO, framework for public audience with the legislation in the sphere of city of Uzhgorod procurement and experience in public procurement, informed about the using the ProZorro procurement definition of the procurement of goods, works Participants: deputy village, town system and services, functions of tender committees, and city mayors, and specialists of described the peculiarities of preparation of departments responsible for public competitive bidding documents, emphasised the procurement. accountability in the sphere of public procurement, provided an overview of entities authorised to exercise control in the sphere of public procurement, and familiarised the audience with the main features and procedures of conducting public procedures in the ProZorro electronic system. March 28, 2019 Mechanisms for improving the The training event moderator told about the new Kharkiv AUC RO, efficiency of land resources provisions in land management legislation and city of Kharkiv management in territorial informed about the mechanism of preparation of communities. Problem issues in master plans and detailed plans of territories, Participants: town and city mayors, the sphere of land resources about strategic and environmental assessment in CTC mayors, and directors of land the course of territorial development, and local management departments. government powers commissioning objects. The participants received answers to their questions regarding land plots for unauthorised construction and learned about the procedure for transferring agricultural lands to the ownership of consolidated territorial communities.

Table 3.1. Information about the regional legislation application laboratories.

Distance learning courses

In the reporting quarter, the PULSE Project continued the implementation of four distance learning courses prepared in previous years on the Prometheus platform (www.prometheus.org.ua). The training materials and the opportunity to receive a certificate are constantly available, so the number of students has increased.

Also, the PULSE Project paid attention to PR courses. For example, the Local Government magazine, Issue # 1 published an article about distance learning courses with a direct link to them. The particular attention as paid to the Gender Budgeting for Community Development in Ukraine course. This is a joint project of PULSE with GOB and DOBRE projects and the Ministry of Labour and Social Policy of Ukraine recommended that all public funds spending units take this course. In addition to this, the information was published on the website of the Ministry of Labour and Social Policy, AUC, PULSE Project, GOB project and other groups in Facebook, as well as on the Hurt resource center site. Thanks to these efforts, the course gained a record number of 7,666 students, of which 5,851 have received their certificates. That is ten times more than it was in December 2018. This is the highest rate among all PULSE Project courses.

In January 2019 a distance learning course was launched for local council members of consolidated territorial communities (a joint project of the PULSE Project and the Norwegian Participative Democracy and Evidence Based Decision Making at the Local Level implemented by the AUC). In February, the first active phase of this course on the on-line Prometheus platform was completed. The active phase means the time when the course was first implemented on the platform. At this time, students could study materials, watch video collections and ask questions to teachers on the forum. Also, the students of the course took tests. After the first certificates of successful completion of the course were generated in February for the first time, the course went into another phase: the materials, videos, tests and the ability to get the certificate are available to the students constantly at any time, but there is no opportunity to receive answers from the authors of the course on the forum.

As of April 16, 2019, the statistics for all the courses is as follows:

60 January – March, 2019

The Gender Based Budgeting for Community Development course Total number of users: 7,666 (as of January, 2019 -751). Certificates generated: 5851 (76.32%) (as of January 2019, 183 (24.4%)).

The Training of Local Council Members of Consolidated Territorial Communities course Total number of users: 959 (as of January, 2019 – 214). Certificates generated: 129 (13.5%).

The Preparation and Implementation of Community Development Projects course Total number of users: 4,870 (as of October, 2017 - 3171). Certificates generated: 757 (15.54%) (as of October, 2017 - 495 (15.60%)).

The Effective Budget Process in Local Governments course Total number of users: 3,063 (as of October, 2017 - 1798). Certificates generated: 897 (29.29%) (as of October, 2017 - 565 (31.40%)).

The Establishing Local Economic Development Institutions course Total number of users: 2,199 (as of October, 2017 - 872). Certificates generated: 256 (11.64%) (as of January, 2018 - 127 (10.4%)).

Statistics show a very high rate of certification, especially the gender budgeting course (76.32%). Indeed, globally, a good indicator of the effectiveness of on-line courses is considered to be 7% of students who received their certificates of the total number of those who registered for the course.

All in all, from the very beginning of the courses, 18,757 persons took the training, while 7,890 persons received their certificates.

3.1.2. Training of local government officials of the oblast and rayon levels

In the reporting quarter, working within the framework of the Sub-Agreement # 153 of October 01, 2018 between the Ukrainian Association of Rayon and Oblast Councils (UAROC) and the Association of Ukrainian Cities (AUC), UAROC organised and conducted 15 expert workshops for representatives of rayon and oblast councils on the following topics:

x “Local government reform and formation of effective territorial arrangement of government institutions in Ukraine" - 7 expert workshops (cities of Chernihiv, Kharkiv, Vinnytsya, Khmelnytskyi, Sumy, Chernivtsi, and Ivano-Frankivsk); x "Innovative opportunities for economic growth of regions" - 2 expert workshops (cites of Poltava and Cherkasy); x "Business planning of activities of public health care establishments belonging to the local government ownership " - 4 expert workshops (cities of Uzhgorod, Lviv, Ternopil, and Zhytomyr); x "Vision for the development of the sector of public education in the context of reforms of the system of government" - 1 expert workshop (city of Rivne); and, x "Informing the public about the activities local councils – as a way to understanding and openness" - 1 expert workshop (city of Dnipro).

334 persons including 190 males and 144 females participated in these events.

These one-day professional workshops were organised for representatives of rayon and oblast councils and interested local government officials. The purpose of these events is to promote decentralisation and sectoral reforms.

In the course of the workshops, the participants discussed the regulatory and legislative framework and specific issues related to local government technical areas, and reviewed the dynamics of the establishment of consolidated territorial communities in Ukraine, as well as the issues and peculiarities of the implementation of reforms in Ukraine.

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Of problem issues that need to be resolve, the participants mentioned the following:

In the sphere of the local government reform:

x delineation of powers at each governments level in the current conditions; x powers and territorial basis of local governments and executive authorities; x lack of understanding of projected changes in the administrative and territorial arrangement; x accountability of newly formed local government bodies; x jurisdiction of the executive authorities on the territory of consolidated territorial communities; and x transformation of rayons.

In the sphere of economic growth:

x low level of activity of the oblast authorities in ensuring the economic development of the region; x underutilised tourism potential; x undeveloped infrastructure for entrepreneurship support; x lack of incentives for youth to start a business and obtain professional experience; x lack of proper support for the system of certification of agricultural products for market participants in accordance with the EU requirements; x there is no system of comprehensive promotion of a tourist product, information network for tourists; x low level of business co-operation; x insufficient level of foreign direct investment and lack of active promotion of investment proposals in the Kherson region; x a significant degree of depreciation of fixed assets of enterprises with insufficient investments in their renovation and modernisation; and, x insufficient level of in-depth processing of agricultural products, prevalence of the raw material component in the structure of export of products of enterprises from the oblast.

In the health care sector:

x currently, most institutions of both primary and secondary health care do not have the material and technical base, including the equipment that fully meets the requirements the customer demands while concluding contracts for health care; x own resources are considerably limited, because flawed changes in approaches to budgeting have led to an unexpected and unjustified transfer the responsibility for certain expenditures to local governments; and, x insufficient funding for a medical subvention to finance expenditures such as salaries and medicine for the medical treatment process.

Representatives of rayon council came up with a suggestion to invite chief doctors, heads of health care departments, and heads of communal enterprises of the Center for Primary Health Care of rayons to these expert workshops.

In the education sector:

x cooperation between rayon councils and consolidated territorial communities with regard to co- financing of individual projects and educational institutions; x reforming the teacher attestation system with the involvement citizenry in this process; x conducting a competition for the selection of the hub school and a competition for filling the vacant position of the headmaster of the institution; x financial support for educational institutions; x peculiarities of inclusive education; x introduction of evaluation of school performance by the National Education Quality Service; and, x taking into account the results of external testing when evaluating a teacher.

In the communications sector:

x difficulties with ensuring citizen awareness of local government activities;

62 January – March, 2019

x inertia of the population; x lack of proper Internet coverage in some areas; x insufficient level of interaction between the government authorities and the citizenry; and, x ignoring the fact of existence of different categories of people (the elderly, youth, etc.), each of them requiring a separate approach.

The expert workshops organised and conducted by the PULSE Project have once again confirmed the urgent need for establishing communication and connections between local government representatives and leading experts with regard to the implementation of the local government reform and reform of the territorial arrangement of government institutions in Ukraine. These activities provide an opportunity to assess both the strengths and weaknesses, identify problem issues of the reform and understand what areas of reform need to be strengthened.

The information and knowledge obtained during these expert workshops will help the participants make their daily work more professional and efficient, as well as will contribute to the proper understanding and interpretation of decentralisation processes taking place in Ukraine.

3.1.3. Training NGO representatives and librarians as communicators of reforms

The IREX/PULSE team actively supported teams in pilot libraries and non-governmental organisations, worked with reform support groups (RSG), which included participants who joined the Project during two years, provided constant mentoring support to library press clubs, as well as conducted training events for new team members from communities within the framework of the geography of the PULSE Project (Third Cohort Grants).

Supporting teams from community members in the course of implementation of citizen engagement activities

● IREX produced sets of informational materials for PULSE Training of Grant Recipients (TOGR) bringing together representatives from 71 communities in Ukraine; ● The IREX team conducted a webinar for 64 participants on the grant award procedure prior to the TOGR in Kyiv; ● IREX conducted TOGR with the participation of library teams and non-governmental organisations from 71 selected communities (total of 145 participants) on February 27 - 28, 2019; ● IREX collected and verified the registration documents necessary for giving grants to the third Training for grant recipients, Kyiv, February 27 - 28, 2019 cohort participants; ● IREX received and approved 69 work plans and budgets, and also prepared the documents for small grants to project participants. ● The IREX team prepares a feedback mechanism, such as the Online Grantee Questionnaire (FAQ) to facilitate communication with grant recipients, press clubs and RSGs. This will help to aggregate all the questions in one place, consolidate the types of questions and to select the topics of webinars. The link can be found here: http://bit.ly/Forma-zvyazku; and, ● The IREX team set up and feeds information to a shared disk with materials for PULSE participants. It has become a platform to exchange informational materials, presentations, grantee videos for their peers, Project logos and other necessary information.

The implementation of grants for informational activities on decentralisation and citizen engagement will begin in April, 2019.

Strengthening capacity of Reform Support Groups (RSG) in pilot communities ● IREX provided RSG members information on decentralisation reform. They received answers to their questions through the Facebook messenger, and also found news and updates on their email

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accounts and in the Facebook group. ● RSGs participated in the preparation of PULSE Project grantee work plans aimed at engaging citizens to support reforms. ● RSG members participated in the webinar on education in consolidated territorial communities within the framework of the PULSE Project, which had 89 videos watches on YouTube.

Cross-cutting activities

x The Project updated and reformatted sets of information materials to be able to cover more interactive tools that can be used at events. For example, the Assistant to Decentralisation Ambassador notebook was prepared including crossword puzzles, instructions, information on decentralisation, step-by-step algorithms for event facilitation, etc. x IREX conducted a webinar of education in consolidated territorial communities with the support of the AUC experts for all PULSE Project participants. The webinar was organised for 71 communities participating in the PULSE Project to support the decentralisation reform in Ukraine. During one hour session, L. Mozhova, a PULSE Project expert at the Association of Ukrainian Cities, answered questions about reforms in the education sector from communities participating in the webinar. x IREX provided weekly newsletters to RSG members, representatives of library press clubs, and grantees from non-governmental organisations and libraries of all cohorts (949 grant recipients) through the online platform. As a result of such information dissemination, residents in communities shared the main news about decentralisation, participated in training events, forums, and sent applications to other organisations to support their communities. x The IREX/PULSE Facebook group, which numbers 682 participants including librarians, NGO representatives, RSG activists, and received regular updates throughout the reporting period. Now, it serves as a platform for exchanging information for all participants about legislative amendments, and materials related to the decentralisation process in Ukraine.

Activity 3.2. Communication and outreach of decentralisation reform is enhanced

3.2.1. Creating communication channels for central authorities outreach and messaging on decentralisation reform progress in various sectors

PULSE Project offers for representatives of central government agencies communication channels to deliver important messages about the position, plans and intentions of the government in implementation of the decentralisation reform. It is very important to have this position delivered and heard by the proper audience ranging from media representatives to local government officials and citizens.

Representatives of central government authorities who are at the head of the management structure set the tone and direction of reforms in the country. At the same time, they do not always actively use the available dialogue tools to ensure citizen participation in decision making. To fill this gap, the PULSE Project provided representatives of central government authorities with communication channels to disseminate important messages about the reform.

To disseminate information about decentralisation and Project activities, PULSE uses a traditional tool - news feeds on the site. The PULSE communication group continuously monitors the information space and publishes on the site important information about the activities of state authorities, state decisions in the areas of reform targeted at the Project. PULSE distributes strategic messages, quotes and video comments from high-level government officials through a site that traditionally serves as a source of unbiased and up-to-date information on local self-government in Ukraine.

Various events conducted by the PULSE Project with the participation of the government authorities serve as communications channels to deliver ‘firsthand’ massages about the government policy. The Project activities are mass media representatives and invited to them. Thus, high level government officials have a good opportunity to talk to journalists, provide comments to the media, and explain the position of a government agency and government policy. In addition to this, the materials about PULSE events that were prepared by media representatives and PULSE informational products were used to further disseminate messages from central state executive authorities.

64 January – March, 2019

For example, in the reporting quarter, PULSE conducted a roundtable in cooperation with the Parliamentary Committee on State Building, Regional Policy and Local Self-Governance to discuss the establishment of metropolitan areas as an opportunity of the development of Ukrainian cities, ways and opportunities of legislative regulation, and the experience of European countries. The roundtable took place within the framework of the 7th Local Government Forum in Lviv. National Deputy of Ukraine L. Zubach and O. Dekhtyarchuk participated of the roundtable and informed representatives of Ukrainian communities and mass media about the meaning of the draft law "On Metropolitan Areas ", as well as about the ways and advantages of establishing metropolitan areas. The framework of this event also included the extensive thirty-minute interview of AUC Executive Director O. Slobozhan to the First Western TV Channel where he spoke with the anchor about the successes and obstacles on the way of implementation of the decentralisation reform, risks of its setbacks, local finance, and problems cities are facing today.

Also, PULSE Project, in cooperation with the Verkhovna Rada of Ukraine Committee on Construction, Urban Development, Housing and Municipal Utilities conducted a roundtable to discuss territorial development and key urban development problems. The event brought together National Deputies D. Andrievskyi, A. Babak, O. Kodola, A. Halchenko, and representatives of the Ministry of Regional Development who, together with directors of oblast and city departments and departments of urban development and architecture from all over Ukraine, worked on the preparation for the second reading of the draft law "On Regulation of Urban Development Activities”. Thanks to the cooperation with the press services of the parliament and National Deputies, the Project managed to broadcast and provide coverage of this event.

Another important event organised by PULSE during the reporting period was the sectoral forum of the Association of Ukrainian Cities on sustainable Development of Territorial Communities. The forum took place within the framework of the InterBuildExpo - 2019 international construction exhibition. National Deputy of Ukraine O. Kodola and Deputy Minister of Regional Development, Construction, Housing and Municipal Utilities of Ukraine L. Partskhaladze made their presentation to experts in urban development, in the development of inclusive environment in communities, and in the sphere of local economic development, and media representatives. They spoke about new national construction standards that came into effect on April 01, 2019 and envision the development of the urban environment taking into account accessibility and inclusiveness and about other new provisions in the urban development legislation.

3.2.2. Strategic messaging through different media

One of the key aspects in strategic message delivery is the coverage of all spectrum of media outlets, because they are targeted a various types of audiences. The PULSE Project, being aware of modern communication trends, makes good use of social networks, which are popular, first of all, with young people (aged of 14 to 35 years old). It is of critical importance to explain to young people the benefits of decentralisation, because in the nearest future they will be the audience to use its benefits and will live in the environment with the principles laid today.

Also, the PULSE Project communications experts focus their efforts on disseminating messages through Internet-based media currently on the rise in Ukraine with their target audiences constantly growing (currently, 26 million of Ukrainians use the Internet) and with good chances to become the leading media outlet in the future. This is the global tendency, which becoming more and more pronounced in Ukraine by the day. One should mention that on-line resources remain the most responsive and interactive media tool.

At the same time, television enjoys the widest coverage and, as a rule, remains the most effective tool in disseminating the needed information. PULSE having taken this fact into consideration ensures the participation of Project experts in the air of a wide spectrum of TV Channels delivering the messages representing the core Project ideas to their audiences (first of all, medium-aged citizens).

Thanks to the printed media, PULSE has an opportunity to draw the attention of elderly persons to the necessity of implementing the local government reform. The Project focuses the attention on the irreversible nature and necessity of such changes and progressive impact of the reform on the life of country residents. To ensure the permanent access of media representatives to the most up-to-date information about the implementation of the decentralisation reform, the Project web-site offers news headlines, which are updated on a daily basis. This is a so-called information bank, which serves very often as a source of information for

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journalists and local government representatives. In addition, The Project web-site offers press releases and press announcements for media.

At the central level:

Events and products for media

Press news

The Project prepares and disseminates regular press news to media representatives and, in case this is needed, does the express information delivery within the framework of the “Hot Topic” component. The mailing list put together during the previous years and is being constantly updated and verified. Therefore, as of today, the total number of items in PULSE mailing lists constitutes reaches more than 300.

During the reporting period, the reporting period, the Project disseminated 12 press news releases and 4 “hot news” updates: January 21 - the AUC demands an unbiased distribution of the additional subsidy, - V. Klychko appealed to the Prime Minister. February 14 – the AUC sent a request to the Cabinet of Ministers to lift the ban on placing temporarily unused funds of local budgets on bank deposits. March 26 – the AUC came up with proposals regarding the protection of community interests in the course of the preparation of the Budget Declaration for 2020 - 2022. March 30 - the Cabinet of Ministers of Ukraine endorsed the Procedure for directing some part of excise tax collections to local budgets in 2019, the AUC insisted on endorsing.

Coverage of the AUC position and PULSE activities in media

TV coverage

The AUC activities were aired by 23 TV programs on the following channels: January 16 - O. Slobozhan, Executive Director of the AUC, provided comments to the Channel 7 TV Channel (Odesa) about the outcomes of decentralisation in the oblast region and about the impact of natural, economic and demographic features on the development of consolidated territorial communities in the oblast. January 17 - O. Harnyk, AUC expert on housing and municipal utilities, provided comments to the TV UA:Sumy TV Channel about the mechanism for changing tariffs for urban public transportation services and the factors that affect the cost of the service. January 24 - O. Slobozhan, Executive Director of the AUC, provided comments to the Channel 33 TV Channel (Khmelnytskyi) on potential negative consequences for the city of the Cabinet of Ministers to prohibit local governments from placing temporarily unused local budget funds on bank deposits. January 25 - O. Slobozhan, Executive Director of the AUC, provided comments to the 1 + 1 TV Channel about the possible negative consequences for the communities of the Cabinet of Ministers decision to prohibit local governments from placing temporarily unused local budget funds on bank deposits. January 28 – Ya. Raboshuk, Director of the AUC Center for Analysis and Legislation Drafting, told the journalists of the ZIK TV Channel about the potential consequences for local budgets of the prohibition from placing temporarily unused local budget funds on bank deposits. January 29 - O. Slobozhan, Executive Director of the AUC, provided comments to the Construction Standard program of the Channel 5 TV Channel about the ways to resolve the problem with the housing to city residents. January 29 – Oleksandr Slobozhan, Executive Director of the AUC, provided comments to the Together program on the UA:FIRST TV Channel about the introduction of transparent budgeting and its impact on attracting citizens in making important decisions for their communities. January 30 - O. Slobozhan, Executive Director of the AUC, participated in the live broadcast of the Frank Conversations program on the Ya-UA TV Channel "Ya-UA" dedicated to the implementation of the Child and Youth Friendly Community initiative in Ukraine and analysis of international experience in implementing activities aimed at promoting comfortable conditions in communities for children. January 30 - O. Slobozhan, Executive Director of the AUC, provided comments on ObozTV Internet TV Channel regarding the second phase of decentralisation in Ukraine and the main provisions of the draft Law "On the Principles of the Administrative and Territorial Arrangement”.

66 January – March, 2019

February 11, V. Udovychenko, a legal consultant of the Kyiv AUC Regional Office, participated in the live program on the 112 Ukraine TV Channel and spoke about the achievements of decentralisation in terms of increasing the powers of local governments and about central government regulation of energy prices in the context of the establishment of retail electricity market. February 13 – L. Damentsova, AUC expert on legislation and local government resource management, provided comments to the UA|TV international TV Channel "about the outcomes of decentralisation and about AUC activities aimed at facilitating the transfer of powers to local governments. February 19 - O. Slobozhan, Executive Director of the AUC, provided comments to the Secret Materials program on the 1 + 1 TV Channel about the insufficient funding for kindergartens from rayon budgets, and spoke about the activities of the AUC aimed at advocating the equitable distribution of these funds from the National Budget to local budgets. February 19 - T. Medvetska, AUC expert on land resources and communal property, provided comments to the Rudana TV Channel (Kryvyi Rih) about the peculiarities features of the land legislation. February 20 – Oleksandr Slobozhan, Executive Director of the AUC, provided comments to the Construction Standard program on the Channel 5 TV Channel about cost share contributions of developers and its impact on providing cities with the required infrastructure. February 21 – Oleksandr Slobozhan, Executive Director of the AUC, provided comments to the 112 Ukraine TV Channel about on the impact of the central government decision to prohibit local governments from placing temporary unused funds of local budgets on bank deposits for financing long-term projects in communities. February 22 - V. Udovychenko, a legal consultant of the Kyiv AUC Regional Office, participated in the live broadcast on the 112 Ukraine TV Channel and spoke on the topic of finalisation of the decentralisation reform and presented his vision of potential alternatives for international technical assistance programs for Ukraine, which are about to expire. February 28 – Oleksandr Slobozhan, Executive Director of the AUC, provided comments to the 112 Ukraine TV Channel regarding the negative consequences for communities of the central government prohibition for placing temporarily unused funds of local budgets on bank deposits. March 06 – Oleksandr Slobozhan, Executive Director of the AUC, provided comments to the ICTV TV Channel about prospects for the establishments of a metropolitan area Kyiv and the legislative initiatives necessary for its implementation. March 12 - L. Mozhova, AUC education expert, provided comments to the UA:Sumy TV Channel about the Cabinet of Ministers decision to allocate a part of the education subvention to private schools. March 18 – Oleksandr Slobozhan, Executive Director of the AUC, gave an interview to the First Western TV Channel about the successes and obstacles for the implementation of the decentralisation reform and ways to resolve them. March 21 - O. Slobozhan, Executive Director of the AUC, gave an interview to the First Business TV Channel about the outcomes of the AUC Sectoral Forum on Sustainable Development of Territorial Communities. March 28 - V. Udovychenko, a legal consultant of the Kyiv AUC Regional Office, participated in the Top Persons on Top Topics program on the ZIK TV Channel and he spoke about the importance of monetisation of privileges and about the need for cooperation between public state executive authorities and local governments. March 28 - V. Udovychenko, a legal consultant of the Kyiv AUC Regional Office, participated in the Evening Prime program on the Channel 112 TV Channel and provided comments about the importance of approving amendments to the Constitution of Ukraine with regard to decentralisation, and the law on the administrative and territorial arrangement, as well as about the need to promote favourable environment for economic growth of communities.

Radio coverage

PULSE Project experts participated in 3 radio programs: January 15 – T. Palyichuk, AUC budget expert, spoke on the Ukrainian Radio Radio Station about the peculiarities of the tourist fee and its impact on the status of local budgets in 2018; January 24 – Oleksandr Slobozhan, Executive Director of the AUC, spoke on the air of the Voice of the Capital Radio Station about the outcomes of decentralisation in 2018 and the Cabinet of Ministers Action Plan for the second phase of decentralisation; and, February 7 - O. Harnyk, AUC expert on housing and municipal utilities, participated in the live program on the Voice of the Capital Radio Station and spoke about the initiative of the Verkhovna Rada of Ukraine to verify the validity of tariffs for housing and municipal utility services.

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Print and electronic media

Interviews and comments of PULSE experts on decentralisation reforms were published in more than 30 publications in printed media and Internet resources.

An interview of AUC expert on social protection N. Mykolyuk in the Local Self-Governance magazine drew a considerable attention of the general public. In his article, the expert talks about how local governments exercise control of compliance with the labour legislation.

Media widely distributed the comments of Executive Director of the AUC of O. Slobozhan to the Economic Truth Internet publication about the potential negative consequences for the communities of the central government decision to prohibit the placement of temporarily unused local budget funds on bank deposits.

An interview of L. Mozhova, AUC expert, to the Country.ua web site about financing of pre-school establishments from rayon budgets and the specific examples of underfunded entities in the sector in cities drew great attention form the audience.

All in all, during the reporting quarter, there were more than 278 mentioning of the AUC in media and on web sites of central government authorities and city councils. Those who wrote about the Association included such authoritative media as the «Урядовий кур’єр» [government courier] and «Голос України» [voice of Ukraine] newspapers; Decentralisation, Country.ua, RBK-Ukraine, ”NewTimes”, Ukrainian National News, «Українська правда» [Ukrainian truth], “Економічна правда” [economic truth], ZIK, «Обозреватель» [observer], Business Censor, Democratic Ukraine, Today, «Народне слово» [people’s word] Internet publications; and others.

Website and social networks AUC website The AUC web-site www.auc.org.ua is an important instrument to disseminate information to the public at large about the activities of the AUC and, in particular, about PULSE. This Internet resource has become a recognised source of trustworthy information about the current status of local self-governance and professional and specialised expert information in the sphere of local self-governance, decentralisation reforms and consolidation of territorial communities.

The AUC web page was completely upgraded and modernised in September, 2016. According to the feedback from users, it is convenient and informative. In particular, they say that the user interface of the site by intuition is easy to understand, consistent and logical. While going to the main page a visitor sees the news highlights (10 publications), 5 top news, and interactive sections including the Decentralisation: Sectoral Dialogue section, and the tools that, which reflect the multi-faceted activities of the Project.

The Top News section catches the eye at once. It places most important, “hot” and significant news of the Project. The news highlights on the main page publish information about the following:

- preparation of draft laws by PULSE experts and support for their approval in the parliament; - cooperation with parliamentary Committees (providing recommendations, proposals, comments, support or lack of support for draft legislation); - appeals to high level central government authorities on key problem issues local governments face and support to decentralisation reforms; - participation of PULSE experts in public events and comments to media; - coverage of PULSE activities and events; - coverage of activities and events of PULSE regional consultants; - news from consolidated territorial communities and their successes; - providing clarifications to local governments prepared by AUC Center for Analysis and Legislation Drafting; - coverage of main news and developments in the sphere of local self-governance and decentralisation, opportunities for development and capacity building of city representatives, etc.

The site offers one important section called “Decentralisation”, which offers a link to one of the 10 thematic platforms. The platforms are dedicated to the areas of sectoral reforms where the PULSE Project works.

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With the help of the platforms users can learn about the details of the sectoral reforms, provide an opportunity for an interactive dialogue (the “Discuss with a Colleague” tool) and get expert assistance and consultations (the “Put a Question to the Expert” tool). Visitors can submit a proposal to the current legislation or suggest a new draft law in the “Laws” section. The interactive “Fair of Ideas” and “E- Petitions” sections are also available on the web site. The special section "Successes" tells the visitor about the achievements and achievements that the community has received as a result of fiscal decentralisation and community consolidation. The publications are placed in the section of the library. The site also keeps video and photo galleries.

The Project web-site also offers links to social media pages (Face book and YouTube), which are also used by the Project to disseminate information about decentralisation and local government reform and important Project news.

The Facebook account

The Face book account of the Association serves as a powerful tool to popularise the topic of the local government reform and progress in decentralisation and to inform about AUC and PULSE activities. Social network pages are one of important information dissemination channels allowing not only to present events, products, materials, expert information and news, but also to receive feedback from the Internet audience and to disseminate “hot news”.

The growth in the number of new “readers” was particularly active after Project events and publication of its new products. Over the reporting period, the number of Facebook page subscribers increased from 7,532 to 7,864.

User coverage per calendar day is an important AUC popularity indicator in the Facebook. This indicator varied within the range of 3 thousand. The biggest coverage was given to the publications dedicated to the cooperation of the AUC with the Cabinet of Ministers and Verkhovna Rada of Ukraine, and outcomes of the meeting of the AUC Board, as well as to the publication new PULSE materials and AUC experts. The highest indicators for the audience reach during the reporting period related to the following publications:

January 02 - 7,046 users, the Project published the post under the title: "The AUC presents the next issue of the Book of Successes ". January 17 - 6,929 users, a post of O. Slobozhan under the title: " AUC Executive Director appealed to the Prime Minister to give an instruction for oblast state administrations to apply a fair approach to the allocation of additional subsidies to cover the expenditure categories transferred from the National Budget to local budgets in 2019 for educational and health care facilities". January 21 - 5,843 users, the Project published the post under the title: "The AUC appealed to the Prime Minister of Ukraine to annul the Cabinet of Ministers decision on the distribution of the additional subsidy for educational and health care facilities and return the document for elaboration". January 28 - 8,774 users, the Project published the post under the title: "The AUC appealed to the Prime Minister with a request to annul the prohibition for placing temporarily unused local budget funds on bank deposits”. January 30 - 6,520 users, the Project published the post under the title: "The AUC presents the Budget Calendar for 2019 prepared by the AUC Center for Analysis and Legislation Drafting". February 04 - 7,481 users, the Project published the post under the title: "On February 04, the AUC conducted its Board meeting whose participants decided to appeal to the Prime Minister of Ukraine about important issues for local governments". March 04 – 8,315 users, the Project published the post under the title: "The role of cost share contribution of developers in the infrastructure necessary for cities - a commentary for the Construction Standard program". March 12 - 8,157 users, the Project published the post under the title: "Local governments should become more independent from the financial support of the state and learn how to earn on their own". March 27 - 6,739 users, the Project published the post under the title: "The Cabinet of Ministers of Ukraine endorsed the procedure for directing some part of collections from excise tax on fuel to local budgets in 2019”.

In general, the overall coverage of AUC posts in Facebook over the reporting quarter constituted 147.5 thousand, which speaks about both the increasing audience trust to the activities and news of the AUC and

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PULSE and to their live interest to topics related to decentralisation in general. On average, during the reporting period, the posts of the Association were re-published 86 times.

The YouTube account

The AUC YouTube account has become a widely used source of news and information about the status of local self-governance and about the progress of decentralisation reforms. Over the reporting period, the Project provided regular updates to the “Association in Media” and “AUC Activities” sections offering important videos from media. PULSE communications experts monitor information, organise meetings of PULSE experts and TV journalists, involve experts to thematic programs, and upload the corresponding videos in the “Comments of AUC Experts” and “Decentralisation and Reform Successes” sections.

During the reporting period, the Decentralisation and Reform Successes library received new video materials. Thanks to regional communications and reform success replication consultants who monitor local media, this section receives collections of video news about decentralisation and best practices in communities on a weekly basis. On one hand, such a collection of videos is a good and continuously updated source of information about the progress of reforms, and serves as an incentive for communities to use the experience of their peers, join reforms in the country, and enter into community consolidation to receive more resources and powers, on the other.

In addition to this, the Project constantly updated the "Comments of AUC Experts" section. This collection of videos contains comments from PULSE Project experts and consultants on key issues of decentralisation and implementation of sectoral reforms. The video library provides an opportunity to see how the position of the AUC is reflected in regional and national mass media. The visitors can also receive explanations on issues of the implementation of the reform.

Also, on the AUC YouTube Channel, the Project set up a new video library called "Itinerary of Successes". This is a series of videos on the about study visits organised within the framework of the “Itinerary of Successes” nation-wide exchange study tour Project component, which is being implemented within PULSE. In this section, the visitors can see how the community's successful experience is disseminated and how "Itinerary of Successes" local government best practices are replicated.

The AUC YouTube account has 10 video sections: “PULSE of Reforms TV Project” (a video library of the PULSE of Reforms Project component with more than 200 video stories about successes communities have achieved thanks to decentralisation and PULSE Project activities), “Decentralisation and Reform Successes” (a collections of videos sorted by oblast), “Comments of AUC Experts”, “AUC Activities”, “Association in the Media”, "Itinerary of Successes", as well as previous collections of videos, such as “Decentralisation Marathon”, “Social Videos”, “Your Government” (selection of programs within the framework of the joint Project with the Channel 5 TV Channel), and “CITY-minded Ukraine” (selection of programs within the framework of the joint Project with the TONIS and UT-1 TV Channels). Approximately 300 network users have subscribed to AUC video news.

PULSE Project publications

Table 3.2. PULSE Project publications

Publication title Targeted audience Description The “AUC Herald” AUC member # 159, December, 2018 - January 2019. The printed monthly communities, AUC PULSE of Reforms section features the materials publication partner organisations about the AUC activities during the 2019 budget process to safeguard community interests and the budget calendar prepared by PULSE (reflecting the transition to multi-year budgeting). The “Pulse of Reforms” International This is a bi-lingual weekly publication presenting electronic digest organisations, PULSE activities over the past week and international technical featuring Project and local government news. assistance Projects, and This publication consists of two main chapters: Project partners “PULSE in action” and “Decentralisation and Sectoral Reforms: News and Developments”.

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The materials for this publication are prepared on Fridays, with the mailing taking place early next week. The mailing list is constantly updated. For example, the Ukrainian version is sent to AUC partners, representatives of the state executive and parliamentary Committees AUC experts work with, while the English version is sent to more than 90 emails of international organisations. During the reporting period, the Project prepared 13 digests. The Book of Successes AUC member- The collection published in the reporting quarter, quarterly collection of communities, AUC offers 85 success stories in ten thematic sections, success stories partner organisations such as: local finance, local economic development, energy efficiency, housing and municipal utilities, health care, education, social projects, administrative services, organizational aspects of the work of local councils and communication with the community, and community safety. This collection is disseminated during various PULSE Project events and is posted on the AUC website. ITINERARY OF AUC member- This is an annual compilation based on the SUCCESSES communities and AUC "Itinerary of Successes" nation-wide exchange Best local government partner organisations study tour Project component. The publication practices offers 8 articles about cities where the study tours took place during 2018. Local Self-Governance in AUC member- This is an annual publication that highlights the Ukraine in 2018 communities, experts, current status of the local government reform and and government problems local governments face in various authorities sectors and spheres.

At the local level:

Press clubs and media events in libraries

IREX, PULSE Project sub-partner, organised 8 meetings (193 participants) between representatives of four types of media (TV, Internet publication, print media, and radio) communities, AUC regional consultants, and librarians of press clubs.

In the course of the discussions, the participants identified goals and needs of each of the stakeholders. This type of events is very helpful to develop joint plans for journalist visits to communities and the materials that highlight the progress of reforms.

The participation of representatives of local governments who are in charge of community communications policy can be considered a success for Training for the press club, Chernivtsi, March 19, 2019 this quarter, as it provides additional support in coverage of community reform processes.

Dissemination of successes on local TV and radio stations and through printed media

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Collecting and disseminating success stories of the local government reform and decentralisation is one of the key areas of activities of PULSE. This type of activity, as well as promoting such publications in regional media is supported by PULSE communications consultants. They work in oblasts and have contacts with local media. Thanks to such cooperation, regional print media and local TV channels radio stations prepare and disseminate informational products about reform successes and public expert materials and position of PULSE Project experts. Their main focus is community successes due to fiscal decentralisation, current status and future prospects of reforms in the oblast, and highlighting successes of consolidated territorial communities in implementation of infrastructure improvements and development projects.

Regional communications consultants ensure the regular presence of AUC Central Office experts, regional executive directors, budget, legal and local economic development consultants, as well as mayors of consolidated territorial communities in top rating local media (radio, TV, print and Internet media) and often they themselves participate in radio and TV interviews and write articles, short sketches and prepare video stories. Local media widely use analytical materials, reviews, info graphics and comments of PULSE consultants as credible, professional and authoritative views. Based on the results of the PULSE Project activities (meetings of AUC Professional Groups and regional policy dialogue platforms), PULSE regional communications consultants convene press conferences and hold briefings with the participation of local opinion leaders, experts, CTC mayors, and directors and consultants of AUC Regional Offices to discuss issues of regional importance. PULSE Project regional communications consultants consult local media in regions about good communities in oblasts to visit to make video materials.

PULSE regional consultants have learned the skills in making videos and putting them together. Earlier, PULSE purchased a set of video equipment and conducted the professional training for them. Now, the consultants are able to go out to communities, conduct PULSE Project regional events, on-site consultations, informational meetings, take interviews and comments from CTC mayors and sectoral experts and based on this prepare video stories on their own. The topics include: implementation of the decentralisation reform in the oblast, success stories from communities, participation of the AUC and PULSE Project in the implementation of reforms, etc. These stories are branded with the PULSE logo and serve as the handy material for dissemination through local TV channels, which are happy to broadcast them. In the reporting period, communications consultants produced 125 video materials.

The reformatted and unified web pages of all AUC Regional Offices in the Facebook social network became an important source of disseminating community successes. These web pages serve as a valuable source of information about regional news, which are used by community mayors, local government officials and local media.

Thanks to the active work of its regional communications consultants, PULSE Project has a reliable channel to disseminate in regional media not only the successes, but also specific issues and specific messages about the important news in the local government sector and the position and role of the Association in these reform processes.

During the reporting quarter with the assistance of regional consultants, regional and local TV channels aired 436 TV programs including and about the success of communities and broadcasts with the participation of PULSE Project experts. In addition, local print and Internet media prepared 1,606 publications.

Press tours for regional media

In the reporting period, the Project continued to organise press tours to successful communities for local and regional media. The main purpose of the tours is to popularise the experience of successful consolidated territorial communities in local and regional media.

During these site-visits, the journalists will have a chance to become familiar and actually see the successful outcomes of the formation consolidated territorial communities and have personal conversations with community leadership and citizens. Following the press tours, the journalists prepare publications in local media about successes of decentralisation. During Project Year Three, every AUC RO organises at least two press tours.

In January – March, 2018, the Project conducted 10 press tours in all AUC Regional Offices, with the participation of 133 representatives of local and regional media.

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Activity 3.3. Increased public awareness of reform successes and trust in local governments

3.3.1. Role of Offices for Reforms: supporting reform implementation and establishment of capable communities

In the reporting quarter, AUC Reform Offices continued to work in all AUC Regional Offices. They included groups of experts consisting of regional consultants on legal, budget and communications issues. The Project also continued the work of 6 local economic development consultants, each of them being responsible for 3 - 5 oblasts. The main tasks of the regional legal, budget and local economic development consultants included: x legal assistance to representatives of local governments; x motivation and support for consolidation of territorial communities; and, x conducting of information, public awareness, training and consultative activities for local governments, representatives of other interested parties, and informing media about reforms.

The priority task for local economic development consultants was to support local economic development in 5 territorial communities (with the total of 30 territorial communities from all 24 oblasts). The attention of these consultants was focused on the following: - preparation of community development strategies, implementation plan, and monitoring system for implementation of strategies; - preparation of the community profile and investment promotion profiles; preparation of community development strategies, implementation plan, and monitoring system for implementation of strategies; - preparation of project applications for participation in the competition to select the projects to be financed at the expense of the National Budget and grants form international technical assistance projects; - introduction of the Municipal Fiscal Register; - preparation of tools for supporting small and medium-sized businesses and establishing communication between local governments and the business community; and, - promotion of local business products in foreign markets, presentations of city potential for a wider range of potential partners.

The main tasks of the regional communications consultants included: x gathering success stories and best practices from territorial communities in implementing decentralisation reform and increasing own local budget resources; x providing comments and interviewing of experts and regional public opinion leaders for media, highlighting activities of AUC Regional Offices and experts who provide AUC services in the relevant oblast, and coverage of the process of the reform in the oblast in open sources; and, x dissemination of news related to local government and information about the activities of PULSE Project and AUC.

The AUC Central Office for Decentralisation Reform provided coordination services to all regional offices, salaries and financial support for events, and provided timely consultative support.

With the support from Reform Offices, the Project achieved the following results in the reporting quarter: x 2,441 consultations were provided on legal and financial issues and local economic development, which contributed to the process of consolidation of territorial communities; x 9 study visits were conducted within the framework of the "Itinerary of Successes" nation-wide exchange study tour Project component with the participation of 178 representatives of local governments that started the process of community consolidation; x 10 press tours were organised in AUC Regional Offices with the participation of 133 representatives of local and regional mass media, which contributed to the popularisation of the reform and its success; and, x 2 territorial communities of cities of oblast significance annexed 2 village and 1 town territorial communities.

Regional communications consultants work in all regions of Ukraine, in close cooperation with the Central Office for the Decentralisation Reform in the AUC. The Communications Coordinator of the Office and the

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PULSE Project Communications Group adjust the focus of their activities on a regular basis, communicate key messages, hot news and the position of PULSE and AUC to them. During the reporting period, the consultants received recommendations about marking and branding of PULSE Project products and activities, about how to improve accounts of AUC Regional Offices in the Facebook, and how to share best practices and interesting press initiatives.

The Facebook account called “PULSE: Decentralisation Marathon” opened in 2015 when community consolidation processes started became an effective communication tool for supporting PULSE activity at the regional level. This is the place where regional communications consultants post their information about Project event in communities, successful practices, press tours, regional success stories, as well as events and key changes in communities. The consultants are regularly provided with instructions on the preparation of the messages and the formulation of texts of publications on the page. In the reporting period, communications consultants placed posted almost 1,600 publications on the PULSE: Decentralisation Marathon page.

Monitoring, collecting and writing success stories and best community practices and feeding them into the national success story database set up within the framework of the Project remains one of the important aspects of the work of communications consultants. During the reporting period, the consultants were also advised how to improve this work, as well as the form and content of such materials. The national success story database serves as a source of information for further preparation of publications about community successes and as a source of information for the "Successes" section on the AUC web site, as well as is used for cooperation with central and regional media.

The AUC Central Office for the Implementation of the Decentralisation Reform worked closely with regional communications consultants to disseminate across Ukraine not only successes, but also “hot” messages about new legislation, local government news, and position and role of the Association in these processes. In particular, the following messages were effectively and efficiently disseminated across Ukraine during the reporting period: "The AUC appealed to the Prime Minister with a request to annul the prohibition on placing temporarily unused funds of local budgets on bank deposits", "the Verkhovna Rada of Ukraine registered a draft law, which should unify the legislation on privatisation of communally-owned property", "The Cabinet of Ministers approved the Procedure for directing some part of excise tax collections to local budgets in 2019", "The AUC provided proposals regarding the protection of interests of communities in the course of preparation the Budget Declaration for 2020 - 2022", "The Cabinet of Ministers of Ukraine has approved draft laws that provide support for child and youth friendly communities”.

"Itinerary of Successes" nation-wide exchange study tour Project component

The “Itinerary of Successes” exchange study tour Project component represent one day events to expose local government officials of the communities who have started consolidation processes to best practices of already consolidated consolidated territorial communities. The communities to visit within the framework of the program were determined on the basis of the monitoring conducted by AUC Regional Offices. In January – March, 2018, the Project organised 9 study tours in AUC regional offices with the participation of 178 representatives of local self-government bodies.

3.3.2. Spotting and promotion of reform successes

During the reporting period, the Project regularly updated the national base of successes and best practices from communities. This interactive tool provides the opportunity to track the progress of decentralisation reform nationwide, compare different oblasts, and distribute the best initiatives and municipal practices. The materials to the database are provided by regional communications consultants who monitor the communities and provide information by key areas of sectoral decentralisation. The national base is a handy source of information for preparation of materials for other PULSE communication channels, such as the web site, social networks, cooperation with media, TV Project, as well as organisation of Project events to cover success of reforms, namely: “Itinerary of Successes” replication visits and press tours. During the reporting period, the project prepared and entered into the database 168 success stories and 86 best practices.

The success stories highlight the benefits and gains of communities they have received due to fiscal decentralisation and consolidation, emphasize the increased financial resources of local budgets through decentralisation reforms, possibilities of attracting National Budget subventions and international donor

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funds, etc. During the reporting period, there were a large number of success stories dealing with modernisation of infrastructure in the sectors of energy efficiency, housing and municipal utilities, education and health care, implementation of community security instruments, and the development of local economies. Best practices illustrate how communities (those already consolidated and those not yet consolidated) implement mechanisms to effectively use the increased local budget, in particular the implementation of sustainable development projects, organisational aspects of the provision of administrative services, social protection, health care, and public education.

3.3.3. Promotion of reform successes

A significant segment of the PULSE communication component, which is now being implemented in cooperation with 24 regional communications consultants, is to increase the PULSE impact on stimulating and motivating further consolidation of territorial communities. The communities, which consolidate receive the resources and authority cities of oblast significance have and can use them for their own needs in order to improve the quality of services at the local level. The most effective tool in this work is to convince all participants in the process, and, most importantly, citizens that decentralisation will have a positive impact on the quality of their lives and to demonstrate the real successful examples of consolidated communities.

Vice Prime Minister and Minister of Regional Development, Construction, Housing and Municipal Utilities of Ukraine Minister of Regional Development, Construction and Housing and Communal Services of Ukraine Mr. H. Zubko, on his Facebook page, said that in the first quarter of 2019, revenues of the general fund of local budgets of Ukraine increased by 8.9 billion UAH (+17,2%) as compared to the same period in 2018 and amounted to 60.4 billion UAH. In particular, collections from the personal income tax constituted 35.9 billion UAH, which is 23 billion UAH (or +6.7%) higher than the relevant collections for the first quarter of the previous year. Collections from land fees constituted UAH 7.6 billion, which is + 23% or +1.4 billion UAH more than the same period of the previous year. The actual collections from the flat tax amounted to 8.8 billion UAH (increased by +1.6 billion USD, or + 22.8%).

In the course of decentralisation, communities received resources, finance, and powers. These represent a significant toolkit and opportunities to ensure proper local development.

The reform provided communities with an opportunity to engage in long-term planning and implement projects that improve the quality of infrastructure and manage their own revenues. Community budget funds budgets consist of mainly go to repairs of roads, public transportation, repair and equipping of educational and health care establishments, opening of centers for administrative services, housing construction, children and sports playgrounds, cultural centers, inclusive resource centers, restoration of the water supply networks, etc. People feel all this in their own lives and this is the best illustration of the success of decentralisation, fiscal decentralisation, and consolidation of territorial communities.

PULSE uses real stories to stimulate and motivate territorial communities for further consolidation, promote reform, convince all participants of the decentralisation process, and most importantly citizens, that decentralisation brings high quality of life and better access to services. It is important to inform hesitant communities and the media community of obvious benefits of decentralisation and community consolidation, about the real facts of effectiveness of these reforms for communities and their inhabitants. During the reporting period, PULSE Project disseminated success with its own means involving media and its regional consultants.

Every day the AUC website publishes in a special Successes section news about best practices and successful community achievements thanks to decentralisation within the framework of the information campaign called "No Day without Success". During the reporting period, the Project prepared and published 107 articles in the section.

PULSE Project also tracks and distributes video materials about the successes of the reform. The official account in the YouTube network has a separate channel where one can view all videos about successes and implementation of the reform in regions collected and grouped by oblast. During the reporting period, the Project consultants provided new materials to the Decentralisation and Successes of Reforms Video Library, as well as collected information with the help of media monitoring. The video stories footage highlights the advantages and benefits of communities they have gained thanks to consolidation. It should be mentioned that many activities and products of the PULSE Project are dedicated to the promotion of successes of the

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reform, such as “Itinerary of Successes” (regional and national) exchange study tours, the PULSE OF REFORMS TV Project, the “BOOK OF SUCCESS” publication and success stories, the SUCCESSES section on the AUC website, the Decentralisation Marathon Facebook account, as well as publications in local media by PULSE regional communications consultants.

3.3.4. Involvement of young people and teenagers in decentralisation

Working with young people is an important segment of promoting a supportive environment for the implementation of decentralisation and sectoral reforms. After all, the formation of public support depends, to a large extent, on the level of support from young people, since it is the nowadays young and teenage Ukrainians will have to live in a reformed country. Therefore, they must clearly understand where the state is heading to, what decentralisation means, and what the main principles of innovations are. This topic has always been and remains the top priority. Thus, during the previous years, the Project conducted special events including, for example, the Weekly School of Decentralisation for Young People (2016) and on-line local government tutorials (2016 and 2017, in cooperation with the America House in Kyiv). In 2018, the PULSE Project conducted a competition of best practices and ideas under the title: "Child Friendly City", which led to the publication and distribution of the collection of best practices, while the winners had an opportunity to attend a training seminar.

At the regional level, PULSE conducts Employment Fairs for Students where AUC Regional Offices bring together CTC representatives and rectors and students of universities. As a result, young people find interesting jobs, while communities get skilled and motivated professionals. One of such Fairs was conducted in Ternopil on November 08, 2018 and was attended by Ambassador Marie Jovanovich. She urged students to work in local governments and noted that the Employment Fair for consolidated territorial communities is not only a chance to find work, but also to find vocations for the purposes of their personal development and the development of their communities.

At the community level, PULSE consultants help to organise open door days and youth training in local councils, meetings between mayors and schoolchildren, decentralisation tutorials in schools, and other events.

The successful practices of working with young people over the reporting quarter include the following:

Vinnytsya AUC Regional Office established cooperation with the Vinnytsya National Pedagogical University named after. M. Kotsyubynskyi. PULSE Project experts conducted a lecture on decentralisation and the role of the AUC in establishing community dialogue with the central government for first year students who study public administration. Ivano-Frankivsk AUC Regional Office, working within the framework of a memorandum on cooperation with the Prykarpattya National University, organises internships for students in consolidated territorial communities of the oblast. City of Novovolynsk (Volyn oblast). The city council conducted the Young Leader School whose participants studied the following topics: "How is the budget of the city prepared", "How to build a career of a successful official", "How to become a local council members", "Most required profession in the city". The Vakulivska CTC (Dnipropetrovsk oblast). Every month, the community mayor meets with pupils of Grades 7 - 10 of comprehensive schools of the CTC. Also, the community set up a youth group called "Bank of Youth Initiatives" whose members participate in meetings of the executive committee of the village council. City of Dobropilya (Donetsk oblast). A youth center was opened. The main directions of its activity include: youth journalism (setting up a youth press center, meetings for interviews with interesting city residents, and coverage of events), LEGO club, youth parliament (organisation of youth volunteer movement activities and conducting training events). City of Uzhgorod (Zakarpattya oblast). The Uzhgorod National University, working within the framework of the memorandum with the Uzhgorod City Council organises the First Career Step internship program for the university students in structural departments of the executive committee. The Buchanska Community (Kyiv oblast). The City Council has set up a Children Advisory Council to protect the rights and interests of children, take into account their ideas, and to directly involve children in making decisions affecting them.

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City of Znamyanka (Kirovograd oblast). The community conducted a survey of Grade 9 – 11 schoolchildren under the title: "My suggestions for improving the city life". Schoolchildren sent their suggestions regarding the arrangement of playgrounds, parks and public gardens in the city, recreation areas, cinemas, etc. City of Kharkiv. Every quarter, the city council conducts a training course on the principles of work local governments for young people. The format of interactive meetings helps the participants to become familiar with the functioning of local government entities and, principles of their activity, structure, and powers. The Menska CTC (Chernihiv oblast). The community set up the Carpe Diem Art Workshop Youth Space. Upon the suggestion of the initiative young people, the city council provided premises and financial support. Young people organise events, training activities, and implement projects. Also, the city arranged the Art House Space.

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Section 3. IMPLEMENTATION PROBLEMS AND BARRIERS

The systemic problem issues in the local government sectors and relevant legislative and executive bodies that were indicated in the previous (annual report), generally did not significantly change.

The latent crisis with the parliamentary majority and the Verkhovna Rada in general continues to be a significant problem. During the previous quarter, the efficiency of the work of the parliament decreased even further. The reason was the involvement of National Deputies in the presidential election campaign. Low attendance of session makes it impossible to start consideration of important issues because of the "on the verge" quorum. A number of draft laws that were extremely important for promotion of the local government reform and decentralisation were not included in the agenda of the Verkhovna Rada of Ukraine.

In fact, the parliamentary factions actually started parallel preparations for the parliamentary elections. Consequently, one can expect further slow-down in the approval of legislation aimed at implementing the local government reform and decentralisation, as opposed to an increase activity in consideration of more socially sensitive legislation (social issues, standards of quality of life, tariffs, etc.), as well as, respectively, more active consideration of draft laws of a populist nature.

Problems with Project activities PULSE Project Payments lost competitive advantages over other international technical assistance projects working in similar spheres (they are lower than 2 times). The employees, and especially the directors, of the new directorates of the ministries also have noticeably higher salaries (more than 1.6 times). This has already led to staff losses and the switch of a number of PULSE employees to higher-paying positions and makes it difficult to find quality professionals. The remuneration of the PULSE Project staff have lost competitive advantages as compared to other international TA projects working in the similar sphere (the latter are more than 2 times higher). The employees of the new directorates of ministries also have significantly higher salaries (more than 1.6 times). This has already led to the drain of a number of PULSE Project staff and complicated the search for high quality specialists.

Implementation of the sub-agreement with IREX The amount of documents related to concluding funding agreements for information events in the premises of pilot libraries in 71 communities is really big. Thanks to the use of file automation techniques to speed up the preparation of large volumes of documents, the IREX/PULSE team together with the IREX Financial Services team managed to comply with the timeframe for funding pilot non-governmental organisations. By the end of March, 62 out of 64 grantees received electronic grant agreements, which will provide opportunities for IREX to pay the first tranche to the participating teams in April.

The will be a need for possible staff recruitment from other IREX projects to PULSE monitoring visits. During the period from April to August, 2019, more than 300 events have been planned to take place in 71 the communities participating in the PULSE Project. During the next quarter, the monitoring visits need to take place to up to half of them, however, there are only three staff persons involved in the project. To cope with this task, the IREX team has received assurance of support from colleagues from other IREX projects and is currently negotiating their participation in monitoring visits to the PULSE Project.

Section 4. SUCCESS STORIES

PULSE PROJECT SUCCESSES

Vice Premier H. Zubko calls the PULSE Project a key partner of the Ministry of Regional Development for the implementation of decentralisation reforms

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On February 07, H. Zubko, Vice Prime Minister and Minister of Regional Development, Construction, Housing and Municipal Utilities of Ukraine, informed that the Ministry prepared a detailed, step-by-step operational plan for the implementation of the new stage of decentralisation reform. This is road map for the Ministry of Regional Development and partners - "U-LEAD with Europe", USAID, PULSE, DESPRO, OSCE, and DOBRE. The plan was designed pursuant to the Decree of the President of Ukraine and the Action Plan approved by the Cabinet of Ministers of Ukraine. The main tasks include: - preparation of long-term perspective plans for community consolidation; - merger of territorial communities with cities of oblast significance; - improvement of the legislative framework; and, - support to sectoral decentralisation.

Therefore, 2019 will become the key year for the implementation of the decentralisation reform and all key actors and our international partners should unite around this goal, - said Vice Prime Minister H. Zubko. Source

MULTI-YEAR BUDGET PLANNING Budget calendar for 2019 and participation of the AUC in the budget process On January 28, the AUC presented on its website and in the monthly AUC Herald the info graphics on the Budget Calendar for 2019 and the AUC participation in the budget process. The calendar prepared by the AUC Center for Analysis and Legislation Drafting offers the information about the steps and dates for the preparation of the Budget Declaration for 2020 - 2022, the draft State Budget for 2020, and the submission of the AUC proposals to these documents. Background. In 2019, the amendments to the Budget Code regarding the legislative framework for the introduction of multi-year budget planning developed pursuant to the Strategy of Reforming the Public Finances Management System for 2017 – 2020 came into force. This Strategy incorporates all the provisions of the USAID/PULSE Local Finance Strategy prepared by the AUC, in particular, the provisions on multi- year budget planning at the community level.

Capacity of local governments in multi-year budget planning has increased Amendments introduced to the Budget Code of Ukraine since 2019 introduced multi-year (three-year) budget planning in Ukraine. Aiming at providing hands-on assistance to local government departments of finance in preparation of decisions on draft local budgets for 2020 and of the local budget forecast for 2021 - 2022, the Association of Ukrainian Cities in cooperation with the Ministry of Finance of Ukraine prepared Methodological Recommendations for the preparation of local budgets for a multi-year perspective in 2019. The Ministry of Finance approved this document through its Directive of March 29, 2019. The Methodological Recommendations will enhance the capacity of local state administrations and executive bodies of local governments to deal with multi-year budget planning.

LOCAL BUDGETS

Local self-governments received 60.5 million UAH from the National Budget for opening Transparent Offices On February 27, the Cabinet of Ministers of Ukraine distributed 60.5 million UAH in subventions from the National Budget to local budgets for opening local Transparent Offices. In accordance with the Ukrainian legislation, such distribution should be approved by the Budget Committee of the Verkhovna Rada of Ukraine. The Committee reviewed the decision of the Cabinet of Ministers twice, as for the first time the representatives of the Cabinet of Ministers failed to justify their decision on the suggested distribution. Aiming at supporting communities, the PULSE Project prepared and sent to Committee members its justification of the distribution of the subvention within the amount specified by the Cabinet of Ministers of Ukraine. As a result, the Committee agreed to the subvention distribution proposed by the Cabinet of Ministers.

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PULSE prevented the transfer of additional expenditure categories to local budgets in the amount of 1.5 billion USD to fund social workers In the course of the elaboration of the draft Law of Ukraine "On Social Services" (# 4607 of May 06, 2016) for the second reading, the Ministry of Labour and Social Policy lobbied through some National Deputies of Ukraine a provision defining the requirements for local governments regarding the number of social workers to be hired: 1 social manager per 10 thousand population; 1 social work specialist for 1,000 persons living in the city, and 500 persons living in a village or town. According a PULSE Project expert, this rule would result in additional expenditures from local budgets in the amount of 1.5 billion UAH. Thanks to the cooperation of the AUC with the Parliament, Representative of the Chairman of the Association of Ukrainian Cities in the Verkhovna Rada of Ukraine National Deputy Oksana Prodan informed National Deputies that the AUC advocated for exclusion of this provision. National Deputies of Ukraine supported the position of the AUC during voting. The final version of the Law of Ukraine "On Social Services" of January 17, 2019 (expected to be signed by the President) was adopted without the provision that could have led to additional expenditures from local budgets in the amount of 1.5 billion UAH.

PULSE Project prevented the transfer from the National Budget to local budgets of the need to spend 110.8 million UAH to finance state liabilities On February 27, 2019, the Cabinet of Ministers of Ukraine included a draft resolution offering a suggestion to reimburse the value of property to deportees or their heirs at the expense of local government budgets in the agenda of its meeting. Currently, such expenditures are provided through the National Budget. A PULSE Project expert was against the approval of the draft resolution because of significant additional expenditures local budgets would have to make. Thanks to the established dialogue with the Cabinet of Ministers, the PULSE Project succeeded in removing the draft resolution from the consideration. Thus, the Project prevented the transfer of an additional load of 110.8 million UAH to local budgets.

PULSE Project prevented funding for state programs at the expense of local budgets On May 30, 2018, the Cabinet of Ministers of Ukraine endorsed CMU Resolution # 427, which provided for the introduction, starting of January 01, 2019, of reimbursement of a child care service for children under three years old called "Municipal Nanny" in the amount of the subsistence minimum on the basis of co- financing from different budgets. This resolution offered a suggestion to co-finance the service from rayon budgets, budgets of cities of oblast significance and budgets of consolidated territorial communities in the amount of 60%. The PULSE Project expressed its reservation with regard to this provision, as it experts interpreted it as transferring of funding for national programs to local budgets. The Ministry of Labour and Social Policy and the Ministry of Finance supported the position of the PULSE Project and stipulated that the reimbursement for the Municipal Nanny childcare services for children up to three years would be fully funded from the National Budget. The corresponding resolution was endorsed by the Cabinet of Ministers on January 30, 2019 under # 68.

The disproportion in distribution of subsidies between local budgets to fund the expenditure categories transferred from the National Budget to local budgets for educational and health care facilities in the Zaporizzhya oblast Thanks to the persistent work of PULSE Project experts, on March 13, 2019, the Cabinet of Ministers of Ukraine decided to redistribute the amount of additional subsidies to cover the expenditure categories transferred from the National Budget to local budgets for educational and health care facilities between the local budgets of the Zaporizzhya oblast. Directive of the CMU # 14 "On Introducing Amendments to Annex 7 of the Directive of the Cabinet of Ministers of Ukraine of January 16, 2019" provided for the redistribution of 70 million UAH in favour of cities.

The level of financial support of local budgets increased Thanks to the active position of PULSE Project experts, on February 28, 2019, the Verkhovna Rada approved Law of Ukraine "On the National Budget of Ukraine for 2019" # 2696-VIII, which clarifies the inter-budget transfers envisioned in the National Budget of Ukraine for 2019 for individual local budgets. The approved Law increased the indicators of inter-budget transfers provided for in the State Budget of Ukraine for 2019 for local budgets of the cities of Pokrov and Marhanets of the Dnipropetrovsk oblast, the city of Berdyansk of the Zaporizzhya oblast, the city of Kolomyia of the Ivano-Frankivsk oblast, the city of Lozova of the Kharkiv oblast, the city of Kaniv of the Cherkasy oblast, the city of Nizhyn of the Chernihiv

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oblast, and the budget of the Krasylivska City Consolidated Territorial Community of the Khmelnytskyi oblast.

SOCIAL PROTECTION Thanks to the PULSE Project, the Cabinet of Ministers regulated the procedure for the examination of living conditions in consolidated territorial communities and increased the scope of powers of the relevant executive entity On January 16, the Cabinet of Ministers of Ukraine endorsed Resolution # 18, which authorised the executive entities of local councils of consolidated territorial communities to perform examination of household living conditions for the purpose of granting them various types of state privileges and benefits. A PULSE Project expert participated in the preparation of the resolution. According to the resolution, any local government official will be able to perform such an examination including the starosta. Also, thanks to the PULSE Project, executive entities of councils of consolidated territorial communities will perform the examination only in cases stipulated by law, rather upon the decision of rayon state administrations.

EDUCATION Ways to use the property of educational institutions are increased The Law of Ukraine "On Education" did not allow using property of educational institutions for non- educational purposes. At the same time, educational institutions were not able to provide high quality educational services without the proper conditions. For example, the issue was about renting property and premises to get funds for the heating the premises, meals for children, etc. A PULSE Project expert sent a request to the Verkhovna Rada Committee on Science and Education to resolve this issue. Thus, on January 16, 2019, the Verkhovna Rada returned the Law of Ukraine "On Introducing Amendments to Article 80 of the Law of Ukraine "On Education" Regarding Supporting the Education Process with Proper Conditions for Work and Studying” with the signature of the President of Ukraine (Registration # 9425 of December 19, 2018). This law grants permission to lease facilities and property of educational institutions for the purpose of providing services that can not be provided directly by educational institutions and are related to ensuring the education process or servicing participants of the education process.

AUC experts joined the Coordination Council on the implementation of the education reform V. Groisman, Prime Minister of Ukraine, endorsed the personal composition of the Coordination Council on the implementation of reform in the sector of education. The Council includes Executive Director of the AUC O. Slobozhan and National Deputy O. Prodan who represents the interests of local governments in the Verkhovna Rada of Ukraine. The Coordination Council on the implementation of the educational reform is an interim consultative and advisory body of the Cabinet of Ministers of Ukraine to ensure the implementation of the reform in the sector of education.

Technical parliamentary committee took into account all PULSE Project proposals regarding organisational aspects of providing meals for children in educational institutions On February 27, 2019, the VRU Committee on Science and Education took into account all proposals from a PULSE Project expert regarding the need to change the legislative framework governing the provision of meals for children and students in educational institutions, in particular, with regard to simplification of tender procurement procedures, regulation of sanitary requirements for food units in educational institutions, and streamlining the number of their staff. In addition to this, the Committee came up with a decision to make steps to strengthen the responsibility of supplier for quality of food products and for refusal to execute contracts made on the basis of tender outcomes.

Cabinet of Ministers supported the draft of the Law of Ukraine "On Completed Comprehensive Secondary Education" prepared with the participation of a PULSE Project expert On March 13, 2019, the Cabinet of Ministers of Ukraine approved the draft Law of Ukraine "On Completed Comprehensive Secondary Education" for submission to the Verkhovna Rada of Ukraine. The draft document was prepared with the participation of the PULSE Project expert. In particular, the draft law provides for the autonomy of local governments as founders of educational institutions to manage the education sector. It also provides for the possibility to receive various transfers from the National Budget for the development of comprehensive secondary education. The draft document was prepared pursuant the New Ukrainian School concept and is a logical continuation of the new Law of Ukraine "On Education".

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Strategic Committee of the Cabinet of Ministers supported the position of the AUC with regard to changing the mechanisms to fund vocational training institutions On March 25, 2019, in the course of the meeting of the Strategic Committee of the Cabinet of Ministers, Minister of Education and Science of Ukraine L. Hrynevych presented the political initiative of the Ministry of Education and Science of Ukraine with regard to the implementation of national policy in the sphere of vocational (technical) education. This document provides for the reform of the system of vocational (technical) education. In particular, it offers a suggestion to change the mechanisms for its funding. It also offers a phased transition to funding vocational training institutions located on the territory of cities of oblast significance from oblast budgets. This political initiative is in line with the decision of the Board of the Association of Ukrainian Cities (Minutes # 3 of February 04, 2019) regarding amendments to the Budget Code of Ukraine and funding of professional (technical) educational institutions from oblast budgets, because such institutions are transferred to the joint territorial ownership of oblast territorial communities. The Strategic Committee of the Cabinet of Ministers supported the political initiative of the Ministry of Education and the position of the AUC prepared by PULSE Project experts.

PULSE experts ensured additional amount of the education subvention for certain communities Thanks to the lobbying work of PULSE experts, the Cabinet of Ministers of Ukraine issued Directive # 191- р of March 27, 2019 " On the Distribution of the Amount of the Education Subvention from the National Budget to Local Budgets in 2019". The document increased the amount of the education subvention for 7 consolidated territorial communities and 2 cities by 1,220.9 thousand UAH. At the beginning of the budget period, these communities reported a significant shortage of the education subvention and problems with salary payments to teachers in the first quarter. As a result of the redistribution, the Lymanska City Consolidated Community and the city of Shostka completely resolved the issue of the shortage of the education subvention. The funds to increase the amount of the education subventions in the budgets of the communities came from the reserve funds of the education subventions and certain rayon budgets.

HEALTH CARE PULSE Project helps the primary health care center in Novopskovsk of the Luhansk oblast to obtain a license The PULSE Project helped Novopskov Center for Primary Health Care of the Novopskov Rayon Council to resolve the issue of obtaining a license for economic activities in the sphere of medical practice. The facility has the following divisions: two outpatient clinics of general family medicine and four rural primary care outpatient units of general practice of family medicine in villages with 24 with paramedic/paramedic and obstetric stations.

The position of the cities of the Sumy AUC Regional Office was taken into account in the course of the formation of hospital districts Thanks to the efforts of the PULSE Project, the AUC managed to defend the position of cities of the Sumy oblast and establish six hospital districts, which were approved by Directive of the Cabinet of Ministers of Ukraine # 17-p of January 16, 2019.

The health care subvention takes into account the number of internally displaced persons Following the Dialogue Day with central government authorities in September, 2018, the Association of Ukrainian Cities appealed to the President of Ukraine, Verkhovna Rada of Ukraine, and the Cabinet of Ministers of Ukraine with a request to provide the sufficient level of education and health care subventions in 2018 - 2019 taking into account additional needs to serve temporarily internally displaced citizens. On March 20, 2019, the Cabinet of Ministers endorsed Resolution # 242 "On Introducing Amendments to the Formula for the Distribution of the Amount of Health Care Subvention from the National Budget to Local Budgets" to include the target funds for health care of internally displaced persons into the formula.

ADMINISTRATIVE SERVICES Local government interests have been taken into account in the draft law "On Electronic Petitions"

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The participants of the meeting of the Cabinet of Ministers Committee on Economic, Financial and Legal Policy, Development of the Fuel and Energy Complex, Infrastructure, Defence and Law Enforcement, suspended consideration of the draft law “On Electronic Petitions” prepared by the Ministry of Justice, which failed to take into account suggestions AUC made during the consideration of document, in particular, with regard to the procedure to review electronic petitions by local councils. According to the decision of the Cabinet of Ministers Committee, the Ministry of Justice conducted a conciliation meeting with a representative of the AUC where a compromise decision was made: the petition should not be considered for a specially convened session within 20 days, but at the next regular session.

INCREASING CAPACITY OF AUC AS A REPRESENTATIVE OF COMMUNITIES IN DIALOGUE WITH THE CABINET OF MINISTERS The legislation provides for the participation of a representative of All-Ukrainian Local Government Associations in the work of Cabinet of Ministers Committees The Cabinet of Ministers of Ukraine endorsed Resolution # 32 of January 10, 2019 «On Introducing Amendments to Resolutions of the Cabinet of Ministers of Ukraine # 950 of July 18, 2007 and # 330 of May 11, 2016". The Association of Ukrainian Cities managed to include Sub-Paragraph 28-5 of the Regulation of the Cabinet of Ministers of Ukraine regarding the permanent (according to the Committee Chairman decision) participation of the authorised representative of all-Ukrainian local government associations in Committee meetings in Paragraph 2 of this document. Thus, the position of the local governments in the dialogue with the Cabinet of Ministers was strengthened and the legislation provides the opportunity to a representative of all-Ukrainian local government associations to participate in the work of the Cabinet of Ministers Government Committees.

DISTANCE LEARNING COURSES USAID PULSE Distance Budget Training Program demonstrates record success - 76% 5,851 students, representing 76.32% of the total number of registered students (7,666) successfully completed the on-line Gender-Based Budgeting for Community Development course prepared by the PULSE Project implemented by the Association of Ukrainian Cities. This testifies to the extreme importance of gender budgeting in Ukraine, as the global experience shows that such courses have a rate of 7-10% of the total registered students. The distance learning course was launched in November 2018 on the Prometheus platform prepared with the involvement of the Gender Oriented Budgeting Project in Ukraine (GOB) implemented with the financial support from Sweden. The course also presents materials from USAID DOBRE and UN Women projects. Background. During the years of its implementation, PULSE Project implemented 5 on-line courses on the Prometheus platform, with 18,757 students having successfully passed them.

IREX SUB GRANTS PULSE Project helped set up an agency of local initiatives The city of Starokostyantyniv (Khmelnytskyi oblast) opened the Center for the Development of Local Initiatives called "Agency for Change". Thus, the city has institutionalised its two-year cooperation between the Starokostyantyniv Is not Indifferent NGO and the city library within the framework of the PULSE Project. The main spheres of activities of the newly established agency include community development, work with young people, and promotion of the local journalism.

PULSE Project expert now works for a CTC council Oksana Kolesnyk who worked in the library of the Ivanivska Consolidated Community (Chernihiv oblast) is a member of the Reform Support Group (RSG). PULSE sets up such groups in partner communities. Having a one year experience in the Project, Oksana was invited to conduct a series of training seminars for local activists and representatives of local authorities in the Ivanivska Community. Currently, she works as the director of the department of education in the ctc1 CTC and was the author of the project of setting up a modern library. The project was a winner of the grant competition (IOM) and the opening of the Media Library is scheduled for the next quarter.

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SUCCESS STORIES FROM COMMUNITIES

The Association of Ukrainian Cities working within the framework of the PULSE Project collects and disseminates success stories about decentralisation and best practices of consolidated territorial communities. Communities are making significant progress thanks to the work of PULSE regional consultants who work closely with local officials, provide consultations on legal and budget issues, communications and local economic development to improve the organisational aspects of CTC activities.

SUCCESS OF FISCAL DECENTRALISATION

Boryspil, Kyiv oblast A new Lyceum was built at the expense of the local budget The grand opening of the new academic lyceum in Boryspil took place on January 14. The funds for construction in the amount of 179 million UAH came from the local budget. Boryspil Mayor A. Fedorchuk emphasised that the construction of the Lyceum became possible thanks to the decentralisation reform: "It is thanks to fiscal decentralisation that we have these funds. This is a huge achievement of Ukraine and its local self-governance!" O. Slobozhan, Executive Director of the AUC, stressed: "This project is another proof of the success of decentralisation. The reform is not over yet, but the examples of performance of the Boryspil city government are already showing its effectiveness. The Academic Lyceum will become a success story of the Association of Ukrainian Cities and serve as a good example for all 745 members of the AUC”. The four-storied building of the educational institution provides auditoriums and specialised laboratories with state-of-the-art equipment, language study rooms, classrooms for fine and musical art, sport and choreography halls, assembly hall with the sound and lighting equipment, library, medical unit, dining hall, and interactive shooting gallery. The new Lyceum is also open for children with disabilities offering lifts, elevator, toilet facilities, etc. The Lyceum is designed for 33 classes, with approximately 1,000 students being able to study during one shift. The total area floor area is 12 thousand square meters.

EDUCATION

The Korostyshivska CTC, Zhytomyr oblast A modern school media library opened The schoolchildren of the Schyhliv School in the Korostyshivska CTC now have interactive training space. The community spent 98 thousand UAH from the local budget for the modern media library. The school has zones for various activities: presentations, training, creative work and recreation. Teachers and students will be able to hold seminars, training events, film shows, literary evenings, and educational discussions. The media library has shelves with modern books, computers with electronic versions of fiction and textbooks, a screen, and a projector for presentations.

The Novoukrainska CTC, Kirovohrad oblast A repaired kindergarten The city of Novoukrainka, which is the administrative center of the community, has reconstructed its kindergarten that has been closed for more than 20 years. Now, 100 children from the community will be able to attend this upgraded. The capital repairs of the premises were performed at the expense of the National Regional Development Fund with co-financing provided from the local budget. The community has replaced windows, doors, external and internal engineering networks, repaired the roof, insulated the facade, as well as performed internal repair works. The kindergarten now has a solid fuel boiler room and installed a diesel facility, which will provide an opportunity to have independent electricity supply. Also, the community improved the territory and playgrounds. All in all, the community has spent more than 20 million UAH for the project.

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The opening of this facility provided employment opportunities for 40 persons and now the kindergarten has been is fully.

The Kyrylivska CTC, Zaporizzhya oblast Interactive learning devices The Kyrylivska CTC purchased two multimedia interactive devices for primary school pupils of the Kyrylivka Comprehensive Secondary School. The community budget spent 70 thousand UAH for these purposes. Introduction of interactive devices systems during lessons is one of the requirements of the modern educational process. This will increase the amount of illustrative material and help better learn the training material.

ENERGY EFFICIENCY

The Menska CTC, Chernihiv oblast Construction of a solar power plant The city of Mena, which is the administrative center of the Menska CTC, is planning to build a 9-megawatt solar power. The city council allocated 18 hectares of land for rent for its construction. There will be over 30 thousand solar panels. The station will be built with grant funding, with the amount of investment constituting 9 million Euros. The project implementation implies attracting investments in the Menska Community, increasing revenues to the local budget and opening 20 jobs. The station is scheduled to be commissioned by the end of 2019.

The Tsyrkunivska CTC, Kharkiv oblast The community is implementing energy efficiency activities The Tsyrkunivska CTC has chosen the path to energy saving. All schools, kindergartens and other municipal institutions now have replaced windows with energy-saving ones. The community has put up LED lamps for street lighting, which provided an opportunity to reduce electricity consumption by 10 - 15%. In addition to this, the roof of the Tsyrkunivska First Aid Station has a solar power unit of the 6.5 kW capacity, which will save about 15% of funds in utility costs of the institution. To ensure the complete alternative energy supply to the institution, additional panels must be installed.

ADMINISTRATIVE SERVICES

The Chmyrivska CTC, Luhansk oblast Passports in the format of the ID-card The Center for Administrative Services, which provides services to residents of the Chmyrivska Consolidated Territorial Community, was opened with the assistance of the local budget and an international technical assistance project. The community performed capital repairs of the premises and completely renovated it. The community also pursed furniture and computers, equipped its archives, installed ramps, and took steps to improve the energy efficiency of the institution. Also, the Center introduced a modern system of the electronic administration. The CAS offers a unit to issue biometric documents. Starting from December, 2018, the community CAS offers passports of citizens of Ukraine in the format of the ID-card for persons who have reached the age of 14 years, as well as biometric passports for foreign travel.

The Slobozhanska CTC, Dnipropetrovsk oblast Mobile office of the Center for Administrative Services The Slobozhanska Community Center for Administrative Services has received a mobile case within the framework of an international technical assistance program. Now, persons with disabilities, war veterans and

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residents of the consolidated territorial community who are not in a position to visit the Center due to their age or health condition will receive administrative and social services even at home. The administrator with a special suitcase equipped with modern equipment will go to the applicant's place of residence. Thus, all residents of the community will be able to receive services quickly and of high quality.

COMMUNITY SAFETY

The Yemilchynska CTC, Zhytomyr oblast Police Office opened The Yemilchynska Consolidated Territorial Community opened its police station. From now on, local police officers, juvenile justice inspectors and the police quick response unit will help the community. The police station has been equipped by the community and with the support from the local police station. Law enforcement officers have everything they need: computer equipment, communications and transportation. The premises will also offer another room for quick response unity of the patrol police. The station will serve residents of 25 villages within the community.

The Prybuzhanivska CTC, Mykolaiv oblast Fire protection brigade set up The community initiated the setting up a fire brigade and developed a project under the title "Own fire brigade - a pledge for community security". The oblast department of the Ministry of Emergencies and the Embassy of the Republic of Poland in Ukraine support the implementation of the project. The project is being implemented with the help of international technical assistance under the conditions of co-financing from the local budget. In December 2018, the community received a fire truck and 2,000 Euros for conducting training events. The consolidated territorial community has allocated funds for repairs of the premises where the fire-fighters will work.

HEALTH CARE

The Vodyanska CTC, Zaporizzhya oblast A new car for health care services The Vodyanska CTC spent its local budget funds to purchase a car for the Center of Primary Health Care. Thanks to the new vehicle, doctors will be able to provide effective emergency medical care to community members and at a higher quality level.

The Starosynyavska CTC, Khmelnytskyi oblast Upgrading health care facilities The communally-owned Stara Synyava Central Rayon Hospital has renovated the intensive care unit and sanitary rooms, and also performed capital repairs of its therapeutic department. The total cost of the works constitutes more than 1.5 million UAH. The community received a subvention from the National Budget for projects on social and economic development of certain territories in the amount of almost 700 thousand UAH. The remaining funds will be come from the local budget.

HOUSING AND MUNICIPAL UTILITY SERVICES

The Starokozatska CTC, Odessa oblast A mini-plant to produce asphalt The community received the funds from the subvention for infrastructure improvements and purchased equipment for road repairs: a mini-plant to produce asphalt. The plant has the capacity to perform the minimum required works to produce asphalt including heating up the material directly on the site: in yards, on sidewalks, small areas, sites for engineering communications repairs, etc. The new special equipment the community will use will provide it with the opportunity to perform the works independently to reduce the cost of regular road repairs three times.

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The Shyrokivska CTC, Zaporizzhya oblast Illumination of streets with solar energy The village Volodymyrivske, which is a member of the consolidated community, installed ten solar street lights within the framework of the energy saving project. The funds for the implementation of the project in the amount of 190 thousand UAH came from the local budget. The introduction of alternative lighting will reduce the cost of energy. These lights do not require any further maintenance costs and will minimise the payment for electricity.

LOCAL ECONOMIC DEVELOPMENT

The Kamyanska CTC, Cherkasy oblast The investor is building a solar power plant A Norwegian company is building a 25-Megawatt solar power station in the community on the territory of the former sugar factory. The investor has invested 30 million EUR in the construction project. The community will receive a number of benefits from the work of the station including the creation of new jobs and payment of taxes to the CTC budget. The community is also currently performing the preparatory works on an area of 50 hectares. The commissioning of the facility is scheduled for the end of 2019.

The Koropska CTC, Chernihiv oblast 100 thousand hryvnyas as financial support to cooperatives At its recent session in 2018, the Korop Village Council approved a program to support cooperatives on the territory of the consolidated territorial community in 2019. The local budget earmarked 100,000 UAH to finance the agricultural cooperatives. The community studies the experience of other regions and plans to develop its own multifunctional cooperatives.

The Zabolottsivska CTC, Lviv oblast A livestock farm opened The village Ruda-Bridska, which is part of the consolidated territorial community, opened a cattle-breeding farm. Now, the farm has 8 cows. The repairs of the premises for the animals were carried out at the expense of the community and the National Budget. Now, the facility has modern lighting and ventilation. The equipment for the farm including the milking machine and milk quality assessment device have been received within the framework of an international technical assistance project. The farm is run by a family of 5 persons. The milk goes to a cooperative in the village of Zabolottsi.

SOCIAL PROJECTS

The Tahanchanska CTC, Cherkasy oblast The Baby Birth Support Program approved The community council has a Baby Birth Support Program in the villages within the consolidated territorial community in 2019, which envisions supporting young families. Once a child is born (adopted), the family receives a one-time payment in the amount of 3 thousand UAH. The community youth activists have already come up with a proposal to introduce amendments to the Program: after the first child is born, the one-time payment should constitute 4 thousand UAH, the second - 7 thousand UAH, and the third - 10 thousand UAH. The local council is considering this proposal. The targeted one-time cash assistance will provide tangible support to young parents upon the birth of children.

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The Nosivska CTC, Chernihiv oblast Housing for young doctors Doctors together with their spouses who work in the rayon central hospital on the territory of the Nosivska CTC received a voucher for corporate housing in the city of Nosivka. The funds for the purchase of the housing were allocated from the local budget on the terms of co-financing within the framework of the program to providing medical staff with corporate housing for the period of 2017 - 2019. In ten years, health care workers will have the right to privatise their housing for free.

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Section 5. COOPERATION WITH OTHER PROJECTS

In the reporting quarter, the PULSE project continued its cooperation with partner projects and organisations. x The PULSE Project representatives participate on a weekly basis in the coordination meeting of decentralisation reform projects under the auspices of the Ministry of Regional Development in the U-LEAD Project office; x The PULSE Project representatives regularly participate in meetings of the Decentralisation Donor Board at the Ministry of Regional Development; x The PULSE Project is implementing two distance learning courses in cooperation with other projects. One course is dedicated to gender-based budgeting for community development (in conjunction with the Swedish project "Gender Oriented Budgeting in Ukraine"). This course also involves the DOBRE Project, which provided practical material from its pilot cities, and the UN Women Organisation. The course started in November, 2018. The second course has the title: "Training Members of Local Councils of Consolidated Territorial Communities" (in cooperation the Norwegian Participative Democracy and Evidence Based Grounded Decision Making at the Local Level in Ukraine project). The course started in January, 2019; and, x PULSE Project representatives regularly participate in activities of partner projects and invite representatives of other projects to their activities.

The Gender Oriented Budgeting in Ukraine project On January 21, 2019, the Deputy Director of the PULSE Project participated in the coordination and planning session of the GOB project and other projects, as well as in the training on feminist methodology for conducting trainings for the adult audience.

SKL International On January 25, 2019, the PULSE Project provided consultation on local government capital expenditures, and provision of secondary health care.

America house On February 16, 2019, the AUC Executive Director participated in a project fair organised in the America House and made a presentation of the PULSE Project.

On March 26, 2019 a PULSE expert participated in the webinar on decentralisation reform in the education sector in Ukraine and education in consolidated territorial communities. 70 consolidated territorial communities and viewers joined online. The expert spoke about the main directions of reforms in the education system in Ukraine, in particular, she focused on the reform according to the New Ukrainian School concept and the tasks of local governments to implement it at the local level. She also answered a number of questions from community representatives. They were about small schools and the prospects of optimising the network of educational institutions; transfer of children and teachers to primary schools and the right of primary school children to receive education near the place of residence; attraction of young specialists to work in the countryside; spheres of state financial support to schools; social protection of teachers that will be released in the course of optimisation of the network and remuneration of teachers. The audience engaged in an interactive discussion of questions concerning personnel policies including the appointment of directors of educational institutions retirement age, as well as the powers of local governments to attract young professionals to work in schools. The webinar was recorded and is available on the web site for all interested parties.

Congress of Local and Regional Authorities of the Council of Europe Strengthening Democracy and Trust at the Local Level in Ukraine project On February 18, in cooperation with the Congress of Local and Regional Authorities of Europe Strengthening Democracy and Trust at the Local Level in Ukraine project, the AUC Executive Director and a PULSE Project expert participated in a Skype conference with the Congress of Local and Regional Authorities of the Council of Europe to discuss sanctions mechanisms for local elected representatives and February 25 the expert participated in a consultation meeting on the same issues that was held with the participation of National Deputies and experts of the Congress. On February 27 – 28, the expert participated in the Conference under the title: “Election Rights of Internally Displaced Persons at the Local Level in Ukraine: Strengthening Integration and the Principles of Democracy”.

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UNDP Civil Society for Development Democracy and Human Rights Project and USAID Citizen in Action Project During the reporting period, in cooperation with the UNDP Civil Society for Development of Democracy and Human Rights project and USAID Citizen in Action project, as well as some other projects, PULSE Project participated in the working group at the Ministry of Regional Development to prepare recommendations for the development of a local community charter.

On February 21, 2019, Deputy Director of the PULSE Project participated in the final conference of the Citizen in Action project and on received the Civil Society Building award for the AUC.

EDGE project On February 25, 2019, a PULSE Project expert participated in the strategic session under the title: "Education as a prerequisite for the development of an inclusive society" conducted in Kyiv. The purpose of the event was to outline the directions of the national policy in the sphere of education as the foundation for the formation of an inclusive society and to develop a concept for inter-sectoral cooperation for 2020 - 2025. The event organisers included the Ministry of Education and Science of Ukraine, the Poroshenko Foundation, and the EDGE Project. The event brought together representatives of line ministries, scientists and experts. The PULSE Project expert drew the attention of the participants of the strategic session on the need to include children with disabilities, gifted children and children of other categories in the inclusive society. Ideas suggested by the PULSE Project expert included promoting equal opportunities for parents of children with special needs. The issue was about the temporary stay of children with special educational needs in the educational space under the supervision of specialists, while the parents of these children would be able to spend their time in the professional environment and feel part of the society. The participants of the strategic session jointly prepared strategic and operational goals and developed tasks with the ultimate goal to promote inclusive society in the country.

On March 15, 2019, the PULSE expert participated in the meeting to prepare a draft Action Plan to implement the second phase of the National Strategy to reform the system of institutional care in 2017 - 2026 organised by the Economic Development and Governance Expert Support project (EDGE) and the Ministry of Labour and Social Policy. Following the working meeting, the participants prepared the relevant action plan.

PLEDDG project On February 26, 2019, Deputy Director of the PULSE Project participated in the meeting of the AUC Professional Group on Equal Rights and Opportunities for Women and Men. She made an announcement about the distance learning course on gender responsive budgeting.

Energy and Climate Transformation Platform On February 26, 2019, PULSE Project expert on housing and municipal utilities O. Harnyk participated in the work of the Energy and Climate Transformation Municipal Coordination Platform for Development. The event was conducted in Slavutych, Kyiv oblast. The EU Covenant of Mayors - East Project was the organizer of the event. The event brought together: representatives of the city signatories of the Covenant of Mayors - East, EU, the Ministry of Regional Development, Ministry of Environmental Protection, as well as the platform support structures, such as the Association of Ukrainian Cities, Association of Consolidated Territorial Communities and Energy Efficient Cities of Ukraine Association. The purpose of the platform is to consolidate communities of cities and towns, local and regional and public authorities, private investors, donor organisations, international technical assistance projects, international organisations and business to formulate and implement the principles of sustainable energy development and tailor them to climate change in Ukraine in accordance with the fundamentals of the European initiative of the Covenant of Mayors. The participants discussed the concept of the Platform and the Roadmap for attracting investments into the Sustainable Energy Development Action Plan (SDAP).

Donors Board on Decentralisation and the Ministry of Regional Development agreed on the implementation of the second phase of decentralisation

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On February 27, Director of the PULSE Project I. Parasyuk participated in the meeting of the Donor Board, which took place with the participation of representatives of the Ministry of Regional Development. The main topic of the meeting was coordination of common tasks in the context of the implementation of the second phase of the decentralisation reform with the ultimate goal to conduct local elections in 2010 on a new territorial basis. To achieve this goal, it is necessary to develop, approve and implement a number of important legislative documents. Consequently, the tense, coordinated work of the Cabinet of Ministers of Ukraine, Verkhovna Rada of Ukraine, local government associations, international projects, and experts is required. To coordinate the actions and maximise synergy of all participants in the course of development and implementation of decentralisation reform, the Ministry of Regional Development elaborated the Operational Plan for the local government reform and reform of territorial arrangement of government institutions for 2019 - 2021. The document clearly identifies the operational objectives, timeframe, responsible actors and the contribution of each international technical assistance project in accordance with the strategic objectives. PULSE Project Director Ihor Parasyuk said: "The operational plan involves PULSE in more than two-thirds of its operational goals. PULSE Project will participate in drafting legislation, lobbying for its approval and promoting implementation, support further community consolidation and merger of communities with cities of oblast significance, as well as provide communications support for reforms in line with defined project objectives. Accordingly, PULSE will cooperate with National Deputies and parliamentary Committees, government agencies, and experts." Background. On January 23, the Cabinet of Ministers approved an Action Plan to Implement a New Phase of the Local Government and Reform of Territorial Arrangement of Government Institutions in Ukraine for 2019 - 2021. The accomplishment of each task implies specific steps and implementers including all- Ukrainian local government associations, such as the AUC, which is implementing the USAID PULSE Project.

Interactive training for pilot libraries and public organisations, city of Kyiv On February 27 - 28, 2019, the REBOOT 3.0 all-Ukrainian training for grantees of the PULSE Project took place in the city of Kyiv. The event organisers were the AUC and IREX within the framework of the PULSE Project. The event was attended by 150 representatives from 71 communities from different regions of Ukraine. These were teams of librarians and community organisations that conduct informational events on decentralisation and citizen engagement in the decision-making process. The IREX team conducted training for both "old" and "new" pilot communities of the PULSE Project to build new relationships and share experiences between the cohorts. These tasks were successfully implemented. The organizers of the event managed to involve experts and partners from other projects and conduct sessions of 6 different topics to cover practices from all over Ukraine. The training was attended by Deputy Director of the PULSE Project who presented the PULSE Project and PULSE Project expert on education who refuted the myths about the education reform. The PULSE Project expert presented to the participants 10 myths and facts about the reform in the education sector in Ukraine. The information she presented raised the interest of the audience who put a number of questions to the expert. Funding of educational institutions, increasing salaries in pre-school educational institutions, intended use of the National Budget subsidy according to the New Ukrainian School concept, as well as mechanisms for purchasing furniture and equipment for schools were the topics of greatest importance. A particular attention was paid to the establishment inclusive resource centers, their equipment, and staff salaries. Also, as was demonstrated by the active discussion, the participants were interested about the proper professional level of specialists working at the local level. In addition to the education reform, the participants of the training also discussed other aspects of decentralisation in various spheres of local governments. Topics of the 6 sessions of the training: 1. Working with young people, trainer: experienced expert and trainer of the USAID DOBRE project in the Mykolaiv oblast. 2. Interaction with media, trainers: mentors of PULSE press clubs. In addition to the skills they teach, they will continue to provide mentor support in conducting events with media participation in project participating communities. 3. IT innovations, organisation of Skype-conferences between communities, trainer: a participant of the Project; distance learning on the Prometheus platform, trainer: teacher of the Ostroh Academy specialising in online courses. 4. Cooperation with government authorities, trainer: expert of the Rivne AUC Regional Office.

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5. Fundamentals of decentralisation, trainers: experts from the Zaporizzhya and Chernihiv AUC Regional Offices. 6. Fundamentals of facilitation, trainer: expert of the IREX United Community project. The colleagues from the USAID Interaction project were invited in training as youth experts and developed tools for Transparent Budgets and countering corruption. They also shared printed methodological materials developed within the framework of their project.

European Training Foundation On March 5-6, 2019, a PULSE analyst participated in a two-day seminar on the topic: "Opening of centers of excellence and Innovation in Ukraine: reviewing best practices in policy implementation". The event was organised by the Ministry of Education and Science of Ukraine and the European Training Foundation (ETF). The participants of the event included representatives of oblast of education, directors of vocational training institutions, academics, representatives of the expert community of Ukraine and European countries (France, the Netherlands, Spain, and Italy), and employers. In the course of the work in different groups, the participants were able to become familiar with the experience of setting up centers of professional excellence in France, the Netherlands, and Spain. The PULSE Project expert participated in the discussion of the Dutch Professional Education System. In particular, the discussion focused on setting up a regional investment fund for vocational education, opening of multi-profile centers, and the introduction of a new management system. Also, the participants discussed the participation of businesses in financing training activities and simplification of licensing of professions.

USAID The PULSE Project contributed to organising a visit of a USAID delegation to the Kozeletska CTC to become familiar with the achievements of decentralisation and community consolidation. The visit took place on March 13, 2019.

Office of the United Nations Children's Fund (UNICEF) in Ukraine The PULSE Project continues cooperation with UNICEF on the implementation of the Child and Youth Friendly Community initiative in Ukraine. During the reporting period, a PULSE Project expert, in conjunction with UNICEF, lobbied for the endorsement by the Cabinet of Ministers of a draft law offering a suggestion to increase the share of personal income tax going to local budgets of territorial communities, which are recognised as candidates for the status of the Child and Youth Friendly Community, or have received or confirmed the status of a Child and Youth Friendly Community. Such a draft law was supported by the Cabinet of Ministers on March 20 and was registered with the Verkhovna Rada under # 10190 of March 27, 2019.

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Section 6. SUGGESTED PLAN OF ACTIVITIES FOR THE COMING QUARTER

ER 1: Decentralisation enabling legislation reflects local government input

- Legislation drafting - Legislation monitoring - Providing consultations for local governments on legislation application - Holding meetings of AUC Professional Groups - Participation in the work of parliamentary committees, conducting an on-site meeting of one of the parliamentary committees - Holding meetings Regional Policy Dialogue Platforms - Participation in meetings of the Cabinet of Ministers and Cabinet of Ministers committees

ER 2: Resources under local self-governance authority increased - Continuation of work on NSSN - Supporting pilot communities under the Incubator of Sustainable Communities initiative - Conducting study tours within the framework of the “Itinerary of Successes” nation-wide exchange study tour Project component

ER 3: Capacity of stakeholders increased - Conducting regional legislation application laboratories - Conducting legislation drafting and advocacy laboratories - Setting up information communications channels and tool to interact with media - Preparing information products for media - Dissemination of information messages - Supporting AUC website and web platforms - Collecting success stories and best practices

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94 January – March, 2019

Annex А Calendar of PULSE Project events January – March, 2019 # Date Location Implementer Event

1. January 11, city of Lviv AUC/PULSE Regional legislation 2019 application laboratory in the Lviv AUC RO 2. January 11, city of Chernihiv UAROC/PULSE expert workshop for 2019 representatives of rayon and oblast councils 3. January 11, city of Poltava UAROC/PULSE expert workshop for 2019 representatives of rayon and oblast councils 4. January 18, city of Chernihiv AUC/PULSE Regional legislation 2019 application laboratory in the Chernihiv AUC RO 5. January 22, city of Kharkiv UAROC/PULSE expert workshop for 2019 representatives of rayon and oblast councils 6. January 22, city of Uzhgorod UAROC/PULSE expert workshop for 2019 representatives of rayon and oblast councils 7. January 23, city of Lviv UAROC/PULSE expert workshop for 2019 representatives of rayon and oblast councils 8. January 24, city of Vinnytsya UAROC/PULSE expert workshop for 2019 representatives of rayon and oblast councils 9. January 24, city of Ternopil UAROC/PULSE expert workshop for 2019 representatives of rayon and oblast councils 10. January 24, city of Kharkiv AUC/PULSE Regional legislation 2019 application laboratory in the Kharkiv AUC RO 11. January 29, city AUC/PULSE Regional legislation 2019 of Khmelnytskyi application laboratory in the Khmelnytskyi AUC RO 12. January 30, city of Poltava IREX/PULSE Meeting of 2019 representatives of the Poltava PULSE Press Club, media representatives, and PULSE regional consultants in the premises of the local library 13. January 31, city of Kherson AUC/PULSE Regional legislation 2019 application laboratory in the Kherson AUC RO

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14. Late January – the PULSE Project published Issue # 159 of the AUC Herald 15. February 04, city of IREX/PULSE meeting of 2019 Khmelnytskyi representatives of the Khmelnytskyi PULSE Press Club, representatives of 4 types of media (radio, TV, print and on-line media), and PULSE regional consultants in the premises of the local library 16. February 05, city of Ivano- AUC/PULSE Regional legislation 2019 Frankivsk application laboratory in the Ivano-Frankivsk AUC RO 17. February 06, city of Rivne AUC/PULSE Regional legislation 2019 application laboratory in the Rivne AUC RO 18. February 07 city of Yaremcha, AUC/PULSE working session of the - 08, 2019 Ivano-Frankivsk AUC Land oblast Management Professional Group 19. February 08, city of Chernivtsi AUC/PULSE Regional legislation 2019 application laboratory in the Chernivtsi AUC RO 20. February 08, city AUC/PULSE Regional legislation 2019 of Kropyvnytskyi application laboratory in the Kirovohrad AUC RO 21. February 08, city of Ternopil AUC/PULSE Regional legislation 2019 application laboratory in the Ternopil AUC RO 22. February 12, village of Lisovi AUC/PULSE Press tour to the 2019 Hrynivtsi Lisovohrynivetska (Khmelnytskyi Village CTC oblast) 23. February 12, city of Chernihiv IREX/PULSE meeting of 2019 representatives of the Chernihiv PULSE Press Club, representatives of 4 types of media (radio, TV, print and on-line media), and PULSE regional consultants in the premises of the local library 24. February 13, city of Uzhgorod AUC/PULSE Regional legislation 2019 application laboratory in the Zakarpattya AUC RO 25. February 14, city of UAROC/PULSE expert workshop for

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2019 Khmelnytskyi representatives of rayon and oblast councils 26. February 15, city of Dnipro AUC/PULSE Regional legislation 2019 application laboratory in the Dnipropetrovsk AUC RO 27. February 15, city of Chernihiv AUC/PULSE Regional legislation 2019 application laboratory in the Chernihiv AUC RO 28. February 15, town of Mamaivtsi AUC/PULSE study tour to the 2019 (Chernivtsi oblast) Mamaivetska Town CTC for representatives of potential CTCs of the Ternopil oblast within the framework of the “Itinerary of Successes” nation-wide exchange study tour Project component 29. February 15, town of Mamaivtsi AUC/PULSE Chernivtsi AUC RO, 2019 (Chernivtsi oblast) study tour to the Mamaivetska Town CTC for representatives of potential CTCs of the Chernivtsi oblast within the framework of the “Itinerary of Successes” nation-wide exchange study tour Project component 30. February 18, city of Kharkiv IREX/PULSE meeting of 2019 representatives of the Kharkiv PULSE Press Club, representatives of 4 types of media (radio, TV, print and on-line media), and PULSE regional consultants in the premises of the local library 31. February 19, city of Poltava AUC/PULSE Regional legislation 2019 application laboratory in the Poltava AUC RO 32. February 19, city of Vinnytsya AUC/PULSE Regional legislation 2019 application laboratory in the Vinnytsya AUC RO 33. February 19, city of Sumy AUC/PULSE Regional legislation 2019 application laboratory in the Sumy AUC RO 34. February 19, city of Mykolaiv AUC/PULSE Regional legislation 2019 application laboratory in the Mykolaiv AUC

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RO 35. February 19, city of Kolomyia AUC/PULSE study tour to the 2019 (Ivano-Frankivsk Kolomyiska City CTC, oblast) for representatives of potential CTCs of the Ivano-Frankivsk oblast within the framework of the “Itinerary of Successes” nation-wide exchange study tour Project component 36. February 19, town of Letychiv AUC/PULSE study tour to the 2019 (Khmelnytskyi Letychivska Town oblast) CTC, for representatives of potential CTCs of the Khmelnytskyi oblast within the framework of the “Itinerary of Successes” nation-wide exchange study tour Project component 37. February 19, city of Dnipro UAROC/PULSE expert workshop for 2019 representatives of rayon and oblast councils 38. February 20, city of Velyki AUC/PULSE Press tour to the 2019 Mosty (Lviv Velykomostivska City oblast) CTC 39. February 20, village of Mliiv AUC/PULSE Press tour to the 2019 (Cherkasy oblast) Mliivska Village CTC 40. February 20, city AUC/PULSE Regional legislation 2019 of Severodonetsk application laboratory in the Luhansk AUC RO 41. February 21, city of Zaporizzhya AUC/PULSE Regional legislation 2019 application laboratory in the Zaporizzhya AUC RO 42. February 21, village of AUC/PULSE Poltava AUC RO, Press 2019 Scherbani (Poltava tour to the oblast) Scherbanivska Village CTC 43. February 21, village of UAROC/PULSE Press tour to the 2019 Studenyky (Kyiv Studenykivska Village oblast) CTC 44. February 22, city of Baranivka AUC/PULSE Press tour to the 2019 (Zhytomyr oblast) Baranivska City CTC 45. February 22, city of Zhytomyr IREX/PULSE meeting of 2019 representatives of the Zhytomyr PULSE Press Club, representatives of 4 types of media (radio, TV, print and on-line media), and PULSE

98 January – March, 2019

regional consultants in the premises of the local library 46. February 26, city of Kalynivka AUC/PULSE Press tour to the 2019 (Vinnytsya oblast) Kalynivska City CTC 47. February 26, city of Sumy UAROC/PULSE expert workshop for 2019 representatives of rayon and oblast councils 48. February city of Kyiv IREX/PULSE training in public 27-28, 2019 participation to enhance facilitation skills of new teams and teams, which have had experience working with PULSE Project 49. Late February – the PULSE Project published Issue # 160 of the AUC Herald and ITINERARY OF SUCCESSES. Best AUC/PULSE Local Government Practices

50. March 01, city of Kyiv AUC/PULSE Regional legislation 2019 application laboratory in the Kyiv AUC RO 51. March 01, city AUC/PULSE Regional legislation 2019 of Khmelnytskyi application laboratory in the Khmelnytskyi AUC RO 52. March 01, city of Chernivtsi UAROC/PULSE expert workshop for 2019 representatives of rayon and oblast councils 53. March 05, city of Lviv AUC/PULSE Regional legislation 2019 application laboratory in the Lviv AUC RO 54. March 05 - city of Dnipro AUC/PULSE study tour to Dnipro 06, 2019 within the framework of the “Itinerary of Successes” nation-wide exchange study tour Project component to study the experience of Dnipro as smart city and experience in digital transformation of the community 55. March 12, city of Dubno AUC/PULSE Regional legislation 2019 application laboratory in the Rivne AUC RO 56. March 12, city of Zhytomyr UAROC/PULSE expert workshop for 2019 representatives of rayon and oblast councils 57. March 12, city of Kyiv AUC/PULSE Working session of the 2019 Kyiv Regional Policy Dialogue Platform 58. March 14, city of Cherkasy UAROC/PULSE expert workshop for 2019 representatives of rayon and oblast councils

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59. March 14, city of Ivano- UAROC/PULSE expert workshop for 2019 Frankivsk representatives of rayon and oblast councils 60. March 14, city of Kherson AUC/PULSE Regional legislation 2019 application laboratory in the Kherson AUC RO 61. March 14, city of Odesa AUC/PULSE Regional legislation 2019 application laboratory in the Odesa AUC RO 62. March 14- city of Lviv AUC/PULSE Working session of the 15, 2019 Local Finance Professional Group 63. March 15, town of Novopskov AUC/PULSE study tour to the 2019 (Luhansk oblast) Novopskovska Town CTC for representatives of potential CTCs of the Luhansk oblast within the framework of the “Itinerary of Successes” nation-wide exchange study tour Project component 64. March 15, city of Nizhyn AUC/PULSE Press tour to the 2019 (Chernihiv oblast) Nizhynska City CTC 65. March 15, city of Lviv AUC/PULSE Round table discussion 2019 with the Verkhovna Rada of Ukraine Committee on State Building, Regional Policy and Local Self- Governance. 66. March 19, city of Ivano- AUC/PULSE Regional legislation 2019 Frankivsk application laboratory in the Ivano-Frankivsk AUC RO 67. March 19, city AUC/PULSE Regional legislation 2019 of Severodonetsk application laboratory in the Luhansk AUC RO 68. March 19, city AUC/PULSE Regional legislation 2019 of Kropyvnytskyi application laboratory in the Kirovohrad AUC RO 69. March 19, town of Nova AUC/PULSE study tour to the 2019 Vodolaha (Kharkiv Novovodolazka Town oblast) CTC for representatives of potential CTCs of the Sumy oblast within the framework of the “Itinerary of Successes” nation-wide exchange study tour Project component

100 January – March, 2019

70. March 19, city of Rivne UAROC/PULSE expert workshop for 2019 representatives of rayon and oblast councils 71. March 19, city of Starobilsk IREX/PULSE meeting of 2019 representatives of the Luhansk PULSE Press Club, representatives of 4 types of media (radio, TV, print and on-line media), and PULSE regional consultants in the premises of the local library 72. March 19, city of Chernivtsi IREX/PULSE meeting of 2019 representatives of the Chernivtsi PULSE Press Club, representatives of 4 types of media (radio, TV, print and on-line media), and PULSE regional consultants in the premises of the local library 73. March 20, city of Kyiv AUC/PULSE Round table discussion 2019 with the Verkhovna Rada of Ukraine Committee on Construction, Urban Development, Housing and Municipal Utilities 74. March 20, town of AUC/PULSE study tour to the 2019 Komyshuvakha Komyshuvaska Town (Zaporizzhya CTC for representatives oblast) of potential CTCs of the Zaporizzhya oblast within the framework of the “Itinerary of Successes” nation-wide exchange study tour Project component 75. March 20, city of Mykolaiv AUC/PULSE Regional legislation 2019 application laboratory in the Mykolaiv AUC RO 76. March 21, city of Rivne IREX/PULSE meeting of 2019 representatives of the Rivne PULSE Press Club, representatives of 4 types of media (radio, TV, print and on-line media), and PULSE regional consultants in the premises of the

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local library 77. March 21, city of Obukhiv AUC/PULSE Press tour to the 2019 (Kyiv oblast) potential Obukivska City CTC 78. March 21, city of Kyiv AUC/PULSE sectoral forum on 2019 sustainable economic development within the framework of the AUC Sustainable Territorial Community Development Forum (joint event of the PULSE Project and the PLEDDG Project) 79. March 21, city of Nemyriv AUC/PULSE study tour to the 2019 (Vinnytsya oblast) Nemyrivska City CTC for representatives of potential CTCs of the Vinnytsya oblast within the framework of the “Itinerary of Successes” nation-wide exchange study tour Project component 80. March 21, city of Sumy AUC/PULSE Regional legislation 2019 application laboratory in the Sumy AUC RO 81. March 22, city of Zaporizzhya AUC/PULSE Regional legislation 2019 application laboratory in the Zaporizzhya AUC RO 82. March 26, city of Cherkasy AUC/PULSE Regional legislation 2019 application laboratory in the Cherkasy AUC RO 83. March 26, villages of AUC/PULSE Press tour to the 2019 Novovasylivka, Pavlivska Village CTC Semenenkove and Pavlivske (Zaporizzhya oblast) 84. March 27, city of Rudky AUC/PULSE study tour within the 2019 (Lviv oblast) framework of the “Itinerary of Successes” nation-wide exchange study tour Project component to the Rudkivska City CTC for representatives of potential CTCs of the Lviv oblast within the framework of the “Itinerary of Successes” nation-wide exchange

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study tour Project component 85. March 27, city of Chernihiv AUC/PULSE working sessions 2019 Chernihiv Regional Policy Dialogue Platform 86. March 27, city of Uzhgorod AUC/PULSE Regional legislation 2019 application laboratory in the Zakarpattya AUC RO 87. March 28, city of Kharkiv AUC/PULSE Regional legislation 2019 application laboratory in the Kharkiv AUC RO 88. Late March – the PULSE Project published Issue # 161 of the AUC Herald and BOOK OF SUCCESSES for Quarter I, 2019

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No No No No No No No Project Annex Previous the PULSE the PULSE experience in participating in participating

organisation Name of the non-governmental Buzivchany Union Non-Governmental Organisation Path of Good Non-Governmental Organisation Building the Future Together Non- Governmental Organisation Bukovyna Association of Agricultural Extension Services Ust-Putyla Zlahoda Village Non- Governmental Organisation Steps towards the Future Non- Governmental Organisation Skarbnychka Non-Governmental Organisation Kramatorsk Pensioners Non- Governmental Wings Center for Public Activity Support Non-Governmental Organisation Mariupol Development Foundation Non- Governmental Organisation MagicRunes Non-Governmental Organisation ental organisations who were selected for funding werewho selected ental organisations

– gement information events gement information Library Buzivka Village Library Uman Centralized City Library System Nizhyn City Centralized Library System Klishkivtsi Village Library Affiliation # 3 Village Library of the village of Ust- Putyla Library of the Kostryzhivka Secondary School of village Library Village Nedoboivtsi Library Affiliation #2 of the Kramatorsk Centralized Library System Central City Library of the Lyman Centralized Library System V. Sosyura Donetsk OblastLibrary for Children Zvanivka Village Library Siversk Library City (from April, 2019 till September, 2019) 2019) September, 2019 till (from April,

for conducting enga citizen City/village/CTC Buzivska CTC date (selection Uman of city has not been identified, work is in the process) city of Nizhyn selection date has not been identified, work is in the process) Klishkovetska CTC Ust-Putylska CTC Kostryzhivska CTC Nedoboivska CTC city of Kramatorsk (selection date has not been identified, work the in is process) CTC Lymanska (selection Mariupol of city date has not been identified, work the in is process) Zvanivska CTC Siverska CTC

Oblast Oblast Cherkasy Cherkasy Chernihiv Chernivtsi Chernivtsi Chernivtsi Chernivtsi Donetsk Donetsk Donetsk Donetsk Donetsk Cohort of teams of representatives of libraries and non-governm of libraries Cohort of teams representatives

# 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12.

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No No No No No No No Prosperous Village – Now Is Now TimeYour Non-Governmental Organisation Old Volyn Non-Governmental Organisation Starokostyantyniv Is not Indifferent Non- Governmental Organisation Khmelnytskyi Oblast Department (Affiliation) of the Ukraine-Wide Ukrainian Library Association Non- Governmental Organisation ATO Participant of the Town of Chemyrivtsi and Chemyrivtsi Rayon Non-Governmental Organisation Horodok Perlyna Rayon Non- Governmental Organisation We for Act Community Development Non-Governmental Organisation Ukraine-Wide Initiative Non- Governmental Organisation Policy CenterExpertise Non- Governmental Organisation Community Unity Non-Governmental Organisation Luhansk Department Oblast of the Ukrainian Library Association Our Community Kreminna Center for Regional Development Non- Governmental Organisation Yevsuh Acts Non-Governmental Organisation Dunayivtsi City Library Hrytsiv Town Library Starokostyantyniv Central Rayon Library Chornyi Ostriv Library Volochysk Central Library Chemyrivtsi Rayon Library Central Library of the Horodok City Council Yarmolyntsi Central Rayon Library Solobkivtsi Affiliation Library of the Yarmolyntsi Centralized Library System Nemishaeve City Library Skvyra Central Rayon Library Yurivka Village Library M. Horkyi Luhansk Universal Oblast Scientific Library Kreminna Centralised Rayon Library System Library Village Yevsuh Dunaevetska CTC City Hrytsivska CTC Starokostyantyniv of city (selection date has not been identified, work in the is process) Chornoostrivska CTC Volochyska CTC Chemerovetska CTC Horodotska CTC Yarmolyntsi of town date(selection has not been identified, work in the is process) Solobkovetska CTC town of Nemishaeve (selection date has not been identified, work in the is process) date (selection Skvyra of city has not been identified, work is in the process) village of Vita-Poshtova date(selection has not been identified, work in the is process) city of Starobilsk(selection date has not been identified, work the in is process) city of Kremminna (selection date has not been identified, work the in is process) Bilovodska CTC

Khmelnytskyi Khmelnytskyi Khmelnytskyi Khmelnytskyi Khmelnytskyi Khmelnytskyi Khmelnytskyi Khmelnytskyi Khmelnytskyi Kyiv Kyiv Kyiv Luhansk Luhansk Luhansk 13. 14. 15. 16. 17. 18. 19. 20. 21. 22. 23. 24. 25. 26. 27.

105 QUARTERLY REPORT for the implementation of the PULSE Project

No No No No No No No No No No Chmyrivskyi Svitanok Non- Governmental Organisation Avalist Non-Governmental Organisation Krasnorichenske Initiative Non- Governmental Organisation Siverskyi Donets Crisis Media Center Non-Governmental Organisation Shulhynski Non-Governmental Zori Organisation Troitska Non-Governmental Nadiya Organisation Novyi Rozdil Youth Regional Foundation InitiativesNon-Governmental Organisation Yavoriv Region Agency for Economic Development Public Union Youth Local Self-Governance Support Committee Non-Governmental Organisation OberihHnizdychiv Non-Governmental Organisation Korovai International Charity Foundation Charity Organisation Trostyanets Art Center Non- Governmental Organisation Reni Our Heritage Rayon Non- Governmental Organisation Chmyrivska Village Library of the Center of Culture and Leisure of the Chmyrivka Village Council of the Starobilsk Rayon Hirske Library City for Adults Krasnorichenske Library for Adults and Children Severodonetsk Public City Library Affiliation Library # 29 of the Starobilsk Regional Centralized Library System Library Village Voevodivka Novyi Rozdil Centralized City Library System Affiliation Library of the town of Nemyriv of the Yavoriv Yu. Lypa Central Regional Library Affiliation Library of the town of Ivano-Frankove of the Yavoriv Yu. CentralLypa Regional Library I. Franko Library Public of the Dublyany Town Council Information Center Library of Intellectual Development of the Town Hnizdychiv Council L. Ukrainka Central City Library of the village of Velyka Volya Reni Rayon Children Library Chmyrivska CTC date (selection Hirske of city has not been identified, work is in the process) Krasnorichenska CTC Severodonetsk of city (selection date has not been identified, work in the is process) village of Shylhynka (selection date has not been identified, work in the is process) CTC Troitska the (in Rozdil Novyi of city process of unification) town ofNemyriv (selection date has not been identified, work the in is process) town of Ivano-Frankove (selection date has not been identified, the work in is process) Dublyanska CTC Hnizdychivska CTC date (selection Lviv of city has not been identified, work is in the process) TrostyanetskaCTC date (selection Reni of city has not been identified, work is in the process)

Luhansk Luhansk Luhansk Luhansk Luhansk Luhansk Lviv Lviv Lviv Lviv Lviv Lviv Lviv Odesa 28. 29. 30. 31. 32. 33. 34. 35. 36. 37. 38. 39. 40. 41.

106 January – March, 2019

No No No No No No No GoodDeeds Non- – Balta Rayon Organisation of Persons with Disabilities Non-Governmental Organisation RADIUS Non-Governmental Organisation ZEON City Development Center Non- Governmental Organisation Village development Support Non- Governmental Organisation Zlahoda Shepetyn Village Non- Governmental Organisation of the Dubno Rayon of eth Rivne Oblast Dobrivchanka Dobryvody Village Non- Governmental Organisation Krupets Syaivo Village Non- Governmental Organisation New Community Life Standards Non- Governmental Organisation Sloutska Non-Governmental Organisation Trostyanets Region Family Circle Non- Governmental Organisation World of Information Association of Users of Rayon the Bar LibraryNon- Governmental Organisation Hope of Tomashpil Region Non- Governmental Organisation RegionalBratslav Development Institute Non-Governmental Organisation Podillya Governmental Organisation Wing of Hope Non-Governmental Organisation Meta Plus Non-Governmental Organisation Separate ofUnit the Ukraine-Wide OlenaWomen Teliha Society in the city of Vynohradiv Balta Public Library of the Balta City Council Pischane Town Library Zdolbuniv Centralised System of Public School Libraries of the Zdolbuniv Rayon Council of the Rivne Oblast Karpylivka Public Library Smyha Central Library of the Smyha Town Council Kozyn Central Library of the Kozyn Village Council Public School Library of the village of Mykhailivka Hrunivka Village Library Slout Village Library Trostyanets Public Library of the Trostyanets City Council Bar Rayon Library Tomashpil Rayon Library Bratslav PublicLibrary Centralised Library System of the Nemyriv City Council Sarny Village Library Pavlivka Village Library Library Rayon Vynohradiv Baltska CTC CTC Pischanska (selection Zdolbuniv of city date has not been identified, work the in process) is Klesivska CTC Smyzka CTC Kozynska CTC Krupetska CTC Hrunska CTC Berezivska CTC Torstyanetska CTC Barska CTC Tomashpilska CTC Bratslavska CTC Nemyrivska CTC Smolyhivska CTC Pavlivska CTC the (in Vynohradiv of city process of unification)

Odesa Poltava Rivne Rivne Rivne Rivne Rivne Sumy Sumy Sumy Vinnytsya Vinnytsya Vinnytsya Vinnytsya Volyn Volyn Zakarpattya 42. 43. 44. 45. 46. 47. 48. 49. 50. 51. 52. 53. 54. 55. 56. 57. 58.

107 QUARTERLY REPORT for the implementation of the PULSE Project

No No No e ChernihivRayon PROLISOK-BERDYANSK Non- Governmental Organisation Association of Learning Cities Non- Governmental Organisation Non-Governmental Ortega-and-Gaset Organisation Mercenary of Ukraine Non- Governmental Organisation Public Control in th Non-Governmental Organisation Komysh-Zorya Citizen Union Non- Governmental Organisation Yakymivska Non- Svitlytsya Governmental Organisation Youth Chooses Life Berdychiv City Non- Governmental Organisation TIME Non-Governmental Organisation Association of Libraries of the Vinnytsya Region Non-Governmental Organisation Good Deeds Berdychiv City and Rayon Non-Governmental Organisation 65 NGOs ,

72 communities, libraries72 : Berestove Village Library Osypenko Village Library Melitopol Rayon Central Library City Library city of Tokmak Library Village Snihurivka Shyroke Village Library Chernihiv Town Library Komysh-Zorya Town Library Yakymivka Centralised Library System of the Yakymivka Town Council Berdychiv City Library Oliivka Village Library Library village of Stanyshivka Library Zhytomyr National I. Franko University Krasivka Village Library TOTAL Berestivksa CTC CTC Osypenkivska village of Semenivka (selection date has not been identified, work in the is process) (selection Tokmak of city date has not been identified, work is in the process) Ostrykivska CTC Shyrokivska CTC Chernihivska CTC Komysh-Zoryanska CTC Yakymivska CTC (selection Berdychiv of city date has not been identified, work the in is process) Oliivska CTC Stanyshivska CTC Hlybochytska CTC Semenivska CTC

Zaporizzhya Zaporizzhya Zaporizzhya Zaporizzhya Zaporizzhya Zaporizzhya Zaporizzhya Zaporizzhya Zaporizzhya Zhytomyr Zhytomyr Zhytomyr Zhytomyr Zhytomyr 59. 60. 61. 62. 63. 64. 65. 66. 67. 68. 69. 70. 71. 72.

108