QUARTERLY REPORT for the Policy for Ukraine Local Self-Governance (PULSE) Project
OCTOBER – DECEMBER, 2018 (І QUARTER OF US FISCAL YEAR 2019) QUARTER TWELVE OF THE PROJECT IMPLEMENTATION QUARTERLY REPORT for the Policy for Ukraine Local Self-Governance (PULSE) Project TABLE OF CONTENTS
List of abbreviations 4
Resume 5
Chapter 1. KEY ACHIEVEMENTS IN THE REPORTING QUARTER 5
Chapter 2. PROJECT IMPLEMENTATION 8
ER 1: Decentralisation enabling legislation reflects local government input 8
1.1. Local government officials participate in sectoral legislation drafting 9 grounded on the European sectoral legislative principles
1.1.1. Preparation and approval of strategies for sectoral reforms 9
1.1.2. Preparation of sectoral legislation 19
1.1.3. Legislation monitoring 24
1.1.4. Resolving local government problem issues and promotion of sectoral reforms 25
1.2. Local governments and all interested parties are actively engaged and use 30 participatory tool to work on legislation and advocating for its approval
1.2.1 Support for approval of drafted legislation in the parliament: 30 tools for interaction with the VRU
1.2.2 Support to approval of resolutions and directives of the Cabinet of Ministers: 41 tools to interact with the Cabinet of Ministers of Ukraine
1.3. Local governments improved their practice and quality of services because 52 of the sound decentralised legislative basis for local governments
1.3.1. Legal and technical assistance 52
1.3.2. Web-tools to increase the efficiency of local government activities 53
1.3.3. Feedback: receiving and disseminating 54
ER 2: Resources under local self-governance authority increased 55
2.1. Local self-governance own resources are increased ensuring local government 58 financial autonomy
2.1.1. Tools to increase own resources of local governments 58
2.1.2. Dissemination of best practices and replication of experience 61
2.2. Tools for local government to access additional financial resources are in place and 63 utilised
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2 October – December, 2018 Quarter twelve of the Project implementation
TABLE OF CONTENTS 2.2.1. Capacity building for local government officials 63
List of abbreviations 4 2.2.2. Promotion of access to resources 63
Resume 5 ER 3: Capacity of stakeholders increased 65
Chapter 1. KEY ACHIEVEMENTS IN THE REPORTING QUARTER 5 3.1. Local governments and stakeholders are informed and capable of carrying out 65 new roles and responsibilities flowing from decentralisation reform Chapter 2. PROJECT IMPLEMENTATION 8 3.1.1. Capacity building for local officials at the local level 65 ER 1: Decentralisation enabling legislation reflects local government input 8 3.1.2. Capacity building for local officials at the oblast and rayon level 74 1.1. Local government officials participate in sectoral legislation drafting 9 grounded on the European sectoral legislative principles 3.1.3. Training for NGOs’ representatives and librarians as the communicators of reforms 75
1.1.1. Preparation and approval of strategies for sectoral reforms 9 3.1.4. Training for NGOs’ representatives 76
1.1.2. Preparation of sectoral legislation 19 3.2. Communication and outreach of decentralisation reform is enhanced 76
1.1.3. Legislation monitoring 24 3.2.1. Creating communication channels for central authorities outreach and messaging 76 on decentralisation reform progress in various sectors 1.1.4. Resolving local government problem issues and promotion of sectoral reforms 25 3.2.2. Strategic messaging through different media 77 1.2. Local governments and all interested parties are actively engaged and use 30 participatory tool to work on legislation and advocating for its approval 3.3. Increased public awareness of reform successes and trust in local governments 86
1.2.1 Support for approval of drafted legislation in the parliament: 30 3.3.1. Supporting Offices for Reform Implementation Support 86 tools for interaction with the VRU 3.3.2. Promotion of reform successes 88 1.2.2 Support to approval of resolutions and directives of the Cabinet of Ministers: 41 tools to interact with the Cabinet of Ministers of Ukraine Chapter 3. IMPLEMENTATION PROBLEMS AND BARRIERS 90
1.3. Local governments improved their practice and quality of services because 52 Chapter 4. SUCCESS STORIES 91 of the sound decentralised legislative basis for local governments Chapter 5. COOPERATION WITH OTHER PROJECTS 101 1.3.1. Legal and technical assistance 52 Chapter 6. SUGGESTED PLAN OF ACTIVITIES FOR THE COMING QUARTER 106 1.3.2. Web-tools to increase the efficiency of local government activities 53 Annexes 107 1.3.3. Feedback: receiving and disseminating 54 Annex А. Calendar of events of the PULSE Project conducted in October – December, 2018 Annex В. List of sub-agreements with PULSE Project sub-partners ER 2: Resources under local self-governance authority increased 55 Annex С. Report on the survey of village, town and city mayors conducted in 2018 Annex С1. Info graphics. Summary of the survey of village, town and city mayors conducted in 2.1. Local self-governance own resources are increased ensuring local government 58 2018 financial autonomy
2.1.1. Tools to increase own resources of local governments 58
2.1.2. Dissemination of best practices and replication of experience 61
2.2. Tools for local government to access additional financial resources are in place and 63 utilised
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3 QUARTERLY REPORT for the Policy for Ukraine Local Self-Governance (PULSE) Project LIST OF ABBREVIATIONS AUC – Association of Ukrainian Cities AUC RO – Regional Office of the Association of Ukrainian Cities CEMR – Council of European Municipalities and Regions CSEA – central state executive authorities CAS – Center for Administrative Services CEC – Central Elections Commission CMU – Cabinet of Ministers of Ukraine CTC – consolidated territorial community HEE – Higher Educational Establishment HMU – housing and municipal utilities sector 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 MFR – Municipal Fiscal Register MFU – Ministry of Finance of Ukraine MLSP – Ministry of Labour and Social Policy of Ukraine MIU – Ministry of Interior of Ukraine MRD – Ministry of Regional Development MOTIDPU – Ministry of Temporarily Occupied Territories and Internally-Displaced Persons of Ukraine NCS – National Construction Standard NGO – non-governmental organisation NRDF – National Regional Development Fund NSS – National Social Standards NSSN – National Social Standards and Norms OECD – Organisation for Economic Cooperation and Development OSA – Oblast State Administration PIT – Personal Income Tax RSA – Rayon State Administration RSG – Reform Support Group SFS – State Fiscal Service SMCA –State Military and Civilian Administration STS – State Treasury Service TAB – EU Transparent, Accountable and Responsive Budgeting Process at the Local Level in Ukraine Project UAROC – Ukrainian Association of Rayon and Oblast Councils USAID – U.S. Agency for International Development UTG – Unified Tariff Grid UWNGO – Ukraine-Wide Non-Governmental Organisation
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4 October – December, 2018 Quarter twelve of the Project implementation
LIST OF ABBREVIATIONS AUC – Association of Ukrainian Cities AUC RO – Regional Office of the Association of Ukrainian Cities RESUME CEMR – Council of European Municipalities and Regions PULSE Project is working to develop a proper legal framework for decentralisation reform in Ukraine, CSEA – central state executive authorities ensuring that local governments contribute to decentralisation policy development and implementation, CAS – Center for Administrative Services increase resources under local government authority and improve local government's ability to effectively CEC – Central Elections Commission use them, and enhancing the capacity and raising the professional level of key reform stakeholders involved. CMU – Cabinet of Ministers of Ukraine CTC – consolidated territorial community This report provides information on the Project implementation in October - December, 2018. The main HEE – Higher Educational Establishment achievements are presented in Chapter 1. HMU – housing and municipal utilities sector Calendar (list) of events is presented in Annex A. ITA – international technical assistance KSSA – Kyiv City State Administration List of sub-agreements concluded by AUC with the Project sub-partners is presented in Annex В. LED – Local Economic Development The results of the survey of city, town and village mayors conducted in 2018 (report and info graphics of the LGC – local government caucus (Parliamentary Inter-Faction Local Government Support Group) findings) are provided in Annexes C and C1, respectively. MCU – Ministry of Culture of Ukraine MESU – Ministry of Education and Science of Ukraine MFR – Municipal Fiscal Register Chapter 1. KEY ACHIEVEMENTS IN THE REPORTING QUARTER AND CALENDAR MFU – Ministry of Finance of Ukraine OF EVENTS MLSP – Ministry of Labour and Social Policy of Ukraine MIU – Ministry of Interior of Ukraine PULSE Project was engaged in the establishment of new CTCs. On December 23, 2018, the initial MRD – Ministry of Regional Development local elections took place in 12 oblasts in 77 consolidated territorial communities (9 city, 15 town, MOTIDPU – Ministry of Temporarily Occupied Territories and Internally-Displaced Persons of and 53 rural CTCs). These 77 CTCs have united 343 local councils (9 city councils, 17 town Ukraine councils, and 317villages councils). Now, there are 782 CTCs in Ukraine that have conducted NCS – National Construction Standard their initial local elections; NGO – non-governmental organisation 14 territorial communities of cities of oblast significance have merged 26 village and town NRDF – National Regional Development Fund communities with the territory of approximately 1.3 thousand sq. km (or about 0.2% of the total area NSS – National Social Standards of Ukraine) and 0.9 million people (about 2% of the total population of Ukraine). In general, (with NSSN – National Social Standards and Norms the 11 consolidated communities of oblast significance cities established in the previous reporting OECD – Organisation for Economic Cooperation and Development quarter) there are now 25 such communities in Ukraine with the population of 1,906,062, which is OSA – Oblast State Administration 4.52% of the total population of Ukraine); PIT – Personal Income Tax PULSE Project participated in the preparatory processes for the formation of 38 CTCs (comprising RSA – Rayon State Administration 171 communities), which are currently awaiting for the CEC decision on the initial local elections; RSG – Reform Support Group PULSE Project experts prepared developed 30 draft legal and regulatory documents; SFS – State Fiscal Service The Verkhovna Rada of Ukraine and the Cabinet of Ministers approved 17 regulatory and legal SMCA –State Military and Civilian Administration documents of importance for local self-governance, which were prepared with the participation of STS – State Treasury Service PULSE Project experts; TAB – EU Transparent, Accountable and Responsive Budgeting Process at the Local Level in PULSE Project experts prepared 61 expert opinions to draft regulatory and legal documents the Ukraine Project AUC received for concurrence from central state executive authorities; UAROC – Ukrainian Association of Rayon and Oblast Councils PULSE Project experts prepared 29 expert opinions on draft regulatory and legal documents, which are being considered by committees of the Verkhovna Rada of Ukraine; USAID – U.S. Agency for International Development PULSE Project experts participated in 25 meetings of 9 parliamentary committees, 13 meetings of UTG – Unified Tariff Grid the Cabinet of Ministers of Ukraine, and 25 meetings of Cabinet of Ministers Committees; UWNGO – Ukraine-Wide Non-Governmental Organisation In the course of the discussion of draft agendas of the Cabinet of Ministers and its committees, PULSE Project experts monitored 1,213 draft regulatory and legal documents, in particular: 76 draft laws, 40 presidential decrees and directives, 995 resolutions and directives of the Cabinet of Ministers, 102 expert opinions on draft legislation, legislation implementation plans, etc. The draft regulatory and legal documents PULSE Project experts worked with included 441 (36.4%) documents dealing with local government issues; PULSE Project organised and conducted 4 working sessions of AUC Professional Groups; PULSE regional consultants provided 2,542 consultations on legal and financial issues and local economic development issues; During the reporting period, 15 meetings of Regional Policy Dialogue Platforms in 15 oblasts with the participation of 21 National Deputies of Ukraine.
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5 QUARTERLY REPORT for the Policy for Ukraine Local Self-Governance (PULSE) Project The Project organised 27 study tours within the framework of the “Itinerary of Successes” nation- wide exchange study tour Project component with the participation of 538 local government representatives who initiated the consolidation processes; PULSE Project organised 16 press tours for media in AUC Regional Offices with the participation of 260 representatives of local and regional media, which contributed to the popularisation of the reform and its success; During the reporting year, PULSE Project continued the introduction of three distance learning courses on the Prometheus online platform (www.prometheus.org.ua) prepared in previous years and introduced a new course on gender oriented budgeting, as well as completed the preparation of the training course for CTC local council members. All the courses demonstrated high attendance. All in all, since the beginning of these courses, more than 10,000 persons took part in them; The project has prepared a report and info graphics of the findings of the annual survey of city, town, and village mayors of the AUC member-municipalities conducted in August – September, 2018 to identify problems, achievements, and needs, as well as to collection data for monitoring project activities and track the reform progress. (Annexes C and C1); PULSE Project organised and conducted 19 expert workshops for 339 representatives of rayon and oblast councils including 185 males and 154 females; PULSE Project conducted 3 coordination meetings and 3 webinars for participants of Reform Support Groups in pilot communities. The webinar on the topic: "Preparation of the projects to be implemented at the expense of the subvention from the national budget to local budgets for infrastructural improvements in consolidated territorial communities and the priorities for state support for communities" drew the largest number of views: 909 on-line participants, 2,054 views on the Face book and 18 on the YouTube channel; PULSE Project conducted a competition to involve library teams and NGOs in organisation of community-based information activities resulting in the participation of 30 communities from previous project phases and with 42 new communities selected this year joining the Project. All in all, the Project received and processed 95 application forms; As a result of the work of press clubs in libraries in the reporting quarter, media and Internet resources published 39 news stories on the local government reform topics; PP organised and conducted the National Press Club for Reforms for regional mass media with the participation of 100 journalists; PULSE Project organised and conducted 35 legislation application laboratories with the participation of 844 local government representatives including 354 males and 490 females; PULSE Project organised and conducted a webinar on land management in CTCs and as of the end of December more than 4.6 thousand Internet users viewed it. The webinar was shared 113 times; PULSE Project organised and conducted 16 press tours for regional mass media with the participation of 260 representatives of local and regional mass media; PULSE Project organised and conducted 1 study tour at the national level with the participation of 35 local government representatives and 27 study tours to AUC Regional Offices with the participation of 538 local government representatives within the framework of the “Itinerary of Successes” nation-wide exchange study tour Project component; PULSE Project published a BOOK OF SUCCESSES – a collection of about the life and activity of communities after the consolidation (Quarter 4, 2018); and, PULSE Project participated in meetings of the Decentralisation Donor Board and provided a platform for meetings of Working Group # 1 of the Donor Board. PULSE Project experts participated in the events and meetings of coordination boards of partner projects, while PULSE Project invited representatives of other projects to its events.
The calendar of the PULSE Project events held in October – December, 2018 is presented in Annex A
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6 October – December, 2018 Quarter twelve of the Project implementation
The Project organised 27 study tours within the framework of the “Itinerary of Successes” nation- Chapter 2. PROJECT IMPLEMENTATION wide exchange study tour Project component with the participation of 538 local government representatives who initiated the consolidation processes; PULSE Project organised 16 press tours for media in AUC Regional Offices with the participation Expected Result 1: Decentralisation enabling legislation reflects local government input of 260 representatives of local and regional media, which contributed to the popularisation of the reform and its success; Overview of the overall context of implementation of the local government reform and reform of the During the reporting year, PULSE Project continued the introduction of three distance learning territorial arrangement of government institutions courses on the Prometheus online platform (www.prometheus.org.ua) prepared in previous years and On December 5, 2018, the Local Government Forum took place with the participation of the President of introduced a new course on gender oriented budgeting, as well as completed the preparation of the Ukraine, Chairman of the Verkhovna Rada, Prime Minister of Ukraine, and representatives of local training course for CTC local council members. All the courses demonstrated high attendance. All in governments and other authorities. The Forum was the platform for the country leadership to reinstate its all, since the beginning of these courses, took part in them; more than 10,000 persons commitment and support to the national decentralisation reform policy and its intention to complete the The project has prepared a report and info graphics of the findings of the annual survey of city, town, consolidation of territorial communities to carry out the reform of the administrative and territorial system at and village mayors of the AUC member-municipalities conducted in August – September, 2018 to the subregional and local levels to be able to conduct the next regular local elections in autumn of 2020 on a identify problems, achievements, and needs, as well as to collection data for monitoring project new territorial basis. The Cabinet of Ministers presented a step-by-step plan of actions known as the "600 activities and track the reform progress. (Annexes C and C1); Day Reform Plan" that should be implemented to complete this phase of the local government and PULSE Project organised and conducted 19 expert workshops for 339 representatives of rayon and decentralisation reform. oblast councils including 185 males and 154 females; PULSE Project conducted 3 coordination meetings and 3 webinars for participants of Reform In the context of the decentralisation reform, by 2020, we need to accomplish consolidation of communities, Support Groups in pilot communities. The webinar on the topic: "Preparation of the projects to be establish a high quality territorial basis, and specify the irreversibility of the reform in the Constitution of implemented at the expense of the subvention from the national budget to local budgets for Ukraine. Then, we will need to change the quality of life and invest resources in the development of human infrastructural improvements in consolidated territorial communities and the priorities for state capital. support for communities" drew the largest number of views: 909 on-line participants, 2,054 views Prime Minister of Ukraine Volodymyr Groisman. on the Face book and 18 on the YouTube channel; PULSE Project conducted a competition to involve library teams and NGOs in organisation of community-based information activities resulting in the participation of 30 communities from previous project phases and with 42 new communities selected this year joining the Project. All in During the reporting period, the initial local elections took place in 77 CTCs. The composition of these 77 all, the Project received and processed 95 application forms; CTCs included 343 local councils (9 city, 17 town, and 317rural local councils). Elections in 45 consolidated As a result of the work of press clubs in libraries in the reporting quarter, media and Internet territorial communities did not take place due to the declaration of the martial law in certain regions of resources published 39 news stories on the local government reform topics; Ukraine. PP organised and conducted the National Press Club for Reforms for regional mass media with the participation of 100 journalists; The dynamics of the establishment of CTCs in relation to the timeframe of the election is presented in the PULSE Project organised and conducted 35 legislation application laboratories with the participation chart below of 844 local government representatives including 354 males and 490 females; PULSE Project organised and conducted a webinar on land management in CTCs and as of the end of December more than 4.6 thousand Internet users viewed it. The webinar was shared 113 times; PULSE Project organised and conducted 16 press tours for regional mass media with the participation of 260 representatives of local and regional mass media; PULSE Project organised and conducted 1 study tour at the national level with the participation of 35 local government representatives and 27 study tours to AUC Regional Offices with the participation of 538 local government representatives within the framework of the “Itinerary of Successes” nation-wide exchange study tour Project component; PULSE Project published a BOOK OF SUCCESSES – a collection of about the life and activity of communities after the consolidation (Quarter 4, 2018); and, PULSE Project participated in meetings of the Decentralisation Donor Board and provided a platform for meetings of Working Group # 1 of the Donor Board. PULSE Project experts participated in the events and meetings of coordination boards of partner projects, while PULSE Project invited representatives of other projects to its events.
The calendar of the PULSE Project events held in October – December, 2018 is presented in Annex A
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7 QUARTERLY REPORT for the Policy for Ukraine Local Self-Governance (PULSE) Project The process of consolidation of territorial communities around cities of oblast significance continued to be active. 14 cities of oblast significance successfully annexed 26 adjacent village and town communities. Background. As of January 31, 2019, the number of residents of 782 CTCs constituted 6 million 818 thousand. Given the fact that the entire population of Ukraine without the occupied Crimea and Donbas is 42 million 178 thousand, the percentage of the population of Ukraine who lives in the 782 CTC constitutes 16.17%. In addition to this, 25 cities of oblast significance, which annexed the neighbouring communities and thus became CTCs, have the population of 1.9 million representing 5.39% of the total Ukrainian population. Thus, there are currently 807 (782 + 25) CTCs in Ukraine where almost 22% of the population live. These CTCs cover about one third of the territory of Ukraine.
At the end of the year, the parliament approved a package of laws relating to budget sufficiency in 2019. In general, this "budget package" legislation will not have a significant impact on the development of local self- governance, as the achievements will be offset by the insufficient level of financing for the delegated powers. In addition to this, the Verkhovna Rada of Ukraine approved a law on introducing amendments to the Budget Code regarding the implementation of the multi-year budget planning. The multi-year budgeting will replace the old budget system, which limited the ability of cities to plan their projects to one year only. From now on, cities will have more opportunities to plan and predict their development, for example: they will be able to implement longer-term projects, such as building better roads, completing abandoned construction activities, improve infrastructure, prepare investment projects, and to strategically think how to use of their financial resources. The Cabinet of Ministers completed the transfer of state-owned agricultural lands to the communal ownership of consolidated territorial communities planned for 2018. In total, this year, more than 1.5 million hectares of such lands were transferred to the ownership of 650 CTCs. The transfer of state-owned agricultural land to the communal ownership of consolidated territorial communities will continue in 2019 for those 185 CTCs that became consolidated in 2018. The National Budget envisions funding for taking inventory of these lands, so all the procedures for registration of land plots before they get transferred to CTCs will be carried out at the expense of the National Budget. During the fourth quarter of 2018, the government finished working on the regulatory framework to ensure complete monetisation of privileges and subsidies of services at the consumer level in 2019. During the reporting quarter, the Law of Ukraine "On Electricity Market" came into force. However, most of municipal utility companies were forced to conclude their electricity supply contracts with the "last hope" supplier, as there were no other offers on the market. Local budgets and municipal utility companies incurred additional losses (25% of the amount of electricity consumed) to pay for the services of the "last hope" provider.
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.
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8 October – December, 2018 Quarter twelve of the Project implementation
The process of consolidation of territorial communities around cities of oblast significance continued to be Progress in strategy implementation: active. 14 cities of oblast significance successfully annexed 26 adjacent village and town communities. During the reporting quarter, the Project managed to succeed in the following operational goals: Background. As of January 31, 2019, the number of residents of 782 CTCs constituted 6 million 818 thousand. Given the fact that the entire population of Ukraine without the occupied Crimea and Donbas is Regarding the Local Finance Strategy 42 million 178 thousand, the percentage of the population of Ukraine who lives in the 782 CTC constitutes with regard to the achievement of Operational Goal 1.1 "Preservation and expansion of the resource 16.17%. base": the Parliament took into account a number of proposals from the AUC when approving the In addition to this, 25 cities of oblast significance, which annexed the neighbouring communities and thus Law of Ukraine "On the National Budget for 2019". For example, the amount of the education became CTCs, have the population of 1.9 million representing 5.39% of the total Ukrainian population. subvention was been increased by 7.9 billion UAH, which will amount to UAH 69.6 billion in 2019, which is 13% more than in 2018. The amount of the subvention for infrastructure improvements in Thus, there are currently 807 (782 + 25) CTCs in Ukraine where almost 22% of the population live. These consolidated territorial communities increased to 2.1 billion UAH. CTCs cover about one third of the territory of Ukraine. The parliament approved the Law of Ukraine # 2497-VIII of August 10, 2018 "On Introducing Amendments to the Tax Code of Ukraine and Certain Laws of Ukraine Regarding Incentives for the Establishment of Family Farms", which introduced the payment of the land tax on the forest lands. Also, the parliament At the end of the year, the parliament approved a package of laws relating to budget sufficiency in 2019. In approved the Law of Ukraine "On Introducing Amendments to Certain Ukrainian Legislation Regarding the general, this "budget package" legislation will not have a significant impact on the development of local self- Issue of Land Collective Ownership, Improving Land Use Rights for Agricultural Lands, Preventing governance, as the achievements will be offset by the insufficient level of financing for the delegated Raidering and Stimulating Irrigation in Ukraine" # 2498-VIII of July 10, 2018, which increased the material powers. resources of local governments at the expense of lands of reformed collective agricultural enterprises. In addition to this, the Verkhovna Rada of Ukraine approved a law on introducing amendments to the Budget The parliament approved the Law of Ukraine "On Introducing Amendments to the Budget Code of Ukraine", Code regarding the implementation of the multi-year budget planning. The multi-year budgeting will replace which provides for: 1) an additional resource for budgets of cities of oblast significance and CTCs, the old budget system, which limited the ability of cities to plan their projects to one year only. From now specifically: collections from penal sanctions for violations of legislation; 2) directing 37% of the rent for the on, cities will have more opportunities to plan and predict their development, for example: they will be able special use of forest resources with regard to timber harvested in ripe and overgrown forest plantations to to implement longer-term projects, such as building better roads, completing abandoned construction budgets of cities of oblast significance and CTCs; 3) introduction of a new source of local budget revenues, activities, improve infrastructure, prepare investment projects, and to strategically think how to use of their such as the 5% of rent for the use of subsoil resources extraction of mineral resources of national value financial resources. (except rent for the use of subsoil resources for the extraction of oil, natural gas and gas condensate), to paid The Cabinet of Ministers completed the transfer of state-owned agricultural lands to the communal at the location of facilities for the extraction of the relevant mineral resources; and, 4) updated the ownership of consolidated territorial communities planned for 2018. In total, this year, more than 1.5 million mechanism for payment of the tourist tax. hectares of such lands were transferred to the ownership of 650 CTCs. The transfer of state-owned The Law of Ukraine "On Introducing Amendments to the Budget Code of Ukraine" prevented the agricultural land to the communal ownership of consolidated territorial communities will continue in 2019 withdrawal to oblast budgets of local government budget remaining funds received as compensation for for those 185 CTCs that became consolidated in 2018. The National Budget envisions funding for taking losses of agricultural and forestry production that were not used by the end of the budget period. inventory of these lands, so all the procedures for registration of land plots before they get transferred to CTCs will be carried out at the expense of the National Budget. The parliament approved the Law of Ukraine "On Introducing Amendments to the Tax Code of Ukraine and During the fourth quarter of 2018, the government finished working on the regulatory framework to ensure Certain Other Ukrainian Legislation Regarding Improvements of Administration and Revisiting Rates for complete monetisation of privileges and subsidies of services at the consumer level in 2019. Certain Taxes and Fees", which abolished the benefits on the payment of the land fee for railway companies and increased rates for certain taxes (rent for the use of natural resources and environmental tax), some of During the reporting quarter, the Law of Ukraine "On Electricity Market" came into force. However, most of which are credited to local budgets. municipal utility companies were forced to conclude their electricity supply contracts with the "last hope" supplier, as there were no other offers on the market. Local budgets and municipal utility companies incurred with regard to the achievement of Operational Goal 1.3 "Improving the efficiency of local taxes and additional losses (25% of the amount of electricity consumed) to pay for the services of the "last hope" fees": the government resolved the issue of payment of the personal income tax for leasing land plots provider. (shares) to local budgets of communities where the land plots are located through the approval of the Law of Ukraine "On Introducing Amendments to the Tax Code of Ukraine and Certain Other Ukrainian Laws Regarding the Implications of Administration and Revisiting Rates for Certain Activity 1.1. Local government officials participate in sectoral legislation drafting grounded Taxes and Fees”. on the European sectoral legislative principles Also, this Law regulates the mechanism for the State Fiscal Service to submit to local governments within the prescribed timeframe the reporting information on taxes and fees paid on the respective territories, 1.1.1. Preparation and approval of strategies for sectoral reforms amount of tax debt and other information about revenue sources. The information on taxpayers mentioned above will be provided upon the request of local councils. This will contribute to credible and more Each sector has the responsible expert to follow up on the sectoral profile: substantiated planning and analysis of the implementation of local budgets. Each sectoral profile includes: - a list of regulatory and legal documents regulating the sector, with regard to the achievement of Operational Goal 4.4 "Legislative framework for mandatory multi- - a long-term sector development strategy (for the next 7 - 10 years) and legislative map of its year budget forecasting based on basic indicators at the level of all local budgets": the parliament implementation, approved the Law of Ukraine "On Introducing Amendments to the Budget Code of Ukraine - a list of problem issues of sector which is regularly updated, and, (Regarding the Introduction of the Legislative Framework for Multi-Years Budget Planning)” of - a list of ways to solve certain problems, which is also regularly updated. December 06, 2018. The law defines the legal framework for the preparation and consideration of the Budget Declaration as a strategic planning document, which defines the budget policy for the The sectoral profile will serve as the basis for the preparation the relevant legislation both for the next three years. The budget declaration will be introduced to replace of the Main Directions of the implementation of the sectoral development strategy and for resolving specific problem issues. Budget Policy for the planned year and the State Budget Forecast for the next two budget periods following the planned year. The latter two documents will be abolished. 8 9
9 QUARTERLY REPORT for the Policy for Ukraine Local Self-Governance (PULSE) Project
Regarding the Land Resources and Communally Owned Property Strategy Issue 3.1 "To introduce the institutional system for the local government control of use and protection of property” was partly resolved. According to the Law of Ukraine # 2628-VIII of December 10, 2018 "On Introducing Amendments to the Tax Code of Ukraine and Certain Other Ukrainian Legislation Regarding the Implications of Administration and Revisiting Rates for Certain Taxes and Fees", control offices of the State Fiscal Service of Ukraine will submit to local governments reports on the revenue sources: about the amounts of the accrued and paid taxes, amount of the tax debt and taxes and fees paid to local budgets in excess on the respective territories - on a monthly basis, no later than the 10th date of the month following the reporting month; and, about the amount of written off tax debt; deferred and postponed amounts of tax debt and financial liabilities of taxpayers; amounts of tax benefits provided including budget losses associated with them – on a quarterly basis, no later than 25 days after the end of the reporting quarter. This reporting information on payers is to be provided by the control office upon the request of the local government. (Article 12.3.3 of the Tax Code of Ukraine).
Regarding the Public Education Strategy
with regard to the achievement of Operational Goal 1.4. "Creating a learning environment that will promote the success of pupils": Cabinet of Ministers of Ukraine endorsed Directive of # 710-p October 03, 2018 "On Approving the Concept for the Development of Civic Education in Ukraine". The document introduces legal education for citizens, in particular understanding and ability to exercise their own constitutional rights and duties and strengthens the ability of citizens to participate in public life, provides opportunities to influence decision-making processes at the national and local levels (realisation of the right to participate), thus enhancing the role each member of the community in making important decisions at the local level, which in general will have a positive impact on local self-governance; with regard to the achievement of Operational Goal 1.5. "To upgrade the teaching staff": the Cabinet of Ministers of Ukraine endorsed Resolution # 1190 of December 27, 2018 "On Approving the Regulations for the Certification of Teachers". According to this regulation, teachers will undergo certification, which will influence the pay rise for the duration of the certificate. This will increase their professional level and encourage self-education; with regard to the achievement of Operational Goal 2.1. "To clearly define the powers of the state and municipalities in the management of educational institutions": the Cabinet of Ministers endorsed Resolution of the Cabinet of Ministers of Ukraine of December 27, 2018 "On Setting up the Coordination Council for Interaction between State Executive Authorities and Local Governments for the Introduction of Reforms in the Sector of Public Education” The Council is a temporary consultative and advisory body of the Cabinet of Ministers of Ukraine to ensure the implementation of the education reform. An AUC representative became a members of their Council; with regard to the achievement of Operational Goal 2.2. "To ensure physical accessibility to quality educational services": the Ministry of Education and Science of Ukraine and the Ministry of Health Care of Ukraine prepared Directive # 1232/2067 of November 13, 2018 "On the Approval of the Regulations on the Organisation of Day-Time Comprehensive Secondary Education in Health Care Establishments”. From now on, students will be able to obtain comprehensive secondary education while staying in in-patient health care institutions. In addition to this, in the reporting period, the government enacted the National Construction Standards for designing schools (ДБН В.2.2-3:2018 «Buildings and Edifices/ Educational Establishments"). These standards are mandatory and apply to the design of new and reconstruction of existing buildings of institutions of comprehensive secondary, vocational (technical), higher and postgraduate education, as well as educational complexes. Also, the government enacted the National Construction Standards for designing schools (ДБН В.2.2-4:2018 "Pre-School Establishments"). These norms are mandatory and apply to the design of new and reconstruction of existing buildings of pre-school educational institutions of different types (those functioning independently or as structural subdivisions other educational institutions), as well as for designing premises for short-term stay children groups, which are part of buildings designed for other purposes. The National Construction Standards take into account modern requirements for the construction of educational institutions including those for persons with special educational needs;
10
10 October – December, 2018 Quarter twelve of the Project implementation
with regard to the achievement of Operational Goal 2.5. "To provide psychological comfort to Regarding the Land Resources and Communally Owned Property Strategy children in educational institutions and on the territory of the community of their residence in general": on December 18, the Verkhovna Rada of Ukraine approved the Law "On Introducing Issue 3.1 "To introduce the institutional system for the local government control of use and protection of Amendments to Certain Ukrainian Legislation to Fight Bulling" (Registration # 8584). The approval property” was partly resolved. According to the Law of Ukraine # 2628-VIII of December 10, 2018 "On of this Law will contribute to the implementation of anti-bullying techniques in the educational Introducing Amendments to the Tax Code of Ukraine and Certain Other Ukrainian Legislation Regarding the environment, as well as counteracting harassment and protecting persons who have suffered because Implications of Administration and Revisiting Rates for Certain Taxes and Fees", control offices of the State of bulling. This Law was prepared with the participation of a PULSE expert; and, Fiscal Service of Ukraine will submit to local governments reports on the revenue sources: with regard to the achievement of Operational Goal 3.2. "Introduce the public evaluation of the about the amounts of the accrued and paid taxes, amount of the tax debt and taxes and fees paid to quality of education services": the Cabinet of Ministers approved Resolution of the Cabinet of local budgets in excess on the respective territories - on a monthly basis, no later than the 10th date Ministers of Ukraine # 935 of November 07, 2018, "On Setting up Territorial Offices of the National of the month following the reporting month; and, Service for the Quality of Education". The Resolution provides for the establishment of territorial about the amount of written off tax debt; deferred and postponed amounts of tax debt and financial offices of this Service in 25 regions, which will be responsible for sustaining the quality of education liabilities of taxpayers; amounts of tax benefits provided including budget losses associated with and the quality of education activities. These entities will participate in the institutional audit of them – on a quarterly basis, no later than 25 days after the end of the reporting quarter. This educational institutions, which is a much better form for certification of educational institutions. reporting information on payers is to be provided by the control office upon the request of the local government. (Article 12.3.3 of the Tax Code of Ukraine). Regarding the Health Care Strategy Regarding the Public Education Strategy with regard to the achievement of Operational Goal 2.4. "Optimise (re-arrange) the network of with regard to the achievement of Operational Goal 1.4. "Creating a learning environment that will health care establishments", which provides for the establishment of the network of health care promote the success of pupils": Cabinet of Ministers of Ukraine endorsed Directive of # 710-p institutions that will ensure the provision of affordable, high quality primary and secondary October 03, 2018 "On Approving the Concept for the Development of Civic Education in Ukraine". (specialised) health care, the Cabinet of Ministers approved Resolution # 391 of March 28, 2018 to The document introduces legal education for citizens, in particular understanding and ability to specify the requirements for health care establishments providing medical services to the population, exercise their own constitutional rights and duties and strengthens the ability of citizens to and the Ministry of Health Care of Ukraine approved Directive # 178/24 of February 02, 2018 to participate in public life, provides opportunities to influence decision-making processes at the establish efficient networks for the provision of primary health care services. At the end of 2018, 623 national and local levels (realisation of the right to participate), thus enhancing the role each member primary health care institutions were reorganised. of the community in making important decisions at the local level, which in general will have a positive impact on local self-governance; Optimisation of the network of health care establishments providing secondary (specialised) health care is with regard to the achievement of Operational Goal 1.5. "To upgrade the teaching staff": the Cabinet takes place based through hospital districts and on the basis of the Hospital District Development Plan for the of Ministers of Ukraine endorsed Resolution # 1190 of December 27, 2018 "On Approving the period from three to five years. This document serves as the basic program document for optimising the Regulations for the Certification of Teachers". According to this regulation, teachers will undergo network of health care establishments in the region. At the end of 2018, 173 such development plans were certification, which will influence the pay rise for the duration of the certificate. This will increase approved in 14 oblasts. 87 hospital districts were established. their professional level and encourage self-education; with regard to the achievement of Operational Goal 2.1. "To clearly define the powers of the state and municipalities in the management of educational institutions": the Cabinet of Ministers endorsed Regarding the Organisational Aspects of Local Government Activities and Professional Development Resolution of the Cabinet of Ministers of Ukraine of December 27, 2018 "On Setting up the Strategy Coordination Council for Interaction between State Executive Authorities and Local Governments for the Introduction of Reforms in the Sector of Public Education” The Council is a temporary with regard to the achievement of Operational Goal 1.3 "Finalization of the reform of local self- consultative and advisory body of the Cabinet of Ministers of Ukraine to ensure the implementation government and territorial organisation of government institutions": during the reporting period, the of the education reform. An AUC representative became a members of their Council; government finalized the establishment another 78 CTCs where the initial local elections of local with regard to the achievement of Operational Goal 2.2. "To ensure physical accessibility to quality council members and village, town and city mayors took place on December 23. In addition to this, educational services": the Ministry of Education and Science of Ukraine and the Ministry of Health 14 CTCs came into being in the process of annexation of village communities to cities of oblast Care of Ukraine prepared Directive # 1232/2067 of November 13, 2018 "On the Approval of the significance, specifically around such cities as Vinnitsa, Berezan, Varash, Nova Kakhovka, Regulations on the Organisation of Day-Time Comprehensive Secondary Education in Health Care Mukacheve, Khmilnyk, Novohrad-Volynskyi, Nizhyn, Ternopil, Berezhany, Pokrov, Berdyansk, Establishments”. From now on, students will be able to obtain comprehensive secondary education Marhanets, and Kaniv; while staying in in-patient health care institutions. In addition to this, in the reporting period, the with regard to the achievement of Operational Goal 2.1. "Ensuring the attractiveness of service in government enacted the National Construction Standards for designing schools (ДБН В.2.2-3:2018 local governments for highly-trained personnel": the Cabinet of Ministers endorsed Resolution # 791 «Buildings and Edifices/ Educational Establishments"). These standards are mandatory and apply to of October 03, 2018 "On Approving Amendments to Certain Resolutions of the Cabinet of Ministers the design of new and reconstruction of existing buildings of institutions of comprehensive of Ukraine", which simplified the system for awarding bonuses to secretaries of village, town and secondary, vocational (technical), higher and postgraduate education, as well as educational city councils, deputy village, town and city mayors, chief executives (secretaries) of executive complexes. Also, the government enacted the National Construction Standards for designing schools committees, and starostas; paying them salary raises; and, providing them with allowances of (ДБН В.2.2-4:2018 "Pre-School Establishments"). These norms are mandatory and apply to the material assistance. All these will now be performed upon the decision of the village, town and city design of new and reconstruction of existing buildings of pre-school educational institutions of mayor within the set amounts for labour remuneration expenditures approved by the council, rather different types (those functioning independently or as structural subdivisions other educational than by the vote of members of the relevant council. institutions), as well as for designing premises for short-term stay children groups, which are part of buildings designed for other purposes. The National Construction Standards take into account Regarding the Social Protection Strategy modern requirements for the construction of educational institutions including those for persons with special educational needs; with regard to the achievement of Operational Goal 1.3. "Simplify the information exchange between the existing databases and to set up a uniform social register of citizens (with a social 10 11
11 QUARTERLY REPORT for the Policy for Ukraine Local Self-Governance (PULSE) Project profile of a citizen)": the Cabinet of Ministers endorsed Resolutions of the Cabinet of Ministers of Ukraine # 929 of November 07, 2018 "On Approving Amendments to Certain Resolutions of the Cabinet of Ministers of Ukraine" and # 841 of October 17, 2018 "On Approving Amendments to Certain Resolutions of the Cabinet of Ministers of Ukraine", which established the mechanism for interaction between the bodies of the state executive service and local bodies of social protection; with regard to the achievement of Operational Goal 2.1. "To plan expenditures from local budgets and National Budget and to raise donor funds to set up the material base for the functioning of the Center": the Cabinet of Ministers of Ukraine endorsed # 735-р Directive of October 10, 2018 "On Approving the Distribution in 2018 of the Subvention from the National Budget to Local Budgets for the Works Related to the Establishment and Ensuring Functioning of Centers for Administrative Services Including Social Services in the Transparent Office Format", which allocated funds to 9 territorial communities for the construction of transparent offices; with regard to the achievement of Operational Goal 3.1. "To develop a system for early detection of illness, disabilities and difficult living circumstances": the Cabinet of Ministers of Ukraine endorsed Resolution of October 03, 2018, # 800 "On Certain Issues of Social Protection of Children in Difficult Living Circumstances Including Those That Could Threaten Their Life and Health", which establishes a clear algorithm of actions for state executive authorities and local governments for early detection of children in difficult living conditions; with regard to the achievement of Operational Goal 5.2. "To introduce an effective institution of oversight bodies in the sector of social protection": the Cabinet of Ministers of Ukraine approved Resolution # 1070 of December 12, 2018 "On Setting up the National Social Service of Ukraine", which established an institution that exercises state oversight of the provision of social assistance; and, with regard to the achievement of Operational Goal 5.3. "To optimise the number of privileges and categories of their recipients; monetise the maximum number of privileges possible": the Cabinet of Ministers of Ukraine Resolution # 1176 of December 27, 2014 "On Certain Issues of the Provision of Housing Subsidies to the Population in Cash", which partially monetised the provision of subsidies at the level of citizens.
Regarding the Housing and Municipal Utilities Strategy
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 for reduced consumption of such services" was achieved thorough the endorsement of Resolution of the Cabinet of Ministers of Ukraine # 1176 of December 27, 2018 "On Certain Issues of the Provision of Housing Subsidies to the Population in Cash", which identified the mechanism for the targeted provision of privileges and subsidies to consumers of housing and municipal utility services. Thanks to this, service consumers received an effective incentive for moderate consumption of housing and municipal utility services, which will imply cash refund for the services saved during the heating season; Operational Goal 4.6 "To provide an effective mechanism of accountability for all participants of the market of housing and municipal utility services for improper implementation of their obligations" was partially achieved through the endorsement of Resolutions of the Cabinet of Ministers of Ukraine # 1010 of November 28, 2018 "On Certain Issues of Professional Attestation for the Profession of "Manager" of the Residential Building (Groups of Buildings)" and # 1145 of December 27, 2018 "On Approving the Regulations for Conducting the Inspection of Compliance of the Quality of the Provision of Certain Municipal Utility Services and Apartment Block Management Services with the Parameters Envisioned in Agreements for the Provision of the Relevant Services”. These regulations establish a mechanism for control compliance with the parameters.
Regarding the E-Governance and Public Services Strategy
with regard to the achievement of Operational Goal 2.4 "Simplification of the Procedure for Provision of Public Services" and 2.5 "Automation of Public Services": will be facilitated by the Law of Ukraine "On Electronic Trust Services", which came into force on November 07, 2018. This normative act defines the legal and organisational principles for the provision of electronic trust services, including transborder ones, the rights and obligations of the subjects of legal relations in the field of electronic trust services, the procedure for exercising state supervision (control) in 12
12 October – December, 2018 Quarter twelve of the Project implementation profile of a citizen)": the Cabinet of Ministers endorsed Resolutions of the Cabinet of Ministers of compliance with the requirements of legislation in the sphere of electronic trust services, as well as Ukraine # 929 of November 07, 2018 "On Approving Amendments to Certain Resolutions of the legal and organisational principles for the implementation of the electronic identification. The main Cabinet of Ministers of Ukraine" and # 841 of October 17, 2018 "On Approving Amendments to purpose is to regulate the relationships in the spheres of electronic trust services and electronic Certain Resolutions of the Cabinet of Ministers of Ukraine", which established the mechanism for identification. The law mentioned above will provide opportunities to introduce modern electronic interaction between the bodies of the state executive service and local bodies of social protection; methods of identification of persons in Ukraine including MobileID (recognition through the mobile with regard to the achievement of Operational Goal 2.1. "To plan expenditures from local budgets phone). and National Budget and to raise donor funds to set up the material base for the functioning of the Center": the Cabinet of Ministers of Ukraine endorsed # 735-р Directive of October 10, 2018 "On In the course of the reporting period, current changes were introduced to the corresponding sectoral profiles. Approving the Distribution in 2018 of the Subvention from the National Budget to Local Budgets for The Project updated the Current Legislative Framework sections of the following sectoral profiles (See Table the Works Related to the Establishment and Ensuring Functioning of Centers for Administrative 1.1): Services Including Social Services in the Transparent Office Format", which allocated funds to 9 territorial communities for the construction of transparent offices; Table 1.1. with regard to the achievement of Operational Goal 3.1. "To develop a system for early detection of Updates to the current legislative framework for sectoral profiles illness, disabilities and difficult living circumstances": the Cabinet of Ministers of Ukraine endorsed Resolution of October 03, 2018, # 800 "On Certain Issues of Social Protection of Children in Technical area Titles of regulatory and legal documents Titles of regulatory and legal documents Difficult Living Circumstances Including Those That Could Threaten Their Life and Health", which added excluded Decrees of Decrees of instructions establishes a clear algorithm of actions for state executive authorities and local governments for early the CMU CMU instructions of the CMU CMU Laws Laws of detection of children in difficult living conditions; President of resolutions directives ministries President resolutions directives ministries with regard to the achievement of Operational Goal 5.2. "To introduce an effective institution of Ukraine of Ukraine oversight bodies in the sector of social protection": the Cabinet of Ministers of Ukraine approved Local finance Resolution # 1070 of December 12, 2018 "On Setting up the National Social Service of Ukraine", Public 1 5 5 3 which established an institution that exercises state oversight of the provision of social assistance; education and, Social 3 1 with regard to the achievement of Operational Goal 5.3. "To optimise the number of privileges and protection categories of their recipients; monetise the maximum number of privileges possible": the Cabinet of Organisational 1 1 Ministers of Ukraine Resolution # 1176 of December 27, 2014 "On Certain Issues of the Provision aspects and of Housing Subsidies to the Population in Cash", which partially monetised the provision of professional subsidies at the level of citizens. development
Housing and 6 1 1 Regarding the Housing and Municipal Utilities Strategy municipal utilities 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 for reduced E-governance consumption of such services" was achieved thorough the endorsement of Resolution of the Cabinet and public of Ministers of Ukraine # 1176 of December 27, 2018 "On Certain Issues of the Provision of services Housing Subsidies to the Population in Cash", which identified the mechanism for the targeted Land relations 1 1 provision of privileges and subsidies to consumers of housing and municipal utility services. Thanks Health care 1 6 2 4 1 to this, service consumers received an effective incentive for moderate consumption of housing and TOTAL 1 4 21 7 8 0 1 1 0 0 municipal utility services, which will imply cash refund for the services saved during the heating season; Operational Goal 4.6 "To provide an effective mechanism of accountability for all participants of the Of the problem issues, which were resolved during the reporting period, one should mention the following: market of housing and municipal utility services for improper implementation of their obligations" was partially achieved through the endorsement of Resolutions of the Cabinet of Ministers of In the sector of housing and municipal utilities: Ukraine # 1010 of November 28, 2018 "On Certain Issues of Professional Attestation for the Profession of "Manager" of the Residential Building (Groups of Buildings)" and # 1145 of Completely resolved: December 27, 2018 "On Approving the Regulations for Conducting the Inspection of Compliance of The problem with the absence of a mechanism for checking the quality of housing and municipal the Quality of the Provision of Certain Municipal Utility Services and Apartment Block utility services. Decree of the Cabinet of Ministers of Ukraine # 1145 of December 27, 2018 "On Management Services with the Parameters Envisioned in Agreements for the Provision of the Approving the Regulations for Conducting the Inspection of Compliance of the Quality of the Relevant Services”. These regulations establish a mechanism for control compliance with the Provision of Certain Municipal Utility Services and Apartment Block Management Services with the parameters. Parameters Envisioned in Agreements for the Provision of the Relevant Services" provides an opportunity to inspect the quality of heat and water supply services, household waste disposal Regarding the E-Governance and Public Services Strategy services, as well as building management services for apartment blocks. The problem with the sequencing and making decision on the possibility of installing distributed with regard to the achievement of Operational Goal 2.4 "Simplification of the Procedure for metering devices by thermal energy consumers in apartment blocks. Resolution of the Cabinet of Provision of Public Services" and 2.5 "Automation of Public Services": will be facilitated by the Ministers of Ukraine of October 10, 2018 # 829 "On Approving the Mechanism for Determining the Law of Ukraine "On Electronic Trust Services", which came into force on November 07, 2018. This Technical Possibility for Installing Distributed Thermal Energy Metering Devices and the Economic normative act defines the legal and organisational principles for the provision of electronic trust Feasibility of Installing Devices or Distribution of Thermal Energy" provides an opportunity for services, including transborder ones, the rights and obligations of the subjects of legal relations in the field of electronic trust services, the procedure for exercising state supervision (control) in 12 13
13 QUARTERLY REPORT for the Policy for Ukraine Local Self-Governance (PULSE) Project every consumer in the apartment block to choose the optimal way for distributed metering of consumption of district heating services in his/her apartment. Partially resolved: The problem with the absence of electricity suppliers for public sector institutions and organisations, as well as for enterprises in the sector of housing and municipal utilities after the introduction of the retail electricity market. According to the Law of Ukraine "On Introducing Amendments to the Tax Code of Ukraine and Certain Other Ukrainian Legislation Regarding Improvements in Administering and Revisiting Rates for Certain Taxes and Fees", the provider is now obliged to provide electricity supply to public sector institutions and organisations, as well as to the enterprises with the consumption up to 150 kW per hour. The problem with the absence of highly qualified managers and condominium directors, as well as the proper system to training such personnel. Resolution of the Cabinet of Ministers of Ukraine # 1010 of November 28, 2018 "On Certain Issues of Professional Attestation for the Profession of «Manager» of the Residential Building (Groups of Buildings)" introduces a mechanism for conducting attestation of building managers, which should provide a professional approach managing residential buildings and improving the quality of the provision of relevant services. The problem with the mechanism for local governments to provide financial or other assistance to municipal companies in the sector of housing and municipal utility services, which became complicated because of the approval of the Law of Ukraine “On State Assistance to Economic Entities”. Resolution of the Cabinet of Ministers of Ukraine # 1141 of December 27, 2018 "On Introducing Amendments to the List of Services of Common Economic Interest" removes utility providers from the scope of the Law mentioned above. In the sector of public education: Completely resolved: The problem with the shortage of the education subvention emerging at the end of the reporting period and at the fiscal year was resolved by endorsement three directives of the Cabinet of Ministers of Ukraine: # 1018-p of December 12, 2018 "On Redistribution of the Amount of the Education Subvention from the National Budget to Local Budgets", which redistributed the education subvention in the amount of 70 million UAH to 13 cities and 23 CTCs; # 1019-р of December 12, 2018 "On Redistribution of the Amount of the Education Subvention from the National Budget to Local Budgets", which redistributed the education subvention in the amount of 17.9 million UAH to 3 cities and 5 CTCs; and, # 964-p of December 12, 2018 "On Redistribution of Expenditures from the National Budget Earmarked for the Ministry of Education and Science for 2018", which increased the amount of the education subvention by 352,191.6 thousand UAH including 228,497.5 thousand UAH, which were distributed to salaries of teachers in schools.
Partially resolved: The problem with insufficient staffing including absence of certain positions was partially resolved through the approval of Resolution of the Cabinet of Ministers of Ukraine # 1190 of December 27, 2018 "On Approving the Regulations for Certification of Teachers". According to these Regulations, teachers will undergo certification, which will result in an additional payment for the term of validity of the certificate. This will increase labour remuneration and provide opportunities for attracting highly trained teachers to vacant positions.
In the sector of health care: The problem with the lack of sufficient financial resources in local budgets to provide insulin drugs for patients with diabetes mellitus, treatment of patients with renal insufficiency, and payment of salaries to doctors in the context of changing the approaches to financing health care. This problem was resolved in Quarter Four of 2018 by endorsing directives of the Cabinet of Ministers of Ukraine, # 813-p of November 07, 2018 "On Redistribution of Expenditures from the National Budget Earmarked for the Ministry of Health Care for 2018 and Redistribution of the Health Care Subvention from the National Budget to Local Budgets", # 856-р of November 14, 2018 "On Redistribution of Expenditures from the National Budget Earmarked for the Ministry of Health Care for 2018", and, # 1003-р of 12.12.2018 "On Redistribution of Expenditures from the National Budget Earmarked for the Ministry of Health Care for 2018". These regulations of the Cabinet of Ministers provided increased a financial support to the health care sector by more than 2.6 billion UAH.
14
14 October – December, 2018 Quarter twelve of the Project implementation every consumer in the apartment block to choose the optimal way for distributed metering of In the sector of organisational aspects and professional development: consumption of district heating services in his/her apartment. The problem of the political bias in the system of labour remuneration of secretaries of local councils, deputy mayors, and chief executives was resolved. Previously, in accordance with Resolution of the Cabinet of Partially resolved: Ministers of Ukraine # 1295 of October 24, 1996, bonuses and financial welfare to the local government The problem with the absence of electricity suppliers for public sector institutions and organisations, officials mentioned above were paid based on the vote of local council members. Now, with the endorsement as well as for enterprises in the sector of housing and municipal utilities after the introduction of the of Resolution of the Cabinet of Ministers of Ukraine # 791 of October 03, 2018, this provision of Resolution retail electricity market. According to the Law of Ukraine "On Introducing Amendments to the Tax # 1295 was removed, while Resolution of the Cabinet of Ministers of Ukraine # 268 of March 09, 2006 was Code of Ukraine and Certain Other Ukrainian Legislation Regarding Improvements in supplemented with the provisions, whereby these payments to the executive officers of the local council and Administering and Revisiting Rates for Certain Taxes and Fees", the provider is now obliged to the executive committee will be paid upon the decision of the mayor according to the availability of funds. provide electricity supply to public sector institutions and organisations, as well as to the enterprises with the consumption up to 150 kW per hour. The problem with the absence of highly qualified managers and condominium directors, as well as In the sector of social protection: the proper system to training such personnel. Resolution of the Cabinet of Ministers of Ukraine # The problem of "Transfer of powers as of 2019 on financing patronage educators from the National 1010 of November 28, 2018 "On Certain Issues of Professional Attestation for the Profession of Budget to local budgets in the context of absence of funds to cover such expenditures" was resolved «Manager» of the Residential Building (Groups of Buildings)" introduces a mechanism for for the period till 2027. Amendments to the Budget Code of Ukraine # 1794 of December 20, 2016 conducting attestation of building managers, which should provide a professional approach provide for the financial support for patronage teachers at the expense of the National Budget for the managing residential buildings and improving the quality of the provision of relevant services. period till 2027. The problem with the mechanism for local governments to provide financial or other assistance to The problem of "Penalties for violating labour legislation imposed by local governments are credited municipal companies in the sector of housing and municipal utility services, which became to the National Budget, which adversely affects the idea of introducing Local Labour Inspectors" complicated because of the approval of the Law of Ukraine “On State Assistance to Economic was resolved. Amendments to the Budget Code of Ukraine # 2621-VIII November 22, 2018 stipulate Entities”. Resolution of the Cabinet of Ministers of Ukraine # 1141 of December 27, 2018 "On that fines imposed by local governments are credited to local budgets. Introducing Amendments to the List of Services of Common Economic Interest" removes utility providers from the scope of the Law mentioned above. Table 1.2. In the sector of public education: Current status of problem solutions by each sectoral profile over the reporting period Completely resolved: The problem with the shortage of the education subvention emerging at the end of the reporting Included period and at the fiscal year was resolved by endorsement three directives of the Cabinet of As of the through the As of the end of Ministers of Ukraine: # 1018-p of December 12, 2018 "On Redistribution of the Amount of the Sectoral profile beginning of the optimisation of Resolved the reporting Education Subvention from the National Budget to Local Budgets", which redistributed the reporting period problem issues period education subvention in the amount of 70 million UAH to 13 cities and 23 CTCs; # 1019-р of defined earlier December 12, 2018 "On Redistribution of the Amount of the Education Subvention from the Local budgets and 21 National Budget to Local Budgets", which redistributed the education subvention in the amount of financial foundations 17.9 million UAH to 3 cities and 5 CTCs; and, # 964-p of December 12, 2018 "On Redistribution of of local self- Expenditures from the National Budget Earmarked for the Ministry of Education and Science for governance 2018", which increased the amount of the education subvention by 352,191.6 thousand UAH Housing and 44 6 3 47 including 228,497.5 thousand UAH, which were distributed to salaries of teachers in schools. municipal utilities Land relations 24 1 25 Partially resolved: Organisational aspects 27 1 1 27 The problem with insufficient staffing including absence of certain positions was partially resolved and capacity building through the approval of Resolution of the Cabinet of Ministers of Ukraine # 1190 of December 27, Social protection 21 2 5 18 2018 "On Approving the Regulations for Certification of Teachers". According to these Health care 27 12 15 Regulations, teachers will undergo certification, which will result in an additional payment for the Public education 30 1 29 term of validity of the certificate. This will increase labour remuneration and provide opportunities Local economic 15 for attracting highly trained teachers to vacant positions. development In the sector of health care: E-governance and 19 The problem with the lack of sufficient financial resources in local budgets to provide insulin drugs for public services patients with diabetes mellitus, treatment of patients with renal insufficiency, and payment of salaries to doctors in the context of changing the approaches to financing health care. This problem was resolved in Meetings of AUC Professional Groups Quarter Four of 2018 by endorsing directives of the Cabinet of Ministers of Ukraine, # 813-p of November Public Education Professional Group 07, 2018 "On Redistribution of Expenditures from the National Budget Earmarked for the Ministry of Health October 11 - 12, 2018, city of Vinnytsya. Care for 2018 and Redistribution of the Health Care Subvention from the National Budget to Local The meeting of the Professional Group brought together 45 representatives of education management Budgets", # 856-р of November 14, 2018 "On Redistribution of Expenditures from the National Budget departments of AUC member-municipalities, Vinnytsya City Mayor and representatives of the Ministry of Earmarked for the Ministry of Health Care for 2018", and, # 1003-р of 12.12.2018 "On Redistribution of Education and Science of Ukraine and the National Service for Quality of Education in Ukraine. Expenditures from the National Budget Earmarked for the Ministry of Health Care for 2018". These In the course of the round table discussion, the participants discussed a number of important issues in the regulations of the Cabinet of Ministers provided increased a financial support to the health care sector by sphere of public education that needed to be resolved: more than 2.6 billion UAH. - shortage of the education subvention and the need to introduce amendments to the formula for its calculation; 14 15
15 QUARTERLY REPORT for the Policy for Ukraine Local Self-Governance (PULSE) Project - imperfect mechanism for spending funds for inclusive education; - lack of funds in local budgets for the development of out-of-school educational institutions, construction of pre-school establishments, fire safety activities and purchase of buses for transferring children, in particular those with special educational needs; - lack of new national construction standards for educational institutions that would take into account the peculiarities of the concept of the New Ukrainian School; - need to reimburse the cost of training in educational establishments for the children whose parents are not members of these territorial communities; - need to endorse the regulations on the family type education and special laws in the sector of education, in particular, "On Completed Comprehensive Secondary Education"; - lack of methodological support for pilot classes of the New Ukrainian School (2 classes that were pilot ones last year were left without textbooks and methodological support in 2019 - 2020 academic years and are not able to continue piloting the New Ukrainian school); - need for introducing amendments to the tender legislation; and, - lack of staff and the need to change standard staffing levels of educational institutions, in particular introducing the positions of nurses, drivers and other positions. In addition to this, oblast center cities express their concerns about unresolved issues with functioning of vocational training institutions (they are not being transferred to the communal ownership of oblast center cities, while cities continue to support them through local budgets). During meetings of the AUC Public Education Professional Group, local government officials learned the practical aspects of the work of directors of cit educational establishments and studied the experience in energy efficiency of educational establishments in Vinnytsya. At the end of the event, the meeting participants summed up the meeting and planned the next sessions of the AUC Public Education Professional Group to be held in Ternopil (in April, 2019) and Odesa (in September, 2019).
Housing and Municipal Utilities Professional Group November 29 - 30, 2018, city of Zhytomyr. The meeting brought together 30 representatives of local governments from 10 regions of Ukraine (mainly directors and deputy directors of departments for housing and municipal utility services), representatives of the Ministry of Regional Development and managers of municipal utility companies of Zhytomyr. The meeting participants discussed both the approved regulatory and legal documents pursuant to the Laws of Ukraine "On Housing and Municipal Utility Services" and "On Commercial Accounting of Heating Energy and Water Supply", as well as drafted acts regulating the sector. In addition to this, the participants of the meeting discussed the following: - consequences of the introduction of natural gas and electricity markets in Ukraine; - economy and tariff policy in the sector of housing and municipal utilities in the context of the recent legislative amendments; - consequences of the untimely payment by the state for granted privileges and subsidies, as well as repayment of the debt on the difference in tariffs; - increase in the debt of the population for the payment for the services received; - risks of monetisation of subsidies at the level of service consumers; and, - need for the free transfer of state owned combined heat and power plants to the ownership of territorial communities. At the end of the meeting of the Professional Group, Zhytomyr Deputy Mayor and directors of municipal utility companies of the Zhytomyr City Council presented their experience in implementing investment projects in the housing and municipal utilities sector at the expense of both the local budget and funds of international financial organisations. Based on the discussions at the meeting, city representatives and the PULSE Project expert prepared specific proposals for resolving the most important problem issues in the sector of housing and municipal utilities, and submitted them to the Ministry of Regional Development.
1.1.2. Preparation of sectoral legislation
During the reporting quarter, PULSE Project experts prepared 30 draft regulatory and legal documents including: 3 draft regulatory and legal documents prepared exclusively by PULSE Project experts, which were registered in the parliament; 16
16 October – December, 2018 Quarter twelve of the Project implementation
- imperfect mechanism for spending funds for inclusive education; 21 draft regulatory and legal documents, with comments and proposals to them submitted in the - lack of funds in local budgets for the development of out-of-school educational institutions, course of the concurrence of these documents in the manner specified by the Law of Ukraine “On construction of pre-school establishments, fire safety activities and purchase of buses for transferring Local Government Associations”, or as expert opinions; and, children, in particular those with special educational needs; 6 draft regulatory and legal documents, which prepared within the framework of working group at - lack of new national construction standards for educational institutions that would take into account central state executive authorities. the peculiarities of the concept of the New Ukrainian School; - need to reimburse the cost of training in educational establishments for the children whose parents are not members of these territorial communities; During the reporting quarter, the Cabinet of Ministers and Verkhovna Rada of Ukraine approved 17 - need to endorse the regulations on the family type education and special laws in the sector of regulatory and legal documents, which are important for local self-governance. PULSE Project experts education, in particular, "On Completed Comprehensive Secondary Education"; participated in the preparation of these documents: - lack of methodological support for pilot classes of the New Ukrainian School (2 classes that were 1. Law of Ukraine "On the National Budget for 2019" # 2629-VIII of November 23, 2018; pilot ones last year were left without textbooks and methodological support in 2019 - 2020 academic 2. Law of Ukraine "On Introducing Amendments to the Budget Code of Ukraine" # 2621-VIII of years and are not able to continue piloting the New Ukrainian school); November 22, 2018; - need for introducing amendments to the tender legislation; and, 3. Law of Ukraine "On Introducing Amendments to the Tax Code of Ukraine and Certain Other - lack of staff and the need to change standard staffing levels of educational institutions, in particular Ukrainian Legislation Regarding Improvements Administration and Revisiting Rates for Certain introducing the positions of nurses, drivers and other positions. Taxes and Fees" # 2628-VII of November 23, 2018; In addition to this, oblast center cities express their concerns about unresolved issues with functioning of 4. Law of Ukraine "On Introducing Amendments to the Budget Code of Ukraine Regarding the vocational training institutions (they are not being transferred to the communal ownership of oblast center Introduction of Multi-Year Budget Planning" # 2646-VIII of December 06, 2018. cities, while cities continue to support them through local budgets). 5. Law of Ukraine «On Introducing Amendments to Certain Ukrainian Legislation to Fight Bulling" of During meetings of the AUC Public Education Professional Group, local government officials learned the December 12, 2018 (Registration # 8584 of July 10, 2018). The approval of this Law will contribute practical aspects of the work of directors of cit educational establishments and studied the experience in to the implementation of anti-bullying techniques in the educational space, as well as to counteract energy efficiency of educational establishments in Vinnytsya. At the end of the event, the meeting harassment and protect of persons who have suffered because of bulling; participants summed up the meeting and planned the next sessions of the AUC Public Education Professional 6. CMU Resolution # 791 of October 03, 2018 "On Approving Amendments to Certain Resolutions of Group to be held in Ternopil (in April, 2019) and Odesa (in September, 2019). the Cabinet of Ministers of Ukraine", which, in particular, simplified, upon the AUC initiative, the system of bonuses of secretaries of village, town and city councils, deputy village, town and city Housing and Municipal Utilities Professional Group mayors, chief executives (secretaries) of executive committees, starostas, and the system of granting November 29 - 30, 2018, city of Zhytomyr. them allowances, which is now exercised upon the decision of the village, town and city mayor The meeting brought together 30 representatives of local governments from 10 regions of Ukraine (mainly within the limits of available remuneration funding, rather than based on the vote of members of the directors and deputy directors of departments for housing and municipal utility services), representatives of relevant council; the Ministry of Regional Development and managers of municipal utility companies of Zhytomyr. 7. CMU Resolution of # 841 October 17, 2018 "On Approving Amendments to Certain Resolutions of The meeting participants discussed both the approved regulatory and legal documents pursuant to the Laws the Cabinet of Ministers of Ukraine" (improving the mechanisms for interaction between local of Ukraine "On Housing and Municipal Utility Services" and "On Commercial Accounting of Heating governments and territorial offices of the Ministry of Justice in the context of granting subsidies; Energy and Water Supply", as well as drafted acts regulating the sector. In addition to this, the participants of 8. CMU Resolution # 926 of October 31, 2018 "On Approving Model Regulations on the Small Group the meeting discussed the following: House". These regulations was approved with the aim of introducing de-institutionalisation in - consequences of the introduction of natural gas and electricity markets in Ukraine; Ukraine and promotion of family type education in territorial communities; - economy and tariff policy in the sector of housing and municipal utilities in the context of the recent 9. CMU Resolution # 996 of 28.11.2018 "On Introducing Amendments to the Resolutions of the legislative amendments; Cabinet of Ministers of Ukraine # 1751 of December 27, 2001 and # 917of November 21, 2013”. This Resolution resolve the issue of payment of a new type of state social allowance provided by - consequences of the untimely payment by the state for granted privileges and subsidies, as well as repayment of the debt on the difference in tariffs; local social protection offices; 10. Resolution of the Cabinet of Ministers of Ukraine # 1010 of November 28, 2018 "On Certain Issues - increase in the debt of the population for the payment for the services received; of Professional Attestation for the Profession of" Manager "of the Residential Building (Groups of - risks of monetisation of subsidies at the level of service consumers; and, Buildings)", which determines the sequencing for the certification of the manager of a residential - need for the free transfer of state owned combined heat and power plants to the ownership of building and establishes the criteria that must be met by companies, institutions, and organisations territorial communities. that will perform such professional certification. The implementation of the Resolution will At the end of the meeting of the Professional Group, Zhytomyr Deputy Mayor and directors of municipal contribute to the introduction of housing managers and is expected to ensure the professional utility companies of the Zhytomyr City Council presented their experience in implementing investment approach to management of residential buildings, as well as to improve the quality of building projects in the housing and municipal utilities sector at the expense of both the local budget and funds of management services; international financial organisations. 11. CMU Resolution # 1141 of December 27, 2018 "On Introducing Amendments to the List of Services Based on the discussions at the meeting, city representatives and the PULSE Project expert prepared specific of Common Economic Interest" (regarding including housing and municipal utility services in the proposals for resolving the most important problem issues in the sector of housing and municipal utilities, list); and submitted them to the Ministry of Regional Development. 12. Resolution of the Cabinet of Ministers of Ukraine # 1145 of December 27, 2018 “On Approving the
Regulations for Conducting the Inspection of Compliance of the Quality of the Provision of Certain
Municipal Utility Services and Apartment Block Management Services with the Parameters 1.1.2. Preparation of sectoral legislation Envisioned in Agreements for the Provision of the Relevant Services”.\ The Resolution defines the
algorithm of actions to check the quality of the provision of selected housing and municipal utility During the reporting quarter, PULSE Project experts prepared 30 draft regulatory and legal documents services, which will ensure the protection of rights of consumers of such services; including: 13. CMU Resolution # 1176 of December 27, 2018 “On Certain Issues of the Provision of Housing 3 draft regulatory and legal documents prepared exclusively by PULSE Project experts, which were Subsidies to the Population in Cash”; registered in the parliament; 16 17
17 QUARTERLY REPORT for the Policy for Ukraine Local Self-Governance (PULSE) Project 14. CMU Resolution # 1190 of December 27, 2018 "On Approving the Regulations for Certification of Teachers". According to these Regulations, teachers will have to undergo professional certification, which will result in an additional payment for the duration of the validity of the certificate. The AUC concurred with the draft resolution with reservations that were completely taken into account in the current version of the document; 15. Directive of the Cabinet of Ministers of Ukraine # 710-p of October 03, 2018 "On Approving the Concept for Development of Civic Education in Ukraine". The introduction of legal education for citizens, in particular in terms of their understanding and ability to exercise their own constitutional rights and responsibilities, strengthening their ability to participate in public life and their possibility to influence decision-making processes at the national and local levels (implementation of the right to participate) will strengthen the role each member of the community in making important decisions at the local level, which in general will have a positive impact on local self-governance. The AUC concurred with the draft document with reservations (Letter # 5-37 of January 31, 2018), most of which were taken into account when elaborating the document; 16. Directive of the Ministry of Regional Development # 239 of September 09, 2012 "On Approving the Procedure for Local Governments to Consider the Calculation of Tariffs for Heating Energy, Its Generation, Transportation and Supply, as Well as the Calculation of Tariffs for Municipal Utility Services Submitted for Their Approval", which establishes the procedure for local governments to consider tariffs for municipal utility services before their approval. The established mechanism clearly stipulates the timeframe and procedures for submission and consideration of tariffs prepared by utility service providers; 17. Joint Directive of the Ministry of Education and Health and the Ministry of Health of 11/13/2018 # 1232/2067 "On Approving the Regulations on the Peculiarities of the Organisation of Day-Time Comprehensive Secondary Education in Health Care Establishments". This Directive introduces the legislative framework for organising training activities for school-age children who stay in in-patient health care facilities. The AUC concurred with the documents with reservations (AUC Letter of # 5- 516, November 06, 2018), most of which were taken into account in the course of elaboration.
The following documents were approved in the first reading: Draft Law of Ukraine “On Introducing Amendments to the Law of Ukraine “On Regulation of Urban Development Activities” (regarding the transfer, termination or temporary suspension of powers of state architectural and construction control bodies)" (Registration # 7266-1 of November 20, 2017).
The information about the status of the preparation of regulatory and legal documents is presented in the table below.
Table 1.3. Distribution of draft regulatory and legal documents by sector
Number of Number of draft draft documents documents Sector prepared since prepared in the the beginning of reporting the Project quarter Local finance 1 71 Housing and municipal utilities 0 18 Land and communally-owned property 3 12 Organisational aspects of local government activities and capacity 4 41 building for their officials Social protection 12 43 Health care 1 7
18
18 October – December, 2018 Quarter twelve of the Project implementation
14. CMU Resolution # 1190 of December 27, 2018 "On Approving the Regulations for Certification of Public education 6 36 Teachers". According to these Regulations, teachers will have to undergo professional certification, which will result in an additional payment for the duration of the validity of the certificate. The AUC Administrative services and e-governance 0 2 concurred with the draft resolution with reservations that were completely taken into account in the Sustainable economic development and urban development 3 23 current version of the document; 15. Directive of the Cabinet of Ministers of Ukraine # 710-p of October 03, 2018 "On Approving the TOTAL 30 253 Concept for Development of Civic Education in Ukraine". The introduction of legal education for citizens, in particular in terms of their understanding and ability to exercise their own constitutional rights and responsibilities, strengthening their ability to participate in public life and their possibility to influence decision-making processes at the national and local levels (implementation of the right Table 1.4. to participate) will strengthen the role each member of the community in making important decisions List of prepared draft regulatory and legal documents at the local level, which in general will have a positive impact on local self-governance. The AUC Registration concurred with the draft document with reservations (Letter # 5-37 of January 31, 2018), most of Title of the draft law Subject matter which were taken into account when elaborating the document; number 16. Directive of the Ministry of Regional Development # 239 of September 09, 2012 "On Approving the Draft Law of Ukraine “On Improvements in the hands-on application of terms, Procedure for Local Governments to Consider the Calculation of Tariffs for Heating Energy, Its Introducing Amendments to bringing certain provisions of the Law, which do not Generation, Transportation and Supply, as Well as the Calculation of Tariffs for Municipal Utility the Law of Ukraine “On correspond and comply with the current legislation, Services Submitted for Their Approval", which establishes the procedure for local governments to n/a Privatisation of State-Owned in compliance with the legislation. consider tariffs for municipal utility services before their approval. The established mechanism and Communally-Owned clearly stipulates the timeframe and procedures for submission and consideration of tariffs prepared Property””. by utility service providers; Draft Resolution «On Improvements of the mechanisms for interaction 17. Joint Directive of the Ministry of Education and Health and the Ministry of Health of 11/13/2018 # Approving Amendments to between local governments and territorial units of the 1232/2067 "On Approving the Regulations on the Peculiarities of the Organisation of Day-Time Certain Resolutions of the Ministry of Justice in determining the amount of Comprehensive Secondary Education in Health Care Establishments". This Directive introduces the n/a Cabinet of Ministers of subsidies to be granted. legislative framework for organising training activities for school-age children who stay in in-patient Ukraine". health care facilities. The AUC concurred with the documents with reservations (AUC Letter of # 5- 516, November 06, 2018), most of which were taken into account in the course of elaboration. Amendments to the CMU Provides an opportunity for CTCs to exercise self- Resolution «On the government control over the use of land. Regulations for Determining The following documents were approved in the first reading: n/a and Compensating Losses to Draft Law of Ukraine “On Introducing Amendments to the Law of Ukraine “On Regulation of Land Owners and Land Urban Development Activities” (regarding the transfer, termination or temporary suspension of Users" of April 19, 1993, # powers of state architectural and construction control bodies)" (Registration # 7266-1 of November 284. 20, 2017).
The information about the status of the preparation of regulatory and legal documents is presented in the Draft regulatory and legal documents, to which corrections and proposals were submitted, in the course of table below. their approval in the manner prescribed by the Law of Ukraine "On Local Government Associations", or when expert opinions were provided: Table 1.3. 1. Draft Law of Ukraine "On Introducing Amendments to Section VI "Final and Transitional Distribution of draft regulatory and legal documents by sector Provisions" of the Budget Code of Ukraine (regarding additional revenue collections from the personal income tax, which are directed to the activities within the framework of the Number of implementation of the "Children and Youth Friendly Community International Initiative"); Number of draft draft 2. Draft Law of Ukraine "On Introducing Amendments to the Law of Ukraine "On the Protection documents documents of Childhood" Regarding the Implementation of the Children and Youth Friendly Community Sector prepared since prepared in the International Initiative”; the beginning of reporting 3. Draft Law of Ukraine "On Introducing Amendments to Certain Legislation Regarding the the Project quarter Improvement of the Social Dialogue"; Local finance 1 71 4. Draft Directive of the Ministry of Social Policy of Ukraine "On Approving the National Standard for Social Rehabilitation of Persons with Intellectual and Mental Disorders"; Housing and municipal utilities 0 18 5. Draft Directive of the Ministry of Social Policy of Ukraine "On Approving Amendments to the National Standard for Day Care"; Land and communally-owned property 3 12 6. Draft Directive of the Ministry of Health of Ukraine "On approval of sanitary regulations for Organisational aspects of local government activities and capacity 4 41 institutions of Comprehensive Secondary Education"; building for their officials 7. Draft Law of Ukraine "On Introducing Amendments to Certain Ukrainian Legislation Social protection 12 43 (Regarding Increasing the Prestigious Image of the Work of Teachers)" (Registration # 9175 of October 05, 2018); Health care 1 7 8. Draft Law of Ukraine "On Leasing State-Owned and Communally-Owned Property";
18 19
19 QUARTERLY REPORT for the Policy for Ukraine Local Self-Governance (PULSE) Project 9. Draft Resolution of the Cabinet of Ministers of Ukraine "On Approving the Regulations for Returning the Property or Offsetting Its Value to Deported Persons, or in the Case of Their Death to the Heirs of Such Persons"; 10. Draft Resolution of the Cabinet of Ministers of Ukraine "On Introducing Amendments to the Regulations on the Chief Social Inspector and the State Social Inspector"; 11. Draft Concept of the State Targeted Program for the comprehensive development and functioning of the Ukrainian language as a national language in all spheres of public life for the period till 2028; 12. Draft Law "On Introducing Amendments to the Law of Ukraine "On Local Self-Governance in Ukraine "Regarding the Pre-Term Termination of Powers of the Village, Town and City Council (Registration # 9178 of October 05, 2018); 13. Draft Law of Ukraine "On Local Elections" (Registration # 9100 of September 09, 2018); 14. Draft Law of Ukraine "On Local Elections" (Registration # 9100-1 of October 02, 2018); 15. Draft Law of Ukraine "On Introducing Amendments to the Tax Code of Ukraine and Certain Other Ukrainian Legislation Regarding Impressments of Administration and Revisiting Rates for Certain Taxes and Fees" (Registration # 9260 of November 05, 2018); 16. Draft Law of Ukraine "On Introducing Amendments to Certain Legislation Regarding Reforming the System of Institutional Care and Upbringing of Children"; 17. Draft Resolution of the Cabinet of Ministers of Ukraine "On Certain Issues of the Provision of Housing Subsidies to the Population in Cash"; 18. Draft Resolution of the Cabinet of Ministers of Ukraine "On Approving the Regulations for the Certification of Teachers"; 19. Draft Resolution of the Cabinet of Ministers of Ukraine "On Introducing Amendments to the Resolution of the Cabinet of Ministers of Ukraine of August 27, 2010 # 777" (new version of the Regulation on the school district and the hub school; 20. Draft Law of Ukraine "On Introducing Amendments to the Law of Ukraine "On the Regulation of Urban Development Activities "(regarding the transfer, termination or temporary suspension of powers of state architectural and construction control agencies)" (Registration # 7266-1 of November 20, 2017); and, 21. Draft Law "On Introducing Amendments to Certain Laws of Ukraine Regarding the Submission and Consideration of Electronic Petitions", aimed at streamlining the issues of the implementation of the right of citizens to appeal to public authorities in the form of electronic petitions. The document was submitted to the Association of Ukrainian Cities by the Ministry of Justice for comments and suggestions. The AUC provided its comments and suggestions to the author, in particular, about the wording of the new Article "Electronic Petitions to the Law of Ukraine "On Local Self-Governance in Ukraine".
PULSE Project experts provided suggested 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 Certain Ukrainian Legislation in the Sphere of Urban Development" (Registration # 7085 of September 06, 2017); 2. Draft Law of Ukraine "On Introducing Amendments to Certain Laws of Ukraine Regarding Promoting of Conditions for Barrier Free Access for Persons with Disabilities and Other Low Mobility Groups", prepared by the Ministry of Regional Development; 3. The program document "Setting up Centers of Professional Excellence and Innovation in Ukraine - Important Issues and Key Opportunities for Supporting the Analysis of the Policy Implementation and Dialogue in Connection with Reforms of Ukrainian Networks of Vocational Education", prepared by the Ministry of Education and Science; 4. Draft Law of Ukraine "On Introducing Amendments to Certain Ukrainian Legislation to Fight Bulling" (Registration # 8584 of July 10, 2018); 5. Draft Law "On Social Services" (Registration # 4607 of May 06, 2016); and, 6. Draft Directive of the Ministry of Regional Development "On Introducing Amendments to the Procedure for the Placement of Temporary Buildings for Commercial Activities".
In addition to this, the Project continued the work (providing expert opinions and participating in working groups on 8 draft regulations, which started in previous reporting periods, namely: 1. Draft amendments to the formula for the allocation of the education subvention between local budgets; 20
20 October – December, 2018 Quarter twelve of the Project implementation
9. Draft Resolution of the Cabinet of Ministers of Ukraine "On Approving the Regulations for 2. Draft Law on the National Budget of Ukraine for 2019 (Registration # 9000 of September 15, 2018); Returning the Property or Offsetting Its Value to Deported Persons, or in the Case of Their 3. Draft Law on Introducing Amendments to the Budget Code of Ukraine (Registration # 9084 of Death to the Heirs of Such Persons"; September 17, 2018); 10. Draft Resolution of the Cabinet of Ministers of Ukraine "On Introducing Amendments to the 4. Draft Law of Ukraine "On Completed Comprehensive Secondary Education"; Regulations on the Chief Social Inspector and the State Social Inspector"; 5. Draft Law of Ukraine "On Introducing Amendments to the Law of Ukraine "On the Comprehensive 11. Draft Concept of the State Targeted Program for the comprehensive development and Reconstruction of Residential Quarters (Micro districts) of the Outdated Housing Stock". The functioning of the Ukrainian language as a national language in all spheres of public life for the document is being prepared by the Ministry of Regional Development; period till 2028; 6. Draft Law On Introducing Amendments to the Law of Ukraine "On Regulation of Urban 12. Draft Law "On Introducing Amendments to the Law of Ukraine "On Local Self-Governance in Development Activities" (Registration # 6403) in the course of its preparation for the second reading Ukraine "Regarding the Pre-Term Termination of Powers of the Village, Town and City in the Verkhovna Rada Committee on Construction, Urban Development, Housing and Municipal Council (Registration # 9178 of October 05, 2018); Utilities; 13. Draft Law of Ukraine "On Local Elections" (Registration # 9100 of September 09, 2018); 7. Draft Concept of the National Program for the Development of Mountainous Regions of the 14. Draft Law of Ukraine "On Local Elections" (Registration # 9100-1 of October 02, 2018); Ukrainian Carpathians for the Period up to 2023 prepared by the working group under the Ministry 15. Draft Law of Ukraine "On Introducing Amendments to the Tax Code of Ukraine and Certain of Regional Development with the participation of AUC experts; and, Other Ukrainian Legislation Regarding Impressments of Administration and Revisiting Rates 8. Draft Resolution of the Cabinet of Ministers of Ukraine "On Approving the Regulations on the for Certain Taxes and Fees" (Registration # 9260 of November 05, 2018); System of Vocational Training for Civil Servants, Heads of Local State Administrations, Their First 16. Draft Law of Ukraine "On Introducing Amendments to Certain Legislation Regarding Deputies and Deputies, Local Government Officials, and Local Council Members" prepared by the Reforming the System of Institutional Care and Upbringing of Children"; National Civil Service including the proposals of the Association of Ukrainian Cities. 17. Draft Resolution of the Cabinet of Ministers of Ukraine "On Certain Issues of the Provision of Housing Subsidies to the Population in Cash"; 18. Draft Resolution of the Cabinet of Ministers of Ukraine "On Approving the Regulations for the 1.1.3. Legislation monitoring Certification of Teachers"; 19. Draft Resolution of the Cabinet of Ministers of Ukraine "On Introducing Amendments to the During the reporting period, the Association of Ukrainian Cities received 61 draft regulatory and legal Resolution of the Cabinet of Ministers of Ukraine of August 27, 2010 # 777" (new version of documents submitted by central agencies of the state executive for concurrence including: the Regulation on the school district and the hub school; National Service for Labour of Ukraine 1 20. Draft Law of Ukraine "On Introducing Amendments to the Law of Ukraine "On the Regulation of Urban Development Activities "(regarding the transfer, termination or temporary suspension Dnipropetrovsk Oblast State Administration 1 of powers of state architectural and construction control agencies)" (Registration # 7266-1 of National Service for Emergencies of Ukraine 1 November 20, 2017); and, Ministry of Internal Affairs of Ukraine 3 21. Draft Law "On Introducing Amendments to Certain Laws of Ukraine Regarding the Submission Ministry of Infrastructure of Ukraine 1 and Consideration of Electronic Petitions", aimed at streamlining the issues of the Ministry of Culture of Ukraine 1 implementation of the right of citizens to appeal to public authorities in the form of electronic petitions. The document was submitted to the Association of Ukrainian Cities by the Ministry of Ministry of Youth and Sports of Ukraine 2 Justice for comments and suggestions. The AUC provided its comments and suggestions to the Ministry of Regional Development, Construction, Housing and Municipal author, in particular, about the wording of the new Article "Electronic Petitions to the Law of Utilities of Ukraine 20 Ukraine "On Local Self-Governance in Ukraine". Ministry of Labour and Social Policy of Ukraine 13 Ministry for Temporarily Occupied Territories and Internally Displaced Persons of Ukraine 1 PULSE Project experts provided suggested the following comments and edits to the following draft Ministry of Justice of Ukraine 1 legislation in the course of its preparation in various working groups set up at government authorities: Ministry of Health Care of Ukraine 1 1. Draft Law of Ukraine "On Introducing Amendments to Certain Ukrainian Legislation in the Sphere of Urban Development" (Registration # 7085 of September 06, 2017); Ministry of Education and Science of Ukraine 9 2. Draft Law of Ukraine "On Introducing Amendments to Certain Laws of Ukraine Regarding National Civil Service of Ukraine 3 Promoting of Conditions for Barrier Free Access for Persons with Disabilities and Other Low VRU Committee on Social Policy, Employment and Pensions 1 Mobility Groups", prepared by the Ministry of Regional Development; State Property Fund of Ukraine 2 3. The program document "Setting up Centers of Professional Excellence and Innovation in Ukraine - Important Issues and Key Opportunities for Supporting the Analysis of the Policy Implementation PULSE experts prepared and submitted 29 expert opinions to the draft legislation under consideration in and Dialogue in Connection with Reforms of Ukrainian Networks of Vocational Education", Verkhovna Rada of Ukraine Committees and central agencies of the state executive including: prepared by the Ministry of Education and Science; positive opinions - 2; 4. Draft Law of Ukraine "On Introducing Amendments to Certain Ukrainian Legislation to Fight expert opinions with comments and proposals – 27 including 6 negative expert opinions with a Bulling" (Registration # 8584 of July 10, 2018); suggestion to reject the draft legislation. 5. Draft Law "On Social Services" (Registration # 4607 of May 06, 2016); and, 6. Draft Directive of the Ministry of Regional Development "On Introducing Amendments to the The expert opinions were submitted to: Procedure for the Placement of Temporary Buildings for Commercial Activities". Verkhovna Rada Committee on Agrarian Policy and Land Relations 1 In addition to this, the Project continued the work (providing expert opinions and participating in working Anti-Monopoly Committee of Ukraine 1 groups on 8 draft regulations, which started in previous reporting periods, namely: Verkhovna Rada of Ukraine Budget Committee 3 1. Draft amendments to the formula for the allocation of the education subvention between local Verkhovna Rada of Ukraine Committee on Construction, Urban development, budgets; Housing and Municipal Utilities 1 20 21
21 QUARTERLY REPORT for the Policy for Ukraine Local Self-Governance (PULSE) Project
Ministry of Infrastructure of Ukraine 1 Ministry of Regional Development, Construction, Housing and Municipal Utilities of Ukraine 1 Ministry of Labour and Social Policy of Ukraine 1 Ministry of Finance of Ukraine 1 Ministry of Justice of Ukraine 2 Ministry of Health of Ukraine 2 Ministry of Education and Science of Ukraine 2 Verkhovna Rada of Ukraine Committee on State Building, Regional Policy and Local Self-Governance 2 Verkhovna Rada of Ukraine Committee on Science and Education 2 The Verkhovna Rada Committee on Tax and Customs Policy 7 Committee on Industrial Policy and Entrepreneurship 1 Parliamentary Committee on Family Issues, Youth Policy, Sports and Tourism 1
31 of these draft regulatory and legal documents were concurred with without reservations, 28 were concurred with reservations, and 2 – not concurred with.
1.1.4. Resolving local government problem issues and promotion of sectoral reforms
PULSE PROJECT IN THE BUDGET PROCESS OF 2019 Aiming at taking into account local government interests, PULSE Project experts actively participated in the preparation and finalisation of draft laws on the National Budget for 2019 and amendments to the Budget and Tax Codes at all phases of their consideration. Thanks to the active actions of the PULSE Project and AUC in the 2019 budget process, local governments managed to safeguard the provisions that will ensure additional revenues to local budgets and, at the same time, to reject many proposals that would have had a negative impact on the budget sufficiency of communities and reduced the financial resources of local governments. Thus, the Project assisted in securing the additional resource in the amount of 10.6 billion UAH including, in particular: privileges on land fee payments for railways enterprises were cancelled; local budgets will now receive 1.2 billion UAH due to the resumption of taxation of these lands; the subvention for infrastructure improvements in consolidated territorial communities was in creased by 0.2 billion UAH; the education subvention was increased by 7.9 billion UAH, which has been originally envisioned in the amount of 69.6 billion UAH; the government compensated almost 0.4 billion UAH of local budget losses associated with the state granting tax privileges on the payment of land tax to entities operating in the sphere of space and aircraft industry.
as well as ensured revenue collections through the introduction of the following new sources of income: proceeds from penalties for violation of the labour legislation and the legislation regulating the sector of urban development imposed by relevant local government authorities. The potential additional local budget revenues will constitute 440 million UAH; 37% of the rent payment for the special use of forest resources with regard to the timber harvested in ripe and overgrown forest plantations. The Tax Code has increased the rate of this tax by 1.5 times, however, in 2019, 13% of this rent will temporarily be credited go to the special fund of the National Budget. The potential additional revenue collections of local budgets will constitute 260 million UAH; 5% of the rental fee for the use of subsoil mineral resources for the extraction of minerals of national value (except for the rent for the use of mineral resources for the extraction of oil, natural gas and gas condensate) paid at the actual site of extraction of the relevant minerals. Local budgets are expected to receive 190 million UAH.
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22 October – December, 2018 Quarter twelve of the Project implementation
Ministry of Infrastructure of Ukraine 1 In addition to this, the Project managed to prevent local budget losses in the amount of 33.9 billion Ministry of Regional Development, Construction, Housing and Municipal Utilities hryvnyas: of Ukraine 1 preventing abolishing local excise tax on tobacco and fuel, in other words, avoiding losses of local Ministry of Labour and Social Policy of Ukraine 1 budgets in the amount of 13.6 billion UAH; Ministry of Finance of Ukraine 1 preventing the repayment of arrears on multi-year loans at the expense of local budgets, thus saving Ministry of Justice of Ukraine 2 9 billion UAH in local budgets; Ministry of Health of Ukraine 2 preventing the abolition of the profits tax for companies of all types of ownership, which saved local Ministry of Education and Science of Ukraine 2 budgets from potential losses in the amount of 9.6 billion UAH; Verkhovna Rada of Ukraine Committee on State Building, Regional Policy and preventing the withdrawal of balance funds local budgets received as a compensation for losses on Local Self-Governance 2 agricultural and forestry activities, which were not used during two years, in other words, preventing Verkhovna Rada of Ukraine Committee on Science and Education 2 losses in the amount of 800 million UAH; preventing transferring to local budgets expenditure categories to finance І - ІІ Certification Level The Verkhovna Rada Committee on Tax and Customs Policy 7 higher educational establishments, which do not have the status of separate legal entities, thus Committee on Industrial Policy and Entrepreneurship 1 providing an opportunity to save local budget own resources in the amount of 862.4 million UAH. Parliamentary Committee on Family Issues, Youth Policy, Sports and Tourism 1
Introduction of the retail electricity market 31 of these draft regulatory and legal documents were concurred with without reservations, 28 were The introduction of the retail electricity market as of December 11, 2018 was envisaged by certain provisions concurred with reservations, and 2 – not concurred with. of the Law of Ukraine "On the Electricity Market". This has posed a serious problem for companies working
in the sector of housing and municipal utilities. It nature of the problem was that the suppliers of electricity
and its consumers were not prepared for such innovations. In addition to this, the necessary regulatory 1.1.4. Resolving local government problem issues and promotion of sectoral reforms framework was not prepped by the time of the introduction of the retail electricity market. For example, the mechanism to purchase electricity in open tenders, as was envisioned by the Law of Ukraine "On Electricity PULSE PROJECT IN THE BUDGET PROCESS OF 2019 Market", did not work properly for municipal housing and municipal utility companies. The financial and economic conditions of these companies have always been poor, with constantly growing debts to suppliers Aiming at taking into account local government interests, PULSE Project experts actively participated in the of energy resources. For example, the debt of water supply companies for consumed electricity at the preparation and finalisation of draft laws on the National Budget for 2019 and amendments to the Budget beginning of December amounted to about 6 billion UAH. and Tax Codes at all phases of their consideration. Thanks to the active actions of the PULSE Project and AUC in the 2019 budget process, local governments Thus, the ability of utility companies to provide 100% advance payments for electricity became managed to safeguard the provisions that will ensure additional revenues to local budgets and, at the same questionable, as well as their ability to settle the payments in at all. As a result of this, housing and municipal time, to reject many proposals that would have had a negative impact on the budget sufficiency of utility companies encountered absence of bids from electricity suppliers when the former tried to purchase communities and reduced the financial resources of local governments. Thus, the Project assisted in securing energy resources through open tenders. For example, according to the UkrVodoKanalEkolohiya [Ukrainian the additional resource in the amount of 10.6 billion UAH including, in particular: Water and Sewerage Ecology] Association, as of mid-November 2018, almost 55% of tender procurements did not take place due to the lack of proposals from suppliers, with another 43% of the tenders pending. The privileges on land fee payments for railways enterprises were cancelled; local budgets will now situation was complicated by the fact that, before the introduction of the retail electricity market, the receive 1.2 billion UAH due to the resumption of taxation of these lands; procedure for the selection of the "last hope" supplier was not approved and, accordingly, the supplier was the subvention for infrastructure improvements in consolidated territorial communities was in not selected, while such a supplier was supposed to provide utility companies with electric energy in the creased by 0.2 billion UAH; event that such companies were not able to conclude a purchase contract agreement on based on open the education subvention was increased by 7.9 billion UAH, which has been originally envisioned in tenders. All these factors posed a threat of the interrupted supply of electricity to companies working in the the amount of 69.6 billion UAH; sector of housing and municipal utilities staring with December 11, 2018. the government compensated almost 0.4 billion UAH of local budget losses associated with the state Therefore, the PULSE Project made several active interventions to resolve this problem focusing on several granting tax privileges on the payment of land tax to entities operating in the sphere of space and areas. In particular, during meetings of the Verkhovna Rada Committee on Construction, Urban aircraft industry. Development, Housing and Municipal Utilities and in appeals to the Cabinet of Ministers of Ukraine PULSE Project experts offered the proposals to postpone by 4 to 7 months the introduction of certain provisions of as well as ensured revenue collections through the introduction of the following new sources of income: the Law of Ukraine "On the Electricity Market", to ensure the approval of by-laws supporting the proceeds from penalties for violation of the labour legislation and the legislation regulating the sector implementation of the law mentioned above, to envision a transitional period for industrial consumers of of urban development imposed by relevant local government authorities. The potential additional electricity to develop a mechanisms to conclude contracts for electricity supply under the new rules. The local budget revenues will constitute 440 million UAH; proposals mentioned above were also presented by a PULSE Project representative at a meeting with the 37% of the rent payment for the special use of forest resources with regard to the timber harvested in Vice Prime Minister in charge of decentralisation, which was attended by both representatives of central ripe and overgrown forest plantations. The Tax Code has increased the rate of this tax by 1.5 times, state executive authorities and representatives of the electricity market. As a result of these actions, the however, in 2019, 13% of this rent will temporarily be credited go to the special fund of the National Parliament of Ukraine approved the Law of Ukraine "On Introducing Amendments to the Tax Code of Budget. The potential additional revenue collections of local budgets will constitute 260 million Ukraine and Certain Other Ukrainian Legislation Regarding Improvements in Administering and Revisiting UAH; Rates for Certain Taxes and Fees" (# 2628-VIII of November 23, 2018), while the Cabinet of Ministers of 5% of the rental fee for the use of subsoil mineral resources for the extraction of minerals of national Ukraine endorsed Resolution # 1056 of December 12, 2018 " On Approving the Regulations for Conducting value (except for the rent for the use of mineral resources for the extraction of oil, natural gas and a Competition to Select the «Last Hope» Supplier" and Directive# 1023-р of December 12, 2018 "On gas condensate) paid at the actual site of extraction of the relevant minerals. Local budgets are Selecting the UkrInterEnerho Foreign Trade State-Owned Company as the Last Hope Supplier”. Thus, expected to receive 190 million UAH.
22 23
23 QUARTERLY REPORT for the Policy for Ukraine Local Self-Governance (PULSE) Project thanks to the active position of the PULSE Project, municipal utility companies had an opportunity to have their electricity suppliers.
Crediting collections from fines for violation of labour legislation imposed by local governments to local budgets Starting with January 01, 2017, executive bodies of city councils of oblast significance cities and of village, town and city councils of consolidated territorial communities received the right to exercise control over compliance with the legislation on labour and employment and to impose the relevant fines. However, local governments were in the position to fully exercise this control only as of January 01, 2018. In accordance with the current version of the Budget Code of Ukraine active in 2018, fines imposed by local governments for violations of labour legislation were credited to the National Budget of Ukraine. This approach hampered the development of the system of local social inspectors. This issue was also raised at the working sections of the Association of Ukrainian Cities Social Protection Professional Group organised by the PULSE Project in 2017 and 2018. A PULSE Project expert held discussions with the Ministry of Labour and Social Policy of Ukraine and the National Service for Labour of Ukraine the idea of crediting collections from the fines to local budgets. These two central executive authorities supported the position of the Project expert. Following this, the PULSE Project expert prepared the relevant amendments to the Budget Code of Ukraine, which were supported by the parliament in the course of finalising Draft Law # 9084 of September 17, 2018 for the second reading. In accordance with these amendments, all penalties imposed by local governments are to be credited to local budgets. These amendments to the Budget Code of Ukraine were approved by Parliament on November 22, 2018 under # 2621. Crediting collections from fines imposed by local governments for violating the labour legislation to local budgets will potentially increase local government revenues by 442.5 million UAH and will contribute to the development of the network of local labour inspectors.
Funding of patronage tutors at the expense of the National Budget In 2016, the parliament approved Law # 936 of January 26, 2016 to establish a new form of temporary education of children in families called “patronage education”. Child patronage is a type of temporary care, education and rehabilitation of the child in the family of a patron teacher for the period when the child, his/her parents or other lawful representatives overcome difficult life circumstances. The parliament also introduced amendments to the Budget Code of Ukraine, which stipulate that the payment for patronage services for a child and the payment of social assistance for keeping a child in the family of a patron teacher will be carried out at the expense of the National Budget until 2019. However, according to PULSE expert forecasts, if the state had not continued financing patronage educators from the National Budget, local governments would have faced the necessity to dismiss all patronage educators. This issue was discussed with the Ministry of Social Policy of Ukraine at working sessions organised by the Association of Ukrainian Cities Social Protection Professional Group organised by the PULSE project in 2017 and 2018. The Ministry supported the position of the PULSE Project expert and prepared amendments to the Budget Code of Ukraine, according to which the funding for patronage educators from the National Budget will continue until 2026. The parliament approved the relevant amendments to the Budget Code of Ukraine under # 2621 of November 22, 2018 for # 2621. Thanks to this local budget avoided the additional burden in the amount of 15 million UAH.
Reform of the New Ukrainian School The tasks of the New Ukrainian School reform include promoting the safe environment for students in educational institutions. The Project reporting period was notable the approval of the Law of Ukraine "On Introducing Amendments to Certain Ukrainian Legislation to Fight Bulling" (Registration # 8584) on December 18, 2018. The law will promote the introduction of anti-bullying techniques in the education environment, and will provide opportunities to counter harassment and protect the people who have suffered from bullying. This Law was prepared with the participation of the PULSE Project expert. The line ministry is introducing new techniques for children education with due regard to their permanent and temporary needs. For example, in the reporting period, the ventral government enacted the joint directive of the Ministry of Education and Science and the Ministry of Health Care of Ukraine # 1232/2067 of November 13, 2018 " On Approving the Regulations on the Peculiarities of the Organisation of Day-Time Comprehensive Secondary Education in Health Care Establishments". The directive takes into account the 24
24 October – December, 2018 Quarter twelve of the Project implementation thanks to the active position of the PULSE Project, municipal utility companies had an opportunity to have proposals of PULSE Project experts. From now on, students will be able to obtain comprehensive secondary their electricity suppliers. education while staying in a hospital or in health care institutions. In addition to this, the Cabinet of Ministers is developing the regulatory framework that will provide Crediting collections from fines for violation of labour legislation imposed by local governments to opportunities to monitor of the quality of comprehensive secondary education. For example, Resolution of local budgets the Cabinet of Ministers of Ukraine # 935 of November 07, 2018 "On Setting up Territorial Offices of the National Service for the Quality of Education" provides the opportunity to set up regional outreach offices of Starting with January 01, 2017, executive bodies of city councils of oblast significance cities and of village, this Service in 25 oblasts, which will be responsible for maintaining the quality of education and the quality town and city councils of consolidated territorial communities received the right to exercise control over of educational activities. In the future, these entities will conduct the institutional audit and participate in the compliance with the legislation on labour and employment and to impose the relevant fines. However, local certification of teachers. Also, the government endorsed the mechanism for this certification itself through governments were in the position to fully exercise this control only as of January 01, 2018. Resolution of the Cabinet of Ministers of Ukraine # 1190 of December 27, 2018 "On Approving the In accordance with the current version of the Budget Code of Ukraine active in 2018, fines imposed by local Regulations for Certification of Teachers". These Regulations reflect the proposals of the PULSE Project governments for violations of labour legislation were credited to the National Budget of Ukraine. This expert. Following the certification, teachers will receive a supplement to their salaries valid for the term of approach hampered the development of the system of local social inspectors. This issue was also raised at the the certificate. working sections of the Association of Ukrainian Cities Social Protection Professional Group organised by the PULSE Project in 2017 and 2018. Reform of professional (vocational) education A PULSE Project expert held discussions with the Ministry of Labour and Social Policy of Ukraine and the National Service for Labour of Ukraine the idea of crediting collections from the fines to local budgets. In the reporting period, the Ministry of Education and Science continued to transfer vocational (vocational) These two central executive authorities supported the position of the Project expert. education establishment to the communal ownership of oblast territorial communities. Directive of the Following this, the PULSE Project expert prepared the relevant amendments to the Budget Code of Ukraine, Cabinet of Ministers of Ukraine # 750-р of October 17, 2018 "On Transferring Integral Property Facilities of which were supported by the parliament in the course of finalising Draft Law # 9084 of September 17, 2018 State-Owned professional (vocational) education establishments into the joint ownership of territorial for the second reading. In accordance with these amendments, all penalties imposed by local governments communities of the Zakarpattya, Lviv and Ternopil Oblasts" transferred 10 integral property facilities of are to be credited to local budgets. These amendments to the Budget Code of Ukraine were approved by state-owned professional (vocational) and technical education establishments to the joint ownership of Parliament on November 22, 2018 under # 2621. territorial communities of the Zakarpattya, Lviv and Ternopil oblasts. However, these establishments include Crediting collections from fines imposed by local governments for violating the labour legislation to local two institutions, which are funded and maintained at the expense of the budget of oblast center cities, budgets will potentially increase local government revenues by 442.5 million UAH and will contribute to the namely: the state-owned Uzhgorod Center for Vocational Education and the Uzhgorod High School of Trade development of the network of local labour inspectors. and Food Technology. Taking into account the fact that oblast center cities did not receive the right for operational management of the property of these establishments, they continue to expect changes in the funding mechanism for vocational education institutions from the oblast budget. In its official position Funding of patronage tutors at the expense of the National Budget (prepared by the PULSE Project expert) the AUC insists on transferring of certain vocational education In 2016, the parliament approved Law # 936 of January 26, 2016 to establish a new form of temporary establishments to the communal property of oblast center cities. However, these proposals have not been education of children in families called “patronage education”. Child patronage is a type of temporary care, taken into account. education and rehabilitation of the child in the family of a patron teacher for the period when the child, his/her parents or other lawful representatives overcome difficult life circumstances. The parliament also Funding for the education sector introduced amendments to the Budget Code of Ukraine, which stipulate that the payment for patronage In the 4th quarter of 2018, PULSE Project experts paid significant attention to resolving the issue of wage services for a child and the payment of social assistance for keeping a child in the family of a patron teacher arrears for teachers who work in comprehensive secondary educational establishments. The problem was will be carried out at the expense of the National Budget until 2019. complicated by the end of the fiscal year when all resources of local budgets were exhausted. The situation However, according to PULSE expert forecasts, if the state had not continued financing patronage educators with the shortage of the education subvention was aggravated by teacher salary debt in certain communities. from the National Budget, local governments would have faced the necessity to dismiss all patronage PULSE experts analysed the situation with the insufficient education subvention for city and CTC budgets educators. This issue was discussed with the Ministry of Social Policy of Ukraine at working sessions and repeatedly appealed to the Cabinet of Ministers of Ukraine and line ministries with the request to resolve organised by the Association of Ukrainian Cities Social Protection Professional Group organised by the the problem. Following these appeals, in the reporting period, the Cabinet of Ministers redistributed the PULSE project in 2017 and 2018. The Ministry supported the position of the PULSE Project expert and amount of education subvention from the National Budget to local budgets three times (Directives # 868-p of prepared amendments to the Budget Code of Ukraine, according to which the funding for patronage October 24, 2018 and # 1018-p and # 1019-p of December 12, 2018). Thanks to this redistribution, budget educators from the National Budget will continue until 2026. The parliament approved the relevant resources of CTCs and cities increased by 219.9 million hryvnyas. Also, at the end of the year, the Cabinet amendments to the Budget Code of Ukraine under # 2621 of November 22, 2018 for # 2621. Thanks to this directed approximately 230 million UAH to oblast state administrations for them to make the appropriate local budget avoided the additional burden in the amount of 15 million UAH. redistribution between local budgets and to resolve the issue with insufficient funding. This provided the
opportunity to make all payments to school teachers by the end of the budget year. Reform of the New Ukrainian School At the same time, the main problem that caused the lack of funds in 2018 was not resolved. For example, the The tasks of the New Ukrainian School reform include promoting the safe environment for students in changes to the formula for the distribution of the education subvention suggested by the PULSE Project were educational institutions. The Project reporting period was notable the approval of the Law of Ukraine "On not endorsed by the relevant decision of the Cabinet of Ministers of Ukraine. At the same time, the Ministry Introducing Amendments to Certain Ukrainian Legislation to Fight Bulling" (Registration # 8584) on of Education and Science claims (Letter of the Ministry of Education and Science of Ukraine of November December 18, 2018. The law will promote the introduction of anti-bullying techniques in the education 08, 2018 # 1 / 11-12085) that in the reporting period the parliament approved the Law of Ukraine "On the environment, and will provide opportunities to counter harassment and protect the people who have suffered National Budget for 2019" and envisioned funding for dividing classes for studying certain subjects; from bullying. This Law was prepared with the participation of the PULSE Project expert. increased salary rates for teachers assistants in inclusive classes from 0.5 to 1, as well as for a different The line ministry is introducing new techniques for children education with due regard to their permanent estimated number of students in classes for cities with educational institutions located in rural areas. and temporary needs. For example, in the reporting period, the ventral government enacted the joint directive At the moment, the Cabinet of Ministers is expected to approve the relevant changes to the formula for the of the Ministry of Education and Science and the Ministry of Health Care of Ukraine # 1232/2067 of distribution of the education subvention. November 13, 2018 " On Approving the Regulations on the Peculiarities of the Organisation of Day-Time Comprehensive Secondary Education in Health Care Establishments". The directive takes into account the Health care reform (primary care) 24 25
25 QUARTERLY REPORT for the Policy for Ukraine Local Self-Governance (PULSE) Project In its letters to the Prime Minister of Ukraine, and three letters to the Ministry of Health Care the Association of Ukrainian Cities emphasised the critical condition of local budgets in terms of financing expenditures in the health care sector through the funs of the health care subvention for of insulin drugs for patients with diabetes mellitus, treatment of patients with kidney failure, and salary arrears to doctors. The Cabinet of Ministers of Ukraine resolved this issue through the approval of Directives # 813-p of November 07, 2018 "On Redistribution of Expenditures from the National Budget Earmarked for the Ministry of Health Care for 2018 and Redistribution of the Health Care Subvention from the National Budget to Local Budgets", # 856-р of November 14, 2018 "On Redistribution of Expenditures from the National Budget Earmarked for the Ministry of Health Care for 2018", and # 1003-p of December 12, 2018 "On Redistribution of Expenditures from the National Budget Earmarked for the Ministry of Health Care for 2018".
Avoiding the political aspect in the system of remuneration for local government officials The Cabinet of Ministers of Ukraine endorsed Resolution # 791 of October 03, 2018 to avoid political aspects in the mechanism for awarding bonuses to secretaries of village, town, and city councils, deputy chairmen of village, town and city mayors, chief executives (secretaries) of executive committees and starostas, granting salary rises for them, and provision of welfare to them upon the decision of the council. From now and on, bonuses for the officials mentioned above will be granted upon the decision of the village, town and city mayor depending on the availability of funds, rather than by the vote of local council members.
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
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
Cooperation with factions PULSE Project participation in the 2019 budget process is an example of close cooperation with the local government caucus. Thanks to the efforts of local government caucus members, the Association managed to introduce and lobby for its amendments, as well as to counter the attempts to limit the financial resources of local governments. The detailed achievements of cooperation with the local government caucus are provided in Section 1.1.4. of this report in the sub-sections "Resolving local government problem issues and promotion of sectoral reforms” and "PULSE Project in the budget process". Participation in the work of parliamentary committees During the reporting period of Project implementation, PULSE Project experts participated in 25 meetings of 9 parliamentary committees:
Verkhovna Rada of Ukraine Committee on Construction, Urban Development, Housing and Municipal Utilities – 3; Verkhovna Rada of Ukraine Committee on Social Policy, Employment and Pensions – 3; Verkhovna Rada of Ukraine Committee on Veterans, Participants of Military Activities, Anti-Terrorist Operation and Persons with Disabilities – 1; Verkhovna Rada of Ukraine Committee on Science and Education – 5; Verkhovna Rada of Ukraine Committee on State Building, Regional Policy and Local Self-Governance – 2; Committee of the Verkhovna Rada of Ukraine on Health Care - 4; Verkhovna Rada of Ukraine Committee on Tax and Customs Policy – 2; Verkhovna Rada of Ukraine Budget Committee – 3; and, Verkhovna Rada of Ukraine Committee on Agrarian Policy and Land Relations – 2. 26
26 October – December, 2018 Quarter twelve of the Project implementation
In its letters to the Prime Minister of Ukraine, and three letters to the Ministry of Health Care the Association of Ukrainian Cities emphasised the critical condition of local budgets in terms of financing expenditures in PULSE Project Director is a pro-bono consultant to the Verkhovna Rada of Ukraine Committee on State the health care sector through the funs of the health care subvention for of insulin drugs for patients with Building, Regional Policy and Local Self-Governance and constantly participates in committee meetings and diabetes mellitus, treatment of patients with kidney failure, and salary arrears to doctors. provides recommendations and suggestions to the agenda issues. The Cabinet of Ministers of Ukraine resolved this issue through the approval of Directives # 813-p of November 07, 2018 "On Redistribution of Expenditures from the National Budget Earmarked for the During the reporting period, thanks to the participation of PULSE project analysts in the meetings, it was Ministry of Health Care for 2018 and Redistribution of the Health Care Subvention from the National possible to achieve the following main results in cooperation with committees, namely: Budget to Local Budgets", # 856-р of November 14, 2018 "On Redistribution of Expenditures from the National Budget Earmarked for the Ministry of Health Care for 2018", and # 1003-p of December 12, 2018 Verkhovna Rada of Ukraine Committee on Science and Education "On Redistribution of Expenditures from the National Budget Earmarked for the Ministry of Health Care for The Committee, in its decision of October 03, 2018 "On the Draft Law of Ukraine "On the National Budget 2018". for 2019 "(Registration # 9000 of September 15, 2018) reflected the position of the PULSE Project about the necessity to factor the actual number of pupils of comprehensive secondary educational establishments into Avoiding the political aspect in the system of remuneration for local government officials the formula for the calculation of the education subvention, thus amending the formula; provide funding to divide classes into groups for studying certain subjects in comprehensive secondary educational The Cabinet of Ministers of Ukraine endorsed Resolution # 791 of October 03, 2018 to avoid political establishments; decrease in the estimated number of schoolchildren in classes for city CTCs that have aspects in the mechanism for awarding bonuses to secretaries of village, town, and city councils, deputy comprehensive secondary educational establishments located in rural areas; and, to provide funding for chairmen of village, town and city mayors, chief executives (secretaries) of executive committees and inclusive and resource centers through the education subvention. The Committee also took into account the starostas, granting salary rises for them, and provision of welfare to them upon the decision of the council. AUC proposals to change the funding mechanism for vocational training institutions, which implied From now and on, bonuses for the officials mentioned above will be granted upon the decision of the village, transferring the funding for these institutions to the oblast level, since oblast center cities never received such town and city mayor depending on the availability of funds, rather than by the vote of local council institutions to their communal ownership. members. The VRU Committee on Science and Education, in its decision of December 19, 2018 "On the Current Status of Payments to Teachers of Comprehensive Secondary Educational Establishments in 2018" took into Activity 1.2. Local governments and all interested parties are actively engaged and use account the following proposals expressed by a PULSE Project to resolve the issue of the shortage of the participatory tool to work on legislation and advocating for its approval education subvention in communities by the end of the budget year: 1. Reallocate the education subvention and to balance local budgets to pay due salaries to school teachers. 2. Make changes to the formula to 1.2.1. Support for approval of drafted legislation in the parliament: tools for interaction with calculate the education subvention. 3. Not to allow the redistribution of the education subvention at the the VRU expense of communities with the optimised network of educational institutions. At the same time, the Ministry of Education and Science was tasked to control how Oblast State Administrations implement the
Directive of the Cabinet of Ministers of Ukraine of December 12, 2018 "On the Redistribution of Certain During the reporting period, the PULSE Project utilised the tool to interact with the parliament including Expenditures of the National Budget Envisaged for the Ministry of Education and Science of Ukraine for supporting the work of the Inter-Faction Local Government Support Group (local government caucus), 2018" with regard to the rational distribution of funds for payment of salaries teachers in comprehensive participation in the work of parliamentary committees, preparation of expert opinions on draft laws, and secondary education institutions. conducting Regional Policy Dialogue Platforms.
Local government caucus and cooperation with parliamentary factions Committee of the Verkhovna Rada of Ukraine on Culture On October 03, 2018, participants of the meeting of the Expert Group on Language Policy of the Cabinet of Cooperation with factions Ministers of Ukraine attended by a PULSE Project expert approved the draft Law of Ukraine "On Ensuring PULSE Project participation in the 2019 budget process is an example of close cooperation with the local the Functioning of the Ukrainian Language as the State Language" (Registration # 5670-d of September 18, government caucus. Thanks to the efforts of local government caucus members, the Association managed to 2018) and gave a recommendation to the Verkhovna Rada Committee on Culture to elaborate this law after introduce and lobby for its amendments, as well as to counter the attempts to limit the financial resources of its approval in the first reading. On October 04, 2018, the parliament approved the draft law of Ukraine "On local governments. The detailed achievements of cooperation with the local government caucus are provided Ensuring the Functioning of the Ukrainian Language as the State Language" in the first reading. The in Section 1.1.4. of this report in the sub-sections "Resolving local government problem issues and approval of the document will promote, among other things, the functioning of the state language as an promotion of sectoral reforms” and "PULSE Project in the budget process". instrument for the unification of the Ukrainian society and as a means for strengthening the national unity and territorial integrity of Ukraine, its independent statehood and national security. Currently, the document Participation in the work of parliamentary committees is being prepared for the second reading. During the reporting period of Project implementation, PULSE Project experts participated in 25 meetings of 9 parliamentary committees: Verkhovna Rada of Ukraine Committee on State Building, Regional Policy and Local Self-Governance Verkhovna Rada of Ukraine Committee on Construction, Urban Development, Housing and Municipal On October 17, the Committee at its meeting with the participation of PULSE Project experts discussed the Utilities – 3; report of the Representative Office of the President of Ukraine to the Autonomous Republic of Crimea on Verkhovna Rada of Ukraine Committee on Social Policy, Employment and Pensions – 3; specific issues of countering the Russian aggression, de-occupation and reintegration of temporarily Verkhovna Rada of Ukraine Committee on Veterans, Participants of Military Activities, Anti-Terrorist occupied territories into Ukraine. Operation and Persons with Disabilities – 1; On December 19, the Committee and PULSE Project experts discussed a report of Vice Prime Minister H. Verkhovna Rada of Ukraine Committee on Science and Education – 5; Zubko on the new phase of the local government reform and reforms of the territorial arrangement of Verkhovna Rada of Ukraine Committee on State Building, Regional Policy and Local Self-Governance – 2; government institutions in Ukraine by the Cabinet of Ministers. The new phase envisions the completion of Committee of the Verkhovna Rada of Ukraine on Health Care - 4; voluntary formation of capable territorial communities and transition to completing community consolidation Verkhovna Rada of Ukraine Committee on Tax and Customs Policy – 2; through administrative means, so that regular local elections, which have been scheduled for October, 2020, Verkhovna Rada of Ukraine Budget Committee – 3; and, take place in all territorial communities on a new territorial basis that ensures full capacity of territorial Verkhovna Rada of Ukraine Committee on Agrarian Policy and Land Relations – 2. 26 27
27 QUARTERLY REPORT for the Policy for Ukraine Local Self-Governance (PULSE) Project communities. The participants of the discussion expressed their support to the intentions of the Cabinet of Ministers.
Verkhovna Rada of Ukraine Committee on Social Policy, Employment and Pensions On October 03, PULSE Project expert participated in the committee hearings on the topic: "Efficiency of the System for Granting Subsidies to the Population" and presented the position of local governments local self- government bodies with regard to housing subsidies. In the course of the presentation, the PULSE expert came up with a suggestion for the Committee to include the following provisions into the recommendations of the hearings: - while drafting the Law of Ukraine on the National Budget for the relevant year, to envision the funds sufficient for timely and complete settlement of payments with utility companies; - to envision that suppliers of energy resources do not charge the enterprises providing housing and municipal utility services the fines on the amount of National Budget debt on granted privileges and subsidies. The Committee supported the position of the PULSE Project and included the provisions suggested by the expert to the recommendations for the Cabinet of Ministers and line ministries.
During the reporting period, the Committee conducted working group meetings to finalise Draft Law # 6489 for the second reading. The main purpose of the draft law is to abolish the right of local self-governance to exercise control of compliance with labour legislation. Local governments do not support this draft law. Thanks to the active position of the PULSE Project expert, the consideration of the draft law was postponed an indefinite period of time.
Verkhovna Rada of Ukraine Committee on Veterans, Participants of Military Activities, Anti-Terrorist Operation and Persons with Disabilities During the reporting period, a PULSE Project expert participated in the elaboration for the second reading of the draft law “On Social Services” (Registration # 4607). On December 19, the parliamentary committee submitted the draft law to the parliament for voting. Thanks to the active position of the expert, some of the provisions that were not in line with local government interests were excluded from the draft law. The draft law is expected to be introduced in parliament for voting in January, 2019.
Verkhovna Rada of Ukraine Committee on Family, Youth Policy, Sport and Tourism On December 18, the Committee considered Draft Law # 8325-1, which broadens the category of children who are provided with free meals and privileged transfer at the expense of local budgets. A PULSE Project expert did not support the draft law, as it requires additional expenditures from local budgets. Based on the consideration, the members of the committee sent Draft Law # 8325-1 for revision.
Verkhovna Rada of Ukraine on Committee on Construction, Urban Development, Housing and Municipal Utilities In the course of the meetings organised by the members of the Committee on November 01, 2018 and on November 15, 2018, a PULSE Project expert provided justifications for postponing the introduction of certain provisions of the Law of Ukraine "On the Electricity Market", finalising the regulatory framework for this Law of Ukraine. A position was expressed by representatives of the Committee, Ministry of Regional Development, and NEURC. Following the discussions, the Committee came to the consensus based conclusion to support a number of draft laws that postpone the enactment of certain provisions of the Law of Ukraine "On the Electricity Market" and to appeal to the Cabinet of Ministers of Ukraine with a request to accelerate the preparation of the necessary regulatory framework.
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.
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28 October – December, 2018 Quarter twelve of the Project implementation communities. The participants of the discussion expressed their support to the intentions of the Cabinet of During the reporting period, the Project conducted 15 working sessions of regional policy dialogue platforms Ministers. in 12 oblasts, namely: in the: Vinnytsya, Volyn, Dnipropetrovsk, Zaporizzhya, Kirovograd, Luhansk, Lviv, Mykolayiv, Rivne, Sumy, Kherson, Khmelnytskyi, Cherkassy, Chernivtsi, and Chernihiv oblasts. 21
National Deputies of Ukraine participated in these meetings. Verkhovna Rada of Ukraine Committee on Social Policy, Employment and Pensions
On October 03, PULSE Project expert participated in the committee hearings on the topic: "Efficiency of the Below is the summary of regional platform meetings: System for Granting Subsidies to the Population" and presented the position of local governments local self- government bodies with regard to housing subsidies. In the course of the presentation, the PULSE expert came up with a suggestion for the Committee to include the following provisions into the recommendations Date, venue, topic, and participants of Brief description of the event of the hearings: the event - while drafting the Law of Ukraine on the National Budget for the relevant year, to envision the funds Meeting of the Volyn Regional Policy The event participants discussed improvements of the sufficient for timely and complete settlement of payments with utility companies; Dialogue Platform, mechanisms for legislative regulation of budget relations in - to envision that suppliers of energy resources do not charge the enterprises providing housing and October 22, 2018, city of Lutsk 2019. municipal utility services the fines on the amount of National Budget debt on granted privileges and As a result of the discussion, the participants prepared a number subsidies. Topic: Improvements of mechanisms of proposals that were submitted to the National Deputy of The Committee supported the position of the PULSE Project and included the provisions suggested by the of legislative regulation of budget Ukraine who was present at the event to move them on in the expert to the recommendations for the Cabinet of Ministers and line ministries. relations in 2019. parliament, specifically: - to allocate from the National Budget an additional education Participants: village, town and city subvention in the amount of 53.5 million hryvnyas to local During the reporting period, the Committee conducted working group meetings to finalise Draft Law # 6489 mayors, CTC mayor, representatives of budgets to prevent wage arrears for employees in educational for the second reading. The main purpose of the draft law is to abolish the right of local self-governance to the Oblast State Administration and institutions; exercise control of compliance with labour legislation. Local governments do not support this draft law. Oblast Council, PULSE regional - to be able to ensure the payment of the full amount of salaries Thanks to the active position of the PULSE Project expert, the consideration of the draft law was postponed consultants, and National Deputy of to employees of health care institutions, and to be able to ensure an indefinite period of time. Ukraine I. Kostankevych. an uninterrupted health care process, it is necessary to increase the amount of the health care subvention for the region by 61.1 Verkhovna Rada of Ukraine Committee on Veterans, Participants of Military Activities, Anti-Terrorist million UAH, including salaries of 44.2 million UAH; Operation and Persons with Disabilities - to increase the volume of subventions for the provision of During the reporting period, a PULSE Project expert participated in the elaboration for the second reading of privileges and housing subsidies to the population for purchase the draft law “On Social Services” (Registration # 4607). On December 19, the parliamentary committee of solid and liquid stove fuel and liquefied gas taking into submitted the draft law to the parliament for voting. Thanks to the active position of the expert, some of the account the average index energy price increase; and, provisions that were not in line with local government interests were excluded from the draft law. The draft - include the local budgets of new CTCs in the indicators of law is expected to be introduced in parliament for voting in January, 2019. inter-budget in the draft Law of Ukraine "On the National Budget for 2019" to prevent delays of the local budget Verkhovna Rada of Ukraine Committee on Family, Youth Policy, Sport and Tourism preparation process in such communities. On December 18, the Committee considered Draft Law # 8325-1, which broadens the category of children Meeting of the Kherson Regional The event participants discussed the formation of the revenue who are provided with free meals and privileged transfer at the expense of local budgets. A PULSE Project Policy Dialogue Platform, part of local budgets, revenue sources, and solutions to problems expert did not support the draft law, as it requires additional expenditures from local budgets. Based on the October 24, 2018, city of Kherson with the timely financing of delegated powers; consideration, the members of the committee sent Draft Law # 8325-1 for revision. As a result of the discussion, the participants appealed to the Topic: Local budgets as a prerequisite National Deputies of Ukraine with regard to the following: for community success. - need for legislative solution of the issue with registration of Verkhovna Rada of Ukraine on Committee on Construction, Urban Development, Housing and business entities exclusively at the place of their actual Municipal Utilities Participants: city, village, town and commercial or business activities; In the course of the meetings organised by the members of the Committee on November 01, 2018 and on city mayors, CTC mayors, - extension through 2019 the force of the provision waiving the November 15, 2018, a PULSE Project expert provided justifications for postponing the introduction of representatives of the Oblast State requirements to apply the provisions of Sub-Paragraph 4.1.9 of certain provisions of the Law of Ukraine "On the Electricity Market", finalising the regulatory framework for Administration and Oblast Council, Paragraph 4.1 and Paragraph 4.5 of Article 4, Sub-Paragraph this Law of Ukraine. A position was expressed by representatives of the Committee, Ministry of Regional regional consultants, and National 12.3.4 of Paragraph 12.3, Sub-Paragraph 12.4.3 of Paragraph Development, and NEURC. Following the discussions, the Committee came to the consensus based Deputies of Ukraine O. Spivakovskyi 12.4, and Paragraph 12.5 of Article 12 of the Tax Code of conclusion to support a number of draft laws that postpone the enactment of certain provisions of the Law of and F. Nehoi. Ukraine and the Law of Ukraine "On the Principles of the Ukraine "On the Electricity Market" and to appeal to the Cabinet of Ministers of Ukraine with a request to National Regulatory Policy in the Sphere of Economic accelerate the preparation of the necessary regulatory framework. Activities” to decisions on setting local taxes and fees made by local governments including CTC councils established in Working sessions of Regional Policy Dialogue Platforms accordance with the law and long-term perspective plans for the formation of community territories after July 15, 2018 and 2019; 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 - need for legislative solution of transferring of water reservoirs conducted with the purpose of supporting the approval in the parliament of the legislation including the draft and facilities located beyond the boundaries of populated areas laws prepared by AUC experts aimed at resolving local government problem issues in selected regions. The to the communal ownership of CTCs; and, Project is planning to conduct two meetings of regional policy dialogue platforms every year. - preservation, starting with 2020, of the existing mechanism for the inclusion of a part of excise the tax on fuel to local budgets,
28 29
29 QUARTERLY REPORT for the Policy for Ukraine Local Self-Governance (PULSE) Project Date, venue, topic, and participants of Brief description of the event the event or restoration of the mechanism that was previously used: 5% of the total volume of sales of fuel through gas stations, which will be 100% credited to local budgets. Meeting of the Khmelnytskyi Regional The event participants discussed the peculiarities of the Policy Dialogue Platform, formation of local budgets for 2019. October 25, 2018, city of As a result of the discussion, the participants came up with the Khmelnytskyi following proposals and submitted them to the National Deputy who was present at the event: Topic: Peculiarities of the preparation - transfer the expenditures for maintaining vocational education of local budgets for 2019. institutions to the oblast budget at the expense of a subvention from the National Budget; Participants: village, town and city - specify in the legislation a provision that the financial support mayors, CTC mayors, representatives for all expenditures in the sectors of public education and health of the Oblast State Administration and care will come only at the expense of the National Budget; Oblast Council, regional consultants, - increase the funding coming through national energy efficiency and National Deputy of Ukraine S. programs from the National Budget of Ukraine for the purposes Melnyk. of energy modernisation and avoiding additional energy costs; - retain the current mechanism of financing privileges for housing and municipal utility services at the expense of a subvention from the National Budget of Ukraine; and, - prevent in the draft National Budget for 2019 shifting to local budgets the expenditure categories of paying benefits to the population for electricity, natural gas, heat, water and sewerage services, housing maintenance fees, solid waste management, as well as the repayment of the debt on covering privileges on payments for consumed housing and municipal utility services. Meeting of the Kirovohrad Regional The event participants discussed the preparation of local budgets Policy Dialogue Platform, for 2019. October 26, 2018, city of As a result of the discussion, a number of proposals were Kropyvnytskyi submitted to the National Deputy who was present at the event for further support in the Verkhovna Rada of Ukraine, Topic: Peculiarities of the preparation specifically: of local budgets for 2019. - increase the amount of the education and health care subventions to be use for the payment of salaries to teachers and Participants: city and town mayors, health care employees in line with the national social standards; CTC mayors, representatives of the - amend Part 3 of Article 99 of the Budget Code of Ukraine in Oblast State Administration and Oblast the part dealing with the application a incentive mechanism of Council, regional consultants, and the fiscal capacity index, specifically: reduce the volume of the National Deputy of Ukraine K. reverse subsidy in the case increased fiscal capacity indexes; Yarynych. - introduce amendments to Article 103-6 of the Budget Code of Ukraine, to stipulate that 20% of the subvention from the National Budget to local budgets for the financial support for construction, reconstruction, repairs and maintenance of public roads of local importance; and, - exclude Paragraph 284.4 from Article 284 of the Tax Code of Ukraine with regard to the reduction of the land payment for lands provided for railway transport servicing, mining enterprises engaged in the extraction of minerals and deposits in the amount of up to 25% of the land tax. Lviv Regional Policy Dialogue The event participants discussed issues community budget Platform, sufficiency in 2019. October 26, 2018, city of Lviv As a result of the discussion, the participants appealed to the National Deputies of Ukraine who were present at the meeting Topic: Budget sufficiency in with a request to support the position of local self-governance communities in 2019. with regard to the following: - allocation of a targeted subvention from the National Budget to 30
30 October – December, 2018 Quarter twelve of the Project implementation
Date, venue, topic, and participants of Brief description of the event Date, venue, topic, and participants of Brief description of the event the event the event or restoration of the mechanism that was previously used: 5% of Participants: city and town mayors, local budgets to finance treatment of patients with diabetes and the total volume of sales of fuel through gas stations, which will CTC mayors, representatives of the chronic renal failure using haemodialysis; be 100% credited to local budgets. Oblast State Administration and Oblast - allocation of an additional subsidy for the expenditure Council, regional consultants, and categories shifted from the National Budget for maintenance of Meeting of the Khmelnytskyi Regional The event participants discussed the peculiarities of the National Deputies of Ukraine L. educational and health care facilities between all local budgets Policy Dialogue Platform, formation of local budgets for 2019. Zubach and O. Berezyuk. having direct inter-budget relations with the National Budget; October 25, 2018, city of As a result of the discussion, the participants came up with the - aiming at effective use of the funds of the National Regional Khmelnytskyi following proposals and submitted them to the National Deputy Development Fund, retain the funds not spent during the budget who was present at the event: period on the bank accounts of spending units for spending them Topic: Peculiarities of the preparation - transfer the expenditures for maintaining vocational education for the same purposes and the relevant expenditures in the next of local budgets for 2019. institutions to the oblast budget at the expense of a subvention budget period taking into account their original intended from the National Budget; purpose; and, Participants: village, town and city - specify in the legislation a provision that the financial support - specify in the legislation the mandatory requirement for private mayors, CTC mayors, representatives for all expenditures in the sectors of public education and health gas and electricity supply companies to prepare land of the Oblast State Administration and care will come only at the expense of the National Budget; management documents for gas pipelines, gas distribution Oblast Council, regional consultants, - increase the funding coming through national energy efficiency stations, gas reduction points, powers lines, distribution and National Deputy of Ukraine S. programs from the National Budget of Ukraine for the purposes transformers, distribution substations, etc. Melnyk. of energy modernisation and avoiding additional energy costs; Meeting of Rivne Regional Policy The event participants discussed the issues of the legislative - retain the current mechanism of financing privileges for Dialogue Platform, support for the decentralisation reform of public administration housing and municipal utility services at the expense of a October 30, 2018, city of Rivne and budget policy the period of 2018 - 2019. subvention from the National Budget of Ukraine; and, According to the results of the discussion, the participants - prevent in the draft National Budget for 2019 shifting to local Topic: On Legislative framework for prepared a list of problem issues and passed them to the National budgets the expenditure categories of paying benefits to the the Decentralisation Reform and Deputy of Ukraine who was present at the meeting for to resolve population for electricity, natural gas, heat, water and sewerage Budget Policy for 2018 - 2019. them in the Verkhovna Rada of Ukraine, specifically: services, housing maintenance fees, solid waste management, as - specify the rights of a citizen to receive free of charge a land well as the repayment of the debt on covering privileges on Participants: village, town and city plot from the lands of state or communal ownership only at the payments for consumed housing and municipal utility services. mayors, CTC mayors, representatives place of his her official registration; Meeting of the Kirovohrad Regional The event participants discussed the preparation of local budgets of the Oblast State Administration and - specify in the legislation the right of the local government to Policy Dialogue Platform, for 2019. Oblast Council, regional consultants, supervise and control the heavy-weight transport on the roads of October 26, 2018, city of As a result of the discussion, a number of proposals were and National Deputy of Ukraine O. local importance with the help of weighing systems; Kropyvnytskyi submitted to the National Deputy who was present at the event Dekhtyarchuk. - introduce amendments the Code of Ukraine "On for further support in the Verkhovna Rada of Ukraine, Administrative Offenses" with regard to increasing the amount Topic: Peculiarities of the preparation specifically: of penalties, as well as specifying the punishment for using a of local budgets for 2019. - increase the amount of the education and health care land plot without legal documents; subventions to be use for the payment of salaries to teachers and - ensure the provision of the subvention from the National Participants: city and town mayors, health care employees in line with the national social standards; Budget to local budgets for the full amount of their payments for CTC mayors, representatives of the - amend Part 3 of Article 99 of the Budget Code of Ukraine in the benefits and subsidies for housing and municipal utility Oblast State Administration and Oblast the part dealing with the application a incentive mechanism of services; and, Council, regional consultants, and the fiscal capacity index, specifically: reduce the volume of the - stream line the compensation of privileged for urban public National Deputy of Ukraine K. reverse subsidy in the case increased fiscal capacity indexes; transportation services for certain categories of citizens, by Yarynych. - introduce amendments to Article 103-6 of the Budget Code of approval of regulatory and legal to facilitate the transition to Ukraine, to stipulate that 20% of the subvention from the National targeted monetary assistance in this sector. Budget to local budgets for the financial support for construction, Meeting of the Sumy Regional Policy The event participants discussed the next steps of the reconstruction, repairs and maintenance of public roads of local Dialogue Platform, decentralisation reform. importance; and, October 30, 2018, city of Sumy As a result of the discussion, the participants appealed to the - exclude Paragraph 284.4 from Article 284 of the Tax Code of National Deputies of Ukraine who were present at the meeting Ukraine with regard to the reduction of the land payment for lands Topic: Local self-governance in and asked them to support the following Draft Laws of Ukraine provided for railway transport servicing, mining enterprises Ukraine in 2019. Next steps for the in the course of discussions in the parliament: engaged in the extraction of minerals and deposits in the amount of decentralisation reform. - "On the Principles of the Administrative and Territorial up to 25% of the land tax. Arrangement of Ukraine" (Registration # 8051 of February 22, Lviv Regional Policy Dialogue The event participants discussed issues community budget Participants: village, town and city 2018); Platform, sufficiency in 2019. mayors, CTC mayors, representatives - "On Introducing Amendments to the Law of Ukraine "On October 26, 2018, city of Lviv As a result of the discussion, the participants appealed to the of the Oblast State Administration and Service in Local Governments" (Registration # 8369 of May 05, National Deputies of Ukraine who were present at the meeting Oblast Council, regional consultants, 2018); Topic: Budget sufficiency in with a request to support the position of local self-governance and National Deputies of Ukraine O. - "On the National Budget for 2019" (Registration # 9000 of communities in 2019. with regard to the following: Medunytsya and O. Suhonyako. September 09, 2018); - allocation of a targeted subvention from the National Budget to 30 31
31 QUARTERLY REPORT for the Policy for Ukraine Local Self-Governance (PULSE) Project Date, venue, topic, and participants of Brief description of the event the event - "On Introducing Amendments to the Budget Code of Ukraine" (Registration # 9084 of September 17, 2018); - "On Introducing Amendments to the Tax Code of Ukraine Regarding the Rates of Certain Taxes" (Registration # 9085 of September 17, 2018); and, - "On Introducing Amendments to the Law of Ukraine "On State Assistance to Economic Entities" of July 01, 2014 # 1555-VII. Meeting of the Chernihiv Regional The event participants discussed the peculiarities of working Policy Dialogue Platform, with the Energy Efficiency Fund and the National Regional October 30, 2018, city of Chernihiv Development Fund. As a result of the discussion, the participants appealed to the Topic: Peculiarities of working with National Deputy who was present at the event with the following energy efficiency funds and the proposals: National Regional Development Fund. - specify in the Law of Ukraine "On the National Budget for 2019" increased expenditures of the Energy Efficiency Fund for Participants: village, town and city the implementation of road and communal infrastructure mayors, CTC mayors, representatives programs for local communities, as well as a 20% increase of of the Oblast State Administration and expenditures of the National Regional Development Fund to Oblast Council, regional consultants, finance local government projects related to construction, repairs and National Deputy of Ukraine O. and reconstruction of water supply, drainage and sewerage Kuprienko. systems; - specify in the legislation the provision allowing local budgets to retain at the end of the fiscal year targeted subventions with the investment component and allowing National Budget spending units to retain funds of the National Regional Development Fund for their subsequent use for the same intended purpose in the next budget period; and, - resolve at the national level the issues of complete and timely receipt of subvention funds for the social and economic development of separate territories from the special fund of the National Regional Development Fund. Meeting of the Vinnytsya Regional The event participants discussed issues of the legislative Policy Dialogue Platform, framework for the development of local self-governance and October 31, 2018, city of Vinnytsya paid special attention to budget issues. As a result of the discussion, the participants came up and Topic: Legislative framework for the submitted to the National Deputy who was present at the event a development of local self-governance. number of proposals, specifically: - ensure collections to local budgets for financial support for the Participants: village, town and city construction, reconstruction and repairs of local general purpose mayors, CTC mayors, representatives motor roads of 20% of the subvention from the National Budget of the Oblast State Administration and of Ukraine; Oblast Council, regional consultants, - increase in the National Budget of Ukraine the subvention for and National Deputy of Ukraine O. infrastructure improvements in CTCS up to 4.5 billion UAH, Dombrovskyi. which will enable to transfer the funds to communities in line with the requirement of 1.1 thousand UAH per capita; - aiming at proper functioning of the education and health care sectors in 2019, make the appropriate calculations of the volume of education and health care subventions to ensure the normal functioning of these sectors. Also, on a separate note, the participants appealed to the National Deputies who were present at the event with a request to accelerate changing the boundaries of rayons for those CTCs, which were formed of the territorial communities from adjacent rayons. This will enable to effectively resolve issues in the public education and health care sectors and improve interaction with fiscal authorities, National Police, State Cadastre Agency 32
32 October – December, 2018 Quarter twelve of the Project implementation
Date, venue, topic, and participants of Brief description of the event Date, venue, topic, and participants of Brief description of the event the event the event - "On Introducing Amendments to the Budget Code of Ukraine" and other entities. (Registration # 9084 of September 17, 2018); - "On Introducing Amendments to the Tax Code of Ukraine Meeting of Mykolaiv Regional Policy The event participants discussed the legislative framework of the Regarding the Rates of Certain Taxes" (Registration # 9085 of Dialogue Platform, budget policy in the context of protecting the interests of September 17, 2018); and, November 14, 2018, city of Mykolaiv territorial communities and peculiarities of the preparation of - "On Introducing Amendments to the Law of Ukraine "On State local budgets for 2019. Assistance to Economic Entities" of July 01, 2014 # 1555-VII. Topic: Legislative framework for the Following the discussion, the participants of the regional Meeting of the Chernihiv Regional The event participants discussed the peculiarities of working budget policy with regard to the platform came up with their proposals and handed them to the Policy Dialogue Platform, with the Energy Efficiency Fund and the National Regional protection of interests of territorial National Deputies who were present at the event, specifically: October 30, 2018, city of Chernihiv Development Fund. communities. Peculiarities of the - in the course of consideration of the Draft Law "On the As a result of the discussion, the participants appealed to the formation of local budgets for 2019. National Budget for 2019" in the second reading, increase the Topic: Peculiarities of working with National Deputy who was present at the event with the following amount of the education and health care subventions to local energy efficiency funds and the proposals: Participants: city and town mayors, budgets taking into account the increase of salaries of employees National Regional Development Fund. - specify in the Law of Ukraine "On the National Budget for CTC mayors, representatives of the in the relevant sectors, salary indexation, and additional needs 2019" increased expenditures of the Energy Efficiency Fund for Oblast State Administration and Oblast for servicing temporarily displaced citizens; add a separate Participants: village, town and city the implementation of road and communal infrastructure Council, regional consultants, and subvention from the National Budget to local budgets to finance mayors, CTC mayors, representatives programs for local communities, as well as a 20% increase of National Deputies of Ukraine A. Ilyuk treatment for patients with diabetes and chronic renal failure of the Oblast State Administration and expenditures of the National Regional Development Fund to and O. Zholobetskyi. through haemodialysis; Oblast Council, regional consultants, finance local government projects related to construction, repairs - approve the draft Law of Ukraine "On Introducing and National Deputy of Ukraine O. and reconstruction of water supply, drainage and sewerage Amendments to the Law of Ukraine "On Service in Local Kuprienko. systems; Governments" (Registration # 8369 of May 17, 2018); - specify in the legislation the provision allowing local budgets - approve the Draft Law of Ukraine "On Introducing to retain at the end of the fiscal year targeted subventions with Amendments to Article 15 of the Law of Ukraine "On Access to the investment component and allowing National Budget Public Information" regarding reducing the timeframe for spending units to retain funds of the National Regional promulgation of draft normative acts and local government Development Fund for their subsequent use for the same ordinances (Registration # 2003а of June 03, 2015); intended purpose in the next budget period; and, - simplify the requirements for the official publication of local - resolve at the national level the issues of complete and timely government ordinances in mass media, in particular, by receipt of subvention funds for the social and economic excluding the requirement to publish them in printed media; and, development of separate territories from the special fund of the - specify in the legislation the right of local governments to have National Regional Development Fund. access to the information about the amount of accrued, paid, Meeting of the Vinnytsya Regional The event participants discussed issues of the legislative over-paid taxes and dues to local budgets on the respective Policy Dialogue Platform, framework for the development of local self-governance and territories; the amount of the tax debt and the amount of the October 31, 2018, city of Vinnytsya paid special attention to budget issues. written off tax debt; deferred and postponed amounts of the tax As a result of the discussion, the participants came up and debt and monetary obligations of taxpayers; and, amount of Topic: Legislative framework for the submitted to the National Deputy who was present at the event a granted tax privileges by taxpayer. development of local self-governance. number of proposals, specifically: Meeting of the Luhansk Regional The event participants discussed the budget process in 2019 in - ensure collections to local budgets for financial support for the Policy Dialogue Platform, the context of the decentralisation reform in the Luhansk region. Participants: village, town and city construction, reconstruction and repairs of local general purpose November 15, 2018, city of Based on the discussions, the event participants came up and mayors, CTC mayors, representatives motor roads of 20% of the subvention from the National Budget Severodonetsk handed their suggestions to the National Deputy who was of the Oblast State Administration and of Ukraine; present at the event, specifically: Oblast Council, regional consultants, - increase in the National Budget of Ukraine the subvention for Topic: Budget process in 2019 in the - approve the draft Law of Ukraine "On the Principles of the and National Deputy of Ukraine O. infrastructure improvements in CTCS up to 4.5 billion UAH, context of the decentralisation reform Administrative and Territorial Arrangement of Ukraine" Dombrovskyi. which will enable to transfer the funds to communities in line in the Luhansk region. (Registration # 8051 of February 22, 2018); with the requirement of 1.1 thousand UAH per capita; - approve the draft Law of Ukraine "On Introducing - aiming at proper functioning of the education and health care Participants: city and town mayors, Amendments to Article 15 of the Law of Ukraine "On Access to sectors in 2019, make the appropriate calculations of the volume CTC mayors, representatives of the Public Information" about the reduction of the term for of education and health care subventions to ensure the normal Oblast Military and Civilian promulgation of draft regulatory and legal documents, decisions functioning of these sectors. Administration, regional consultants, of local governments (Registration # 2003а of June 03, 2015); Also, on a separate note, the participants appealed to the and National Deputy of Ukraine V. - determine the share of the personal income tax deduction to National Deputies who were present at the event with a request Kurylo. local government budgets in the amount sufficient to ensure the to accelerate changing the boundaries of rayons for those CTCs, fulfillment of the powers delegated by the state, as well as to which were formed of the territorial communities from adjacent ensure the real and capable local self-governance in territorial rayons. This will enable to effectively resolve issues in the communities (not less than 85%); public education and health care sectors and improve interaction - envision 19.0 billion UAH in the subvention from the National with fiscal authorities, National Police, State Cadastre Agency Budget to local budgets to pay the difference between the actual cost of heating energy, district heating services, hot water 32 33
33 QUARTERLY REPORT for the Policy for Ukraine Local Self-Governance (PULSE) Project Date, venue, topic, and participants of Brief description of the event the event supply, centralised water supply and sewerage, cold water supply and sewerage on one hand, and the tariffs set and/or approved by state executive authorities or local governments; - introduce monetisation of state-guaranteed privileges (urban public transportation services for certain categories of citizens, communication services, etc.) at the expense of the National Budget; and, - ensure indexation of normative monetary valuation of land and property in accordance with the consumer prices index for 2018. Meeting of the Chernivtsi Regional The event participants discussed problem issues of Policy Dialogue Platform, decentralisation and financial sufficiency of territorial November 15, 2018, city of Chernivtsi communities. As a result of the discussion, the participants came up and Topic: Problem issues of submitted the following proposals to the National Deputies of decentralisation and financial capacity Ukraine who were present at the event: of territorial communities. - direct not less than 20% of the subvention from the National Budget to local budgets to provide the financial support of Participants: village, town and city construction, reconstruction, repairs and maintenance of public mayors, CTC mayors, representatives roads of local importance and to distribute them between local of the Oblast State Administration and budgets through a separate annex to the Law of Ukraine "On the Oblast Council, regional consultants, National Budget for 2019"; and National Deputies of Ukraine, M. - improve the formula for the distribution of education Burbak and M. Fedoruk. subvention, in particular taking into account the actual number students and the division of classes into groups for studying certain subjects comprehensive secondary educational establishments; reduce the estimated number of schoolchildren in for urban communities with comprehensive secondary educational establishments located in rural areas; and, bring the formula in line with Article 103-2 of the Budget Code of Ukraine in the part dealing with financing of inclusive resource centers through the education subvention; - transfer 50 percent of the rent payment for special use of forest resources in the part of the timber harvested in ripe and overgrown forest plantations to local government budgets; and, - increase penalties for retail trade in alcoholic beverages or tobacco products without a license, or without excise duty stamps, or with counterfeited duty stamps. Meeting of Dnipropetrovsk Regional The event participants discussed the implementation of Policy Dialogue Platform, decentralisation reform in the Dnipropetrovsk region. November 23, 2018, city of Dnipro As a result of the discussion, the participants appealed to the National Deputy of Ukraine who was present at the meeting with Topic: Implementation of the a request to support the following proposals in parliament: decentralisation reform: issues of - envision in the draft Law of Ukraine "On the National Budget communities in the of Ukraine for 2019" the funds for timely and complete Dnipropetrovsk oblast. payments to heat supply companies for granted privileges and subsidies, as well as the repayment of the debt on the difference Participants: village, town and city in tariffs; and, mayors, CTC mayors, representatives - support the approval of draft Laws of Ukraine: "On the of the Oblast State Administration and Principles of the Administrative and Territorial Arrangement of Oblast Council, regional consultants, Ukraine" (Registration # 8051 of February 22, 2018); "On and National Deputy of Ukraine V. Introducing Amendments to Certain Ukrainian Legislation Didych. Regarding Promoting Preconditions for the Protection of Economic and Heritage Rights of Citizens in Rural Areas" (Registration # 9140 of October 01, 2018), "On Introducing Amendments to the Law of Ukraine "On Service in Local Governments" (Registration # 8369 of May 17, 2018); and "On 34
34 October – December, 2018 Quarter twelve of the Project implementation
Date, venue, topic, and participants of Brief description of the event Date, venue, topic, and participants of Brief description of the event the event the event supply, centralised water supply and sewerage, cold water Urban Agglomerations" (Registration # 6743 of July 17, 2017). supply and sewerage on one hand, and the tariffs set and/or Meeting of the Cherkasy Regional The event participants discussed problem issues of local approved by state executive authorities or local governments; Policy Dialogue Platform, government development and their legislative solutions. - introduce monetisation of state-guaranteed privileges (urban November 29, 2018, city of Zhashkiv As a result of the meeting, its participants came up and public transportation services for certain categories of citizens, submitted to the National Deputies who were present the communication services, etc.) at the expense of the National Topic: Promotion of local self- following proposals and the request for the Verkhovna Rada of Budget; and, governance: problem issues and their Ukraine to approve the following draft laws of Ukraine: - ensure indexation of normative monetary valuation of land and legislative resolution. - "On Introducing Amendments to the Law of Ukraine "On property in accordance with the consumer prices index for 2018. Service in Local Governments" (Registration # 8369 of May 17, Meeting of the Chernivtsi Regional The event participants discussed problem issues of Participants: village, town and city 2018); Policy Dialogue Platform, decentralisation and financial sufficiency of territorial mayors, CTC mayors, representatives - "On the Principles of the Administrative and Territorial November 15, 2018, city of Chernivtsi communities. of the Oblast State Administration and Arrangement of Ukraine" (Registration # 8051 of February 22, As a result of the discussion, the participants came up and Oblast Council, regional consultants, 2018); Topic: Problem issues of submitted the following proposals to the National Deputies of and National Deputies of Ukraine V. - "On Introducing Amendments to Certain Ukrainian Legislation decentralisation and financial capacity Ukraine who were present at the event: Nechyporenko and O. Kuzhel. on Land Resource Management within the Boundaries of the of territorial communities. - direct not less than 20% of the subvention from the National Territory of the Consolidated Territorial Communities" Budget to local budgets to provide the financial support of (Registration # 7118 of September 18, 2017); Participants: village, town and city construction, reconstruction, repairs and maintenance of public - "On Introducing Amendments to Certain Laws of Ukraine mayors, CTC mayors, representatives roads of local importance and to distribute them between local Regarding the Charters of Territorial Communities" of the Oblast State Administration and budgets through a separate annex to the Law of Ukraine "On the (Registration # 7297 of November 16, 2017); Oblast Council, regional consultants, National Budget for 2019"; - "On Introducing Amendments to the Law of Ukraine "On and National Deputies of Ukraine, M. - improve the formula for the distribution of education Regulation of Urban Development Activities" (Registration # Burbak and M. Fedoruk. subvention, in particular taking into account the actual number 6403 of April 21, 2017); students and the division of classes into groups for studying - "On the Local Referendum" (Registration # 2145a-3 of July 08, certain subjects comprehensive secondary educational 2015); establishments; reduce the estimated number of schoolchildren - "On Introducing Amendments to Article 284 of the Tax Code in for urban communities with comprehensive secondary of Ukraine to Prevent the Reduction of Revenues to Local educational establishments located in rural areas; and, bring the Budgets from the Payment for the Lands Given as Land Parcels formula in line with Article 103-2 of the Budget Code of Granted to the Railway Company within the Strip of Landing, Ukraine in the part dealing with financing of inclusive resource Lands Granted to Mining Companies for Extraction of Minerals centers through the education subvention; and Development of Mineral Deposits" (Registration # 8169 of - transfer 50 percent of the rent payment for special use of forest March 20, 2018); and, resources in the part of the timber harvested in ripe and - "On Introducing Amendments to Articles 14 and 168 of the overgrown forest plantations to local government budgets; and, Tax Code of Ukraine Regarding the Inclusion of the Personal - increase penalties for retail trade in alcoholic beverages or Income Tax at the Place of Local of Manufacturing Facilities " tobacco products without a license, or without excise duty (Registration # 7149 of September 29, 2017). stamps, or with counterfeited duty stamps. Zaporizzhya Regional Policy Dialogue The event participants discussed the provisions of the draft Law Meeting of Dnipropetrovsk Regional The event participants discussed the implementation of Platform, of Ukraine "On the National Budget for 2019" and its impact on Policy Dialogue Platform, decentralisation reform in the Dnipropetrovsk region. November 30, 2018, city of the stability of financial foundation of local governments. November 23, 2018, city of Dnipro As a result of the discussion, the participants appealed to the Zaporizzhya As a result of the meeting, the participants came up and National Deputy of Ukraine who was present at the meeting with submitted to the National Deputies a number of proposals to be Topic: Implementation of the a request to support the following proposals in parliament: Topic: Draft Law "On the National supported in the Verkhovna Rada of Ukraine, specifically: decentralisation reform: issues of - envision in the draft Law of Ukraine "On the National Budget Budget for 2019”: innovations and - ensure writing off the whole local government debts on mid- communities in the of Ukraine for 2019" the funds for timely and complete their influence on securing stable term loans and interest-free loans granted to local budgets at the Dnipropetrovsk oblast. payments to heat supply companies for granted privileges and financial foundations for local expense of the unified treasury account in 2009 - 2014; subsidies, as well as the repayment of the debt on the difference government budgets. - to ensure a full fledged monetisation of all state-guaranteed Participants: village, town and city in tariffs; and, privileges to the relevant categories of the population at the mayors, CTC mayors, representatives - support the approval of draft Laws of Ukraine: "On the Participants: village, town and city expense of the National Budget of Ukraine; of the Oblast State Administration and Principles of the Administrative and Territorial Arrangement of mayors, CTC mayors, representatives - take into account the indexation of wages and increase in the Oblast Council, regional consultants, Ukraine" (Registration # 8051 of February 22, 2018); "On of the Oblast State Administration and cost of energy, the amount of the corresponding subventions and National Deputy of Ukraine V. Introducing Amendments to Certain Ukrainian Legislation Oblast Council, regional consultants, from the National Budget of Ukraine for education and health Didych. Regarding Promoting Preconditions for the Protection of and National Deputies of Ukraine I. care sectors; and, Economic and Heritage Rights of Citizens in Rural Areas" Artyushenko and O. Romanovskyi. - improve the mechanism for the administration of local taxes (Registration # 9140 of October 01, 2018), "On Introducing and fees, which constitute the revenue part of local budgets. To Amendments to the Law of Ukraine "On Service in Local this end, envision the revision function with the possibility of Governments" (Registration # 8369 of May 17, 2018); and "On structured data selection in the Automated System Tax Block 34 35
35 QUARTERLY REPORT for the Policy for Ukraine Local Self-Governance (PULSE) Project Date, venue, topic, and participants of Brief description of the event the event section for local tax authorities; and the legislative framework for the exchange of information between the fiscal service and such registers as: State Cadastre Agency, State Register of Real Property Rights, Territorial Community Register, and the State Register of Voters.
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
During the reporting quarter, the AUC represented local communities and actively safeguarded the interests of local governments. Oleksandr Slobozhan, Executive Director of the AUC and Senior PULSE Project expert, served as the official representative of the AUC in the Cabinet of Ministers (with the right to advisory vote). During October - December 2018, PULSE Project experts constantly monitored the draft regulations that the Cabinet of Ministers planned to consider during its meetings and meetings of Cabinet of Ministers Committees. PULSE Project experts closely studied draft laws, resolutions, regulations, and programs related to local government issues and provided their expert opinions, comments and suggestions to form the official position of the Association on these documents. During the reporting period: - representatives of the PULSE Project participated in 13 meetings of the Cabinet of Ministers and 25 meetings of Cabinet of Ministers Committees, in particular, on economic policy issues - 14; on social and humanitarian policy - 7; and, on regional development - 4 (see Table 1.5); - PULSE experts monitored 1,213 regulatory and legal documents and analyzed 441 draft Cabinet of Ministers regulations (see Table 1.6). PULSE Project monitoring covered 76 draft laws of Ukraine prepared by the Cabinet of Ministers, 40 draft Directives (Instructions) of the President of Ukraine, 543 draft resolutions and 452 draft directives of the Cabinet of Ministers, 60 legislation and decree implementation plans, and 42 expert opinions to other draft laws (see Table 1.6).
Table 1.5. Participation in the meetings of the Cabinet of Ministers and its Committees in October – December, 2018 Month Cabinet of Ministers Committee on Cabinet Meetings, economic social policy regional total of total: policy development Ministers October 4 3 1 8 5 13 November 5 2 2 9 4 13 December 5 2 1 8 4 12 Total: 14 7 4 25 13 38
Table 1.6. PULSE monitoring of draft regulatory and legal documents of the Cabinet of Ministers in October – December, 2018
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36 October – December, 2018 Quarter twelve of the Project implementation
Date, venue, topic, and participants of Brief description of the event Month Laws Decrees or Resolution Cabinet of Implementatio Conclusions to Total: the event Instructions of s of the Ministers n plans for draft section for local tax authorities; and the legislative framework the President Cabinet of Directives laws, decrees, legislation for the exchange of information between the fiscal service and Ministers etc. of Ukraine such registers as: State Cadastre Agency, State Register of Real October 23 6 168 137 22 3 359 Property Rights, Territorial Community Register, and the State November 19 22 158 155 16 31 401 Register of Voters. December 34 12 217 160 22 8 453 Total: 76 40 543 452 60 42 1,213
1.2.2. Support to approval of resolutions and directives of the Cabinet of Ministers: tools to The 1,213 regulatory and legal documents the Cabinet of Ministers and its Committees considered during interact with the Cabinet of Ministers of Ukraine October – December, 2018 included 36.4% (or 441 documents), which dealt with local government stipulates including 94.1% (or 415 documents) supported by PULSE experts and 5.9% (or 26 documents) not During the reporting quarter, the PULSE Project continued to use various tools to interact with the Cabinet supported by them (see Table 1.7). 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 Table 1.7. conclusions and drafts regulatory and legal documents. PULSE Project expert support for drafting Cabinet of Ministers regulations in October – December, 2018 Interaction with the Cabinet of Ministers Month Cabinet of Ministers regulations Draft Cabinet of Ministers regulations on local Participation in meetings of the Cabinet of Ministers and its Committees PULSE Project worked on government issues
During the reporting quarter, the AUC represented local communities and actively safeguarded the interests Total Including those on Supported by PULSE Not supported by PULSE of local governments. Oleksandr Slobozhan, Executive Director of the AUC and Senior PULSE Project local government experts experts expert, served as the official representative of the AUC in the Cabinet of Ministers (with the right to advisory issues vote). October 359 120 118 2 During October - December 2018, PULSE Project experts constantly monitored the draft regulations that the November 401 149 137 12 Cabinet of Ministers planned to consider during its meetings and meetings of Cabinet of Ministers Committees. PULSE Project experts closely studied draft laws, resolutions, regulations, and programs December 453 172 160 12 related to local government issues and provided their expert opinions, comments and suggestions to form the Total: 1,213 441 415 26 official position of the Association on these documents. This fruitful cooperation resulted of the Cabinet of Ministers endorsement of 39 important legal and During the reporting period: regulatory documents that fostered decentralisation, enhanced the capacity of communities, and strengthened - representatives of the PULSE Project participated in 13 meetings of the Cabinet of Ministers and 25 local budgets. In particular, the most important Cabinet of Ministers regulations endorsed in the 4th quarter meetings of Cabinet of Ministers Committees, in particular, on economic policy issues - 14; on of 2018 included: social and humanitarian policy - 7; and, on regional development - 4 (see Table 1.5); - PULSE experts monitored 1,213 regulatory and legal documents and analyzed 441 draft Cabinet of Ministers regulations (see Table 1.6). Laws of Ukraine: PULSE Project monitoring covered 76 draft laws of Ukraine prepared by the Cabinet of Ministers, 40 draft Directives (Instructions) of the President of Ukraine, 543 draft resolutions and 452 draft directives of the 1. The Law of Ukraine of November 22.11.2018, # 2621-VIII "On Introducing Amendments to the Cabinet of Ministers, 60 legislation and decree implementation plans, and 42 expert opinions to other draft Budget Code of Ukraine", which directed 37% of revenues from the rent payment for the special use laws (see Table 1.6). of forest resources to budgets of cities of oblast significance and CTCs (the potential revenues in 2019 are expected to be 380 million UAH) and also stipulated that administrative fines and other Table 1.5. penalties imposed by the executive bodies of local councils for violation of labour legislation will be Participation in the meetings of the Cabinet of Ministers and its Committees in October – December, credited to the relevant local budgets as of from January 01, 2019. 2018 2. The Law of Ukraine of November 23, 2018, # 2628-VIII "On Introducing Amendments to the Tax Month Cabinet of Ministers Committee on Cabinet Meetings, Code of Ukraine and Certain Other Ukrainian Legislation Regarding Improvements of economic social policy regional total of total: Administering and Revisiting Rates for Certain Taxes and Fees", which provided for an increase in policy development Ministers the rental rates for special use of forest resources by 50%, and also envisioned the abolition of October 4 3 1 8 5 13 privileges on land fees for land plots given to railways within the strips of landing (local budget November 5 2 2 9 4 13 losses from the privileges on this land payment in 2018 amounted to 1.2 billion UAH). December 5 2 1 8 4 12 3. The Law of Ukraine of December 06, 2018, # 2646-VIII "On Introducing Amendments to the Total: 14 7 4 25 13 38 Budget Code of Ukraine (Regarding the Introduction of the legislative Framework for Multi-Year Budget Planning)", which defined the legislative framework for drafting and consideration of the Table 1.6. Budget Declaration, which defines the budget policy for the next three years and three-year local PULSE monitoring of draft regulatory and legal documents of the Cabinet of Ministers in October – financial plans at the local level. December, 2018 Resolutions of the Cabinet of Ministers of Ukraine:
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37 QUARTERLY REPORT for the Policy for Ukraine Local Self-Governance (PULSE) Project 1. Resolution of October 03, 2018, # 791 "On Approving Amendments to Certain Resolutions of the Cabinet of Ministers of Ukraine". The document resolved the issue with optimal scope of powers of local officials, such as top local government officials with regard to bonuses to secretaries of village, town and city councils, deputy village, town and city mayors, chief executives (secretaries) of executive committees, starostas, as well as set the amount of cash allowances and other types of financial assistance. 2. Resolution of October 17, 2018, # 841 "On Approving Amendments to Certain Resolutions of the Cabinet of Ministers of Ukraine" (improvements of the mechanism for interaction between local governments and territorial units of the Ministry of Justice in the course of the calculation of subsidies). 3. Resolution of October 24, 2018, # 877 "On Introducing Amendments to the Procedure for the Provision of Local Guarantees". The document shorted the list of documents attached to the notification to the Ministry of Finance for the approval of the amount and conditions for local guarantees, as well as introduced a mandatory requirement for local governments to obtain a conclusion of the Anti-Monopoly Committee prior to concluding to concluding the local guarantee agreement in cases the guarantees are provided as assistance to economic entities. 4. Resolution of October 31, 2018, # 926 "On Approving Model Regulations for the Small Group House". The document provided the opportunity for children to study in the nearest pre-school educational establishment or comprehensive secondary educational establishment at the place of their residence including ensuring the right of the child with special educational needs to inclusive education and educational services, which will enhance the role and responsibilities of local governments for children and families with children. 5. Resolution of November 28, 2018, # 996 "On Introducing Amendments to the Resolutions of the Cabinet of Ministers of Ukraine # 1751 of December 27, 2001 and# 917 of November 21, 2013”. The Resolution regulates the issue of payment of a new type of state social assistance provided by local social protection entities. 6. Resolution of November 28, 2018, # 1010 "On Certain Issues of Professional Attestation for the Profession of "Manager" of the Residential Building (Groups of Buildings)”. The document will promote the introduction of positions of housing managers and will ensure a professional approach to management of residential buildings, as well as will improve the quality of management services in the sectors of housing and municipal utilities. 7. Resolution of December 05, 2018, # 1021 "On Approving the State Targeted Program for Physical, Medical and Psychological Rehabilitation and Social and Professional Re-Adaptation of Participants of the Anti-Terrorist Operation and Persons who Participated in Activities to Ensure National Security and Defence, Resistance and Restraint of Armed Aggression of the Russian Federation in the Donetsk and Luhansk Oblasts and Ensuring Their Implementation, for the Period up to 2022". The document approved a set of activities for medical, physical and psychological rehabilitation and social and professional reintegration of combatants, as well as activities to improve the efficiency of interaction between central and local state executive authorities, local governments, and non-governmental and international organisations. 8. Resolution of December 05, 2018, # 1022 "On Approving the National Strategy for the Implementation of the National Policy of Providing the Population with Medicinal Products for the Period until 2025". The document approved the plan of activities to improve population health indices, provide a sufficient number of qualitative and effective drugs, make rational use of drugs according to the needs of patients, and set up effective mechanisms for distributing funds of the National Budget and local budgets to provide population with drugs. 9. Resolution of December 12, 2018, # 1055 "On Approving the Procedure for Conducting a Competition to Select the Universal Service Provider". The document established a mechanism for determining the supplier of electricity to households and small non-residential customers, which will guarantee the supply of electricity. 10. Resolution of December 12, 2018, # 1056 "On Approving the Regulations for Conducting a Competition to Select the "Last Hope" Supplier". The document established a mechanism for determining the supplier for the uninterrupted supply of consumers with electricity in the event of closing or bankruptcy of the current electricity supplier. 11. Resolution of December 18, 2018, # 1104 "On Introducing Amendments to Paragraph 12 of the Annex to the Resolution of the Cabinet of Ministers of Ukraine of October 11, 2016, # 710". The document unblocked the process of preparation of targeted programs that require additional funding from the National Budget, in the part dealing with the preparation of the national
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38 October – December, 2018 Quarter twelve of the Project implementation
1. Resolution of October 03, 2018, # 791 "On Approving Amendments to Certain Resolutions of targeted program to overcome the depression of the city of Tokmak of the Zaporizzhya oblast in the Cabinet of Ministers of Ukraine". The document resolved the issue with optimal scope of the framework of joint steps of central and local executive authorities and local governments to powers of local officials, such as top local government officials with regard to bonuses to promote the conditions for attraction of investments into city infrastructure, provide assistance secretaries of village, town and city councils, deputy village, town and city mayors, chief aid to economic entities whose activities are aimed at improving energy efficiency, introduce executives (secretaries) of executive committees, starostas, as well as set the amount of cash modern waste management technologies, promote employment, and stimulate the development allowances and other types of financial assistance. of small and medium-sized enterprises. 2. Resolution of October 17, 2018, # 841 "On Approving Amendments to Certain Resolutions of 12. Resolution of December 18, 2018, # 1117 «On Certain Issues of Implementation of State the Cabinet of Ministers of Ukraine" (improvements of the mechanism for interaction between Guarantees of Health Care Service to the Population within the Framework of the Program of local governments and territorial units of the Ministry of Justice in the course of the calculation Health Care Guarantees for Primary Medical Care for 2019» . The document approved the of subsidies). Procedure for the implementation of state guarantees for health care of the population within the 3. Resolution of October 24, 2018, # 877 "On Introducing Amendments to the Procedure for the framework of the program of health care guarantees for primary medical care. Provision of Local Guarantees". The document shorted the list of documents attached to the 13. Resolution of December 27, 2018, # 1141 "On Introducing Amendments to the List of Services notification to the Ministry of Finance for the approval of the amount and conditions for local of the Common Economic Interest". The document complemented the list of services of guarantees, as well as introduced a mandatory requirement for local governments to obtain a common economic interest with district heating, heat supply, hot (cold) water supply, sewerage, conclusion of the Anti-Monopoly Committee prior to concluding to concluding the local and solid waste management services, which will enable companies working in the sector of guarantee agreement in cases the guarantees are provided as assistance to economic entities. housing and municipal utilities to receive timely assistance at the expense of national and local 4. Resolution of October 31, 2018, # 926 "On Approving Model Regulations for the Small Group financial resources to increase the availability and quality of services. House". The document provided the opportunity for children to study in the nearest pre-school 14. Resolution of the Cabinet of Ministers of Ukraine of December 27, 2018, # 1145 «On educational establishment or comprehensive secondary educational establishment at the place of Approving the Regulations for Conducting the Inspection of Compliance of the Quality of the their residence including ensuring the right of the child with special educational needs to Provision of Certain Municipal Utility Services and Apartment Block Management Services inclusive education and educational services, which will enhance the role and responsibilities of with the Parameters Envisioned in Agreements for the Provision of the Relevant Services». The local governments for children and families with children. Resolution outlines the algorithm of steps to check the quality of the provision of a selected 5. Resolution of November 28, 2018, # 996 "On Introducing Amendments to the Resolutions of the municipal utility or housing service, which will ensure the protection of rights of consumers of Cabinet of Ministers of Ukraine # 1751 of December 27, 2001 and# 917 of November 21, such services. 2013”. The Resolution regulates the issue of payment of a new type of state social assistance 15. CMU Resolution of December 27, 2018, # 1176 «On Certain Issues of the Provision of Housing provided by local social protection entities. Subsidies to the Population in Cash». 6. Resolution of November 28, 2018, # 1010 "On Certain Issues of Professional Attestation for the 16. Resolution of the CMU of December 27, 2018, # 1190 "On Approving the Regulations for Profession of "Manager" of the Residential Building (Groups of Buildings)”. The document will Certification of Teachers". According to these Regulations, teachers will undergo certification, promote the introduction of positions of housing managers and will ensure a professional which will result in an additional payment staying in force for the duration of the certificate. The approach to management of residential buildings, as well as will improve the quality of Association concurred with the draft resolution with the reservations that were fully taken into management services in the sectors of housing and municipal utilities. account in the current version of the document. 7. Resolution of December 05, 2018, # 1021 "On Approving the State Targeted Program for Physical, Medical and Psychological Rehabilitation and Social and Professional Re-Adaptation Directives of the Cabinet of Ministers of Ukraine: of Participants of the Anti-Terrorist Operation and Persons who Participated in Activities to Ensure National Security and Defence, Resistance and Restraint of Armed Aggression of the Russian Federation in the Donetsk and Luhansk Oblasts and Ensuring Their Implementation, for 1. Directive of October 03, 2018, # 710-p "On Approving the Concept for the Development of the Period up to 2022". The document approved a set of activities for medical, physical and Civic Education in Ukraine". The document provides for the definition of values, tasks and psychological rehabilitation and social and professional reintegration of combatants, as well as specific approaches of the civic education, general characteristics of the system of civic activities to improve the efficiency of interaction between central and local state executive education, as well as increased opportunities to influence the decision-making processes at the authorities, local governments, and non-governmental and international organisations. national and local levels. 8. Resolution of December 05, 2018, # 1022 "On Approving the National Strategy for the 2. Directive of October 10, 2018, # 735-p "On Approving the Distribution in 2018 of 42 million Implementation of the National Policy of Providing the Population with Medicinal Products for UAH from the Subvention from the National Budget to Local Budgets to Perform the Works the Period until 2025". The document approved the plan of activities to improve population Related to Opening and Running Centers for Administrative Services Including Social Services health indices, provide a sufficient number of qualitative and effective drugs, make rational use in the Transparent Office Format. The document approved the distribution of the subvention of drugs according to the needs of patients, and set up effective mechanisms for distributing from the National Budget for setting up and running CASS in the Transparent Office format in 4 funds of the National Budget and local budgets to provide population with drugs. cities of oblast significance and 5 CTCs. 9. Resolution of December 12, 2018, # 1055 "On Approving the Procedure for Conducting a 3. Directive of October 10, 2018, # 868-р "On the Redistribution of the Amount of the Education Competition to Select the Universal Service Provider". The document established a mechanism Subvention from the National Budget to Local Budgets in 2018". The document redistributed for determining the supplier of electricity to households and small non-residential customers, 170.3 million UAH from the education subvention for salary payments for teachers of which will guarantee the supply of electricity. comprehensive secondary educational establishments in communities of the Volyn, 10. Resolution of December 12, 2018, # 1056 "On Approving the Regulations for Conducting a Dnipropetrovsk, Zhytomyr, Zakarpattya, Ivano-Frankivsk, Kyiv, Kirovograd, Odesa, Sumy, Competition to Select the "Last Hope" Supplier". The document established a mechanism for Ternopil, Kherson, Khmelnytskyi, Cherkasy, and Chernihiv oblasts. determining the supplier for the uninterrupted supply of consumers with electricity in the event 4. Directive of December 12, 2018, # 1018-p "On Redistribution of the Amount of the Education of closing or bankruptcy of the current electricity supplier. Subvention from the National Budget to Local Budgets in 2018". The document redistributed 11. Resolution of December 18, 2018, # 1104 "On Introducing Amendments to Paragraph 12 of the 83.6 million UAH of the education subvention for salaries of teacher of comprehensive Annex to the Resolution of the Cabinet of Ministers of Ukraine of October 11, 2016, # 710". The secondary educational establishments in selected communities in the Vinnitsa, Volyn, document unblocked the process of preparation of targeted programs that require additional Dnipropetrovsk, Donetsk, Ternopil, Cherkasy, and Chernihiv oblasts. funding from the National Budget, in the part dealing with the preparation of the national
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39 QUARTERLY REPORT for the Policy for Ukraine Local Self-Governance (PULSE) Project 5. Directive of December 12, 2018, # 964-р "On Redistribution of Expenditures from the National Budget Earmarked for the Ministry of Education and Science for 2018". The document allocated 352.2 million UAH between budgets of cities of oblast significance, rayon budgets and budgets of CTCs for payment of teacher salaries, training aides and equipment for inclusive and/or special classrooms. 6. Directive of November 07, 2018, # 813-р "On the Redistribution of Expenditures from the National Budget Earmarked for the Ministry of Health Care for 2018 and Redistribution of Health Care Subventions from the National Budget to Local Budgets". The document redistributed 1.5 billion UAH to pay salaries to employees of communally-owned health care establishments, and to provide the appropriate medical care to patients. 7. Directive of November 14, 2018, # 856-р "On the Redistribution of Expenditures from the National Budget Earmarked for the Ministry of Health Care for 2018". The document redistributed 78.0 million UAH for the payment of salaries to employees of communally-owned health care establishments. 8. Directive of December 12, 2018, # 1003-p "On the Redistribution of Expenditures from the National Budget Earmarked for the Ministry of Health Care for 2018". The document redistributed 323.1 million UAH for the payment of wages to employees of public health care establishments. 9. Directive of November 21, 2018, # 944-p "On Approval of the Action Plan for the Implementation of the Strategy for the Integration of Internally Displaced Persons and the Implementation of Long-Term Decisions on Internal Movement for the Period up to 2020". The document provides for measures to take into account the needs of internally-displaced persons for the development of regional and local programs, provision of social and temporary housing to internally-displaced persons, opening new jobs and supporting small and medium-sized businesses, as well as the provision of health care services to internally-displaced persons in health care establishments.
In addition to this, during the reporting period, the Cabinet of Ministers issued 14 directives to recognise 175 consolidated territorial communities where initial elections took place in 2017 - 2018 as capable (Directive of November 07, 2018, # 836), as well as introduced amendments to long-term perspective plans for the formation of community territories in 13 oblasts: Chernihiv (Directive of November 21, 2018, # 751), Dnipropetrovsk (Directive of November 07, 2018, # 823), Luhansk (Directive of November 14, 2018, # 845), Zaporizzhya (Directive of November 21, 2018, # 889), Ternopil (Directive of November 21, 2018, # 896), Khmelnytskyi (Directive of November 21, 2018, # 901), Lviv (Directive of November 21, 2018, # 902), Donetsk (Directive of November 21, 2018, # 906), Chernivtsi (Directive of November 21, 2018, # 943), Kharkiv (Directive of November 21, 2018 # 957), Vinnytsya (Directive of November 21, 2018, # 961), Zhytomyr (Directive of November 21, 2018 # 997), and Ivano-Frankivsk (Directive of November 21, 2018, # 1035. 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 7 regulations on local governments.
During the reporting period, upon the initiative and/or with the support of the AUC, the Cabinet of Ministers made the following decisions:
1. On October 30, the Ministry of Labour and Social Policy presented to the Cabinet of Ministers Committee for Social Policy and Humanitarian a draft resolution of the CMU "On Approving the Regulations for Returning the Property or Offsetting Its Value to the Deported Persons, or, in Case of Their Death, to the Heirs of Such Persons". The document had a suggestion to return (or to reimbursement the value) of the property to the deportees (or their heirs) at the expense of the relevant local budgets in the communities where the property is located. An AUC representative drew the attention of the members of the Committee to the fact that Article 1 of the Law of Ukraine of April 17, 2014, # 1223-VII "On the Restoration of Rights of Persons Deported on National Grounds" stipulates that compensation means compensation by the state of the material damage to a deported person caused by deportation and, hence, should be performed exclusively at the expense
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40 October – December, 2018 Quarter twelve of the Project implementation
5. Directive of December 12, 2018, # 964-р "On Redistribution of Expenditures from the National of the National Budget. The draft resolution was removed from consideration and was sent to the Budget Earmarked for the Ministry of Education and Science for 2018". The document allocated authors for elaboration. 352.2 million UAH between budgets of cities of oblast significance, rayon budgets and budgets 2. On November 07, the Ministry of Culture submitted a draft resolution of November 11, 2018, # 1100 of CTCs for payment of teacher salaries, training aides and equipment for inclusive and/or "On Increasing Salaries of Teachers of Specialised Art Schools (Boarding Schools)" to the Cabinet special classrooms. of Ministers for consideration. The document had a suggestion to bring (as of September 01, 2018) 6. Directive of November 07, 2018, # 813-р "On the Redistribution of Expenditures from the the level of remuneration for teachers of specialised state-owned and communally-owned art schools National Budget Earmarked for the Ministry of Health Care for 2018 and Redistribution of up to the level of remuneration for teachers of comprehensive secondary educational establishments Health Care Subventions from the National Budget to Local Budgets". The document whose salaries are paid at the expense of the education subvention. Having taken into consideration redistributed 1.5 billion UAH to pay salaries to employees of communally-owned health care comments and arguments of the AUC representative regarding the shortage of funds for these establishments, and to provide the appropriate medical care to patients. purposes in approved 2018 local budgets, the CMU Resolution of July 07, 2018 # 1100 "On 7. Directive of November 14, 2018, # 856-р "On the Redistribution of Expenditures from the Increasing Salaries of Teachers of Specialised Art Schools (Boarding Schools)" was approved in the National Budget Earmarked for the Ministry of Health Care for 2018". The document wording proposed by the AUC, specifically: the decision of the Cabinet of Ministers to increase the redistributed 78.0 million UAH for the payment of salaries to employees of communally-owned level of remuneration applied only to specialised state-owned art schools and had to be financed health care establishments. from the National Budget funds. 8. Directive of December 12, 2018, # 1003-p "On the Redistribution of Expenditures from the 3. On November 22, the Ministry of Finance submitted to the Cabinet of Ministers Committee on National Budget Earmarked for the Ministry of Health Care for 2018". The document Economic, Financial and Legal Policy, Development of the Fuel and Energy Complex, Infrastructure redistributed 323.1 million UAH for the payment of wages to employees of public health care and Defence and Law Enforcement a Draft Law of Ukraine "On Introducing Amendments to the Tax establishments. Code of Ukraine to Resolve Current Problem Issues and to Improve the Administration of the Excise 9. Directive of November 21, 2018, # 944-p "On Approval of the Action Plan for the Tax". The document had a suggestion to amend the Tax Code of Ukraine in the part dealing with the Implementation of the Strategy for the Integration of Internally Displaced Persons and the introduction of control of the intended use of fuel imported at preferential rates, accountability for Implementation of Long-Term Decisions on Internal Movement for the Period up to 2020". The the use of such fuel for other purposes, definition of the procedure and grounds for the payer of the document provides for measures to take into account the needs of internally-displaced persons excise tax to cancel registration, etc. To safeguard the interests of local budgets whose general funds for the development of regional and local programs, provision of social and temporary housing receive 13.44% of collections from the excise tax, the AUC representative emphasised the need to to internally-displaced persons, opening new jobs and supporting small and medium-sized improve the mechanism and came up with a suggestion to assign the excise tax collections to a businesses, as well as the provision of health care services to internally-displaced persons in special local budget fund and use them for maintenance and repairs of highways. In addition to this, health care establishments. the AUC drew the attention of the Committee to the fact that the provisions of the draft law do not comply with the provisions of the approved earlier in the first reading Law of Ukraine of November
23, 2018, # 2628-VIII "On Introducing Amendments to the Tax Code of Ukraine and Certain Other In addition to this, during the reporting period, the Cabinet of Ministers issued 14 directives to recognise Ukrainian Legislation Regarding Improvements in Administering and Revisiting Rates for Certain 175 consolidated territorial communities where initial elections took place in 2017 - 2018 as capable Taxes and Fees». Thus, the author of the draft law recalled it for elaboration. (Directive of November 07, 2018, # 836), as well as introduced amendments to long-term perspective 4. On November 22, during the meeting of the Cabinet of Ministers Committee on Economic, Financial plans for the formation of community territories in 13 oblasts: Chernihiv (Directive of November 21, and Legal Policy, Development of the Fuel and Energy Complex, Infrastructure and Defence and 2018, # 751), Dnipropetrovsk (Directive of November 07, 2018, # 823), Luhansk (Directive of November Law Enforcement, a group of National Deputies introduced a draft Law of Ukraine "On Local 14, 2018, # 845), Zaporizzhya (Directive of November 21, 2018, # 889), Ternopil (Directive of November Development Fund Bonds” (Registration # 9023). The draft law offered a suggestion to establish the 21, 2018, # 896), Khmelnytskyi (Directive of November 21, 2018, # 901), Lviv (Directive of November 21, organisational and legal framework for the creation, operation and liquidation of new financial and 2018, # 902), Donetsk (Directive of November 21, 2018, # 906), Chernivtsi (Directive of November 21, loan institutions, or so-called "local development funds" and outline the peculiarities of preparation 2018, # 943), Kharkiv (Directive of November 21, 2018 # 957), Vinnytsya (Directive of November 21, 2018, and implementation of investment projects at the expense of proceeds from placement of local # 961), Zhytomyr (Directive of November 21, 2018 # 997), and Ivano-Frankivsk (Directive of November 21, development fund bonds, as well as peculiarities of issuing and repaying such bonds. The AUC drew 2018, # 1035. the attention of the audience to the numerous inconsistencies between the provisions of the draft law Thanks to the active work of representatives of the AUC in the Cabinet of Ministers and its Committees, the and requirements of the Budget Code, Laws "On Local Self-Governance in Ukraine", "On Cooperation of Territorial Communities", "On the Voluntary Consolidation of Territorial Cabinet of Ministers managed to reject and/or mitigate the negative impact of 7 regulations on local governments. Communities", and "On Financial Services and State Regulation of Financial Service Markets” and insisted on the need for a comprehensive revision of the draft law with the involvement of representatives of central government, local governments and independent financial regulators. During the reporting period, upon the initiative and/or with the support of the AUC, the Cabinet of According to the results of the consideration, the Cabinet of Ministers Committee did not endorse Ministers made the following decisions: the draft law. 5. On December 06, Ministry of Energy and Coal Industry submitted to the Cabinet of Ministers Committee on Economic, Financial and Legal Policy, Development of the Fuel and Energy 1. On October 30, the Ministry of Labour and Social Policy presented to the Cabinet of Ministers Complex, Infrastructure and Defence a draft Resolution of the Cabinet of Ministers of Ukraine "On Committee for Social Policy and Humanitarian a draft resolution of the CMU "On Approving the Certain Issues of Consumption of the Natural Gas by Household Consumers" drafted by the Regulations for Returning the Property or Offsetting Its Value to the Deported Persons, or, in Case ministry. The document envisioned the reduction, as of May 01, 2019, of social standards whose of Their Death, to the Heirs of Such Persons". The document had a suggestion to return (or to limits are used to grant privileges and subsidies for utility services. The AUC representative reimbursement the value) of the property to the deportees (or their heirs) at the expense of the mentioned that the proposed changes were not properly justified and could increase social tension relevant local budgets in the communities where the property is located. An AUC representative and utility service debts, as well as reduce the already established level of commercial accounting of drew the attention of the members of the Committee to the fact that Article 1 of the Law of Ukraine utility services. Having considered the arguments of the AUC, the Cabinet of Ministers Committee of April 17, 2014, # 1223-VII "On the Restoration of Rights of Persons Deported on National decided to send a draft resolution for elaboration. Grounds" stipulates that compensation means compensation by the state of the material damage to a 6. On December 20, the Ministry of Labour and Social Policy submitted its draft resolution of the deported person caused by deportation and, hence, should be performed exclusively at the expense Cabinet of Ministers of Ukraine "On Introducing Amendments to the Procedures Endorsed by
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41 QUARTERLY REPORT for the Policy for Ukraine Local Self-Governance (PULSE) Project Resolutions of the Cabinet of Ministers of Ukraine # 936 of September 20, 2005 and # 1243 of November 18" for consideration by the Cabinet of Ministers Committee for Social Policy and Humanitarian Development. The document offered a suggestion to pay compensation to citizens for lost real estate in case of their resettlement or self-resettlement from radioactively contaminated territories at the expense of local budgets. The draft regulation went through the preliminary consideration on August 14, 2018 in the Cabinet of Ministers Committee on Social Policy. The Committee came up with a decision to elaborate the document and gave an instruction to the Ministry of Social Policy to conduct a coordination meeting with the Ministry of Finance, Ministry of Justice, Ministry of Regional Development, Zhytomyr Oblast State Administration and AUC. However, the draft resolution was never sent to the AUC for concurrence, while its implementation would require additional 101.5 million UAH from local budgets in the Zhytomyr oblast, which were not earmarked for 2018. The AUC representative stressed that in accordance with Article 63 of the Law of Ukraine "On the Status and Social Protection of Citizens Affected by the Chornobyl Disaster" the financing of expenditures for the implementation of the Law should come from the National Budget and local budgets and the National Budget should provide the compensation to local budgets (which has not been paid since 2006). The Cabinet of Ministers Committee supported the position of the AUC and removed the draft document from consideration. 7. On December 20, the Cabinet of Ministers Committee on Economic, Financial and Legal Policy, Development of the Fuel and Energy Complex, Infrastructure, Defence and Law-Enforcement considered the Draft Law "On Introducing Amendments to the Tax Code of Ukraine on Improving the Administration of Local Taxes and Fees" prepared by the Ministry of Finance. The document offered a suggestion to introduce a provision, whereby control agencies are to send to local governments the information on the amounts of accrued and paid local taxes and fees and the amount of tax debt on the respective territories, introduce a unified format of information on the rates and privileges on all local taxes and fees, abolish the obligation of local governments to make decisions on setting local taxes and fees on the annual basis, set land tax rates for the land plots within the boundaries of populated areas where the pecuniary valuation of lands did not take place, etc. The representative of the AUC drew the attention of the members of the Committee to the ambiguity of some of the proposed provisions, which may have a negative impact on the procedures for administering local taxes and fees, and to overlapping provisions of Law # 2628-VII “On Introducing Amendments to the Tax Code of Ukraine and Certain Other Ukrainian Legislation Regarding Improvements in Administering and Revisiting Rates for Certain Taxes and Fees” the VRU approved on November 23, 2013 (effective as of January 01, 2019), as well as came up with a suggestion to elaborate the draft document to bring it in line with the current tax legislation. The Cabinet of Ministers Committee supported the AUC proposal and returned the draft law to its authors.
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. During the reporting period, the Project did not conduct any activities under this component.
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:
Cabinet of Ministers of Ukraine On October 03 and December 27, 2018, an Expert Group on Language Policy whose membership includes a PULSE Project expert conducted its meeting in the premises of the Cabinet of Ministers under the chairmanship of Vice Prime Minister of Ukraine P. Rosenko. In the course of the meeting, its participants 42
42 October – December, 2018 Quarter twelve of the Project implementation
Resolutions of the Cabinet of Ministers of Ukraine # 936 of September 20, 2005 and # 1243 of discussed the Draft Law of Ukraine "On Ensuring the Functioning of the Ukrainian Language as the State November 18" for consideration by the Cabinet of Ministers Committee for Social Policy and Language" (Registration # 5670-д of September 28, 2018). The members of the Expert Group came to an Humanitarian Development. The document offered a suggestion to pay compensation to citizens for agreement to support this draft law, however they expressed their views about the need to elaborate it for the lost real estate in case of their resettlement or self-resettlement from radioactively contaminated second reading. Also, the Expert Group discussed and approved the draft concept of the National Targeted territories at the expense of local budgets. The draft regulation went through the preliminary Program for comprehensive development and functioning of the Ukrainian language as a state language in all consideration on August 14, 2018 in the Cabinet of Ministers Committee on Social Policy. The aspects of public life for the period till 2028. Committee came up with a decision to elaborate the document and gave an instruction to the
Ministry of Social Policy to conduct a coordination meeting with the Ministry of Finance, Ministry Ministry of Education and Science of Ukraine of Justice, Ministry of Regional Development, Zhytomyr Oblast State Administration and AUC. During the reporting period, a PULSE Project expert continued the dialogue with the Ministry of Education However, the draft resolution was never sent to the AUC for concurrence, while its implementation and Science about changing the formula for the distribution of the education subvention. Based on this would require additional 101.5 million UAH from local budgets in the Zhytomyr oblast, which were cooperation, the Ministry of Education and Science sent a letter to the AUC of November 8, 2018, # 1/11- not earmarked for 2018. The AUC representative stressed that in accordance with Article 63 of the 12085 where the line ministry confirmed that the Law of Ukraine "On the National Budget for 2019" Law of Ukraine "On the Status and Social Protection of Citizens Affected by the Chornobyl approved during the reporting period by the parliament takes into account the funds for dividing classes for Disaster" the financing of expenditures for the implementation of the Law should come from the studying certain courses, increasing salaries of teacher assistants in inclusive classes from 0.5 to 1, as well as National Budget and local budgets and the National Budget should provide the compensation to for changing the estimated number of schoolchildren in classes for the cities, which have educational local budgets (which has not been paid since 2006). The Cabinet of Ministers Committee supported institutions located in rural areas. the position of the AUC and removed the draft document from consideration. 7. On December 20, the Cabinet of Ministers Committee on Economic, Financial and Legal Policy, At the same time, the issue of taking into account the actual number of schoolchildren in educational Development of the Fuel and Energy Complex, Infrastructure, Defence and Law-Enforcement institutions remains open. At present, the AUC is waiting for the approval of changes to the formula for the considered the Draft Law "On Introducing Amendments to the Tax Code of Ukraine on Improving distribution of the education subventions by the Cabinet of Ministers. the Administration of Local Taxes and Fees" prepared by the Ministry of Finance. The document offered a suggestion to introduce a provision, whereby control agencies are to send to local National Service for Quality of Education of Ukraine governments the information on the amounts of accrued and paid local taxes and fees and the On October 24, 2018, a PULSE project expert participated in the strategic session of the National Service for amount of tax debt on the respective territories, introduce a unified format of information on the Quality of Education of Ukraine under the title: "The Internal System of Ensuring Quality of Education in rates and privileges on all local taxes and fees, abolish the obligation of local governments to make Schools: Building Together" and participated in the discussion of the quality assurance system in agencies decisions on setting local taxes and fees on the annual basis, set land tax rates for the land plots and institutions, as well as in the discussion of the Standards and Recommendations for the Functioning of within the boundaries of populated areas where the pecuniary valuation of lands did not take place, the Education Quality Assurance System in comprehensive secondary educational establishment (internal etc. The representative of the AUC drew the attention of the members of the Committee to the quality assurance system). ambiguity of some of the proposed provisions, which may have a negative impact on the procedures for administering local taxes and fees, and to overlapping provisions of Law # 2628-VII “On On October 31, 2018, a PULSE Project experts participated in the official meeting of the Chairman of the Introducing Amendments to the Tax Code of Ukraine and Certain Other Ukrainian Legislation National Service for Quality of Education in Ukraine R. Hurak with the AUC. The parties discussed Regarding Improvements in Administering and Revisiting Rates for Certain Taxes and Fees” the potential areas of cooperation, in particular, preparation of institutional audit documents for local VRU approved on November 23, 2013 (effective as of January 01, 2019), as well as came up with a governments and educational establishments. The meeting participants reached an agreement about suggestion to elaborate the draft document to bring it in line with the current tax legislation. The conducting a joint forum for representatives of government bodies for education management and deputy Cabinet of Ministers Committee supported the AUC proposal and returned the draft law to its mayors on humanitarian issues to discuss issues of ensuring high quality of education in communities. authors.
Sectoral forums Ministry of Finance of Ukraine Sectoral forums represent a new practice in sectoral policy dialogue. This is a platform to approve the PULSE Project experts entered a dialogue with the Ministry of Finance and the Cabinet of Ministers and strategy for the development of the sector together with the follow-up monitoring of its implementation and managed to redistribute the funds of the education subvention from the National Budget to local budgets necessary adjustments. In addition to this, this is an opportunity for sectoral specialists to communicate with (CMU Resolutions # 868-p of October 24, 2018 and Directives # 1018-p and # 1019-p of December 12, the line ministry and technical parliamentary committee, National Deputies of Ukraine, other sectoral 2018). As a result of such redistribution, CTC and city resources increased by 219.9 million hryvnyas. Also, experts, and representatives of NGOs active in the sector, as well as to exchange of experience in resolving at the end of the year, the Cabinet of Minister directed approximately 230 million UAH to Oblast State practical issues. The sectoral forum is a platform for the consolidation of positions of state executive Administrations for the appropriate redistribution between local budgets, thus to resolve the issue of the lack authorities and local governments, outlining the common direction for the future development and reforming of funds. The redistribution in the 4th quarter of 2018 was mainly performed through the resources of oblast of the respective sector. budgets. For example, OSAs took into account the position of the Ministry of Finance and of the AUC and preserved the resources of local budgets in the communities whose network of educational establishment was During the reporting period, the Project did not conduct any activities under this component. optimised and where the remaining balances of the education subvention were accumulated. These funds will be directed for upgrading the educational environment in educational establishments.
Cooperation with line ministries Ministry of Regional Development, Construction, Housing and Municipal Utilities of Ukraine PULSE experts continued to cooperate with ministries and other central executive authorities. Below are the A PULSE Project expert participated in the meeting of the Ministry of Regional Development Committee for main achievements in this area in the reporting period: the selection of projects to support the implementation of tasks and activities of the Drinking Water of Ukraine National Targeted Program for 2011 - 2020 (the total funding constitutes 200 million UAH). In the Cabinet of Ministers of Ukraine course of the meeting, its participants finalised the selection of projects for the implementation of the On October 03 and December 27, 2018, an Expert Group on Language Policy whose membership includes a program mentioned above and approved the final list of activities to be funded. PULSE Project expert conducted its meeting in the premises of the Cabinet of Ministers under the chairmanship of Vice Prime Minister of Ukraine P. Rosenko. In the course of the meeting, its participants 42 43
43 QUARTERLY REPORT for the Policy for Ukraine Local Self-Governance (PULSE) Project The PULSE Project appealed to the Cabinet of Ministers of Ukraine with a request to accelerate the endorsement of the draft Resolution of the Cabinet of Ministers of Ukraine "On Introducing Amendments to the Regulations on Imposition Special Responsibilities on the Participants of the Natural Gas Market for Ensuring General Public Interests in the Process of Operation of the Natural Gas Market and the Distribution of Funds Coming to Special Operational Accounts for Settling Payments with the Natural Gas Supplier Charged with Special Obligations”. Based on the appeal, the Cabinet of Ministers of Ukraine endorsed the relevant Resolution (of November 14, 2018, # 942). The PULSE Project expert participated in the Strategic Session of the Ministry of Regional Development: Modern Challenges in Urban Development Policy in Ukraine, which took place on December 06, 2018. According to the results of the meeting, organised jointly with leading experts, VRU Committee on Construction, Urban Development, Housing and Municipal Utilities, oblast and city architects of Ukraine and scholars in the sphere of urban planning, the participants outline new directions and strategic goals for the next year in the sector. The PULSE Project expert participated in the Ministry of Regional Development meeting with representatives of other line ministries and the Human Rights Commissioner and joined the preparation of the draft law on accessibility for persons with disabilities. The draft law is scheduled to be submitted by the President to the parliament for consideration in the first half of 2019. On December 10, the PULSE Project expert participated in a meeting on key decentralisation issues chaired by Vice Prime Minister H. Zubko. The meeting participants discussed, in particular, the main tasks for improving the system for the preparation and implementation of the national regional policy; improvements of the procedure of competitive selection of regional development projects; and revitalising and enhancing the work of regional development agencies.
In previous quarters, the Ministry actively worked on strengthening state oversight of local government activities. The AUC is firm in its position about inadmissibility of vesting state executive authorities with additional oversight powers. The process of finding a compromise solution involves European experts. The AUC position implies a thorough examination of the existing oversight system, identification of current deficiencies and their elimination, and compliance with the Constitution of Ukraine, European Charter of Local Self-Governance, and principles of local governments. The AUC Board made the relevant decision on September 24, 2018. After the AUC submitted its expert opinion prepared by the PULSE Project in October, the Ministry of Regional Development decided to continue working on the document for another six months. This will provide an opportunity to better elaborate the draft law.
State Property Fund of Ukraine A PULSE Project expert participated in the working group of the State Property Fund, which completed drafting of the Law of Ukraine "On Leasing State-Owned and Communally-Owned Property" in the fourth quarter of 2018. According to the results of the work, all comments and suggestions from local governments were taken into account. The Cabinet of Ministers endorsed the Draft Law. Also, AUC together with other stakeholders elaborated and concurred with the draft Resolution of the Cabinet of Ministers of Ukraine "On Introducing Amendments to the Property Valuation Procedure" prepared by the State Property Fund.
National Agency for Geodesy, Cartography and Cadastre The PULSE Project together with the top management of the National Agency for Geodesy, Cartography and Cadastre organised and conducted a web conference on land management for consolidated territorial communities. During the web conference, local government officials had an opportunity to enter the open dialogue and to present local issues, ask questions about the transfer of state-owned agricultural lands to communal ownership, renewing land lease agreements, conducting normative pecuniary valuation of lands, maintaining mapping resources, setting the boundaries of populated areas, as well as many other issues in the sphere of land resource management. The effectiveness of these types of activities is confirmed by the high number of views (4,500 views in the course of the meeting) and the number of questions (200 questions through the Internet and more than 100 written requests).
National Agency for Civil Service of Ukraine
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44 October – December, 2018 Quarter twelve of the Project implementation
The PULSE Project appealed to the Cabinet of Ministers of Ukraine with a request to accelerate the On November 15, a PULSE Project expert, being a member of the Coordination Council under the National endorsement of the draft Resolution of the Cabinet of Ministers of Ukraine "On Introducing Amendments to Agency for Civil Service of Ukraine, participated in its meeting to discuss the current status of the the Regulations on Imposition Special Responsibilities on the Participants of the Natural Gas Market for implementation of the Plan for the Concept for reforming the system of professional training of civil Ensuring General Public Interests in the Process of Operation of the Natural Gas Market and the Distribution servants, heads of local state administrations, their first deputies and deputies, local government officials, of Funds Coming to Special Operational Accounts for Settling Payments with the Natural Gas Supplier and local council members in 2018, as well as the necessity to postpone the implementation of individual Charged with Special Obligations”. Based on the appeal, the Cabinet of Ministers of Ukraine endorsed the tasks of the Plan for 2019. relevant Resolution (of November 14, 2018, # 942). Ministry of Youth and Sports of Ukraine The PULSE Project expert participated in the Strategic Session of the Ministry of Regional Development: The Ministry continues its cooperation with the Association of Ukrainian Cities within the framework of the Modern Challenges in Urban Development Policy in Ukraine, which took place on December 06, 2018. Youth Capital of Ukraine All-Ukrainian Contest. The Association of Ukrainian Cities is the key partner of According to the results of the meeting, organised jointly with leading experts, VRU Committee on the Ministry in the competition and provides assistance in interacting with local governments. The purpose Construction, Urban Development, Housing and Municipal Utilities, oblast and city architects of Ukraine of the competition is to enhance and improve cooperation of youth with local authorities and development of and scholars in the sphere of urban planning, the participants outline new directions and strategic goals for a conducive youth environment in cities. On December 21, the final phase of the competition took place. A the next year in the sector. PULSE Project expert is a member of the selection board. In 2019, the city of Kamianets-Podilskyi was The PULSE Project expert participated in the Ministry of Regional Development meeting with chosen as the youth capital of Ukraine. representatives of other line ministries and the Human Rights Commissioner and joined the preparation of The PULSE Project expert also participated in the selection of the best practices of working with youth in the draft law on accessibility for persons with disabilities. The draft law is scheduled to be submitted by the 2018 within the framework of the competition organised by the Ministry of Youth and Sports. One of the President to the parliament for consideration in the first half of 2019. goals of the competition was promoting the work on youth issues in local governments. On December 10, the PULSE Project expert participated in a meeting on key decentralisation issues chaired by Vice Prime Minister H. Zubko. The meeting participants discussed, in particular, the main tasks for Ministry of Labour and Social Policy of Ukraine improving the system for the preparation and implementation of the national regional policy; improvements The Ministry developed a draft resolution, according to which deportees or their heirs will receive the of the procedure of competitive selection of regional development projects; and revitalising and enhancing reimbursement of the value of their property at the expense of local government budgets. The draft resolution the work of regional development agencies. was submitted to the Cabinet of Ministers Committee for Social Policy and Humanitarian Development on
October 30, 2018. A PULSE Project expert was against the approval of the draft resolution because of In previous quarters, the Ministry actively worked on strengthening state oversight of local government significant additional expenditures local budgets would have to incur. Thanks to his interference, the activities. The AUC is firm in its position about inadmissibility of vesting state executive authorities with Committee postponed the consideration of the draft document to streamline the contradictory provisions. additional oversight powers. The process of finding a compromise solution involves European experts. The AUC position implies a thorough examination of the existing oversight system, identification of current The Ministry prepared a draft resolution, according to which citizens will receive compensation for their lost deficiencies and their elimination, and compliance with the Constitution of Ukraine, European Charter of property in case of their relocation from territories with radioactive contamination at the expense of local Local Self-Governance, and principles of local governments. The AUC Board made the relevant decision on budgets. The draft resolution was submitted for consideration by the Cabinet of Ministers of Ukraine on September 24, 2018. After the AUC submitted its expert opinion prepared by the PULSE Project in October, December 27, 2018. The PULSE Project expert was against the approval of the draft resolution because of the Ministry of Regional Development decided to continue working on the document for another six months. significant additional expenditures local budgets would have to incur. Thanks to his interference, the This will provide an opportunity to better elaborate the draft law. Committee removed the draft document from consideration.
The Ministry prepared a draft resolution to amend the procedure for granting housing subsidies to the State Property Fund of Ukraine population. The draft document, in particular, stipulated that local social security authorities would manually A PULSE Project expert participated in the working group of the State Property Fund, which completed check all household members for debts on alimony payments. The expert PULSE offered a suggestion to drafting of the Law of Ukraine "On Leasing State-Owned and Communally-Owned Property" in the fourth automate this process to reduce the burden on employees. The Ministry of Social Policy supported the quarter of 2018. According to the results of the work, all comments and suggestions from local governments position of the expert and the resolution was approved at a meeting of the Cabinet of Ministers of Ukraine on were taken into account. The Cabinet of Ministers endorsed the Draft Law. October 17, 2018. The resolution envisions that the Ministry of Social Policy and the Ministry of Justice will Also, AUC together with other stakeholders elaborated and concurred with the draft Resolution of the develop a procedure for obtaining information on alimony. Cabinet of Ministers of Ukraine "On Introducing Amendments to the Property Valuation Procedure" The Ministry prepared a draft regulation on a small group house. When elaborating the draft document, the prepared by the State Property Fund. Ministry took into account the position of the PULSE Project expert concerning the procedure for interaction with local governments (in case several territorial communities decide to use the small group house). National Agency for Geodesy, Cartography and Cadastre The Ministry supported the position of the PULSE Project expert and prepared amendments to the Budget The PULSE Project together with the top management of the National Agency for Geodesy, Cartography Code, whereby the financing for patronage educators will continue to come from the National Budget till and Cadastre organised and conducted a web conference on land management for consolidated territorial 2026. The parliament approved the relevant amendments to the Budget Code of Ukraine on November 22, communities. During the web conference, local government officials had an opportunity to enter the open 2018 in Law # 2621. This helped to prevent the additional burden on local budgets in the amount of 15 dialogue and to present local issues, ask questions about the transfer of state-owned agricultural lands to million UAH. communal ownership, renewing land lease agreements, conducting normative pecuniary valuation of lands, maintaining mapping resources, setting the boundaries of populated areas, as well as many other issues in the The PULSE Project expert and the Ministry came to an agreement to support a joint position against Draft sphere of land resource management. The effectiveness of these types of activities is confirmed by the high Law # 6489, which annulled right of local governments to monitor compliance with the labour legislation. number of views (4,500 views in the course of the meeting) and the number of questions (200 questions Thanks to the intervention of the PULSE Project expert, the consideration of the draft law was postponed for through the Internet and more than 100 written requests). an indefinite period of time.
National Agency for Civil Service of Ukraine National Service of Ukraine for Labour The Association of Ukrainian Cities continued to work with the National Service of Ukraine for Labour on issues related to the powers of local governments to monitor compliance with the labour legislation. In the 44 45
45 QUARTERLY REPORT for the Policy for Ukraine Local Self-Governance (PULSE) Project reporting period, the PULSE Project expert together with the National Service came to an agreement to support a joint position against Draft Law # 6489, which annulled right of local governments to monitor compliance with the labour legislation. Thanks to the intervention of the PULSE Project expert, the consideration of the draft law was postponed for an indefinite period of time.
Ministry of Health Care of Ukraine A PULSE Project expert participated in the coordination meeting at the Ministry of Health Care to discuss the list and composition of hospital districts in the Sumy oblast. While defending the position of local governments, the expert managed to persuade the Ministry of Health Care of Ukraine to set up six hospital districts in the oblast, rather than one to meet the needs of territorial communities of the oblast. As a result, the AUC concurred with the draft CMU Resolution "On Approving the List and Composition of Hospital Districts of the Sumy Oblast".
Ministry of Energy and Coal Industry of Ukraine In the reporting quarter, upon the initiative of the Directorate of Fossil Fuels of the Ministry of Energy and Coal Industry of Ukraine and with the assistance of the AUC, the Ministry established a Platform for coal territories with the participation of village, town and city mayors to ensure the re-conversion of coal-bearing territories. The Platform consists of 25 communities from the Donetsk, Luhansk, Dnipropetrovsk, Lviv, and Volyn oblasts where coal enterprises are located. The AUC will serve as an information platform for local governments and the Directorate of Fossil Fuels of the Ministry of Energy and Coal Industry of Ukraine to help communities reorganise economic development of these territories and turn them from one-company coal territories to a diversified model. This will help to protect communities from negative economic and social consequences in case of mine closures.
The AUC appealed to the Cabinet of Ministers of Ukraine with a proposal to accelerate the approval of the Regulations for conducting a competition to select the "last hope" supplier of electricity prepared by Ministry of Energy and Coal Industry and to conduct the relevant competition, as companies working in the sector of housing and municipal utilities might have been left without the electricity supply. According to the results of the appeal, the Cabinet of Ministers of Ukraine endorsed the Resolution of December 12, 2018, # 1056 to introduce the Regulations, while the Directive of the Cabinet of Ministers of Ukraine of December 12, 2018, # 1023-р selected the "last hope" supplier.
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. The Project also 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, 2,291 consultations local government officials, local council members and other persons, with the total number consultations provided since the beginning of the project being 26,005. By technical area, the regional consultants provided the following consultations:
on legal issues – 1,024; on budget issues – 1,264; and, on local economic development – 254. With the assistance of AUC reform offices, the following results were achieved in the reporting quarter:
38 CTCs were established, which comprised 171 communities. These communities are currently waiting for the decision of the CEC to schedule their initial elections; 46
46 October – December, 2018 Quarter twelve of the Project implementation reporting period, the PULSE Project expert together with the National Service came to an agreement to On December 23, 2018, the initial elections took place in 77 consolidated territorial communities (9 support a joint position against Draft Law # 6489, which annulled right of local governments to monitor city, 15 town, and 53 rural CTCs) in 12 oblasts. The composition of these 77 CTCs comprised 343 compliance with the labour legislation. Thanks to the intervention of the PULSE Project expert, the local councils (city - 9, town - 17, and village - 317). consideration of the draft law was postponed for an indefinite period of time. 14 territorial communities of the cities of oblast significance annexed 26 village and town councils.
Ministry of Health Care of Ukraine A PULSE Project expert participated in the coordination meeting at the Ministry of Health Care to discuss 1.3.2. Web-tools to increase the efficiency of local government activities the list and composition of hospital districts in the Sumy oblast. While defending the position of local governments, the expert managed to persuade the Ministry of Health Care of Ukraine to set up six hospital The web-tools prepared by the PULSE Project during Project Year One were integrated into the AUC web districts in the oblast, rather than one to meet the needs of territorial communities of the oblast. As a result, site. The main page of the web site provides access to the following tools: the AUC concurred with the draft CMU Resolution "On Approving the List and Composition of Hospital Electronic Law Creator; Districts of the Sumy Oblast". Consultations; e-petitions; and, Fair of Ideas. Ministry of Energy and Coal Industry of Ukraine In the reporting quarter, upon the initiative of the Directorate of Fossil Fuels of the Ministry of Energy and The Decentralisation Section provides links to the Sectoral Dialogue page where users may choose to go to Coal Industry of Ukraine and with the assistance of the AUC, the Ministry established a Platform for coal 10 Sectoral Platforms. territories with the participation of village, town and city mayors to ensure the re-conversion of coal-bearing territories. The Platform consists of 25 communities from the Donetsk, Luhansk, Dnipropetrovsk, Lviv, and In the Consultations Section, PULSE Project experts published 11 consultations in the following sectors: Volyn oblasts where coal enterprises are located. The AUC will serve as an information platform for local Education – 9 and Health care - 2. Inquiries of local nature received from the site through the Consultations governments and the Directorate of Fossil Fuels of the Ministry of Energy and Coal Industry of Ukraine to Section receive their answers from experts through emails. help communities reorganise economic development of these territories and turn them from one-company coal territories to a diversified model. This will help to protect communities from negative economic and In the reporting quarter, PULSE introduced a new on-line tool: webinar for local government officials social consequences in case of mine closures. On December 11, 2018, the AUC, together with the State Service of Ukraine on Geodesy, Cartography and Cadastre the PULSE Project organised a webinar on management of land resources in CTCs.
The main purpose of the event was to enable CTC representatives to obtain clarifications and methodological The AUC appealed to the Cabinet of Ministers of Ukraine with a proposal to accelerate the approval of the advice on land management issues directly from government officials. In February this year, the government Regulations for conducting a competition to select the "last hope" supplier of electricity prepared by Ministry started the process of transferring state-owned lands located beyond the boundaries of populated areas to the of Energy and Coal Industry and to conduct the relevant competition, as companies working in the sector of communal ownership of CTCs. Local managers do not have the sufficient experience in managing large land housing and municipal utilities might have been left without the electricity supply. According to the results resources. In addition to this, the reform of fiscal decentralisation has turned land into one of the main of the appeal, the Cabinet of Ministers of Ukraine endorsed the Resolution of December 12, 2018, # 1056 to community resources, therefore, the effective management of this resource tells, to a large extent, on the introduce the Regulations, while the Directive of the Cabinet of Ministers of Ukraine of December 12, 2018, financial capacity of local budgets and attraction of investments in community development. # 1023-р selected the "last hope" supplier. The webinar was broadcast on-line on the AUC page in Face book. The event was attended by heads of land management departments from CTCs. The speakers were directors of technical departments of the State Service of Ukraine on Geodesy, Cartography and Cadastre. Ya. Raboshuk, Director of the AUC Center for Activity 1.3. Local governments improved their practice and quality of services because of the sound Analysis and Legislation Drafting, served as the event moderator. 1.9 thousand viewers joined the decentralised legislative basis for local governments program. Both the audience in the hall and on-line network users in their comments on videos were able to put their questions to the speakers. All in all, 200 questions were received. 1.3.1. Legal and technical assistance The video is available on the AUC Face book page and will continue to serve as a guide for local government officials, because representatives of the State Service of Ukraine on Geodesy, Cartography and During the reporting quarter, the Project continued supporting its network of Reform Offices at AUC ROs Cadastre mentioned that next year the transfer of lands to the newly formed CTCs would continue. The consisting of regional consultants on legal and budget issues. The Project also supported the work of 6 webinar is becoming more and more popular, with more than 4.6 thousand views and 113 shares being regional local economic development consultants to focus on rendering priority assistance on local economic recorded by the end of December. development issues in 30 territorial communities from all oblasts. The activities of all these consultants were These indicators speak about the importance and remarkable popularity of the topic of the event. supported by regional communications consultants. Background. In February, 2018, the AUC, acting upon the directive of the Cabinet of Ministers, together with the State Service of Ukraine on Geodesy, Cartography and Cadastre, prepared a hands-on manual for During the reporting quarter, the network of consultants provided, in general, 2,291 consultations local CTCs on communal land ownership, which was distributed to communities throughout Ukraine. government officials, local council members and other persons, with the total number consultations provided since the beginning of the project being 26,005. By technical area, the regional consultants provided the following consultations: 1.3.3. Feedback: receiving and disseminating
on legal issues – 1,024; In August – September, 2018, the PULSE Project conducted an annual survey of village, town and city on budget issues – 1,264; and, mayors of AUC member communities to identify problems, identify achievements and needs, and to collect on local economic development – 254. the data to monitor project activities and track progress of reforms. With the assistance of AUC reform offices, the following results were achieved in the reporting quarter: Representatives of 283 AUC member communities including 117 consolidated territorial communities participated in the survey. 38 CTCs were established, which comprised 171 communities. These communities are currently waiting for the decision of the CEC to schedule their initial elections; 46 47
47 QUARTERLY REPORT for the Policy for Ukraine Local Self-Governance (PULSE) Project In the reporting quarter, Deputy PULSE Project Director summarised the survey findings and prepared a report. The report (Appendix C) served as the basis for the preparation of info graphic materials (Appendix C1). Data collection from regional consultants or from communities To determine a unified approach for the preparation of urban development documentation and to simplify procedures for local governments including CTCs in the sphere of urban planning and architecture a PULSE Project expert continued to poll cities of oblast significance and discuss with them Draft Law # 6403 of April 21, 2017, which is being prepared for the second reading. The AUC submitted the proposals from cities to the VRU Committee on Construction, Urban Development, Housing and Municipal Utilities for consideration. In the reporting period, a PULSE Project expert conducted a survey of oblast center cities about the current status of funding for vocational (technical) education. In addition to this, the expert analysed the opinion of local governments about shifting the relevant funding to the oblast level. The AUC decided to conduct this polling because of the position of the Ministry of Education and Science of Ukraine, whereby vocational (technical) educational establishments will not be transferred to the municipal property of cities. The AUC received replies from 20 oblast center cities (Ivano-Frankivsk abstained from responding). All cities confirmed the need to transfer funding for vocational (technical) educational establishments to the oblast level, because these institutions are being transferred to the ownership of oblast level. In October - November, a PULSE Project expert conducted a survey AUC Board members about their position regarding the Draft Law "On Introducing Amendments to the Law of Ukraine "On Local Self-Governance in Ukraine" Regarding the Pre-Term Termination of the Powers of the Village, Town and City Council", Registration # 9178 of October 05, 2018. The mentioned draft law provides for automatic early termination of the authority of the local council, which has made a decision on the early termination of powers of the village, town and city mayor. According to the results of the survey, the AUC Board made a decision to support the draft law and informed the Verkhovna Rada Committee on State Building, Regional Policy and Local Self-Governance about its decision. In November - December, upon request of the Chairman of the Verkhovna Rada Committee on State Building, Regional Policy and Local Self-Governance, the AUC conducted a survey of its member communities to get their comments and suggestions to amendments to the Law of Ukraine "On Local Self-Governance in Ukraine” prepared by the Committee with the participation of the AUC. 29 city councils sent their comments and suggestions, which were submitted to the Committee for further elaboration. In the reporting quarter, a PULSE Project expert conducted a survey of cities, towns, villages and CTCs (members of the AUC) to receive an opinion of local governments on the Law of Ukraine "On Introducing Amendments to the Law of Ukraine "On State Assistance to Economic Entities" prepared by the Anti-Monopoly Committee of Ukraine. The AUC received responses from 49 territorial communities, most of which did not support this legislative initiative of the Anti- Monopoly Committee of Ukraine, because they do not provide solutions to a number of important current problems related to state assistance to economic entities at the expense of local budgets. Based on the information received, the AUC expert prepared and sent the comments to the draft through the official letter to the Chairman of the Anti-Monopoly Committee of Ukraine. Currently, the Anti-Monopoly Committee of Ukraine is finalising the draft law. The AUC continues to follow- up on this issue.
Expected Result 2: Resources under local self-governance authority increased
Impact of the Project on Local Government Activities
In the process of decentralisation, communities received additional resources, finance, and powers, all constituting a significant toolkit and opportunities to ensure effective local development. The reform provided an opportunity for communities to plan and implement projects that improve the quality of infrastructure and manage their own revenues on a long-term basis. Communities spent their budget funds primarily on capital repairs of roads, public transportation, repairing and equipping of educational and health
48
48 October – December, 2018 Quarter twelve of the Project implementation
In the reporting quarter, Deputy PULSE Project Director summarised the survey findings and prepared a care establishments, opening of Centers for Administrative Services, housing construction, children and report. The report (Appendix C) served as the basis for the preparation of info graphic materials (Appendix sports playgrounds, cultural centers, inclusive resource centers, restoration of water supply systems, etc. C1). These changes are visible and citizens in such communities see them through their own life experience (according to a number of public opinion polls). These changes are the best illustration of the success of the Data collection from regional consultants or from communities decentralisation reform and fiscal decentralisation, as well as consolidation of territorial communities. To determine a unified approach for the preparation of urban development documentation and to simplify procedures for local governments including CTCs in the sphere of urban planning and In January – December, 2018, local budget revenues amounted to 562,415.7 million UAH including tax architecture a PULSE Project expert continued to poll cities of oblast significance and discuss with revenues in the amount of 232,532.9 million UAH, non-tax revenues of 28,027.4 million UAH, capital them Draft Law # 6403 of April 21, 2017, which is being prepared for the second reading. The AUC income -2,143.5 million UAH, and inter-budget transfers of 298,939.1 million UAH. As compared to the submitted the proposals from cities to the VRU Committee on Construction, Urban Development, same period in 2017, local budget revenues grew by 60,321.8 million UAH (or +12.0 per cent). Local budget Housing and Municipal Utilities for consideration. revenues for the 12 months of 2018 (excluding inter-budget transfers) amounted to 263,476.0 million UAH, In the reporting period, a PULSE Project expert conducted a survey of oblast center cities about the which is 33,985.0 million UAH (or +14.8 per cent) more as compared to the corresponding period in 2017 current status of funding for vocational (technical) education. In addition to this, the expert analysed (see Table 2.1). the opinion of local governments about shifting the relevant funding to the oblast level. The AUC decided to conduct this polling because of the position of the Ministry of Education and Science of Ukraine, whereby vocational (technical) educational establishments will not be transferred to the Table 2.1. municipal property of cities. The AUC received replies from 20 oblast center cities (Ivano-Frankivsk abstained from responding). All cities confirmed the need to transfer funding for vocational Increase of local budget revenues in 2018 as compared to 2017 (technical) educational establishments to the oblast level, because these institutions are being transferred to the ownership of oblast level. Growth in 2018 as compared 2017, million 2018, million In October - November, a PULSE Project expert conducted a survey AUC Board members about Indicators with 2017 UAH UAH their position regarding the Draft Law "On Introducing Amendments to the Law of Ukraine "On million UAH % Local Self-Governance in Ukraine" Regarding the Pre-Term Termination of the Powers of the Village, Town and City Council", Registration # 9178 of October 05, 2018. The mentioned draft law Local budget revenues together with 502,093.9 562,415.7 60,321.8 12.0 provides for automatic early termination of the authority of the local council, which has made a transfers decision on the early termination of powers of the village, town and city mayor. According to the results of the survey, the AUC Board made a decision to support the draft law and informed the Local budget revenues without transfers 229,491.0 263,476.0 33,985.0 14.8 Verkhovna Rada Committee on State Building, Regional Policy and Local Self-Governance about its decision. Tax revenues 201,005.1 232,532.9 31,527.7 15.7 In November - December, upon request of the Chairman of the Verkhovna Rada Committee on State Non-tax revenues 25,968.6 28,027.4 2,058.8 7.9 Building, Regional Policy and Local Self-Governance, the AUC conducted a survey of its member communities to get their comments and suggestions to amendments to the Law of Ukraine "On Local Income from operations with capital 1,873.6 2,143.5 269.9 14.4 Self-Governance in Ukraine” prepared by the Committee with the participation of the AUC. 29 city councils sent their comments and suggestions, which were submitted to the Committee for further Inter-budget transfers 272,602.9 298,939.7 26,336.8 9.7 elaboration. Source: According to the State Treasury Service of Ukraine. URL: https://www.treasury.gov.ua/ua/file- In the reporting quarter, a PULSE Project expert conducted a survey of cities, towns, villages and storage/vikonannya-derzhavnogo-byudzhetu CTCs (members of the AUC) to receive an opinion of local governments on the Law of Ukraine "On Introducing Amendments to the Law of Ukraine "On State Assistance to Economic Entities" prepared by the Anti-Monopoly Committee of Ukraine. The AUC received responses from 49 territorial communities, most of which did not support this legislative initiative of the Anti- The amount of revenues from the key local budget revenue source - personal income tax - for 12 months of Monopoly Committee of Ukraine, because they do not provide solutions to a number of important 2018 constituted 138,064.4 million UAH. As compared to the same period in 2017, the increase in revenues current problems related to state assistance to economic entities at the expense of local budgets. constitutes 28,023.6 million UAH (or +25.5 per cent). Collections from the company profits tax constituted Based on the information received, the AUC expert prepared and sent the comments to the draft 9,300.0 million UAH, which is 2,815.2 UAH million more (or + 43.4%) than in the corresponding period of through the official letter to the Chairman of the Anti-Monopoly Committee of Ukraine. Currently, the previous year. The rent payments and fees for using natural resources during the 12 months of 2018 the Anti-Monopoly Committee of Ukraine is finalising the draft law. The AUC continues to follow- amounted to 4,821.2 million UAH, which is 2,350.0 million UAH more (or +95.1 percent) than in January – up on this issue. December, 2017. The excise tax on excisable goods (products) produced in Ukraine amounted to 1,551.7 million UAH, while the excise tax on sales of excisable goods by retail business entities constituted UAH 5,892.0 million, which Expected Result 2: Resources under local self-governance authority increased is 81.2 million UAH more (or +5.5 percent) and 108.9 million UAH less (or -1.8 per cent), respectively as compared with 2017.
Impact of the Project on Local Government Activities The amount of collections from local taxes and fees in January – December, 2018 amounted to 61,026.4 million UAH including: property tax - 31,272.0 million UAH, flat tax - 29,564.2 million UAH, fees for In the process of decentralisation, communities received additional resources, finance, and powers, all parking places for vehicles - 99.9 million UAH, tourist fees - 90.7 million UAH, and other taxes and fees – constituting a significant toolkit and opportunities to ensure effective local development. 5,428.6 million UAH. As compared to the same period in 2017, the increase in local taxes and fees The reform provided an opportunity for communities to plan and implement projects that improve the quality constitutes 8,439.6 million UAH (or +16.0 per cent) including: the increase in property tax – 2,216.0 million of infrastructure and manage their own revenues on a long-term basis. Communities spent their budget funds UAH (or +7.6 percent), flat tax – 6,175.9 million UAH (or +26.4 per cent), parking fees - 22.3 million UAH primarily on capital repairs of roads, public transportation, repairing and equipping of educational and health (or +28.7 per cent), and tourist fees - 20.5 million UAH (or +29.2 percent).
48 49
49 QUARTERLY REPORT for the Policy for Ukraine Local Self-Governance (PULSE) Project The amount of revenues from other taxes and fees for the 12 months of 2018 amounted up to 5,428.6 million UAH, which is 10,223.7 million UAH less (or -65.3%) than in the same period in 2017 (see Table 2.2). Table 2.2. Dynamics of the key budget sources of revenues of local budgets
2018, Growth in 2018 as 2017, million Indicators million compared with 2017 UAH UAH million UAH % Personal income tax 117 137,6 138 158,8 21 021,2 17,9 Profits tax 6 484,9 9 300,0 2 815,2 43,4 Rents and fees for the use of other natural 2 471,2 4 821,2 2 350,0 95,1 resources Excise tax on excisable goods (products) 1,470.5 1,551.7 81.2 5.5 produced in Ukraine Excise tax on the sale of excisable goods by 6,000.8 5,892.0 – 108.9 – 1.8 retail trade business Local taxes and fees, including: 52,586.8 61,026.4 8,439.6 16.0 - Property tax 29,056.1 31,272.0 2,216.0 7.6 - Flat tax 23,388.3 29,564.2 6,175.9 26.4 - Parking fees for vehicles 77.6 99.9 22.3 28.7 - Tourist fee 70.2 90.7 20.5 29.2 Other taxes and fees 15,652.2 5,428.6 – 10,223.7 – 65.3 Source: According to the State Treasury Service of Ukraine. URL: https://www.treasury.gov.ua/ua/file- storage/vikonannya-derzhavnogo-byudzhetu
As of December 01, 2018, the CMU had transferred inter-budget transfers to local budgets in the amount of 270,199.0 million UAH, in particular: the education subvention was transferred in the amount of 54,766.2 million UAH, health care subvention – 55,246.8 million UAH, the subventions for social protection was transferred in the amount of 114,037.6 million UAH; and the basic subsidy – 7, 500.8 million UAH. In the 4th quarter of 2018, by redistributing and distributing certain expenditures of the National Budget the CMU increased the amount of the education subvention by 353,334.3 thousand UAH, health care subvention - by 2,060,648.8 thousand UAH. Also, the CMU distributed the stabilisation subsidy for 2018 in the amount of 200 million UAH, which will provide the opportunity to equalise, to some extent, budget imbalances that arose as a result of reforming inter-budget relations. In the fourth quarter of 2018, the Parliament approved 3 laws that have a significant effect on strengthening the financial capacity of local budgets. The Law of Ukraine of December 06, 2018, # 2646-VIII "On Introducing Amendments to the Budget Code of Ukraine (Regarding the Introduction of the legislative Framework for Multi-Year Budget Planning)" outlined the legislative framework for the process of drafting and reviewing the Budget Declaration defining the budget policy for the next three years, and three-year local financial plans at the local level. Effective implementation of the multi-year budget planning will provide financial resources for medium- and long- term projects, increase the quality of forecasting of revenues and expenditures, and will enhance budgetary discipline and sustainability of local finance. The Law of Ukraine of November 22, 2018, # 2621-VIII "On Introducing Amendments to the Budget Code of Ukraine": 1) secured 37% of the revenue collections from rent for special use of forest resources to 50
50 October – December, 2018 Quarter twelve of the Project implementation
The amount of revenues from other taxes and fees for the 12 months of 2018 amounted up to 5,428.6 million budgets of cities of oblast significance and CTCs (the potential revenues in 2019 are expected to be at the UAH, which is 10,223.7 million UAH less (or -65.3%) than in the same period in 2017 (see Table 2.2). level of 380 million UAH); 2) stipulated that administrative fines and other penalties imposed by executive bodies of local councils for violation of labour legislation will be credited to the corresponding local budgets Table 2.2. starting with January 01, 2019 (the estimated collections in 2019 will constitute 440 million UAH); 3) Dynamics of the key budget sources of revenues of local budgets introduced a new source of local budget revenues, namely: 5% of rent for the use of mineral resources for the extraction of minerals of national significance (except for the rent for the use of mineral resources for the 2018, Growth in 2018 as extraction of oil, natural gas and gas condensate) to be paid at the place of extraction of the relevant minerals 2017, million Indicators million compared with 2017 (the expected collections will constitute 190 million UAH); and, 4) updated the mechanism of taxation with UAH UAH the tourist tax. It is expected that thanks to these changes, local budgets will receive more than 120 million million UAH % UAH in tourist tax collections income in 2019. Personal income tax 117 137,6 138 158,8 21 021,2 17,9 The Law of Ukraine of November 23, 2018, # 2628-VIII " On Introducing Amendments to the Tax Code of Profits tax 6 484,9 9 300,0 2 815,2 43,4 Ukraine and Certain Other Ukrainian Legislation Regarding Improvements in Administering and Revisiting Rates for Certain Taxes and Fees" provides for the following: 1) increase of the rent fee for special use forest Rents and fees for the use of other natural resources by 50% and 2) abolition of privileges for land payments for lands provided for railways within 2 471,2 4 821,2 2 350,0 95,1 resources strips of landing (losses of local budgets from the privileges for this land tax for railways in 2018 amounted to 1.2 billion UAH. Excise tax on excisable goods (products) 1,470.5 1,551.7 81.2 5.5 produced in Ukraine However, in the context of annual increase of the expenditure burden on local budgets without proper improvements in the system of public finance (in particular, formation of the appropriate and sufficient base Excise tax on the sale of excisable goods by 6,000.8 5,892.0 – 108.9 – 1.8 for local budget revenues and improvements in the system of inter-budget relations), the financial capacity of retail trade business local budgets will only decrease and, as a consequence, the country will not reach the appropriate level of Local taxes and fees, including: 52,586.8 61,026.4 8,439.6 16.0 regional social and economic development. - Property tax 29,056.1 31,272.0 2,216.0 7.6
- Flat tax 23,388.3 29,564.2 6,175.9 26.4 Activity 2.1. Local self-government resources are increased ensuring local government financial autonomy - Parking fees for vehicles 77.6 99.9 22.3 28.7 - Tourist fee 70.2 90.7 20.5 29.2 2.1.1. Tools to increase own resources of local governments
Other taxes and fees 15,652.2 5,428.6 – 10,223.7 – 65.3 In the reporting quarter, an AUC expert together with the developers of the Municipal Fiscal Register software complex (further MFR) provided follow-up assistance to 20 pilot CTCs with the software. In Source: According to the State Treasury Service of Ukraine. URL: https://www.treasury.gov.ua/ua/file- particular, the developers gave them access to the installation of the working version of the MFR. The storage/vikonannya-derzhavnogo-byudzhetu PULSE Project, in cooperation with the developers, prepared and disseminated the instructions on how to work with the MFR. Currently, the PULSE Project is processing all proposals from communities about how to improve the MFR (for example, creating a new animal accounting module; improving the way data is As of December 01, 2018, the CMU had transferred inter-budget transfers to local budgets in the amount of entered into the module on land resources, etc.). Some of the communities already began to enter the primary 270,199.0 million UAH, in particular: the education subvention was transferred in the amount of 54,766.2 data in the program modules. million UAH, health care subvention – 55,246.8 million UAH, the subventions for social protection was In the next year, the AUC plans to conduct a survey of CTCs to assess the potential impact of this software transferred in the amount of 114,037.6 million UAH; and the basic subsidy – 7, 500.8 million UAH. product on the revenue part of local budgets.
In the 4th quarter of 2018, by redistributing and distributing certain expenditures of the National Budget the The Municipal Fiscal Register is a piece of software that offers information on real estate, communally- CMU increased the amount of the education subvention by 353,334.3 thousand UAH, health care subvention owned property, and land plots and ensures processing of these data, preservation and access to - by 2,060,648.8 thousand UAH. Also, the CMU distributed the stabilisation subsidy for 2018 in the amount information for each individual local budget, as well as offers information on students, pre-school of 200 million UAH, which will provide the opportunity to equalise, to some extent, budget imbalances that children, and citizens served by health care establishments, citizens who need of social assistance, and arose as a result of reforming inter-budget relations. registers of privileged persons. In the fourth quarter of 2018, the Parliament approved 3 laws that have a significant effect on strengthening The MFR provides an opportunity to optimise the expenditure part of local budgets and ensure better the financial capacity of local budgets. 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 Law of Ukraine of December 06, 2018, # 2646-VIII "On Introducing Amendments to the Budget Code The introduction of the MFR has become even more important in the context of the transition to of Ukraine (Regarding the Introduction of the legislative Framework for Multi-Year Budget Planning)" monetisation of benefits and privileges. outlined the legislative framework for the process of drafting and reviewing the Budget Declaration defining the budget policy for the next three years, and three-year local financial plans at the local level. Effective implementation of the multi-year budget planning will provide financial resources for medium- and long- Formation of a system of national social standards and norms term projects, increase the quality of forecasting of revenues and expenditures, and will enhance budgetary The 4th quarter of 2018, marked the beginning of the process of reforming the system of national social discipline and sustainability of local finance. standards and norms (hereinafter - NSSN). This was partially driven by some significant changes of the quantitative nature due to the growth of the base National Social Standard (NSS) and subsistence minimum, The Law of Ukraine of November 22, 2018, # 2621-VIII "On Introducing Amendments to the Budget Code which increased starting December 17, 2018 from 1,777 UAH to 1,853 UAH (or by 4.3%), while another of Ukraine": 1) secured 37% of the revenue collections from rent for special use of forest resources to 50 51
51 QUARTERLY REPORT for the Policy for Ukraine Local Self-Governance (PULSE) Project standard, namely the minimum wage, remained unchanged since the beginning of 2018 and constituted 3,723 UAH.1 In total, in 2018, the basic subsistence level increased by 9.0%, or from 1,700 UAH to 1,853 UAH, with the minimum salary increasing by 16.3%, or from 3,200 UAH to 3,723 UAH (December, 2017 against December, 2018). At the same time, the increase of the minimum salary up to 4,200 UAH by the end of 2018 as announced by the Cabinet of Ministers did not take place. The decision to increase the NSS was postponed given the actual financial situation with budgets, insufficient resources for the implementation of powers delegated by the state, and the gradually shortening education and health care subventions from the National Budget to local budgets in the fourth quarter. Accordingly, one had to “play by the ear” to resolve problems with remuneration in the public education and health care sectors that arose in cities and CTCs due to the insufficient subventions and to redistribute the resources of the Ministry of Education and Science and the Ministry of Health Care through individual regulations of the Cabinet of Ministers. Therefore, in the reporting quarter, PULSE Project experts concentrated their efforts on the following: 1) increasing support for local budgets from the National Budget to assist in implementation of delegated powers, primarily through education and health care subventions; 2) advocating for local government interests in the course of preparation and/or improvement of NSSN; and, 3) monitoring and assessing the current status of the regulatory framework for NSSN in Ukraine. In the reporting quarter, the expert and advisory support in updating the regulatory framework for NSSN included expert consultations and suggestions, as well as following up in draft regulatory and legal documents on the reform of NSSN during their consideration by the Cabinet of Ministers and/or the parliament. During the reporting period, PULSE Project experts participated in the preparation and approval of five regulatory and legal documents that directly influenced the reform of NSSN. In the 4th quarter, PULSE experts monitored the current status of the regulatory and legislative framework for NSSN. An overview of the process of the preparation of NSSN in the sectors of public education, health care, social protection, housing, culture, sports and physical education in October – December, 2018 showed that during the reporting period, the Verkhovna Rada approved two fundamentally important laws:
- The Law of Ukraine of November 22, 2018, # 2646-VIII "On Introducing Amendments to the Budget Code of Ukraine", which postponed the timeframe for the CMU to take inventory and revise regulatory and legal documents and to approve the narrative and cost formats of NSSN for the provision by local governments of services guarantees by state from March 01, 2018 to March 01, 2020. The Law was prepared upon the initiative and with direct participation of PULSE Project experts and was lobbied in the parliament by representatives of the Local Government Support Inter- Faction Group of National Deputies (local government caucus). - The Law of Ukraine of December 06, 2018, # 2646-VIII " On Introducing Amendments to the Budget Code of Ukraine (Regarding the Introduction of the legislative Framework for Multi-Year Budget Planning)", which outlines the legislative framework for the preparation and consideration of the Budget Declaration defining the budget policy for the next three years and three-year local financial plans at the local level. PULSE Project experts supported the draft law on multi-year budget planning in the Cabinet of Ministers and in the parliamentary Budget Committee. The draft law was prepared by the Ministry of Finance to support the implementation of the Strategy of Reforms in the public finance management system for the period of 2017 – 2020. This document reflects the provisions of the AUC Local Finance Development Strategy, in particular, the idea to introduce of multi-year budget planning at the community level.2
At the same time, certain central state executive authorities tried to “push” through the Cabinet of Ministers approval draft regulations that were not in line with local government interests. Thanks to the interference of PULSE Project experts, such draft regulations were blocked at the early phases of consideration during Cabinet of Ministers meetings. During the 4th quarter, PULSE Project experts gave negative conclusions to one draft regulation and concurred with two draft regulations with reservations. Thus:
1 The indicators of the subsistence minimum level for main social and demographic groups have increased as of December 01, 2018: for children under 6 years old from 1,595 UAH to 1,626 UAH; for children aged 6 to 18 from 1,944 UAH to 2,027 UAH; for work-able persons from 1,841 UAH to 1,924 UAH; for persons who have lost their ability to work from 1,435 UAH to 1,497 UAH. 2 The Local Finance Development Strategy saerves as the basic program document of the Association of Ukrainian Cities in the sphere of local finance. It was developed and approved within the framework of the PULSE project. 52
52 October – December, 2018 Quarter twelve of the Project implementation standard, namely the minimum wage, remained unchanged since the beginning of 2018 and constituted 3,723 - The CMU Resolution of November 07, 2018, # 1100 "On Increasing Salaries of Teachers of UAH.1 Specialised Art Schools (Boarding Schools)" was approved in the wording suggested by PULSE In total, in 2018, the basic subsistence level increased by 9.0%, or from 1,700 UAH to 1,853 UAH, with the Project experts. In particular, the increase of the level of remuneration applied only to state-owned minimum salary increasing by 16.3%, or from 3,200 UAH to 3,723 UAH (December, 2017 against art schools and turned to be funded at the expense of the National Budget. The original version of the December, 2018). At the same time, the increase of the minimum salary up to 4,200 UAH by the end of 2018 draft Resolution envisioned revisiting the level of remuneration for teachers of state-owned and as announced by the Cabinet of Ministers did not take place. The decision to increase the NSS was communally-owned art schools as of September 01, 2018. Having taken into account comments of postponed given the actual financial situation with budgets, insufficient resources for the implementation of the PULSE Project about the unavailability of funds for these purposes in approved local budget for powers delegated by the state, and the gradually shortening education and health care subventions from the 2018, the Cabinet of Ministers approved the version of the document, which reflected the interests of National Budget to local budgets in the fourth quarter. Accordingly, one had to “play by the ear” to resolve local governments. problems with remuneration in the public education and health care sectors that arose in cities and CTCs due - The Cabinet of Ministers Committee on Economic, Financial and Legal Policy sent the draft CMU to the insufficient subventions and to redistribute the resources of the Ministry of Education and Science and Resolution "On Certain Issues of Consumption of the Natural Gas by Household Consumers" to the the Ministry of Health Care through individual regulations of the Cabinet of Ministers. author for elaboration on December 06, 2018. The draft document envisaged the reduction of social Therefore, in the reporting quarter, PULSE Project experts concentrated their efforts on the following: 1) standards as of May 01, 2019, within which privileges and subsidies for housing and municipal increasing support for local budgets from the National Budget to assist in implementation of delegated utility services were supposed to be provided. PULSE Project experts noted that the proposed powers, primarily through education and health care subventions; 2) advocating for local government changes were not supported by financial and economic calculations and could have led to increase in interests in the course of preparation and/or improvement of NSSN; and, 3) monitoring and assessing the debts for utility services and reduced the level of commercial accounting of utility services. current status of the regulatory framework for NSSN in Ukraine. In the reporting quarter, the expert and advisory support in updating the regulatory framework for NSSN On the other hand, the central state executive authorities begin to demonstrate their understanding of the included expert consultations and suggestions, as well as following up in draft regulatory and legal nature, purpose and organisational aspects of the NSSN reform and change their approaches. In November documents on the reform of NSSN during their consideration by the Cabinet of Ministers and/or the 2018, the Ministry of Culture sent for AUC concurrence the draft directive of the Cabinet of Ministers of parliament. Ukraine "On Approving the Concept of Reforming the System of Provision of Cultural Services to the During the reporting period, PULSE Project experts participated in the preparation and approval of five Population". This draft regulatory and legal document outlines: the vision, goals, objectives and ways to regulatory and legal documents that directly influenced the reform of NSSN. improve the accessibility and quality of cultural services, as well as the definition of NSSN for the list and In the 4th quarter, PULSE experts monitored the current status of the regulatory and legislative framework amount of cultural services to be provided for free, and the definition of criteria to assess their quality. for NSSN. An overview of the process of the preparation of NSSN in the sectors of public education, health PULSE Project experts supported the draft regulatory and legal document in general and emphasised the care, social protection, housing, culture, sports and physical education in October – December, 2018 showed importance of the state support to NSSN based on the relevant national social guarantees (the final version of that during the reporting period, the Verkhovna Rada approved two fundamentally important laws: the draft regulation take all AUC proposals into account).
- The Law of Ukraine of November 22, 2018, # 2646-VIII "On Introducing Amendments to the Following the discussion of the results of the decentralisation reform conducted by the AUC during the Budget Code of Ukraine", which postponed the timeframe for the CMU to take inventory and revise Dialogue Day with the Cabinet of Ministers, most of the problem issues regarding the next phase of the regulatory and legal documents and to approve the narrative and cost formats of NSSN for the decentralisation reform in Ukraine were taken by the Cabinet of Ministers into consideration. In particular, provision by local governments of services guarantees by state from March 01, 2018 to March 01, the Ministry of Regional Development together with the AUC prepared in December a draft CMU 2020. The Law was prepared upon the initiative and with direct participation of PULSE Project Resolution "On Approving the Action Plan to Implement the Concept of the Local Government Reform and experts and was lobbied in the parliament by representatives of the Local Government Support Inter- Reform of the Territorial Arrangement of Government Entities in Ukraine for 2019 - 2021". This draft Faction Group of National Deputies (local government caucus). regulatory and legal document for the first time has paid attention and set specific closing dates for ensuring - The Law of Ukraine of December 06, 2018, # 2646-VIII " On Introducing Amendments to the national social guarantees and NSSN in the context of decentralisation. The endorsement of this regulation Budget Code of Ukraine (Regarding the Introduction of the legislative Framework for Multi-Year (expected in early 2019) will set the preconditions for central state executive authorities to fulfill the tasks of Budget Planning)", which outlines the legislative framework for the preparation and consideration of Paragraph 10 of the Closing and Transitional Provisions of the Budget Code3, and, on the other hand, will the Budget Declaration defining the budget policy for the next three years and three-year local provide opportunities for local governments to gradually move to the planning local budget indicators on a financial plans at the local level. PULSE Project experts supported the draft law on multi-year multi-year basis. budget planning in the Cabinet of Ministers and in the parliamentary Budget Committee. The draft Accordingly, in 2019 – 2020, PULSE Project experts expect better cooperation between central state law was prepared by the Ministry of Finance to support the implementation of the Strategy of executive authorities and local governments to promote the reform of NSSN, in particular, with regard to the Reforms in the public finance management system for the period of 2017 – 2020. This document preparation and improvement of regulatory and legal documents for the formation and implementation of the reflects the provisions of the AUC Local Finance Development Strategy, in particular, the idea to system of national social guarantees, standards and norms at the level of territorial communities. introduce of multi-year budget planning at the community level.2
At the same time, certain central state executive authorities tried to “push” through the Cabinet of Ministers 2.1.2. Dissemination of best practices and replication of experience approval draft regulations that were not in line with local government interests. Thanks to the interference of PULSE Project experts, such draft regulations were blocked at the early phases of consideration during Collections of successes and best practices Cabinet of Ministers meetings. During the 4th quarter, PULSE Project experts gave negative conclusions to one draft regulation and concurred with two draft regulations with reservations. Thus: In the reporting period, the Project published the BOOK OF SUCCESS including short stories about how decentralisation affects community life. The collection contains 84 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 1 The indicators of the subsistence minimum level for main social and demographic groups have increased as of December 01, 2018: for children Communication, and Community Safety. under 6 years old from 1,595 UAH to 1,626 UAH; for children aged 6 to 18 from 1,944 UAH to 2,027 UAH; for work-able persons from 1,841 UAH to 1,924 UAH; for persons who have lost their ability to work from 1,435 UAH to 1,497 UAH. 2 The Local Finance Development Strategy saerves as the basic program document of the Association of Ukrainian Cities in the sphere of local 3 Reviewing by the Cabinet of Ministers of regulatory and legal documents and endorsement of NSSN in the narrative and cost formats for the finance. It was developed and approved within the framework of the PULSE project. provision of state-guaranteed services. 52 53
53 QUARTERLY REPORT for the Policy for Ukraine Local Self-Governance (PULSE) Project The achievements of the communities described in the book became possible thanks to decentralisation. It is already clear to all that the new finances and new powers communities have received have turned into new development opportunities and moving forward to improve the quality of life of Ukrainians. Local governments are now deciding on their own what needs represent top priority and which projects should receive financial support. However, it is very important to learn how to effectively manage resources, identify priority areas, and plan community development. 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.
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 reporting quarter, the Project organised one study visit, in which 35 representatives of local governments participated.
Date, venue, number of Topic Information about the event participants October 23 - 24, 2018, Odesa The exchange study tour started with a meeting in the city of Odesa experience in Center for Integrated Services of the Odesa City Participants: 35 implementing Council. Deputy Odesa Mayor S. Bedreha greeted the representatives from 26 the integrated participants and noted that the provision of high-quality cities including city services model and convenient social services to the population is one mayors, deputy mayors, of the priorities of the Odesa municipality. secretaries of city Director of the Department of Administrative Services councils, directors and Ye. Abramova spoke about the experience of setting up specialists of departments the Center for Integrated Services. Director of the for administrative Department of Information and Communications of the services, representatives Odesa City Council A. Sivash presented the city of the Odesa City electronic services. Director of the Department of Council, AUC regional Labour and Social Policy of the Odesa City Council O. consultants (PULSE), Kytaiska spoke about the provision of social services in communications the Center for Integrated Services. Director of the Coordinator of the AUC Municipal City Center for Humanitarian Assistance, Center for Professional Information and Economic Support H. Nyzhnykova Development and told the participants about the technical support for the Communications O. information system in the Center for Integrated Zmievets, and media Services. Deputy Director of the Main Department of representatives. the Pension Fund of Ukraine in the Odesa oblast T. Yavorska presented the advantages of the provision of Pension Fund services in the Center for Integrated Services. The visit continued to two Centers for Integrated Services working in the Transparent Office format in the districts of the city of Odesa. Later on, the representatives of cities learned about the work of the Rehabilitation Center for Persons with Mental Disorders and the Social Center for Mothers and Children financed from the local budget whose opening was thanks to fiscal decentralisation. On the second day of the visit, the participants studied the work of the «Майбутнє» [future] Odesa Regional Charitable Fund for the Rehabilitation of Children with Disabilities and learned about the concept of promoting the environment for recreation and youth development in the T. Shevchenko park. During the meeting in the 54
54 October – December, 2018 Quarter twelve of the Project implementation
The achievements of the communities described in the book became possible thanks to decentralisation. It is Odesa City Council, Director of the Department of already clear to all that the new finances and new powers communities have received have turned into new Culture and Tourism of the Odesa City Council T. development opportunities and moving forward to improve the quality of life of Ukrainians. Local Markova presented the experience of promoting the governments are now deciding on their own what needs represent top priority and which projects should conditions for the development and recreation of receive financial support. However, it is very important to learn how to effectively manage resources, people with special needs using the improvements of identify priority areas, and plan community development. the Greek and Istanbul parks in the city as an example. The publication will be distributed to AUC member communities and will be presented to partners and Following the study tour, the regional prepared 10 government authorities. The AUC official web site offers the electronic version of this document. publications.
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 reporting quarter, the Project organised one study visit, in which 35 representatives of local governments participated.
Date, venue, number of Topic Information about the event participants October 23 - 24, 2018, Odesa The exchange study tour started with a meeting in the city of Odesa experience in Center for Integrated Services of the Odesa City Participants: 35 implementing Council. Deputy Odesa Mayor S. Bedreha greeted the representatives from 26 the integrated participants and noted that the provision of high-quality cities including city services model and convenient social services to the population is one mayors, deputy mayors, of the priorities of the Odesa municipality. secretaries of city Director of the Department of Administrative Services councils, directors and Ye. Abramova spoke about the experience of setting up specialists of departments the Center for Integrated Services. Director of the for administrative Department of Information and Communications of the services, representatives Odesa City Council A. Sivash presented the city of the Odesa City electronic services. Director of the Department of Council, AUC regional Labour and Social Policy of the Odesa City Council O. consultants (PULSE), Kytaiska spoke about the provision of social services in communications the Center for Integrated Services. Director of the Coordinator of the AUC Municipal City Center for Humanitarian Assistance, Center for Professional Information and Economic Support H. Nyzhnykova Development and told the participants about the technical support for the Communications O. information system in the Center for Integrated Zmievets, and media Services. Deputy Director of the Main Department of representatives. the Pension Fund of Ukraine in the Odesa oblast T. Yavorska presented the advantages of the provision of Pension Fund services in the Center for Integrated Services. The visit continued to two Centers for Integrated Services working in the Transparent Office format in the districts of the city of Odesa. Later on, the representatives of cities learned about the work of the Rehabilitation Center for Persons with Mental Disorders and the Social Center for Mothers and Children financed from the local budget whose opening was thanks to fiscal decentralisation. On the second day of the visit, the participants studied the work of the «Майбутнє» [future] Odesa Regional Charitable Fund for the Rehabilitation of Children with Disabilities and learned about the concept of promoting the environment for recreation and youth development in the T. Shevchenko park. During the meeting in the 54 55
55 QUARTERLY REPORT for the Policy for Ukraine Local Self-Governance (PULSE) Project Activity 2.2. Tools for local government to access additional financial resources are in place and utilised
2.2.1. Training for civil servants 2.2.1 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. As of now, the Cabinet of Ministers endorsed a list of more than 800 projects worth approximately 6 billion hryvnyas. Thus, the funds will be directed to local budgets and local communities will be in the position to implement projects to promote their local economic development. All Cabinet of Ministers regulations regarding the endorsement of investment programs and regional development projects were concurred by the AUC.
A PULSE Project expert is a member of the Ministry of Regional Development, Construction, Housing and Municipal Utilities of Ukraine committee to select project proposals submitted by CTCs that can be implemented at the expense of subventions from the National Budget to local budgets for infrastructure improvements in consolidated territorial communities. This Committee will select the winning projects for funding in accordance with the Procedures and Terms for the National Budget Subvention to Local Budgets for Infrastructure Improvements in Consolidated Territorial Communities endorsed by CMU Resolution of # 200 of March 16, 2016. The AUC expert contributed to the impartial and objective selection of projects submitted by CTCs for consideration and ensured the protection of interests of local governments, which are members of the Association of Ukrainian Cities. The committee meetings took place on a weekly basis, which provided an opportunity to promptly review and approve the submitted projects, as well as to provide timely financial support for the successful implementation of projects. According to the results of the reporting period, the committee approved 2,717 infrastructure improvement projects from 664 consolidated territorial communities for a total amount of 1.897 billion UAH, which represents 99.8% of the annual amount of the relevant subvention.
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56 October – December, 2018 Quarter twelve of the Project implementation Activity 2.2. Tools for local government to access additional financial resources are in place and utilised Expected Result 3: Capacity of stakeholders increased
Impact of the Project on Local Government Activities 2.2.1. Training for civil servants 2.2.1 During the reporting period, the Project did not conduct any activities under this component. Currently, there are 807 (782 + 25) consolidated territorial communities in Ukraine that have direct inter- 2.2.2. Promotion of access to resources budget relations with the National Budget. In other words, they make use of the benefits of the decentralisation reform. During 2018, the initial local elections took place in 40 CTCs on April 29 and in 77 PULSE Project experts participates on a regular basis in meetings of the Selection and Evaluation Committee CTCs on December 23 (it should be mentioned that there should have been 123 CTCs, but the elections were for Investment Programs and Regional Development Projects that to be implemented with the funds of the postponed due to the introduction of the martial law in 45 CTCs in 10 oblasts, while elections in one of the National Regional Development Fund. As of now, the Cabinet of Ministers endorsed a list of more than 800 CTCs did not take place). All of these CTCs will have direct inter-budget relations with the National Budget projects worth approximately 6 billion hryvnyas. Thus, the funds will be directed to local budgets and local in 2019. communities will be in the position to implement projects to promote their local economic development. All During the reporting quarter, one could observe active formation of communities around cities of oblast Cabinet of Ministers regulations regarding the endorsement of investment programs and regional significance. As of the end of December, 2018, 32 such cities have joined the process of annexation of the development projects were concurred by the AUC. surrounding communities. Of these, 25 cities have fully completed all the necessary procedures.
A PULSE Project expert is a member of the Ministry of Regional Development, Construction, Housing and Hence, the communities have gained increased resources and have expanded their functions and powers, so Municipal Utilities of Ukraine committee to select project proposals submitted by CTCs that can be now it is extremely important for them to learn how to use them for the benefit of their people: how to implemented at the expense of subventions from the National Budget to local budgets for infrastructure promote comfortable living conditions, improve the quality of services, effectively plan development, and improvements in consolidated territorial communities. This Committee will select the winning projects for develop strategies to increase their own revenues and attract investments. funding in accordance with the Procedures and Terms for the National Budget Subvention to Local Budgets for Infrastructure Improvements in Consolidated Territorial Communities endorsed by CMU Resolution of # PULSE training of local government officials from both small and large new communities remains very 200 of March 16, 2016. important. The goal of this activity is to increase the capacity of officials to perform new powers and The AUC expert contributed to the impartial and objective selection of projects submitted by CTCs for functions and to provide better public services. The Project is implementing a number of various educational consideration and ensured the protection of interests of local governments, which are members of the and training activities for local government officials, teaches them how to work in the new decentralisation Association of Ukrainian Cities. The committee meetings took place on a weekly basis, which provided an environment. It is important for both small and large communities to learn from real cases of transformations opportunity to promptly review and approve the submitted projects, as well as to provide timely financial and improvements of living conditions thanks to community consolidation. In addition, the success of the support for the successful implementation of projects. According to the results of the reporting period, the new communities serves as an excellent motivation factor for public support to reforms and supportive committee approved 2,717 infrastructure improvement projects from 664 consolidated territorial environment for their further implementation. Taking into account the above, the collection and communities for a total amount of 1.897 billion UAH, which represents 99.8% of the annual amount of the dissemination of success stories and best practices of local governance in the context of reforms is important. relevant subvention. 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 the position of high-level officials about the need to finalise the consolidation of local communities to be able to conduct local elections in 2020 on a new territorial basis. Also, the AUC supported the position of high-level officials regarding the need to specify in the Constitution of Ukraine the irreversibility of the reforms. 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, local economic development, and communications. AUC Regional Offices work as think tanks for changes in regions. All AUC Regional Offices work together with PULSE regional consultants in the following areas: local finance, legal issues, and communications. There are LED consultants working in six local development hubs and cover all oblasts. The AUC AM act as an intellectual and advisory center of reform, implementing measures to promote decentralisation reform and promote its results - study visits to successful communities in its or neighbouring regions, "Routes of Success", press tours for regional media, consultations and meetings. AUC Regional Offices work as think tanks for changes in regions. They are engaged in the activities to promote the decentralisation reform and its results including decentralisation information points in communities, “Itinerary of Successes” study tours to successful communities in their or neighbouring oblasts, press tours for regional media, consultations, and meetings.
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57 QUARTERLY REPORT for the Policy for Ukraine Local Self-Governance (PULSE) Project To provide the communications support of this activity, the Project continued the Decentralisation Marathon account in the Face book networks where communications consultants post information about community 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 CTCs 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 October, 2018 – September, 2019, PULSE planned to conduct up to 5 laboratories. 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 October – December, 2018, the Project conducted 35 legislation application laboratories with the participation of 844 local government officials including 354 males and 490 females. Below is information about these events:
Date, venue and Topic Information about the event participants October 04, 2018 Information openness of the The training event moderator presented the Khmelnytskyi AUC RO, community: goals, tasks and main provisions of the legislation that city of Khmelnytskyi tools. Branding of regulate the information work of local communities governments and how municipalities cover Participants: village, town their work in media, told about the tools of and city mayors, deputy informational openness of the community, mayors, secretaries of local such as: a web site, page in social networks, councils, and directors and and offline channels including media, specialists of technical community newsletters, libraries, departments. communication of starostas with citizens. The participants learned about the importance of community branding. October 05, 2018 Peculiarities of the preparation The training event moderator provided an Kherson AUC RO, and implementation of budgets overview of amendments changes to the town of Bilozerka in CTCs. Effective budget and tax legislation, described the management of financial peculiarities of the preparation of local Participants: CTC mayors, resources. Performance budgets in 2019, introduced the process of technical deputies, and program budgeting the formation of the income and directors and specialists of expenditure part of local budgets, and budget departments. focused the attention on the peculiarities of cooperation with fiscal authorities and taxpayers. The participants received answers to their questions about organisational aspects and staffing support of the budget process. On October 11, 2018 New regulatory and legislative The training event moderator provided an Kherson AUC RO, requirements for using public overview the main regulatory documents in city of Kherson funds for construction and the sphere of construction, identified the 58
58 October – December, 2018 Quarter twelve of the Project implementation
To provide the communications support of this activity, the Project continued the Decentralisation Marathon reconstruction of social risks in the course of designing buildings, account in the Face book networks where communications consultants post information about community Participants: village, town facilities. Unified customer spoke about the hands-on experience of events, best practices, press tours, regional “Itinerary of Successes” tours, as well as about events taking and city mayors, CTC service concluding contracts for the provision of place in communities. mayors, and technical construction services, and focused the The PULSE Project has been active in promoting decentralisation successes and community consolidation in specialists. attention on the peculiarities of pricing and the AUC web site Successes section and the Videoteque of Successes on the AUC YouTube channel. With preparation of cost estimates for the help of a large-scale TV project intended for a wide audience of nation-wide TV channels, the Project construction projects. highlights successes of CTCs and presents the expert position of the AUC. The participants learned about the main requirements for receiving the qualification Activity 3.1. Local governments and stakeholders are informed and capable of carrying out of "Engineering Consultant in new roles and responsibilities flowing from decentralisation reform Construction". On October 12, 2018 New provisions in the The training event moderator provided an 3.1.1. Capacity building for local officials at the local level Chernivtsi AUC RO, legislative framework for the overview the key amendments in the city of Chernivtsi health care sector. Peculiarities legislation on health care, focused the Regional legislation application laboratories in AUC ROs of the implementation of the attention on the peculiarities of local Participants: deputy village, health care reform. Rural government powers in the sphere of health Regional legislation application laboratories are one-day training events for local government officials town, city and CTC mayors, health care reform care in the context of reforms, and conducted by PULSE in AUC Regional Offices. The purpose of these events is to study and receive chief doctors, and directors presented the experience of interaction clarifications on new provisions in laws and current legislation, as well as to provide opportunities for and specialists of health care Klishkivtsi Primary Aid and Family experience exchange. departments. Medicine Station with the National Health During the Project implementation period of October, 2018 – September, 2019, PULSE planned to conduct Service of Ukraine. up to 5 laboratories. The participants learned about the The list of topics was put together based on the findings of the monitoring of the training needs conducted by peculiarities of making health care AUC ROs in 2018. establishments autonomous and In October – December, 2018, the Project conducted 35 legislation application laboratories with the implementation of the health care reform in participation of 844 local government officials including 354 males and 490 females. CTCs. Below is information about these events: On October 17, 2018 Legislative and regulatory The training event moderator described Lviv AUC RO, framework for increasing the changes in the land legislation, peculiarities Date, venue and Topic Information about the event city of Lviv efficiency of land resource of the preparation of urban planning participants management in territorial documentation, and about the maintenance October 04, 2018 Information openness of the The training event moderator presented the Participants: town and city communities. Problem issues of urban planning cadastre in CTCs. Khmelnytskyi AUC RO, community: goals, tasks and main provisions of the legislation that mayors and technical in the sphere of land relations The participants learned about the city of Khmelnytskyi tools. Branding of regulate the information work of local specialists on land peculiarities of land management lands of communities governments and how municipalities cover management issues. other types located within the boundaries Participants: village, town their work in media, told about the tools of CTCs and the procedure of transferring and city mayors, deputy informational openness of the community, state-owned agricultural lands to mayors, secretaries of local such as: a web site, page in social networks, consolidated territorial communities. councils, and directors and and offline channels including media, On October 19, 2018 New provisions in the The training event moderator familiarised specialists of technical community newsletters, libraries, Kyiv AUC RO, legislation in the education the participants with the new provisions in departments. communication of starostas with citizens. city of Kyiv sector. Peculiarities of the the legislation in the sphere of education, The participants learned about the provision of education services talked about regulations on public-private importance of community branding. Participants: town and city in the context of reforms partnership in the sphere of education in October 05, 2018 Peculiarities of the preparation The training event moderator provided an mayors and directors and CTCs, described the optimal structure of an Kherson AUC RO, and implementation of budgets overview of amendments changes to the specialists of departments for education management entity and the town of Bilozerka in CTCs. Effective budget and tax legislation, described the education. staffing level for effective management, management of financial peculiarities of the preparation of local and shared experience of the education Participants: CTC mayors, resources. Performance budgets in 2019, introduced the process of management entity in the Piskivska CTC. technical deputies, and program budgeting the formation of the income and The participants also learned about the directors and specialists of expenditure part of local budgets, and experience of Bucha Specialised School # 5 budget departments. focused the attention on the peculiarities of in becoming an effective autonomous cooperation with fiscal authorities and educational institution. taxpayers. October 19, 2018 Preparation of local budgets The training event moderator talked about The participants received answers to their Odesa AUC RO, and ways to increase revenues changes in budget legislation, peculiarities questions about organisational aspects and city of Odesa and tax base of local budgets, of inter-budget relations, and preparation of staffing support of the budget process. interaction of local local budgets in 2019 and emphasised the On October 11, 2018 New regulatory and legislative The training event moderator provided an Participants: deputy mayors government with tax role and tasks of local financial authorities Kherson AUC RO, requirements for using public overview the main regulatory documents in and directors and specialists authorities in preparing local budgets. city of Kherson funds for construction and the sphere of construction, identified the of financial departments. The participants learned about the 58 59
59 QUARTERLY REPORT for the Policy for Ukraine Local Self-Governance (PULSE) Project peculiarities and purposes of performance program budgeting in the preparation of local budgets. On October 19, 2018 Peculiarities of the preparation The training event moderator told about Luhansk AUC RO, and implementation of budgets new provisions in the budget legislation, city of Severodonetsk in CTCs. Effective highlighted the peculiarities of the management of financial formation of the revenue and expenditure Participants: village, town resources. Performance part of CTC budgets, provided an overview and city mayors, their program budgeting of the peculiarities of the implementation deputies, and experts of and application of performance program financial departments and budgeting, presented the main indicators directorates. characterising the financial status of budgets, and shared the hands-on experience in preparing 2019 budgets using the example of the Severodonetsk City Council budget. On October 23, 2018 Practical aspects of the The training event moderator familiarised Kyiv AUC RO, implementation of legislation the audience with the current legislation in city of Kyiv in the sphere of administrative the sphere of administrative services, services. Amendments in the focused the attention on the main phases Participants: village, town legislation on and requirements for setting up Centers for and city mayors, their registration/deregistration of Administrative Services, distributed the list deputies, and technical the place of residence/sojourn of administrative services to be provided at specialists. of citizens CASs, and told about ways to improve the quality of administrative services. The participants learned about the experience of the CAS of the Hostomel Town Council and received answers to their questions about the interaction between CAS administrators and territorial offices of executive authorities. October 24, 2018 Peculiarities of the preparation The training event moderator familiarised Mykolaiv AUC RO, and implementation of budgets the audience with amendments changes in city of Mykolaiv in CTCs. Effective the budget legislation, provided examples management of financial how to calculate local budget taxes and Participants: village and resources fees, told about the changes in approaches town mayors, and directors to the preparation of local budgets for 2019, and specialists of budget described the peculiarities of the departments. performance program budgeting method, described the procedure and phases of budget request formation, and provided specific examples of the legislative framework for inter-budget relations in the context of decentralisation. The participants learned about the requirements for putting together annual and monthly schedules of local budgets. On October 25, 2018 Practical aspects of the The training event moderator familiarised Kharkiv AUC RO, implementation of legislation the audience with the basic regulatory and city of Kharkiv in the sphere of administrative legal document in the sphere administrative services. Amendments in the service provision, told about putting Participants: village, town legislation on together and maintaining the Register of the and city mayors and registration/deregistration of territorial community of Kharkiv, and specialists of registration the place of residence/sojourn provided hands-on examples of new departments. of citizens electronic services on the electronic service portal of the city of Kharkiv: e-kharkiv.org. The participants studied the hands-on application of legislation on 60
60 October – December, 2018 Quarter twelve of the Project implementation peculiarities and purposes of performance registration/deregistration of the place of program budgeting in the preparation of residence/sojourn of citizens. local budgets. On October 30, 2018 New provisions in the The training event moderator told about On October 19, 2018 Peculiarities of the preparation The training event moderator told about Poltava AUC RO, legislation in the education new provisions in the legislation in the Luhansk AUC RO, and implementation of budgets new provisions in the budget legislation, city of Pyryatyn sector. Peculiarities of the sphere of education and about the city of Severodonetsk in CTCs. Effective highlighted the peculiarities of the provision of education services peculiarities of the provision of education management of financial formation of the revenue and expenditure Participants: village, town in the context of reforms services in the context of reforms, provided Participants: village, town resources. Performance part of CTC budgets, provided an overview and city mayors, their an overview the legislative framework for and city mayors, their program budgeting of the peculiarities of the implementation deputies, technical the implementation of the Concept of the deputies, and experts of and application of performance program specialists, and directors New Ukrainian School, emphasised the financial departments and budgeting, presented the main indicators departments of education of importance of the new educational directorates. characterising the financial status of CTCs. environment, informed about the budgets, and shared the hands-on peculiarities of the distribution of the experience in preparing 2019 budgets using education subvention, and described out-of- the example of the Severodonetsk City school education and experience in setting Council budget. up an inclusive and educational center in On October 23, 2018 Practical aspects of the The training event moderator familiarised the Pyryatynska CTC. Kyiv AUC RO, implementation of legislation the audience with the current legislation in November 09, 2018 Peculiarities of the preparation The training event moderator provided an city of Kyiv in the sphere of administrative the sphere of administrative services, Kirovohrad AUC RO, and implementation of budgets overview the main amendments in the services. Amendments in the focused the attention on the main phases city of Kropyvnytskyi in CTCs. Effective budget legislation, told about the Participants: village, town legislation on and requirements for setting up Centers for management of financial opportunities for increasing the revenue and city mayors, their registration/deregistration of Administrative Services, distributed the list Participants: CTC mayors, resources. Performance base CTC budgets, discussed the deputies, and technical the place of residence/sojourn of administrative services to be provided at their deputies, and specialists program budgeting mechanisms and procedure for the specialists. of citizens CASs, and told about ways to improve the of budget departments. preparation of CTC budgets, highlighted quality of administrative services. the peculiarities of drafting a local The participants learned about the ordinance on the CTC budget, and told experience of the CAS of the Hostomel about the principles of budget Town Council and received answers to their implementation in CTCs. questions about the interaction between The participants learned about the CAS administrators and territorial offices of peculiarities of using performance program executive authorities. budgeting and the mandatory requirements October 24, 2018 Peculiarities of the preparation The training event moderator familiarised to use it starting with 2019. Mykolaiv AUC RO, and implementation of budgets the audience with amendments changes in November 15, 2018 Organisational aspects of the The training event moderator provided an city of Mykolaiv in CTCs. Effective the budget legislation, provided examples Sumy AUC RO, provision of administrative overview of new provisions in the management of financial how to calculate local budget taxes and city of Sumy services in CTCs. Opening of legislation on administrative services, spoke Participants: village and resources fees, told about the changes in approaches Centers for Administrative about problems with the provision of town mayors, and directors to the preparation of local budgets for 2019, Participants: CTC mayors Services administrative services and ways to resolve and specialists of budget described the peculiarities of the and specialists of technical them, and described the ways for improving departments. performance program budgeting method, departments. the procedure for administrative service described the procedure and phases of provision using the introduction of express budget request formation, and provided services, Mobile Office and Mobile specific examples of the legislative Administrator services as examples. framework for inter-budget relations in the The participants learned about corruption context of decentralisation. risks in administrative service provision. The participants learned about the November 15, 2018 Peculiarities of the preparation The training event moderator provided an requirements for putting together annual Ternopil AUC RO, and implementation of budgets overview the implementation of budgets in and monthly schedules of local budgets. city of Ternopil in CTCs. Effective the CTCs in 2018, familiarised the audience On October 25, 2018 Practical aspects of the The training event moderator familiarised management of financial with the peculiarities of the preparation of Kharkiv AUC RO, implementation of legislation the audience with the basic regulatory and Participants: CTC mayors, resources. Performance CTC budgets in 2019, described the city of Kharkiv in the sphere of administrative legal document in the sphere administrative their deputies and directors program budgeting peculiarities of the preparation of indicators services. Amendments in the service provision, told about putting of budget departments. of local budgets and inter-budget transfers Participants: village, town legislation on together and maintaining the Register of the for 2019, highlighted the peculiarities of and city mayors and registration/deregistration of territorial community of Kharkiv, and inter-budget transfers between local specialists of registration the place of residence/sojourn provided hands-on examples of new budgets and the National Budget, departments. of citizens electronic services on the electronic service familiarised the audience with the portal of the city of Kharkiv: e-kharkiv.org. procedure for drafting, reviewing and The participants studied the hands-on approving local budgets, and told about the application of legislation on performance program budgeting and its 60 61
61 QUARTERLY REPORT for the Policy for Ukraine Local Self-Governance (PULSE) Project application for the preparation and implementation of budgets. November 16, 2018 Legal and practical aspects of The training event moderator reviewed the Volyn AUC RO, the implementation of energy main requirements of energy efficiency city of Lutsk efficiency projects in legislation and the peculiarities of its hands- communities on application, described the mechanisms Participants: village, town for cooperation between local governments, and city mayors, CTC condominium associations and the Energy mayors, and specialists of Efficiency Fund, familiarised the audience technical departments. with the requirements for designing projects aimed at thermal modernisation of buildings, and shared the current mechanisms for increasing energy efficiency in communities. The participants learned about the main ways to attract investments for energy efficiency projects. November 16, 2018 Legal and practical aspects of The training event moderator provided an Lviv AUC RO, the implementation of energy overview of new provisions in the city of Lviv efficiency projects in legislation on energy saving and energy communities efficiency, described the preparation of Participants: town and city financial mechanisms for implementation mayors and specialists of of energy efficiency projects, described the technical departments. peculiarities of crediting thermal modernisation projects for apartment blocks, and discussed how to set up and run the Energy Efficiency Fund. The participants learned about hands-on examples of attracting loan funds for thermal modernisation activities. November 20, 2018 Organisational aspects of the The training event moderator spoke about Khmelnytskyi AUC RO, provision of administrative new provisions in the legislation that city of Khmelnytskyi services in CTCs. Opening of governs the procedure for the provision of Centers for Administrative administrative services and opening of Participants: village, town Services Centers for Administrative Services, told and city mayors, CTC about the specific requirements opening, mayors and specialists of equipping and running a CAS, discussed technical departments. the issues of staff training and meeting the visitor service quality requirements in the CAS. The participants studied the list of administrative services to be provided at the CAS and ways to improve their quality. November 22, 2018 Peculiarities of the preparation The training event moderator provided an Zakarpattya AUC RO, and implementation of budgets overview the main amendments in the city of Uzhgorod in CTCs. Effective budget legislation, told about the current management of financial status of the implementation of local Participants: CTC mayors resources. Performance budgets in the oblast in 2018, familiarised and directors and specialists program budgeting the audience with the peculiarities of using of financial departments. performance program budgeting, and spoke about control and audit in the budget process being as one of the tools for effective management of public funds. The participants discussed the problems of budget sufficiency in local governments and ways to resolve them. November 22, 2018 Amendments in the legislation The training event moderator told about Donetsk AUC RO, in the sphere of housing and amendments in the legislation governing 62
62 October – December, 2018 Quarter twelve of the Project implementation application for the preparation and City of Pokrovsk municipal utilities and their the sector of housing and municipal implementation of budgets. hands-on application. Reforms utilities, informed about the current status November 16, 2018 Legal and practical aspects of The training event moderator reviewed the Participants: city mayors, in the sphere of housing and of implementation of reforms in the sector Volyn AUC RO, the implementation of energy main requirements of energy efficiency their deputies, and specialists municipal utilities of housing and municipal utilities in the city of Lutsk efficiency projects in legislation and the peculiarities of its hands- of technical departments. oblast, and provided clarifications on how communities on application, described the mechanisms to increase energy efficiency of buildings in Participants: village, town for cooperation between local governments, the public sector and how to use ESCO and city mayors, CTC condominium associations and the Energy mechanisms. mayors, and specialists of Efficiency Fund, familiarised the audience The participants learned about the technical departments. with the requirements for designing projects peculiarities of setting tariffs for housing aimed at thermal modernisation of and municipal utility services and the types buildings, and shared the current of accountability for late payment of utility mechanisms for increasing energy bills. efficiency in communities. November 22, 2018 Legislative and regulatory The training event moderator provided an The participants learned about the main Odesa AUC RO, mechanisms for improving the overview of amendments in the land ways to attract investments for energy city of Odesa efficiency of land resource legislation, introduced the procedure for efficiency projects. management. Problem issues transferring state-owned agricultural lands November 16, 2018 Legal and practical aspects of The training event moderator provided an Participants: village and city in the sphere of land relations located beyond the boundaries of populated Lviv AUC RO, the implementation of energy overview of new provisions in the mayors, CTC mayors, and areas to the ownership of consolidated city of Lviv efficiency projects in legislation on energy saving and energy experts on land issues of territorial communities, told about the communities efficiency, described the preparation of local councils. powers of the state land inspectorate, Participants: town and city financial mechanisms for implementation informed about the peculiarities of the mayors and specialists of of energy efficiency projects, described the formation and registration of communally- technical departments. peculiarities of crediting thermal owned land plots, and spoke about the modernisation projects for apartment procedure for setting or changing the blocks, and discussed how to set up and run designation of land plots. the Energy Efficiency Fund. November 23, 2018 Peculiarities of the The training event moderator told about the The participants learned about hands-on Zaporizzhya AUC RO, implementation of the Law of new provisions in the legislation that examples of attracting loan funds for city of Zaporizzhya Ukraine "On Electricity establishes the rules for purchasing thermal modernisation activities. Market" electricity, informed about the phases of November 20, 2018 Organisational aspects of the The training event moderator spoke about Participants: village, town electricity purchase planning, and described Khmelnytskyi AUC RO, provision of administrative new provisions in the legislation that and city mayors, their the procedure for open tenders to purchase city of Khmelnytskyi services in CTCs. Opening of governs the procedure for the provision of deputies, and CTC mayors. electricity, as well as the outlined the Centers for Administrative administrative services and opening of negotiation procedure for purchasing Participants: village, town Services Centers for Administrative Services, told electricity distribution services. and city mayors, CTC about the specific requirements opening, The participants learned about the mayors and specialists of equipping and running a CAS, discussed peculiarities of concluding contracts to technical departments. the issues of staff training and meeting the purchase electricity. visitor service quality requirements in the November 23, 2018 Peculiarities of the preparation The training event moderator reported CAS. Chernihiv AUC RO, and implementation of budgets about the implementation of budgets of The participants studied the list of city of Chernihiv in CTCs. Effective consolidated territorial communities in administrative services to be provided at the management of financial 2018, stressed the need for effective CAS and ways to improve their quality. Participants: village, town resources. Performance management of financial resources as a November 22, 2018 Peculiarities of the preparation The training event moderator provided an and city mayors, CTC program budgeting component of effective territorial Zakarpattya AUC RO, and implementation of budgets overview the main amendments in the mayors, and specialists of community work, described the city of Uzhgorod in CTCs. Effective budget legislation, told about the current financial and budget peculiarities of the formation and management of financial status of the implementation of local departments/directorates. preparation of draft budgets for 2019, Participants: CTC mayors resources. Performance budgets in the oblast in 2018, familiarised informed about the main revenue sources of and directors and specialists program budgeting the audience with the peculiarities of using local budgets, and stressed the poor level of of financial departments. performance program budgeting, and spoke infrastructure projects for attraction of about control and audit in the budget additional investments. process being as one of the tools for November 29, 2018 Preparation of local budgets, The training event moderator provided an effective management of public funds. Ivano-Frankivsk AUC RO, ways of increasing revenues overview of main amendments in the The participants discussed the problems of city of Ivano-Frankivsk and tax base of local budgets. budget and tax legislation, familiarised the budget sufficiency in local governments Interaction of local audience with the peculiarities of the and ways to resolve them. Participants: village, town governments with financial formation of local budgets for 2019, November 22, 2018 Amendments in the legislation The training event moderator told about and city mayors, CTC and tax authorities described the ways of improving local Donetsk AUC RO, in the sphere of housing and amendments in the legislation governing mayors, directors, and budgets, described the main indicators of 62 63
63 QUARTERLY REPORT for the Policy for Ukraine Local Self-Governance (PULSE) Project specialists of financial the revenue part of local budgets, their departments. dynamics and trends, and highlighted the issue of the distribution of the education subvention. The participants exchanged their experience in interacting with financial and tax authorities. November 29, 2018 Preparation of local budgets The training event moderator provided an Dnipropetrovsk AUC RO, and ways to increase revenues overview of the new provisions of the city of Dnipro and tax base of local budgets, budget legislation, paid special attention to interaction of local hands-on aspects of the preparation of local Participants: deputy mayors government with financial and budgets, informed about the areas of work and directors of technical tax authorities to increase revenues to local budgets, and departments. talked about the ways to improve the efficiency of local budget expenditures. The participants learned about the main principles of interaction of local governments with financial and tax authorities. On November 29, 2018 Preparation of local budgets The training event moderator informed Rivne AUC RO, and ways to increase revenues about amendments in the budget and tax city of Rivne and tax base of local budgets, legislation, explained the peculiarities of interaction of local the formation of local budgets using Participants: village, town government with financial and performance program budgeting, shared and city mayors, secretaries tax authorities gave experience in using it in the cities of of local councils, and Rivne, Dubno and Varash, emphasised the directors of finance importance of preparing programs of social departments. and economic development to be financed from local budgets, spoke about the peculiarities of the preparation of the budgets in consolidated territorial communities, and described the ways to improve revenues of local budgets and efficient management of expenditures. November 30, 2018 New procedural provisions of The training event moderator described Volyn AUC RO, the economic, administrative amendments in the civil and procedural city of Lutsk and civil court proceedings. law, listed the principles of civil and Organisational aspects of the economic justice, highlighted the practical Participants: village, town work of legal services of local aspects of the setting up and running legal and city mayors, CTC governments in the context of services in local governments in the context mayors, and specialists of changes of reforms, provided examples of actions of legal departments. local government representatives in court sessions to safeguard the interests of local councils, answered questions about the unification of terminology and procedures of economic, civil and administrative processes. On December 5, 2018 Regulatory and legislative The training event moderator described the Kherson AUC RO, framework for public legislative framework for tender city of Kherson procurement and hands-on procurements, familiarised the audience experience in using the with the peculiarities of the Prozorro Participants: technical Prozorro procurement system procurement system, informed about the list deputies of village, town and of existing electronic platforms, outlined city mayors, and directors the peculiarities of concluding contracts and and specialists of technical conducting tenders for purchasing departments/directorates. electricity in accordance with the new requirements, and provided hands-on recommendations on the preparation of cost 64
64 October – December, 2018 Quarter twelve of the Project implementation specialists of financial the revenue part of local budgets, their estimate documentation for tenders for departments. dynamics and trends, and highlighted the capital repairs, reconstruction and issue of the distribution of the education construction of facilities in the social sector. subvention. December 06, 2018 Regulatory and legislative The training event moderator talked about The participants exchanged their experience Sumy AUC RO, framework for public the legislation government the sphere field in interacting with financial and tax city of Sumy procurement and hands-on of public procurement, provided a general authorities. experience in using the review of the Prozorro procurement system, November 29, 2018 Preparation of local budgets The training event moderator provided an Participants: city mayors, Prozorro procurement system drew attention of the audience to the Dnipropetrovsk AUC RO, and ways to increase revenues overview of the new provisions of the CTC mayors, and directors peculiarities of procurement procedures in city of Dnipro and tax base of local budgets, budget legislation, paid special attention to and specialists of technical this system, provided examples of bidding interaction of local hands-on aspects of the preparation of local departments/directorates. documentation for purchasing electricity in Participants: deputy mayors government with financial and budgets, informed about the areas of work the open bidding process, informed about and directors of technical tax authorities to increase revenues to local budgets, and the peculiarities and organisational aspects departments. talked about the ways to improve the of procurement in organisations and efficiency of local budget expenditures. institutions, and informed about the The participants learned about the main resources to search information that can be principles of interaction of local used as analytical tools, especially in governments with financial and tax procurement planning. authorities. December 11, 2018 Reforms in the system of The training event moderator familiarised On November 29, 2018 Preparation of local budgets The training event moderator informed Chernivtsi AUC RO, social protection. Peculiarities the audience with legislation governing the Rivne AUC RO, and ways to increase revenues about amendments in the budget and tax city of Chernivtsi of working with persons with sector of social protection and protection of city of Rivne and tax base of local budgets, legislation, explained the peculiarities of disabilities, ATO participants, children rights, informed about the local interaction of local the formation of local budgets using Participants: technical internally displaced persons government powers in the sphere of social Participants: village, town government with financial and performance program budgeting, shared deputies of village, town and and other categories of the protection, described the peculiarities of the and city mayors, secretaries tax authorities gave experience in using it in the cities of city mayors, and directors population child patronage service over within the of local councils, and Rivne, Dubno and Varash, emphasised the and specialists of technical framework of the Strategy for Reforms of directors of finance importance of preparing programs of social departments. the Institutional Care and Upbringing of departments. and economic development to be financed Children for 2017 - 2026, familiarised the from local budgets, spoke about the audience with social adaptation of peculiarities of the preparation of the internally displaced families, families of budgets in consolidated territorial ATO participants, and provided the communities, and described the ways to algorithm to plan the work with vulnerable improve revenues of local budgets and families. efficient management of expenditures. December 12, 2018 Peculiarities of the preparation The training event moderator familiarised November 30, 2018 New procedural provisions of The training event moderator described Odesa AUC RO, and implementation of budgets the audience with the peculiarities of the Volyn AUC RO, the economic, administrative amendments in the civil and procedural city of Odesa in CTCs. Effective preparation of CTC budgets, described the city of Lutsk and civil court proceedings. law, listed the principles of civil and management of financial phases of the budget process at the local Organisational aspects of the economic justice, highlighted the practical Participants: CTC mayors, resources. Performance level, powers of the budget process Participants: village, town work of legal services of local aspects of the setting up and running legal their deputies, and directors program budgeting participants, peculiarities of revenues and and city mayors, CTC governments in the context of services in local governments in the context and specialists of financial expenditures of CTC budgets, the process mayors, and specialists of changes of reforms, provided examples of actions of and budget of forming the budget of the CTC, informed legal departments. local government representatives in court departments/directorates. about the peculiarities of using performance sessions to safeguard the interests of local program budgeting, outlined the councils, answered questions about the peculiarities of preparing budget program unification of terminology and procedures profiles, and spoke about the preparation of of economic, civil and administrative draft ordinances on local budgets. processes. December 12, 2018 Regulatory and legislative The training event moderator provided an On December 5, 2018 Regulatory and legislative The training event moderator described the Vinnytsya AUC RO, framework for the preservation overview the key legislation on Kherson AUC RO, framework for public legislative framework for tender city of Vinnytsya and popularisation of cultural preservation and popularisation of cultural city of Kherson procurement and hands-on procurements, familiarised the audience heritage as a means of heritage, told about the main tendencies in experience in using the with the peculiarities of the Prozorro Participants: village, town economic development of reforms in the sector of culture in the Participants: technical Prozorro procurement system procurement system, informed about the list and city mayors, technical communities context of decentralisation, stressed the deputies of village, town and of existing electronic platforms, outlined deputies, economists, and necessity of developing proper tools for city mayors, and directors the peculiarities of concluding contracts and technical specialists. preservation and use of cultural values, and specialists of technical conducting tenders for purchasing familiarised the audience with the departments/directorates. electricity in accordance with the new experience of Tulchynska and Barska CTCs requirements, and provided hands-on in launching various festivals that promote recommendations on the preparation of cost development and popularisation of the 64 65
65 QUARTERLY REPORT for the Policy for Ukraine Local Self-Governance (PULSE) Project cultural heritage. December 20, 2018 Legislative and legislative The training event moderator described the Volyn AUC RO, framework for the work of the legislation governing the work of starostas, city of Lutsk starosta informed about the powers of starostas, their rights, duties, their role in the budget Participants: village, town process and in the preparation of projects and city mayors, CTC for social and economic development of the mayors, and secretaries of community, emphasised the peculiarities of local councils. early termination of starosta powers, describe starosta activities with a focus on administrative services, and told about the peculiarities of starosta reporting to the community. December 21, 2018 Reforms in the sphere of The training event moderator informed Dnipropetrovsk AUC RO, housing and municipal about the main amendments in the city of Dnipro utilities. Practical aspects of legislation on housing and municipal utility community-based energy services, spoke about the peculiarities of Participants: deputy mayors efficiency activities. setting up and running condominium and directors technical Legislative framework for the associations, programs to support departments. work of condominium condominium associations and housing associations construction cooperatives, presented a list of opportunities to raise funds under conditions of co-financing terms and citizen involvement, and told about the ways to increase energy efficiency. The participants learned about the tendencies of introducing of energy saving technologies. December 27, 2018 Provision of administrative The training event moderator familiarised Zhytomyr AUC RO, services at the local level and the audience with the legislation on the city of Zhytomyr ways to improve their quality provision of administrative services, informed about the regulatory and technical Participants: deputy village, requirements for premises of Centers for town and city mayors and Administrative Services, told about the technical specialists. practical and organisational aspects of CAS, described the powers of municipalities in the sphere of registration/deregistration of the place of residence, and familiarised the audience with the tools for assessing the quality of administrative services and the work of CASs. The moderator also shared her experience in working with the Zhytomyr CAS.
Distance learning courses
During Project Year Three, the PULSE Project continued the implementation of three 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 is constantly increasing.
In addition to this, the Project finished the preparation of the Gender Budgeting for Community Development Budgeting in Ukraine course (the joint project of PULSE and Gender Budgeting in Ukraine of the DOBRE program with the involvement of UN Women and NDI) and started its implementation. In December, 2018, the first active phase of the implementation of the course on the on-line Prometheus platform was completed. The active phase means the time when the course was first implemented on the platform. During this time, the students could study materials, watch video collections and ask questions to 66
66 October – December, 2018 Quarter twelve of the Project implementation cultural heritage. teachers in the forum. Also, the students took tests. In December, after the certificates of successful December 20, 2018 Legislative and legislative The training event moderator described the completion of the course and tests were first generated, the course went into another phase: the platform Volyn AUC RO, framework for the work of the legislation governing the work of starostas, continued to offer the materials, videos, tests and the possibility to obtain a certificate any time, but there was city of Lutsk starosta informed about the powers of starostas, no opportunity to receive answers directly from the course authors in the forum. their rights, duties, their role in the budget Participants: village, town process and in the preparation of projects The PULSE Project paid a lot of attention to presenting this course to local government representatives. The and city mayors, CTC for social and economic development of the Deputy Project Director presented the course during the Dialogue Day with the central Government in mayors, and secretaries of community, emphasised the peculiarities of Ternopil, International Conference on Gender Budgeting in Kyiv, during the Second Ukrainian Women's local councils. early termination of starosta powers, Congress in Kyiv, at the Strategic Session of the Council of Europe Gender Equality Project, and during describe starosta activities with a focus on other events. In addition to this, the information about the beginning of the course was actively disseminated administrative services, and told about the by the regional PULSE Project consultants in Face book. Also, all AUC member communities received a peculiarities of starosta reporting to the letter from the Association of Ukrainian Cities with an invitation to register for the course. community. December 21, 2018 Reforms in the sphere of The training event moderator informed In the reporting quarter, the Project finished the preparation of training course for local council members of Dnipropetrovsk AUC RO, housing and municipal about the main amendments in the consolidated territorial communities (a joint project of PULSE and the Norwegian Participative Democracy city of Dnipro utilities. Practical aspects of legislation on housing and municipal utility and Evidence Based Decision Making at the Local Level in Ukraine Project implemented by the AUC). The community-based energy services, spoke about the peculiarities of course will start in January, 2019. Participants: deputy mayors efficiency activities. setting up and running condominium and directors technical Legislative framework for the associations, programs to support As of the end of 2018, the statistics for all the courses is as follows: departments. work of condominium condominium associations and housing associations construction cooperatives, presented a list The Gender Based Budgeting for Community Development course of opportunities to raise funds under Total number of users: 751 conditions of co-financing terms and citizen Certificates generated: 183 (24.4%) involvement, and told about the ways to increase energy efficiency. The Training of Local Council Members of Consolidated Territorial Communities course The participants learned about the Total number of users: 214 tendencies of introducing of energy saving The first certificates will be generated at the end of January, 2018. technologies. December 27, 2018 Provision of administrative The training event moderator familiarised In general, the PULSE project courses demonstrated a very good performance, because world wide, a good Zhytomyr AUC RO, services at the local level and the audience with the legislation on the indicator of the effectiveness of on-line courses is considered to be 7% of the students who received city of Zhytomyr ways to improve their quality provision of administrative services, certificates of the total number of those for registered for the course. informed about the regulatory and technical Participants: deputy village, requirements for premises of Centers for All in all, since the beginning of the distance-learning courses 10,000 persons participated in all training town and city mayors and Administrative Services, told about the courses. technical specialists. practical and organisational aspects of CAS, described the powers of municipalities in the sphere of 3.1.2. Training of local government officials of the oblast and rayon levels registration/deregistration of the place of residence, and familiarised the audience In the reporting quarter, working within the framework of the Sub-Agreement # 153 of October 01, 2018 with the tools for assessing the quality of between the Ukrainian Association of Rayon and Oblast Councils (UAROC) and the Association of administrative services and the work of Ukrainian Cities (AUC), UAROC conducted 19 expert workshops for representatives of rayon and oblast CASs. The moderator also shared her councils on the following topics: experience in working with the Zhytomyr CAS. “Local government reform and formation of effective territorial arrangement of government institutions in Ukraine" - 5 expert workshops; Distance learning courses "Innovative opportunities for economic growth of regions" - 6 expert workshops; "Business planning of activities of public health care establishments belonging to the local During Project Year Three, the PULSE Project continued the implementation of three distance-learning government ownership " - 5 expert workshops; courses prepared in previous years on the Prometheus platform (www.prometheus.org.ua). The training "Vision for the development of the sector of public education in the context of reforms of the materials and the opportunity to receive a certificate are constantly available, so the number of students is system of government" - 1 expert workshop; constantly increasing. "Informing the public about the activities local councils – as a way to understanding and openness" - 1 expert workshop; and, In addition to this, the Project finished the preparation of the Gender Budgeting for Community 1 Ukraine-wide expert workshop for oblast councils. Development Budgeting in Ukraine course (the joint project of PULSE and Gender Budgeting in Ukraine of the DOBRE program with the involvement of UN Women and NDI) and started its implementation. In 339 persons including 185 males and 154 females participated in these events. December, 2018, the first active phase of the implementation of the course on the on-line Prometheus platform was completed. The active phase means the time when the course was first implemented on the platform. During this time, the students could study materials, watch video collections and ask questions to 66 67
67 QUARTERLY REPORT for the Policy for Ukraine Local Self-Governance (PULSE) Project
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 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.
The expert workshops organised by the PULSE Project once again confirmed the pressing need to establish communication channels and links between representatives of local governments and leading experts on the implementation of the local government reform and reform of the territorial arrangement of government institutions in Ukraine. These workshops provide an opportunity to assess the benefits of reforms, identify the weaknesses 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.
These expert workshops also provide an opportunity to stabilise and neutralise in a certain way the potential resistance to reforms on the part of rayon officials who, in the near future, will have to undergo the most significant organisational changes (consolidation of rayons).
3.1.3. Training NGO representatives and librarians as communicators of reforms
The IREX team prepared a questionnaire for PULSE Project participants in pilot communities, collected data and provided an overview the findings of this questionnaire with the purpose of receiving feedback and suggestions from Project participants, as well as developing an action plan for the future.
This questionnaire provided an opportunity to identify: a. most effective formats for conducting information events in pilot communities (79% of respondents mentioned consultation points, 81% - "living library"); b. level of participation of local authorities in project activities in communities; c. contribution of AUC regional consultants to the IREX/PULSE Project (43% of polled library teams and NGOs cooperated with the regional AUC consultants during the events); d. availability of Reform Support Groups (RSG) members in each community who are a driving force to the success (54% of those polled said that RSG members in their communities already Meeting dedicated to the formation have specific results of joint activities, and 84% of communities of Youth Council in Chornyi Ostriv conduct RSG meetings at least once a month); (Khmelnytska oblast) December 14, 2018 e. most significant changes in the community after attributed to the implementation of the PULSE Project; f. demand for training webinars as a component of the project for the next program period; and, g. ways to improve further cooperation.
The Project team processed all these findings and will be take them into account when developing the next action plan to work with the teams in pilot libraries and non-governmental organisations, as well as for the preparation of the training to take place in February, 2019. In the reporting quarter, IREX: conducted a competition to select and involve libraries and NGO teams in community events. As a result, the Project will continue its involvement with 30 communities from the previous phases and
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will involve 42 new communities selected this year. In total, the Project team received 95 applications; developed a new curriculum for a facilitation training, which will be useful for both experienced teams and beginners; and, launched a special YouTube channel to inform communities and disseminate educational videos for project participants.
3.1.4. Capacity building of non-government stakeholders
Strengthening capacity of Reform Support Groups (RSG) in pilot communities
IREX has conducted 3 coordination meetings and 3 webinars for participants of Reform Support Groups. These meetings were dedicated to the preparation of the action plan to increase the capacity of RSG participants, to promote team work and motivate RSG team members, as well as to formulate the goals for the members. During the reporting period, the PULSE Project gained 24 additional RSG activists.
IREX provided continuous support to RSG members through online and individual counselling. They received answers to their questions through the Face book team, as well as received news, updates and the relevant information on local government reform.
The Project organised and conducted webinars for RSG members in the premises of the America House in Kyiv on the following topics: a. "Where and how to look for active community members"; b. "The preparation of projects to be implemented at the expense of the subvention from the National Budget to local budgets for infrastructure improvements in consolidated territorial communities and priorities for the state support for communities" - this webinar had the biggest number of views: 909 on-line participants, 2,054 views on the Face book and 18 on the YouTube Channel; and, c. "Ways to involving citizens in the decentralisation reform.
Cross-cutting activities IREX updated the design of its information materials produced prepared earlier and came up with a design for the new materials for project participants; IREX ensure weekly news releases to (news highlights) to RSG members and representatives of library press clubs and pilot NGO and library teams of both cohorts (890 recipients) via an online platform. Thanks to these materials and information, citizens in communities shared main news on decentralisation, participated in training events, forums, and submitted project applications to other organisations to receive additional support for their communities.
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, PULSE provided representatives of central government authorities with communication channels to disseminate important messages about the reform. PULSE made use of the traditional instruments to communicate with the targeted audience and to disseminate the important information, namely: placing news and developments on its web-site. The Project is engaged in the regular monitoring of the information environment, whereas its site features the most 69
69 QUARTERLY REPORT for the Policy for Ukraine Local Self-Governance (PULSE) Project important activities of central government authorities and published central government decisions forming up the state policy in the critical local government areas PULSE is engaged in. PULSE Project disseminated strategic messages, quotations and video comments of high-ranking government officials using its web site, which has traditionally been the source of unbiased and most updated information about the local government sector 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, 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. For example, in the reporting quarter, the PULSE Project conducted a National Press Club of Reforms, which brought together more than 100 representatives of regional media. Deputy Minister of Health of Ukraine P. Kovtonyuk had an opportunity to directly inform media about the new approaches of the health care reform and the current status of its implementation in communities, while the journalists, in their turn, had an opportunity to receive answers to their questions.
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, 21.6 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 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 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
5th National Press Club for 100 Regional Media On November 26 - 27, the AUC conducted the National Press Club for Decentralisation: Results, Key Issues and Future Prospects in the city of Kyiv. This traditional annual event, which took place for the fifth time, serves as a platform for communication with media to discus the outcomes of reforms over the previous year and future tasks. Participants of this event were representatives of 100 media (TV, radio, printed and Internet media) from all oblasts of Ukraine, as well ass AUC regional communications consultants. Oleksandr Slobozhan, Executive Director of the AUC, opened the Press Club. In view of the political situation the country was on as a result of intensified aggression from Russia and the introduction of the martial law for the duration of 30 days as of November 26, 2018, he started his presentation with an
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70 October – December, 2018 Quarter twelve of the Project implementation important activities of central government authorities and published central government decisions forming overview of some peculiarities of the legislative framework for the work of government authorities, military up the state policy in the critical local government areas PULSE is engaged in. PULSE Project disseminated command, military administrations, and local governments in the context of the martial law and described strategic messages, quotations and video comments of high-ranking government officials using its web site, how the introduction of a martial law could affect community life. which has traditionally been the source of unbiased and most updated information about the local Then O. Slobozhan spoke on the topic: "The National Budget for 2019. Will communities have development government sector in Ukraine. resources?" He highlighted the participation of the AUC in the preparation of the National Budget for 2019 Various events conducted by the PULSE Project with the participation of the government authorities serve as starting from the preparation of the first proposals to budget consultations. Thus, the AUC managed to communications channels to deliver ‘firsthand’ massages about the government policy. The Project activities defend: are mass media representatives and invited to them. Thus, high level government officials have a good - crediting to the budgets of cities of oblast significance and CTCs of 37% of collections from rent opportunity to talk to journalists, provide comments to the media, and explain the position of a government payment for special use of forest resources for timber harvested in ripe and overgrown forest agency and government policy. In addition, the materials about PULSE events that were prepared by media plantations; representatives and PULSE informational products were used to further disseminate messages from central - crediting to local budgets of collections from administrative fines and other penalties for violation of state executive authorities. the labour legislation; For example, in the reporting quarter, the PULSE Project conducted a National Press Club of Reforms, - cancellation of privileges for the payment of land fee for the land plots provided to railways within which brought together more than 100 representatives of regional media. Deputy Minister of Health of the strips and landing, because of the preferences established previously by the state on land tax Ukraine P. Kovtonyuk had an opportunity to directly inform media about the new approaches of the health payments for railways local budgets lost 1.2 billion UAH in 2018. care reform and the current status of its implementation in communities, while the journalists, in their turn, The AUC Executive Director emphasised that the main goal of decentralisation is to provide high quality had an opportunity to receive answers to their questions. services to the population, while community consolidation is a tool to achieve this goal. Therefore, it is necessary to put together profiles of all services in communities, standardise them, determine their cost, and to make them as accessible as possible to inhabitants in communities. 3.2.2. Strategic messaging through different media L. Damentsova, AUC expert on legislation development and local government resource management informed that thanks to community consolidation with administrative centers in cities of oblast significance, One of the key aspects in strategic message delivery is the coverage of all spectrum of media outlets, because decentralisation in Ukraine has become more active. Currently, there are 23 such communities and the they are targeted a various types of audiences. The PULSE Project, being aware of modern communication community consolidation continues. trends, makes good use of social networks, which are popular, first of all, with young people (aged of 14 to L. Mozhova, AUG education expert, presented the reform of the New Ukrainian School and stressed that 35 years old). It is of critical importance to explain to young people the benefits of decentralisation, because AUC is actively involved in protecting the right of local governments to get the projected amount of the in the nearest future they will be the audience to use its benefits and will live in the environment with the education subvention. principles laid today. P. Kovtonyuk, Deputy Minister of Health Care of Ukraine, presented the results and further directions of the Also, the PULSE Project communications experts focus their efforts on disseminating messages through health care reform. In particular, he said that Ukrainians continue to conclude contracts with their family Internet-based media currently on the rise in Ukraine with their target audiences constantly growing doctors: 22 million people have already chosen their family doctor. 76% of patients are satisfied with the (currently, 21.6 million of Ukrainians use the Internet) and with good chances to become the leading media doctors who have been chosen. In 2019, the government will introduce electronic medical documents, such outlet in the future. This is the global tendency, which becoming more and more pronounced in Ukraine by as: patient card, referral to a specialist, and recipe and disability document. the day. One should mention that on-line resources remain the most responsive and interactive media tool. O. Harnyk, AUC expert on housing and municipal utilities, spoke about the current heating season in At the same time, television enjoys the widest coverage and, as a rule, remains the most effective tool in Ukraine, position of the AUC and its steps to improve the situation in the sector of housing and municipal disseminating the needed information. PULSE having taken this fact into consideration ensures the utilities. In particular, the AUC has repeatedly stressed the need to include in the National Budget the funds participation of Project experts in the air of a wide spectrum of TV channels delivering the messages to compensate for housing subsidies and the difference in heating tariffs, which would prevent the representing the core Project ideas to their audiences (first of all, medium-aged citizens). Thanks to the accumulation of debts of heating companies to gas and electricity suppliers. printed media, PULSE an opportunity to draw the attention of elderly persons to the necessity of N. Mykolyuk, AUC social protection expert, presented amendments in the legislation in the social sector in implementing the local government reform. The Project focuses the attention on the irreversible nature and 2019, and the methodological recommendations prepared by the AUC to help local governments exercise necessity of such changes and progressive impact of the reform on the life of country residents. To ensure the control of compliance with the labour legislation. permanent access of media representatives to the most up-to-date information about the implementation of All the speakers gave their answers to questions from journalists, gave comments and provided interviews. the decentralisation reform, the Project web-site offers news headlines, which are updated on a daily basis. On the second day of the event, the participants visited the building of the Cabinet of Ministers. The Project This is a so-called information bank, which serves very often as a source of information for journalists and organised a tour of the building for them and a presentation of the Cabinet of Ministers communication local government representatives. In addition, The Project web-site offers press releases and press strategy called «#єдинийголос» [one voice]. National Deputy V. Denysenko who is the representative of the announcements for media. Cabinet of Ministers in the parliament answered questions of journalists about key aspects of the introduction of martial law and its impact on the life of citizens. Head of the Department for Information and At the central level: Communications of the Secretariat of the Cabinet of Ministers of Ukraine R. Stadnyk presented the main channels and tools of the Cabinet of Ministers Government to communicating the reforms. Events and products for media Following the meeting of the Press Club, regional media prepared approximately 200 publications and 35 TV stories on regional TV channels. 5th National Press Club for 100 Regional Media On November 26 - 27, the AUC conducted the National Press Club for Decentralisation: Results, Key Issues Press news and Future Prospects in the city of Kyiv. This traditional annual event, which took place for the fifth time, The Project prepares and disseminates regular press news to media representatives and, in case this is serves as a platform for communication with media to discus the outcomes of reforms over the previous year needed, does the express information delivery within the framework of the “Hot Topic” component. The and future tasks. Participants of this event were representatives of 100 media (TV, radio, printed and Internet mailing list put together during the previous years and is being constantly updated and verified. Therefore, media) from all oblasts of Ukraine, as well ass AUC regional communications consultants. as of today, the total number of items in PULSE mailing lists constitutes reaches more than 300. Oleksandr Slobozhan, Executive Director of the AUC, opened the Press Club. In view of the political During the reporting period, the reporting period, the Project disseminated 13 press news releases and 4 “hot situation the country was on as a result of intensified aggression from Russia and the introduction of the news” updates: martial law for the duration of 30 days as of November 26, 2018, he started his presentation with an
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71 QUARTERLY REPORT for the Policy for Ukraine Local Self-Governance (PULSE) Project October 31 – the Association of Ukrainian Cities announced the start of registration of students of the free distance learning course under the title: "Gender Based Budgeting for Community Development" on the Prometheus platform; November 16 – Chairman of the Association of Ukrainian Cities Vitaliy Klychko suggested an action plan to resolve the problem with heat supply to residents of cities; December 27 – the Cabinet of Ministers endorsed a resolution to simplify the mechanism for local government to provide the financial support to utility companies whose approval was supported by the Association of Ukrainian Cities; and, December 28 – an interview with Oleksandr Slobozhan, Executive Director of the Association of Ukrainian Cities, on the priority steps for the implementation of the second phase of the decentralisation reform.
Coverage of the AUC position and PULSE activities in media
TV coverage The AUC activities were aired by 22 TV programs on the following channels: October 01 – L. Damentsova, AUC Expert on Legislation and Local Government Resource Management, spoke about community consolidation around cities of oblast significance on the live program on the Kyiv TV Channel; October 02 – AUC Executive Director O. Slobozhan provided comments about AUC activities to safeguard the interests of local governments at the national level on the «Сфера ТВ» [sphere TV] TV Channel (city of Rivne); October 09 – AUC Executive Director O. Slobozhan provided comments about the impact of developers on community infrastructure in the Construction Standard program on the Channel 5 TV Channel; October 11 - O. Slobozhan, Executive Director of the AUC, provided comments about the decentralisation reform and the peculiarities of the budget process on the «Український Південь» [Ukrainian south] TV Channel (city of Kherson); On October 11 - AUC education expert L. Mozhova provided comments about the work of the AUC Education Professional Group on the «Віта ТБ» TV Channel (city of Vinnytsya); October 23 - AUC education expert L. Mozhova spoke about financing of educational institutions in the context of decentralisation on the UA:ПЕРШИЙ TV channel; November 05 – AUC Executive Director O. Slobozhan highlighted the issue of keeping financial resources of local budgets on bank deposit accounts and the relevant results in the of such practice in the «Факти» [facts] program on the ICTV TV Channel; November 09 – AUC Executive Director O. Slobozhan provided comments about the results of the decentralisation reform in the Odesa oblast, as well as about the advantages and problems of consolidated communities on the Channel 7 TV Channel (city of Odesa); November 13 – Executive Director of the AUC O. Slobozhan participated in a live broadcast on the 112 Ukraine TV Channel to talk about the failure of the heating season in several cities of Ukraine; November 13 – AUC Executive Director O. Slobozhan provided comments about the steps of local government in cities where the heating season was disrupted to supply gas to state-owned companies on the «Прямий» [direct] TV Channel; November 14 – AUC Executive Director O. Slobozhan about the steps of local governments to ensure heat supply in communities on the 112 Ukraine TV Channel; November 27 – AUC Executive Director O. Slobozhan provided comments about AUC proposals to the 2019 National Budget and about the need to increase funding for CTCs, which include villages, for the «Погляд» [outlook] Information Agency (Kyiv oblast); November 27 - AUC education expert L. Mozhova provided comments about the current status of reforms in the public education sector and changes implied in the New Ukrainian School concept for the «Погляд» Information Agency (Kyiv oblast); November 29 - AUC housing and municipal utilities expert O. Harnyk provided comments about the work of the AUC Housing and Municipal Utilities Professional Group on the «С-ТВ» TV Channel (city of Zhytomyr); December 06 - AUC Expert on Legislation and Local Government Resource Management L. Damentsova participated in a program on the «UATV» TV Channel where she spoke about the role of decentralisation in the work of local governments and the changes that took place thanks to the transfer of powers from the central level to the local level;
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October 31 – the Association of Ukrainian Cities announced the start of registration of students of December 06 – AUC Executive Director O. Slobozhan spoke about the current status of the decentralisation the free distance learning course under the title: "Gender Based Budgeting for Community reform in a live program on the «Еспресо ТВ» TV Channel; Development" on the Prometheus platform; December 11 – AUC Executive Director O. Slobozhan provided comments about the current status November 16 – Chairman of the Association of Ukrainian Cities Vitaliy Klychko suggested an promoting comfortable living conditions for children and youth by local governments on the «Прямий» TV action plan to resolve the problem with heat supply to residents of cities; Channel; December 27 – the Cabinet of Ministers endorsed a resolution to simplify the mechanism for local December 11 – AUC Executive Director O. Slobozhan provided comments about the implementation of the government to provide the financial support to utility companies whose approval was supported by Children and Youth Friendly Community initiative in Ukraine on the «Ньюзван» [news one] TV Channel; the Association of Ukrainian Cities; and, December 17 – AUC expert on legal issues I. Sklyar spoke about AUC support for CTCs and for the December 28 – an interview with Oleksandr Slobozhan, Executive Director of the Association of communities that are undergoing community consolidation on a live program broadcast on the «Київ» TV Ukrainian Cities, on the priority steps for the implementation of the second phase of the Channel; decentralisation reform. December 18 – legal adviser of the Kyiv AUC Regional Office V. Udovychenko spoke about the influence of the martial law on elections in Ukraine and the Cabinet of Ministers Action Plan for 2019 on a live Coverage of the AUC position and PULSE activities in media program on the «112 Україна» TV Channel; December 26 - AUC social protection expert N. Mykolyuk spoke about the monetisation of subsidies and TV coverage state support to the population in the sphere of energy saving on the "Zik" TV Channel; and, The AUC activities were aired by 22 TV programs on the following channels: December 27 - AUC education expert L. Mozhova provided comments about the education subvention for October 01 – L. Damentsova, AUC Expert on Legislation and Local Government Resource Management, communities and the need to change the formula to calculate it on the «Інтер» TV Channel. spoke about community consolidation around cities of oblast significance on the live program on the Kyiv TV Channel; Radio coverage October 02 – AUC Executive Director O. Slobozhan provided comments about AUC activities to safeguard PULSE Project experts participated in 2 radio programs: the interests of local governments at the national level on the «Сфера ТВ» [sphere TV] TV Channel (city of November 15 - O. Slobozhan, Executive Director of the AUC, participated a program on the Ukrainian Rivne); Radio Radio Station and spoke about the opportunities local governments now have in the sphere of housing October 09 – AUC Executive Director O. Slobozhan provided comments about the impact of developers on and municipal utilities thanks to decentralisation; community infrastructure in the Construction Standard program on the Channel 5 TV Channel; December 7 - Ya. Raboshuk, Director of the AUC Center for Analysis and Legislation Drafting, provided October 11 - O. Slobozhan, Executive Director of the AUC, provided comments about the decentralisation comments about the experience of implementation of the decentralisation reform in Ukraine and further reform and the peculiarities of the budget process on the «Український Південь» [Ukrainian south] TV plans for its realisation on the «Отчизна» [motherland] Radio Station. Channel (city of Kherson); On October 11 - AUC education expert L. Mozhova provided comments about the work of the AUC Printed and electronic media Education Professional Group on the «Віта ТБ» TV Channel (city of Vinnytsya); Interviews and comments of PULSE experts on decentralisation reforms were published in more than 50 October 23 - AUC education expert L. Mozhova spoke about financing of educational institutions in the publications in printed media and Internet resources. context of decentralisation on the UA:ПЕРШИЙ TV channel; An interview of AUC expert on social protection N. Mykolyuk in the Express newspaper drew a November 05 – AUC Executive Director O. Slobozhan highlighted the issue of keeping financial resources considerable attention of the general public. In his interview, the expert talks about changes in the calculation of local budgets on bank deposit accounts and the relevant results in the of such practice in the «Факти» of subsidies and powers local governments now have in the sphere of social protection. Also media outlets [facts] program on the ICTV TV Channel; provided a wide coverage of the interview of AUC education expert L. Mozhova to the AUC explanation for November 09 – AUC Executive Director O. Slobozhan provided comments about the results of the the «Дзеркало тижня» [mirror weekly] newspaper with the explanation about funding of social services at decentralisation reform in the Odesa oblast, as well as about the advantages and problems of consolidated the expense of local budgets. communities on the Channel 7 TV Channel (city of Odesa); Altogether during the reporting quarter, there were more than 320 mentioning of the AUC in media and on November 13 – Executive Director of the AUC O. Slobozhan participated in a live broadcast on the 112 web sites of central government authorities and city councils. Those who wrote about the Association Ukraine TV Channel to talk about the failure of the heating season in several cities of Ukraine; included such authoritative media as the «Урядовий кур’єр» [government courier] and «Голос України» November 13 – AUC Executive Director O. Slobozhan provided comments about the steps of local [voice of Ukraine] newspapers; UKRINFORM, UNIAN, RBK-Ukraine, ”Громадське радіо” [public radio] government in cities where the heating season was disrupted to supply gas to state-owned companies on the Ukrainian National News, «Українська правда» [Ukrainian truth], ZIK, and «Обозреватель» [observer] «Прямий» [direct] TV Channel; Internet publications; and others. November 14 – AUC Executive Director O. Slobozhan about the steps of local governments to ensure heat supply in communities on the 112 Ukraine TV Channel; Website and social networks November 27 – AUC Executive Director O. Slobozhan provided comments about AUC proposals to the AUC website 2019 National Budget and about the need to increase funding for CTCs, which include villages, for the The AUC web-site www.auc.org.ua is an important instrument to disseminate information to the public at «Погляд» [outlook] Information Agency (Kyiv oblast); large about the activities of the AUC and, in particular, about PULSE. This Internet resource has become a November 27 - AUC education expert L. Mozhova provided comments about the current status of reforms in recognised source of trustworthy information about the current status of local self-governance and the public education sector and changes implied in the New Ukrainian School concept for the «Погляд» professional and specialised expert information in the sphere of local self-governance, decentralisation Information Agency (Kyiv oblast); reforms and consolidation of territorial communities. November 29 - AUC housing and municipal utilities expert O. Harnyk provided comments about the work of The AUC web page was completely upgraded and modernised in September, 2016. According to the the AUC Housing and Municipal Utilities Professional Group on the «С-ТВ» TV Channel (city of feedback from users, it is convenient and informative. In particular, they say that the user interface of the site Zhytomyr); by intuition is easy to understand, consistent and logical. While going to the main page a visitor sees the December 06 - AUC Expert on Legislation and Local Government Resource Management L. Damentsova news highlights (10 publications), 5 top news, and interactive sections including the Decentralisation: participated in a program on the «UATV» TV Channel where she spoke about the role of decentralisation in Sectoral Dialogue section, and the tools that, which reflect the multi-faceted activities of the Project. the work of local governments and the changes that took place thanks to the transfer of powers from the The Top News section catches the eye at once. It places most important, “hot” and significant news of the central level to the local level; Project. The news highlights on the main page publish information about the following:
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73 QUARTERLY REPORT for the Policy for Ukraine Local Self-Governance (PULSE) Project - 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 CTCs 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. With their help users can learn about the details of the sectoral reforms (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 sire 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 Face book 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 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”. One should mention the increasing interests to the Facebook AUC account. The growth in the number of new “readers” was particularly active after Project events and publication of its new products. Over he reporting period, the number of Facebook page subscribers increased from 7,132 to 7,532. User coverage per calendar day is an important AUC popularity indicator in the Facebook. This indicator varied within the range of 6 thousand, with the maximum indicator during the reporting period dedicated to the cooperation of the AUC with the Cabinet of Ministers and parliament, as well as to the Dialogue Day with the central government.
The highest indicators for the audience reach during the reporting period related to the following publications:
December 28 - 6,341 users, the Project published the post under the title: "O. Slobozhan: Association of Ukrainian Cities expects the parliament to approve in the new year the laws that will accelerate decentralisation and make it irreversible"; December 27 – 7,423 users, the Project published the post under the title: "Persistent actions of the AUC help to simplify the mechanism for local government to provide financial support to municipal utility companies"; December 11 - 9,852 users, the Project featured live video coverage of the Web Conference on Land Management in CTCs, which was held jointly by the AUC and the National Agency for Geodesy, Cartography and Cadastre; December 05 – 8,288 users, the Project published the post under the title: "Executive Director of the AUC O.Slobozhan thanked Representative of the Association's Chairman in the Parliament O. Prodan for safeguarding local government interests";
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74 October – December, 2018 Quarter twelve of the Project implementation
- preparation of draft laws by PULSE experts and support for their approval in the parliament; November 16 – 5,675 users, the Project published the post under the title: "Chairman of the - cooperation with parliamentary Committees (providing recommendations, proposals, comments, Association of Ukrainian Cities Vitaliy Klychko suggested an action plan to resolve the problem support or lack of support for draft legislation); with heat supply to city residents"; - appeals to high level central government authorities on key problem issues local governments November 07 - 5,379 users, the Project published the post under the title: "The Cabinet of Ministers face and support to decentralisation reforms; has recognised 175 communities as capable consolidated territorial communities"; - participation of PULSE experts in public events and comments to media; October 26 - 6,674 users, the Project published the post under the title: "The AUC does not support - coverage of PULSE activities and events; the draft law on state oversight of local governments"; and, - coverage of activities and events of PULSE regional consultants; October 26 - 6,414 users, the Project published the post under the title: "The AUC is concerned about - news from CTCs and their successes; the situation with the provision of insulin for patients with diabetes mellitus and sent its appeal to the - providing clarifications to local governments prepared by AUC Center for Analysis and Ministry of Health Care". Legislation Drafting; - coverage of main news and developments in the sphere of local self-governance and In general, the overall coverage of AUC posts in Facebook over the reporting quarter constituted 205.2 decentralisation, opportunities for development and capacity building of city representatives, etc. thousand, which speaks about both the increasing audience trust to the activities and news of the AUC and PULSE and to their live interest to topics related to decentralisation in general. On average, during the The site offers one important section called “Decentralisation”, which offers a link to one of the 10 thematic reporting period, the posts of the Association were re-published 16 times. platforms. The platforms are dedicated to the areas of sectoral reforms where the PULSE Project works. With their help users can learn about the details of the sectoral reforms (the “Discuss with a Colleague” tool) The YouTube account and get expert assistance and consultations (the “Put a Question to the Expert” tool). Visitors can submit a The AUC YouTube account has become a widely used source of news and information about the status of proposal to the current legislation or suggest a new draft law in the “Laws” section. The interactive “Fair of local self-governance and about the progress of decentralisation reforms. Over the reporting period, the Ideas” and “E-Petitions” sections are also available on the web site. The special section "Successes" tells the Project provided regular updates to the “Association in Media” and “AUC Activities” sections offering visitor about the achievements and achievements that the community has received as a result of fiscal important videos from media. PULSE communications experts monitor information, organise meetings of decentralisation and community consolidation. The publications are placed in the section of the library. The PULSE experts and TV journalists, involve experts to thematic programs, and upload the corresponding sire also keeps video and photo galleries. videos in the “Comments of AUC Experts” and “Decentralisation and Reform Successes” sections. The Project web-site also offers links to social media pages (Face book and YouTube), which are also used During the reporting period, the Decentralisation and Reform Successes library received new video by the Project to disseminate information about decentralisation and local government reform and important materials. Thanks to regional communications and reform success replication consultants who monitor local Project news. 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 The Face book account source of information about the progress of reforms, and serves as an incentive for communities to use the The Face book account of the Association serves as a powerful tool to popularise the topic of the local experience of their peers, join reforms in the country, and enter into community consolidation to receive government reform and progress in decentralisation and inform about AUC and PULSE activities. Social more resources and powers, on the other. network pages are one of important information dissemination channels allowing not only to present events, In addition to this, the Project constantly updated the "Comments of AUC Experts" section. This collection products, materials, expert information and news, but also to receive feedback from the Internet audience and of videos contains comments from PULSE Project experts and consultants on key issues of decentralisation to disseminate “hot news”. and implementation of sectoral reforms. The video library provides an opportunity to see how the position of One should mention the increasing interests to the Facebook AUC account. The growth in the number of the AUC is reflected in regional and national mass media. The visitors can also receive explanations on new “readers” was particularly active after Project events and publication of its new products. Over he issues of the implementation of the reform. reporting period, the number of Facebook page subscribers increased from 7,132 to 7,532. Also, on the AUC YouTube Channel, the Project set up a new video library called "Itinerary of Successes". User coverage per calendar day is an important AUC popularity indicator in the Facebook. This indicator This is a series of videos on the about study visits organised within the framework of the “Itinerary of varied within the range of 6 thousand, with the maximum indicator during the reporting period dedicated to Successes” nation-wide exchange study tour Project component, which is being implemented within PULSE. the cooperation of the AUC with the Cabinet of Ministers and parliament, as well as to the Dialogue Day In this section, the visitors can see how the community's successful experience is disseminated and how with the central government. "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 The highest indicators for the audience reach during the reporting period related to the following PULSE of Reforms Project component with more than 200 video stories about successes communities have publications: 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 December 28 - 6,341 users, the Project published the post under the title: "O. Slobozhan: Association the Media”, "Itinerary of Successes", as well as previous collections of videos, such as “Decentralisation of Ukrainian Cities expects the parliament to approve in the new year the laws that will accelerate Marathon”, “Social Videos”, “Your Government” (selection of programs within the framework of the joint decentralisation and make it irreversible"; Project with the Channel 5 TV Channel), and “CITY-minded Ukraine” (selection of programs within the December 27 – 7,423 users, the Project published the post under the title: "Persistent actions of the framework of the joint Project with the TONIS and UT-1 TV Channels). Approximately 3000 network users AUC help to simplify the mechanism for local government to provide financial support to municipal have subscribed to AUC video news. utility companies"; December 11 - 9,852 users, the Project featured live video coverage of the Web Conference on Land Management in CTCs, which was held jointly by the AUC and the National Agency for Geodesy, PULSE Project publications Cartography and Cadastre; December 05 – 8,288 users, the Project published the post under the title: "Executive Director of the Publication title Targeted audience Description AUC O.Slobozhan thanked Representative of the Association's Chairman in the Parliament O. The “AUC Herald” AUC member # 157, October. The publication features the Prodan for safeguarding local government interests"; printed monthly communities, AUC materials about study tours within the framework publication partner organisations the "Itinerary of Successes" Project component and meetings of AUC Professional Groups 74 75
75 QUARTERLY REPORT for the Policy for Ukraine Local Self-Governance (PULSE) Project organised by PULSE Project. # 158, November. The publication features the materials about the meeting of the National Press Club of Reforms and the work of AUC Professional Groups organised by PULSE Project. # 159, December. The PULSE of REFORMS section features the materials about the participation of the AUC in the budget process in 2019 and safeguarding the interests of local communities. 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”. 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 84 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.
At the local level:
IREX, PULSE Project sub-partner, conducted meetings of Press Clubs and media events in libraries; • IREX helped 24 library press clubs complete their annual media plans that will be implemented during the project year; • IREX prepared scopes of work for each of the three trainers/mentors of press clubs to organise cooperation with libraries, community organisations, and members of the press clubs during the project year; • IREX has developed a program for meetings to strengthen the capacity of library press clubs during the project year. One of such meetings, which brought together 18 participants, took place in Ternopil in November. Representatives of three types of media (TV, Internet, and radio) attended it together with representatives of local communities, AUC regional consultants and librarians; • IREX recorded approximately 39 cases of media coverage of the decentralisation process in Ukraine following the work of library press clubs.
Dissemination of successes on local TV and radio stations and through printed media
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76 October – December, 2018 Quarter twelve of the Project implementation organised by PULSE Project. Collecting and disseminating success stories of the local government reform and decentralisation is one of # 158, November. The publication features the the key areas of activities of PULSE. This type of activity, as well as promoting such publications in regional materials about the meeting of the National Press media is supported by PULSE communications consultants. Thanks to their contacts with local printed Club of Reforms and the work of AUC media, TV channels radio stations, they prepare the corresponding informational products. Their main focus Professional Groups organised by PULSE is fiscal decentralisation and, consequently, infrastructure and development Projects in communities. Over Project. the reporting period, the main thematic focus shifted from the achievements of fiscal decentralisation and # 159, December. The PULSE of REFORMS highlighting successes of consolidated territorial communities to their implementation of infrastructure and section features the materials about the development projects. participation of the AUC in the budget process in Regional communications consultants ensure the regular presence of AUC experts, regional executive 2019 and safeguarding the interests of local directors, budget and legal consultants, as well as mayors of consolidated territorial communities in local communities. media (radio, TV, printed and Internet media) and often they themselves participate in radio and TV The “Pulse of Reforms” International This is a bi-lingual weekly publication presenting interviews and write articles and short sketches. Local media widely use analytical materials, reviews, info electronic digest organisations, PULSE activities over the past week and graphics and comments of PULSE consultants as credible, professional and authoritative views. Based on the international technical featuring Project and local government news. results of the PULSE Project activities (meetings of AUC Professional Groups and regional policy dialogue assistance Projects, and This publication consists of two main chapters: platforms), PULSE regional communications consultants convene press conferences and hold briefings with Project partners “PULSE in action” and “Decentralisation and the participation of local opinion leaders, experts, CTC mayors, and directors and consultants of AUC Sectoral Reforms: News and Developments”. Regional Offices. PULSE Project regional communications consultants consult local media in regions about The materials for this publication are prepared on good communities in oblasts to visit to make video materials. Fridays, with the mailing taking place early next PULSE regional consultants have learned the skills in making videos and putting them together. Earlier, week. The mailing list is constantly updated. For PULSE purchased a set of video equipment and conducted the professional training for them. Now, the example, the Ukrainian version is sent to AUC consultants are able to go out to communities, conduct PULSE Project regional events, on-site consultations, partners, representatives of the state executive informational meetings, take interviews and comments from CTC mayors and sectoral experts and based on and parliamentary Committees AUC experts this prepare video stories on their own. The topics include: implementation of the decentralisation reform in work with, while the English version is sent to the oblast, success stories from communities, participation of the AUC and PULSE Project in the more than 90 emails of international implementation of reforms, etc. These stories are branded with the PULSE logo and serve as the handy organisations. material for dissemination through local TV channels, which are happy to broadcast them. In the reporting During the reporting period, the Project prepared period, communications consultants produced 156 video materials. 13 digests. The reformatted and unified web pages of all AUC Regional Offices in the Facebook social network became The Book of Successes AUC member- The collection published in the reporting quarter, an important source of disseminating community successes. These web pages serve as a valuable source of quarterly collection of communities, AUC offers 84 success stories in ten thematic sections, information about regional news, which are used by community mayors, local government officials and local success stories partner organisations such as: local finance, local economic media. development, energy efficiency, housing and Thanks to the active work of its regional communications consultants, PULSE Project has a reliable channel municipal utilities, health care, education, social to disseminate in regional media not only the successes, but also specific issues and “hot” messages about projects, administrative services, organizational the important news in the local government sector and the position and role of the Association in these aspects of the work of local councils and reform processes. communication with the community, and During the reporting quarter with the assistance of regional consultants, regional and local TV channels aired community safety. 556 TV programs including and about the success of communities and broadcasts with the participation of This collection is disseminated during various PULSE Project experts. In addition, local printed and Internet media prepared 1,439 publications. PULSE Project events and is posted on the AUC website. Press tours for regional media In the reporting period, the Project continued to organise press tours to successful communities for local and At the local level: regional media. The main purpose of the tours is to popularise the experience of successful CTCs in local and regional media. IREX, PULSE Project sub-partner, conducted meetings of Press Clubs and media events in libraries; During these site-visits, the journalists will have a chance to become familiar and actually see the successful • IREX helped 24 library press clubs complete their annual media plans that will be implemented during outcomes of the formation consolidated territorial communities and have personal conversations with the project year; community leadership and citizens. Following the press tours, the journalists prepare publications in local • IREX prepared scopes of work for each of the three trainers/mentors of press clubs to organise media about successes of decentralisation. During Project Year Three, every AUC RO organises at least two cooperation with libraries, community organisations, and members of the press clubs during the project press tours. year; In October – December, 2018, the Project conducted 16 press tours in all AUC Regional Offices, with the • IREX has developed a program for meetings to strengthen the capacity of library press clubs during the participation of 260 representatives of local and regional media. project year. One of such meetings, which brought together 18 participants, took place in Ternopil in November. Representatives of three types of media (TV, Internet, and radio) attended it together with representatives of local communities, AUC regional consultants and librarians; Activity 3.3. Increased public awareness of reform successes and trust in local governments • IREX recorded approximately 39 cases of media coverage of the decentralisation process in Ukraine following the work of library press clubs. 3.3.1. Role of Offices for Reforms: supporting reform implementation and establishment of capable communities Dissemination of successes on local TV and radio stations and through printed media Activities of Offices for Reforms. Seminars, meetings and work with consultants
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77 QUARTERLY REPORT for the Policy for Ukraine Local Self-Governance (PULSE) Project 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: legal assistance to representatives of local governments; motivation and support for consolidation of territorial communities; and, 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 profiles; - 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: gathering success stories and best practices in implementing decentralisation reform and increasing own local budget resources from territorial communities; 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, 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: 2,542 consultations were provided on legal and financial issues and local economic development, which contributed to the process of consolidation of territorial communities; 27 study visits were conducted within the framework of the "Itinerary of Successes" nation-wide exchange study tour Project component with the participation of 538 representatives of local governments that started the process of community consolidation; 16 press tours were organised in AUC Regional Offices with the participation of 260 representatives of local and regional mass media, which contributed to the popularisation of the reform and its success; 14 territorial communities of cities of oblast significance annexed 26 village and town communities with the area of 1.3 thousand sq.km (about 2% of the total area of the country) and 0.9 million persons (about 2% of the total population of Ukraine); On December 23, 2018, the initial local elections took place in 77 consolidated territorial communities (9 city, 15 town, and 53 village CTCs) in 12 oblasts. The composition of these 77 CTCs comprised 343 local councils (city - 9, town - 17, and village - 317).
The results of the work of local economic development consultants in the reporting quarter include: Development strategies were approved at in CTCs (Demydivska CTC - Rivne oblast, Merefyanska CTC - Kharkiv oblast, Bilovodska CTC - Luhansk oblast, Nedryhailivska CTC - Sumy oblast, Rayivska CTC - Dnipropetrovsk oblast; Uzynska and Piskivska CTCs - Kyiv oblast; Pischanska CTC - Poltava oblast; and Kozeletska CTC - Chernihiv oblast). 12 CTCs are expecting their approval of their community development strategies in early 2019; the average rate of increase of revenues from local taxes and fees to budgets of pilot CTCs in 2018 amounted to 122.1% as compared to the average for all CTCs in Ukraine - 121.4% (or + 0.7%). 78
78 October – December, 2018 Quarter twelve of the Project implementation
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 Regional communications consultants work in all regions of Ukraine, in close cooperation with the Central responsible for 3 - 5 oblasts. Office for the Decentralisation Reform in the AUC. The Communications Coordinator of the Office and the The main tasks of the regional legal, budget and local economic development consultants included: PULSE Project Communications Group adjust the focus of their activities on a regular basis, communicate legal assistance to representatives of local governments; key messages, hot news and the position of PULSE and AUC to them. During the reporting period, the motivation and support for consolidation of territorial communities; and, consultants received recommendations about marking and branding of PULSE Project products and conducting of information, public awareness, training and consultative activities for local activities, about how to improve accounts of AUC Regional Offices in the Facebook, and how to share best governments, representatives of other interested parties, and informing media about reforms. practices and interesting press initiatives. The priority task for local economic development consultants was to support local economic development in The Facebook account called “PULSE: Decentralisation Marathon” opened in 2015 when community 5 territorial communities (with the total of 30 territorial communities from all 24 oblasts). The attention of consolidation processes started became an effective communication tool for supporting PULSE activity at these consultants was focused on the following: the regional level. This is the place where regional communications consultants post their information about - preparation of community development strategies, implementation plan, and monitoring system for Project event in communities, successful practices, press tours, regional success stories, as well as events and implementation of strategies; key changes in communities. The consultants are regularly provided with instructions on the preparation of - preparation of the community profile and investment profiles; the messages and the formulation of texts of publications on the page. In the reporting period, - preparation of project applications for participation in the competition to select the projects to be communications consultants placed posted 1,630 publications on the PULSE: Decentralisation Marathon financed at the expense of the National Budget and grants form international technical assistance projects; page. - introduction of the Municipal Fiscal Register; Monitoring, collecting and writing success stories and best community practices and feeding them into the - preparation of tools for supporting small and medium-sized businesses and establishing national success story database set up within the framework of the Project remains one of the important communication between local governments and the business community; and, aspects of the work of communications consultants. During the reporting period, the consultants were also - promotion of local business products in foreign markets, presentations of city potential for a wider advised how to improve this work, as well as the form and content of such materials. The national success range of potential partners. story database serves as a source of information for further preparation of publications about community The main tasks of the regional communications consultants included: successes (“The Book of Success”) and as a source of information for the "Successes" section on the AUC gathering success stories and best practices in implementing decentralisation reform and web site, as well as is used for cooperation with central and regional media. increasing own local budget resources from territorial communities; The AUC Central Office for the Implementation of the Decentralisation Reform worked closely with providing comments and interviewing of experts and regional public opinion leaders for media, regional communications consultants to disseminate across Ukraine not only successes, but also “hot” highlighting activities of AUC Regional Offices and experts who provide AUC services in the messages about new legislation, local government news, and position and role of the Association in these relevant oblast, and coverage of the process of the reform in the oblast in open sources; and, processes. In particular, the following messages were effectively and efficiently disseminated across Ukraine dissemination of news related to local government and information about the activities of during the reporting period: "The Cabinet of Ministers recognised 175 CTCs as capable consolidated PULSE Project and AUC. territorial communities", "Persistent actions of the AUC helped to simplify the mechanism for local governments to provide financial support to municipal utility companies", "The Cabinet of Ministers The AUC Central Office for Decentralisation Reform provided coordination services to all regional offices, increased the amount of the education subventions for budgets 44 cities and CTCs by 88 million UAH", "The Cabinet of Ministers redistributed 1.5 billion UAH of the health care subvention to doctor salaries and salaries and financial support for events, and provided timely consultative support. th treatment for patients with diabetes and renal failure”, about the 5 National Press Club of Reforms and With the support from Reform Offices, the Project achieved the following results in the reporting quarter: others.
2,542 consultations were provided on legal and financial issues and local economic development, which contributed to the process of consolidation of territorial 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 27 study visits were conducted within the framework of the "Itinerary of Successes" nation-wide local government officials of the communities who have started consolidation processes to best practices of exchange study tour Project component with the participation of 538 representatives of local already consolidated CTCs. The communities to visit within the framework of the program were determined governments that started the process of community consolidation; on the basis of the monitoring conducted by AUC Regional Offices. In July – September, 2018, the Project 16 press tours were organised in AUC Regional Offices with the participation of 260 representatives organised 27 study tours in AUC regional offices with the participation of 538 representatives of local self- of local and regional mass media, which contributed to the popularisation of the reform and its government bodies. success;
14 territorial communities of cities of oblast significance annexed 26 village and town communities 3.3.2. Promotion of reform successes with the area of 1.3 thousand sq.km (about 2% of the total area of the country) and 0.9 million persons (about 2% of the total population of Ukraine); A significant segment of the PULSE communication component, which is now being implemented in On December 23, 2018, the initial local elections took place in 77 consolidated territorial cooperation with 24 regional communications consultants, is to increase the PULSE impact on stimulating communities (9 city, 15 town, and 53 village CTCs) in 12 oblasts. The composition of these 77 and motivating further consolidation of territorial communities. The communities, which consolidate receive CTCs comprised 343 local councils (city - 9, town - 17, and village - 317). the resources and authority oblast significance cities 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 The results of the work of local economic development consultants in the reporting quarter include: participants in the process, and, most importantly, citizens that decentralisation will have a positive impact Development strategies were approved at in CTCs (Demydivska CTC - Rivne oblast, Merefyanska on the quality of their lives and to demonstrate the real successful examples of consolidated communities. CTC - Kharkiv oblast, Bilovodska CTC - Luhansk oblast, Nedryhailivska CTC - Sumy oblast, Rayivska CTC - Dnipropetrovsk oblast; Uzynska and Piskivska CTCs - Kyiv oblast; Pischanska PULSE uses real stories to stimulate and motivate territorial communities for further consolidation, promote CTC - Poltava oblast; and Kozeletska CTC - Chernihiv oblast). 12 CTCs are expecting their reform, convince all participants of the decentralisation process, and most importantly citizens, that approval of their community development strategies in early 2019; decentralisation brings high quality of life and better access to services. It is important to inform hesitant the average rate of increase of revenues from local taxes and fees to budgets of pilot CTCs in 2018 communities and the media community of obvious benefits of decentralisation and community consolidation, amounted to 122.1% as compared to the average for all CTCs in Ukraine - 121.4% (or + 0.7%). 78 79
79 QUARTERLY REPORT for the Policy for Ukraine Local Self-Governance (PULSE) Project 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.
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 180 success stories and 90 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 funds, etc. During the reporting period, there were a large number of success stories dealing with modernisation of infrastructure in the sectors of housing and municipal utilities, public education and health care, implementation of community safety activities, and development of the local economy. 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.
Every day the AUC website publishes news about best practices and successful community achievements due to decentralisation in a special Successes Section within the framework of the No Day without a Success information campaign. During the reporting period, the Project prepared and published 65 materials in this 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 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.
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80 October – December, 2018 Quarter twelve of the Project implementation about the real facts of effectiveness of these reforms for communities and their inhabitants. During the Section 3. IMPLEMENTATION PROBLEMS AND BARRIERS reporting period, PULSE Project disseminated success with its own means involving media and its regional consultants. 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. During the reporting period, the Project regularly updated the national base of successes and best practices The latent crisis with the parliamentary majority and the Verkhovna Rada in general continues to be a from communities. This interactive tool provides the opportunity to track the progress of decentralisation significant problem. The low level of responsibility of National Deputies and lack of discipline often leads to reform nationwide, compare different oblasts, and distribute the best initiatives and municipal practices. The the situation when the voting does not take place or is “derailed” due to the fact that National Deputies are materials to the database are provided by regional communications consultants who monitor the communities simply are not present in the session hall. and provide information by key areas of sectoral decentralisation. The national base is a handy source of The reporting quarter was characterised by the latent start of the presidential election campaign, which information for preparation of materials for other PULSE communication channels, such as the web site, should have started on December 31, 2018, according to the legislation, but actually began much earlier. social networks, cooperation with media, TV Project, as well as organisation of Project events to cover Obviously, this had its impact on the priorities of key political players and the mood of National Deputies of success of reforms, namely: “Itinerary of Successes” replication visits and press tours. During the reporting Ukraine. A number of draft laws that were extremely important for furthering the local government reform period, the project prepared and entered into the database 180 success stories and 90 best practices. and decentralisation were not included in the agenda of the parliament. In fact, the presidential election campaign marked also the beginning of the parliamentary election campaign. The success stories highlight the benefits and gains of communities they have received due to fiscal Even though the parliamentary elections are three quarters away, the major political players have already decentralisation and consolidation, emphasize the increased financial resources of local budgets through actively started it. The Project team expects that the elections process will result in slow-down of the decentralisation reforms, possibilities of attracting National Budget subventions and international donor legislation process, with the main focus of National Deputies on high-profile draft laws on social issues, as funds, etc. During the reporting period, there were a large number of success stories dealing with well as populist political decisions touching upon the widest audience of most active voters. modernisation of infrastructure in the sectors of housing and municipal utilities, public education and health Thus, the project will have to overcome a significant political resistance to have the local government and care, implementation of community safety activities, and development of the local economy. Best practices decentralisation reforms continue and to remain as a top priority on the agenda of politicians. 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 Problems with Project activities development projects, organisational aspects of the provision of administrative services, social protection, health care, and public education. 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 Every day the AUC website publishes news about best practices and successful community achievements employees of the new directorates of ministries also have significantly higher salaries (more than 1.6 times). due to decentralisation in a special Successes Section within the framework of the No Day without a Success This has already led to the drain of a number of PULSE Project staff and complicated the search for high information campaign. During the reporting period, the Project prepared and published 65 materials in this quality specialists. section.
Section 4. SUCCESS STORIES 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 PULSE PROJECT SUCCESSES 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, HOUSING AND MUNICIPAL UTILITIES as well as collected information with the help of media monitoring. The video stories footage highlights the Problem issues of public sector institutions and municipal utility companies with introduction of the advantages and benefits of communities they have gained thanks to consolidation. It should be mentioned retail electricity market resolved that many activities and products of the PULSE Project are dedicated to the promotion of successes of the Thanks to active lobbying work of the PULSE Project, the Verkhovna Rada of Ukraine approved the Law of reform, such as “Itinerary of Successes” (regional and national) exchange study tours, the PULSE OF Ukraine of November 21, 2018 # 2628-VIII "On Introducing Amendments to the Tax Code of Ukraine and REFORMS TV Project, the “BOOK OF SUCCESS” publication and success stories, the SUCCESSES Certain Other Ukrainian Legislation Regarding Improvements of Administration and Revisiting Rates for section on the AUC website, the Decentralisation Marathon Facebook account, as well as publications in Certain Taxes and Fees", which resolved the problem with electricity supply to public sector institutions and local media by PULSE regional communications consultants. organisations, as well as housing and municipal utility companies during the transition period of the introduction of the retail electricity market.
Mechanism for local governments to provide financial support to housing and municipal utility companies simplified On December 27, 2018, the Cabinet of Ministers endorsed Resolution # 1141 "On Introducing Amendments to the List of Services of Common Economic Interest", to include municipal utility services in this list. Thus, the utility companies providing housing and municipal utility services to consumers are now excluded from the sphere of the Law of Ukraine "On State Assistance to Economic Entities". Therefore, there is no longer the need for local governments to engage in lengthy and complicated procedures to coordinate with the Anti- Monopoly Committee of Ukraine the provision of assistance to service provision municipal utility companies. The AUC for a long time insisted on amendments to the regulatory and legal documents that would exclude the support municipal utility companies receive from local budgets from the sphere of the law mentioned above.
EDUCATION Preventing the reduction of guarantees in the education sector 80 81
81 QUARTERLY REPORT for the Policy for Ukraine Local Self-Governance (PULSE) Project The Ministry of Education and Science initiated a reduction in the guarantees and standards for students who extensively studied physics, mathematics, biology, etc. Such initiatives would have led to a reduction in a considerable number of teachers who taught these subjects in classes divided into groups for studying these subjects and/or to changes in essential conditions of their work and a significant deterioration in the quality of education. The AUC in a conclusion prepared by a PULSE Project expert offered a suggestion not to support such changes. Following the public discussion and taking into account the position of the AUC, the Ministry of Education and Science of Ukraine decided to preserve the current legal regulations about the division of classes into groups for studying individual subjects.
PULSE prevented imposition of fines for bulling in educational establishments on local governments, which are founders of educational institutions On November 07, 2018, the Verkhovna Rada of Ukraine Committee on Science and Education approved the composition of the working group for the preparation of the Draft Law of Ukraine "On Introducing Amendments to Certain Ukrainian Legislation to Fight Bulling" (Registration # 8584 of July 10, 2018) for the second reading. A PULSE Project expert became a member of this group. The draft law deals with powers of local governments in management of educational institutions. In the course of the work on the draft law, the PULSE Project expert managed to exclude the provision imposing fines on local governments as founders of such institutions, as it is the responsibility of the manager and teachers of the educational establishment to promote psychologically comfortable environment for schoolchildren. The working group also prepared an article with indicators to identify bulling and specified some of the provisions. On December 18, 2018, the Parliament approved the Law of Ukraine "On Introducing Amendments to Certain Ukrainian Legislation to Fight Bulling", which will promote the introduction of anti-bullying techniques in the educational environment and will provide opportunities to counter harassment and protect people who have suffered from bulling.
Resources of local budgets to pay salaries to school teachers increased In 2018, PULSE Project experts repeatedly appealed to the Cabinet of Ministers of Ukraine and line ministries about the insufficient education subvention. As a result, the AUC Center for Analysis and Legislation Drafting quadrupled the amount of the education subvention provided the National Budget to local budgets in the 4th quarter of 2018 (Directive # 868-p of October 24, 2018, and # 1018-p and # 1019-p of December 12, 2018). As a result of the redistribution, the resources of CTCs and cities increased by 219.9 million UAH. Also, at the end of the year, the Cabinet of Ministers directed about 230 million UAH to oblast administrations for the redistribution between local budgets.
HEALTH CARE The amount of the health care subvention increased by 2.6 billion UAH The AUC in its numerous letters to the Prime Minister of Ukraine and three letters to the Ministry of Health Care emphasised the critical condition of local budgets to cover the health care expenditures at the expense of the health care subvention to provide insulin drugs for patients with diabetes mellitus and treatment of patients with renal failure. Also, the AUC emphasised wage arrears to doctors. The Cabinet of Ministers endorsed three directives that resolved the problem issues by the end of 2018 (# 813-p of November 07, 2018 "On Redistribution of Expenditures from the National Budget Earmarked for the Ministry of Health Care for 2018 and Redistribution of the Health Care Subvention from the National Budget to Local Budgets”, # 856-р of November 14, 2018 "On Redistribution of Expenditures from the National Budget Earmarked for the Ministry of Health Care for 2018", and # 1003-p of December 12, 2018 "On Redistribution of Expenditures from the National Budget Earmarked for the Ministry of Health Care for 2018”). Through these regulations, the Cabinet of Ministers increased the amount of the health care subvention by more than 2.6 billion UAH.
STAFFING AND ORGANISATIONAL ASPECTS OF WORK A political component in the mechanism for awarding local government officials eliminated Thanks to close cooperation with the Ministry of Labour and Social Policy and endorsement by the Cabinet of Ministers of Directive # 791 of October 03, 2018 "On Approving Amendments to Certain Resolutions of the Cabinet of Ministers of Ukraine" the central government resolved the problem of a political component in the mechanism of awarding the secretaries of village, town and city councils, deputy village, town and city mayors, chief executives (secretaries) of executive committees, and starostas and granting them premium pay and cash allowances through the decision of the local council. Now, premium pay and other allowances will be granted upon the decision of the village, town and city mayor within the salary funds available (the
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The Ministry of Education and Science initiated a reduction in the guarantees and standards for students who relevant provision is included in the Cabinet of Ministers Resolution # 268 of March 09, 2006), rather than extensively studied physics, mathematics, biology, etc. Such initiatives would have led to a reduction in a through the vote of local council members. considerable number of teachers who taught these subjects in classes divided into groups for studying these subjects and/or to changes in essential conditions of their work and a significant deterioration in the quality DECENTRALISATION OF STATE ARCHITECTURAL AND CONSTRUCTION CONTROL of education. The AUC in a conclusion prepared by a PULSE Project expert offered a suggestion not to Preventing stripping off local governments of their powers in the sphere of state architectural and support such changes. Following the public discussion and taking into account the position of the AUC, the construction control Ministry of Education and Science of Ukraine decided to preserve the current legal regulations about the Thanks to the initiative of the AUC, the Parliamentary Committee on Construction, Urban Development, division of classes into groups for studying individual subjects. Housing and Municipal Utilities has changed its position with regard the Draft Law of Ukraine "On Introducing Amendments to the Law of Ukraine "On the Regulation of Urban Development Activities" PULSE prevented imposition of fines for bulling in educational establishments on local governments, (regarding the termination or temporary suspension of the powers in the sphere of state architectural and which are founders of educational institutions construction control)” (Registration # 7266-1 of November 20, 2017) and made a decision in favour of local On November 07, 2018, the Verkhovna Rada of Ukraine Committee on Science and Education approved the governments. In particular, the Committee agreed to exclude the provision of the draft law, which provided composition of the working group for the preparation of the Draft Law of Ukraine "On Introducing for the suspension of the local government powers in the sphere of state architectural and construction Amendments to Certain Ukrainian Legislation to Fight Bulling" (Registration # 8584 of July 10, 2018) for control upon the initiative of State Architectural and Construction Inspectorates. The Association came up the second reading. A PULSE Project expert became a member of this group. The draft law deals with with a suggestion to retain only those provisions, whereby local governments may give up these functions powers of local governments in management of educational institutions. In the course of the work on the only upon their own initiative. The Parliament approved this draft law in the first reading on November 20, draft law, the PULSE Project expert managed to exclude the provision imposing fines on local governments 2018 in the version, which is in line with the interests of local governments. as founders of such institutions, as it is the responsibility of the manager and teachers of the educational establishment to promote psychologically comfortable environment for schoolchildren. The working group LOCAL BUDGETS also prepared an article with indicators to identify bulling and specified some of the provisions. Fines for violations of labour legislation imposed by local governments will go to local budgets starting On December 18, 2018, the Parliament approved the Law of Ukraine "On Introducing Amendments to with 2019 Certain Ukrainian Legislation to Fight Bulling", which will promote the introduction of anti-bullying Starting with January 01, 2017, local governments received powers to monitor compliance with the labour techniques in the educational environment and will provide opportunities to counter harassment and protect and employment laws and impose the appropriate fines. However, collections from these went to the people who have suffered from bulling. National Budget. This approach hampered the development of the system of local social inspectors. PULSE Project prepared the relevant amendments to the Budget Code of Ukraine, according to which the fines Resources of local budgets to pay salaries to school teachers increased imposed by local governments are to be credited to local budgets. In 2018, PULSE Project experts repeatedly appealed to the Cabinet of Ministers of Ukraine and line On November 22, 2018 the parliament approved Law # 2621 "On Introducing Amendments to the Budget ministries about the insufficient education subvention. As a result, the AUC Center for Analysis and Code of Ukraine", which takes into account the proposals of the PULSE Project. Thanks to this, local Legislation Drafting quadrupled the amount of the education subvention provided the National Budget to budgets may receive an additional 442.5 million UAH in 2019. local budgets in the 4th quarter of 2018 (Directive # 868-p of October 24, 2018, and # 1018-p and # 1019-p of December 12, 2018). As a result of the redistribution, the resources of CTCs and cities increased by 219.9 Funding for patronage families will be provided by the state, rather than through local budgets million UAH. Also, at the end of the year, the Cabinet of Ministers directed about 230 million UAH to oblast By approving Law # 936 of January 26, 2016, the Parliament introduced the legislative framework for a new administrations for the redistribution between local budgets. form of temporary upbringing of children in families called “patronage education” (payment for services for child patronage and payment of social welfare for keeping a child in the family of a patron teacher). HEALTH CARE Originally, the funding for the patronage education in 2018 was envisioned to come from the National The amount of the health care subvention increased by 2.6 billion UAH Budget, and as of 2019 - from local budgets. The AUC in its numerous letters to the Prime Minister of Ukraine and three letters to the Ministry of Health According to the projections of a PULSE Project expert, if the state had not prolonged the funding for the Care emphasised the critical condition of local budgets to cover the health care expenditures at the expense patronage education, local governments would have had to lay off their patronage educators due to the lack of the health care subvention to provide insulin drugs for patients with diabetes mellitus and treatment of of funds. Thanks to the well established dialogue, the Ministry of Labour and Social Policy supported the patients with renal failure. Also, the AUC emphasised wage arrears to doctors. position of the PULSE Project expert and prepared amendments to the Budget Code of Ukraine, according to The Cabinet of Ministers endorsed three directives that resolved the problem issues by the end of 2018 (# which the funding for patronage teachers from the National Budget will last till 2026. On November 22, 813-p of November 07, 2018 "On Redistribution of Expenditures from the National Budget Earmarked for 2018, the Parliament approved amendments to the Budget Code of Ukraine (Law # 2621). This helped tot the Ministry of Health Care for 2018 and Redistribution of the Health Care Subvention from the National prevent the additional burden on local budgets in the amount of 15 million UAH. Budget to Local Budgets”, # 856-р of November 14, 2018 "On Redistribution of Expenditures from the National Budget Earmarked for the Ministry of Health Care for 2018", and # 1003-p of December 12, 2018 Preventing transfer of financing of state guarantees on local budgets "On Redistribution of Expenditures from the National Budget Earmarked for the Ministry of Health Care for The Ministry of Labour and Social Policy of Ukraine prepared a draft resolution with a suggestion to pay 2018”). Through these regulations, the Cabinet of Ministers increased the amount of the health care compensation to citizens for their lost property in case of their relocation from radioactively contaminated subvention by more than 2.6 billion UAH. territories at the expense of local budgets. The draft resolution was submitted for consideration by the Cabinet of Ministers of Ukraine on December 27, 2018. The AUC opposed the draft resolution, as it implies STAFFING AND ORGANISATIONAL ASPECTS OF WORK significant additional expenditures from local budgets. The draft document was removed from consideration A political component in the mechanism for awarding local government officials eliminated and, as a result, the AUC prevented the transfer of the additional to local budgets. In particular, in the Thanks to close cooperation with the Ministry of Labour and Social Policy and endorsement by the Cabinet Zhytomyr oblast this constituted 101.5 million UAH. of Ministers of Directive # 791 of October 03, 2018 "On Approving Amendments to Certain Resolutions of the Cabinet of Ministers of Ukraine" the central government resolved the problem of a political component PULSE Project prevented the transfer of state expenditure categories to local budgets in the mechanism of awarding the secretaries of village, town and city councils, deputy village, town and city The Ministry of Labour and Social Policy of Ukraine prepared a draft resolution with a suggestion to mayors, chief executives (secretaries) of executive committees, and starostas and granting them premium pay reimburse the value of property to deportees or their heirs at the expense of local budgets. The draft and cash allowances through the decision of the local council. Now, premium pay and other allowances will resolution was submitted to the Cabinet of Ministers Committee for Social Policy and Humanitarian be granted upon the decision of the village, town and city mayor within the salary funds available (the Development on October 30, 2018. A PULSE Project expert opposed the approval of the draft resolution
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83 QUARTERLY REPORT for the Policy for Ukraine Local Self-Governance (PULSE) Project because of potential significant additional expenditures from local budgets. Consequently, the consideration of the draft document was postponed to streamline the contradictory provisions, thus preventing the additional load on local budgets in the amount of 110.8 million UAH.
In 2019, local budgets will receive 1.2 billion UAH thanks to the abolition of land tax privileges for railway companies On November 23, 2018, the Parliament approved the Law of Ukraine "On Introducing Amendments to the Tax Code of Ukraine and Certain Other Ukrainian Legislation Regarding Improvements of Administering and Revisiting Rates for Certain Taxes and Fees" # 2628-VIII, which abolished the privileges on land tax payment for railway companies and increased rates for certain taxes (rent fees for the use of natural resources and the environmental tax), some of which are credited to local budgets. Thanks to the active actions of the AUC, local budgets will receive at least 1.2 billion UAH in collections from the land tax payment in 2019.
New sources of revenues to local budgets On December 22, 2018, the parliament approved the Law of Ukraine "On Introducing Amendments to the Budget Code of Ukraine" # 2621-VIII, which provides for additional resources for local government budgets: 37% of rent payments for the special use of forest resources in the part of timber harvested in ripe and overgrown forest plantations; 5% of rent payment for the use of mineral resources for the extraction of minerals of national value (except rent for the use of subsoil resources for the extraction of oil, natural gas and gas condensate); collections from penalties for violation of the labour legislation and legislation in the sphere of urban development imposed by the relevant local governments. Thanks to the active actions of the AUC in 2019, the amount of additional revenues to local government budgets in 2019 will amount to UAH 890 million.
Local excise taxes on alcohol, tobacco and fuel preserved Thanks to the actions of the AUC to exclude certain suggestions to the draft Law of Ukraine "On Introducing Amendments to the Budget Code of Ukraine", local governments managed to prevent budget losses in the amount of 13.6 billion UAH.
Preventing shifting to local budgets additional expenditure categories to fund Certification Level I – II higher educational establishments (those not having the status of separate legal entities) The Project managed to prevent transferring additional expenditure categories to local budgets to fund state- owned Certification Level I – II higher educational establishments, which do not have the status of separate legal entities and are part of Certification Level III - IV higher education establishments, which do not have the status of national educational establishments. Thus the Project managed to preserve own local budget resources in the amount of 862.4 million UAH. The Project managed to exclude the relevant suggestions in the course of the consideration of the draft Law of Ukraine "On Introducing Amendments to the Budget Code of Ukraine".
Preventing shifting to city budgets the responsibility of oblast councils on their liabilities on local guarantees and borrowings In the course of the consideration of the draft Law of Ukraine "On Introducing Amendments to the Budget Code of Ukraine", National Deputies introduced amendments prepared by PULSE Project experts to separate the responsibility of cities from the responsibility of oblast level authorities in the context of guarantees for local borrowings. These proposals were taken into account in the approved law. This provision protects cities from the need to repay the debts taken by oblast authorities.
Preventing the repayment of local budget debts on mid-term loans at the expense of the general fund of local budgets Thanks to the Project work to prevent the approval of certain amendments to the Draft Law of Ukraine "On Introducing Amendments to the Budget Code of Ukraine", the AUC managed to prevent local budget losses in the amount of UAH 9 billion.
The AUC helped to streamline the mechanism for the State Fiscal Service to submit to local government tax reports on paid taxes and fees by source of revenue On November 23, 2018, the parliament approved the Law of Ukraine "On Introducing Amendments to the Tax Code of Ukraine and Certain Other Ukrainian Legislation Regarding Improvements in Administering and Revisiting Rates for Certain Taxes and Fees " # 2628-VIII, which outlines the mechanism for the State
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84 October – December, 2018 Quarter twelve of the Project implementation because of potential significant additional expenditures from local budgets. Consequently, the consideration Fiscal Service to provide local governments tax reports of paid taxes and fees by source of revenue. This of the draft document was postponed to streamline the contradictory provisions, thus preventing the information on taxpayers will be provided upon the request of local councils. This will contribute to credible additional load on local budgets in the amount of 110.8 million UAH. and more substantiated planning and analysis of the implementation of local budgets. These provisions were prepared by PULSE Project experts. During the year, the AUC advocated for the In 2019, local budgets will receive 1.2 billion UAH thanks to the abolition of land tax privileges for appropriate amendments to the legislation. railway companies On November 23, 2018, the Parliament approved the Law of Ukraine "On Introducing Amendments to the Local budgets will retain approximately 800 million UAH of their own revenues Tax Code of Ukraine and Certain Other Ukrainian Legislation Regarding Improvements of Administering As of January 10, 2018, local government bank accounts had accumulated 800 million UAH. Local and Revisiting Rates for Certain Taxes and Fees" # 2628-VIII, which abolished the privileges on land tax governments received these funds in the form of the compensation for the losses on agricultural and forestry payment for railway companies and increased rates for certain taxes (rent fees for the use of natural resources industry. National Deputies introduced the amendments to the Draft Law of Ukraine "On Introducing and the environmental tax), some of which are credited to local budgets. Thanks to the active actions of the Amendments to the Budget Code of Ukraine" to transfer these resources to the National Budget. However, AUC, local budgets will receive at least 1.2 billion UAH in collections from the land tax payment in 2019. thanks to the active position of the AUC, the PULSE Project managed to reject these proposals.
New sources of revenues to local budgets The amount of financial resources for CTC has increased On December 22, 2018, the parliament approved the Law of Ukraine "On Introducing Amendments to the The Law of Ukraine "On the National Budget for 2019" # 2629-VIII of November 23, 2018 increased the Budget Code of Ukraine" # 2621-VIII, which provides for additional resources for local government amount of subventions for the development of infrastructure of joint territorial communities to 2.1 billion budgets: 37% of rent payments for the special use of forest resources in the part of timber harvested in ripe UAH as compared to the similar budget law for 2018. The AUC supported the idea of increasing CTC and overgrown forest plantations; 5% of rent payment for the use of mineral resources for the extraction of resources. minerals of national value (except rent for the use of subsoil resources for the extraction of oil, natural gas and gas condensate); collections from penalties for violation of the labour legislation and legislation in the The mechanism for the tourist tax improved sphere of urban development imposed by the relevant local governments. Thanks to the active actions of the Law of Ukraine "On Introducing Amendments to the Tax Code of Ukraine and Certain Other Ukrainian AUC in 2019, the amount of additional revenues to local government budgets in 2019 will amount to UAH Legislation Regarding Improvements in Administering and Revisiting Rates for Certain Taxes and Fees" # 890 million. 2628-VIII of November 23, 2018 changed the tax basis the tourist tax and increased its rates that have been differentiated for domestic and international tourists, as well as set these rates as a certain percentage of the Local excise taxes on alcohol, tobacco and fuel preserved minimum salary. The law takes into account the proposals prepared by PULSE Project experts. In 2019, Thanks to the actions of the AUC to exclude certain suggestions to the draft Law of Ukraine "On Introducing local budgets will receive about 120 million UAH. Amendments to the Budget Code of Ukraine", local governments managed to prevent budget losses in the amount of 13.6 billion UAH. AUC efforts make the Cabinet of Ministers revisit the amount of the education and health care subventions based on the local government performance in first half of 2019 Preventing shifting to local budgets additional expenditure categories to fund Certification Level I – II The Law of Ukraine "On the National Budget for 2019" # 2629-VIII of November 23, 2018 stipulates the higher educational establishments (those not having the status of separate legal entities) requirement for the Cabinet of Ministers of Ukraine to revise the amount of the education and medical The Project managed to prevent transferring additional expenditure categories to local budgets to fund state- subventions for the first half of 2019. The AUC has repeatedly emphasised the insufficient education and owned Certification Level I – II higher educational establishments, which do not have the status of separate health care subventions in the National Budget both in 2018 and 2019 and shortage of funds in the sectors legal entities and are part of Certification Level III - IV higher education establishments, which do not have mentioned above. the status of national educational establishments. Thus the Project managed to preserve own local budget resources in the amount of 862.4 million UAH. The Project managed to exclude the relevant suggestions in SUCCESS STORIES FROM COMMUNITIES the course of the consideration of the draft Law of Ukraine "On Introducing Amendments to the Budget The Association of Ukrainian Cities working within the framework of the PULSE Project collects and Code of Ukraine". 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 Preventing shifting to city budgets the responsibility of oblast councils on their liabilities on local closely with local officials, provide consultations on legal and budget issues, communications and local guarantees and borrowings economic development to improve the organisational aspects of CTC activities. In the course of the consideration of the draft Law of Ukraine "On Introducing Amendments to the Budget Code of Ukraine", National Deputies introduced amendments prepared by PULSE Project experts to separate EDUCATION the responsibility of cities from the responsibility of oblast level authorities in the context of guarantees for The Trostyanetska CTC of the Sumy oblast local borrowings. These proposals were taken into account in the approved law. This provision protects cities A modern and upgraded library opened from the need to repay the debts taken by oblast authorities. Thanks to the decentralization reform, the city of Trostyanets, which is part of the Trostyanetska CTC, updated its public library. Preventing the repayment of local budget debts on mid-term loans at the expense of the general fund The community performed capital repairs of the reading hall, modernised the design, and purchased new of local budgets furniture. From now on, the library offers an open space for communication where citizens will have an Thanks to the Project work to prevent the approval of certain amendments to the Draft Law of Ukraine "On opportunity to discuss social initiatives, organise and conduct social and cultural events, engage in artistic Introducing Amendments to the Budget Code of Ukraine", the AUC managed to prevent local budget losses activities, and have comfortable conditions for reading. in the amount of UAH 9 billion. The readers who have the Trostyanetska CTC Citizen Card will now be able to use it in the library as well. In addition to this, the system has been completely automated ranging from the electronic catalogue to the The AUC helped to streamline the mechanism for the State Fiscal Service to submit to local electronic reader’s form. government tax reports on paid taxes and fees by source of revenue On November 23, 2018, the parliament approved the Law of Ukraine "On Introducing Amendments to the The Zhovtanetska CTC, Lviv oblast Tax Code of Ukraine and Certain Other Ukrainian Legislation Regarding Improvements in Administering Repairs of the school at the expense of the local budget and Revisiting Rates for Certain Taxes and Fees " # 2628-VIII, which outlines the mechanism for the State
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85 QUARTERLY REPORT for the Policy for Ukraine Local Self-Governance (PULSE) Project The village of Velyke Kolodno of the Zhovtanetska CTC started capital repairs of the school. The facade is being insulated and a new roof covering is being installed. Thanks to the energy modernisation of the school, the community is now able to save local budget funds otherwise spent for utility bills. The repair works are fully funded from the local budget. The total cost constitutes more than 4 million UAH.
The Terebovlyanska CTC, Ternopil oblast Comfortable conditions for education This year, the Terebovlyanska City CTC spent approximately 2.75 million UAH to equip classrooms for first-year schoolchildren. All in all, the city and hub schools within the CTC have 11 classrooms equipped according to the standards of the New Ukrainian School. The community also funded the purchase of furniture, multimedia equipment, etc. with its own funds. Also, the community spent almost 1 million UAH for the repairs of other classrooms. The National Budget provided a subvention to the community in the amount of 912 thousand UAH for new desks, equipment, didactic materials, etc.
The Rudkivska CTC, Lviv oblast There village has a new kindergarten The village of Pidhayichyky, which is part of the CTC, opened the Dyvosvit [wonderland] kindergarten for three groups for 45 children. The kindergarten also opened 22 jobs. The pre-school institution was built on the terms of co-financing with the National Regional Development Fund, subvention from the National Budget for social and economic development of the territory, and oblast and local budgets. The total cost of the construction constituted almost 8.8 million UAH. The kindergarten offers all the necessary conditions for education and upbringing of children, namely: spacious group rooms, bedrooms, offices, catering section, and sanitary facilities. The facility is provided with cold and hot water. The yard is equipped with a modern playground.
ENERGY EFFICIENCY The Pervozvanivska CTC, Kirovohrad oblast Energy-efficient heating system installed in the house of culture The village of Stepove within the Pervozvaniska Community takes steps towards energy efficiency. In late October, the village installed a modern energy-efficient heating system in the House of Culture. The next facility to have such as system is the administrative building where the village council, housing and municipal utilities unit, post office, first aid station, and the shops are located. The boilers in the House of Culture were installed at the expense of the community. 120 thousand UAH was spent on the preparation of the documentation package and installation works. From now on, the premises will receive heating with briquettes and firewood.
The Machuchivska CTC, Poltava oblast A new energy-efficient heating system was installed in school The school in the village of Ploskiv, which is part of the CTC, has installed a modern energy-efficient heating system within the framework of the Energy Service national program. The thermal upgrading helps to reduce energy costs and payments for utility services. The community is one of the first in Ukraine to have signed an agreement with the energy service company, which provides opportunities for the modernisation of energy equipment without community own investments. The contractor has performed the full scope of works ranging from installation of the equipment to its maintenance. The school has replaced the whole heating system and it is now autonomous. These steps are expected to provide more than 25% of savings during the heating.
The Hnyvanska CTC, Vinnytsya oblast An energy efficiency project for public sector institutions The Hnyvanska CTC started implementing an energy efficiency project worth of almost 970 EUR. The project is being implemented on co-financing terms from the local budget and from tan EU international technical assistance project. In the city of Hnyvan, the community is implementing energy-efficient activities in Gymnasium # 2, kindergarten, and in the primary health care center. Thanks to this project, the community is planning to reduce electricity consumption and reduce carbon emissions.
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The village of Velyke Kolodno of the Zhovtanetska CTC started capital repairs of the school. The facade is ADMINISTRATIVE SERVICES being insulated and a new roof covering is being installed. Thanks to the energy modernisation of the school, The Shakhivska CTC, Donetsk oblast the community is now able to save local budget funds otherwise spent for utility bills. A new Center for Administrative Services opened The repair works are fully funded from the local budget. The total cost constitutes more than 4 million UAH. A Center for Administrative Services opened in the Shakhivska CTC. The center already provides 86 types of services. The Terebovlyanska CTC, Ternopil oblast The reconstruction of the premises to house the CAS was performed at the expense of the subvention for Comfortable conditions for education infrastructure improvements in CTCs in 2017. 2.19 million UAH went for the Center for Administrative This year, the Terebovlyanska City CTC spent approximately 2.75 million UAH to equip classrooms for Services in Shakhove. The equipment and furniture were purchased at the expense of the local budget in the first-year schoolchildren. All in all, the city and hub schools within the CTC have 11 classrooms equipped amount of 1.35 million UAH. according to the standards of the New Ukrainian School. The community also funded the purchase of furniture, multimedia equipment, etc. with its own funds. Also, the community spent almost 1 million UAH The Velykohaivska CTC, Ternopil oblast for the repairs of other classrooms. A Center for Administrative Services working in the transparent office format opened The National Budget provided a subvention to the community in the amount of 912 thousand UAH for new The Ternopil oblast is planning to open 5 Centers for Administrative Services in the transparent office desks, equipment, didactic materials, etc. format. The first one was opened in the Velykohaivska CTC. Opening of such centers takes place in accordance with the program of the Ministry of Labour and Social Policy of Ukraine. Almost 2 million UAH The Rudkivska CTC, Lviv oblast were spent on this facility: 160 thousand UAH in own funds of the community, 840 thousand UAH in There village has a new kindergarten subvention from the National Budget for infrastructure improvements in CTCs, and 1 million UAH in funds The village of Pidhayichyky, which is part of the CTC, opened the Dyvosvit [wonderland] kindergarten for from the Ministry of Labour and Social Policy. three groups for 45 children. The kindergarten also opened 22 jobs. The CAS provided 13 jobs. It will provide 130 administrative and social services. The center was opened on The pre-school institution was built on the terms of co-financing with the National Regional Development the first floor of the administrative building of the Velykohaivska Village Council. Fund, subvention from the National Budget for social and economic development of the territory, and oblast and local budgets. The total cost of the construction constituted almost 8.8 million UAH. The Mykolaivska CTC, Donetsk oblast The kindergarten offers all the necessary conditions for education and upbringing of children, namely: The community opens a multifunctional Center for Administrative Services spacious group rooms, bedrooms, offices, catering section, and sanitary facilities. The facility is provided The Mykolaivska CTC opened the Center for Administrative and Social Services (CAS). Community with cold and hot water. The yard is equipped with a modern playground. residents of the total number of 17 thousand will receive almost 150 services in one office, while earlier citizens had to go to another city and spend money and time for travel. ENERGY EFFICIENCY The new CAS provides the maximum level of convenience and accessibility for citizens. Both departments The Pervozvanivska CTC, Kirovohrad oblast work on the open space principle. The implementation of the project became possible thanks to the financial Energy-efficient heating system installed in the house of culture assistance of international partners: the building was reconstructed, and machinery, furniture and equipment The village of Stepove within the Pervozvaniska Community takes steps towards energy efficiency. In late were purchased. Also, UAH 1 million was allocated from the community budget. October, the village installed a modern energy-efficient heating system in the House of Culture. The next facility to have such as system is the administrative building where the village council, housing and COMMUNITY SAFETY municipal utilities unit, post office, first aid station, and the shops are located. The Starobohorodchanska CTC, Ivano-Frankivsk oblast The boilers in the House of Culture were installed at the expense of the community. 120 thousand UAH was Police station opened spent on the preparation of the documentation package and installation works. From now on, the premises The Starobohorodchanska CTC opened a police station that will serve the residents of the five villages will receive heating with briquettes and firewood. within the community. The local budget provided funds to renovate the premises. The station is equipped with modern equipment, surveillance cameras, and a car. The Machuchivska CTC, Poltava oblast From now on, police officers will be able to assist the population more quickly and better and promptly A new energy-efficient heating system was installed in school respond to calls. The school in the village of Ploskiv, which is part of the CTC, has installed a modern energy-efficient heating system within the framework of the Energy Service national program. The thermal upgrading helps The Lenkovetska CTC, Khmelnytskyi oblast to reduce energy costs and payments for utility services. Fire protection of villages within the community The community is one of the first in Ukraine to have signed an agreement with the energy service company, A new division of the local fire brigade took on duty in the village Chotyrboky within the Lenkovetska CTC. which provides opportunities for the modernisation of energy equipment without community own This will provide opportunities to reduce the response time by half. The fire-fighters will serve 17 investments. The contractor has performed the full scope of works ranging from installation of the equipment neighbouring villages. to its maintenance. The school has replaced the whole heating system and it is now autonomous. These steps To ensure the operation of the unit within the short term, the community equipped it with a rescue station are expected to provide more than 25% of savings during the heating. including: a parking garage with two entrances, comfortable recreation rooms, dining room, bathroom, and utility rooms. The unit is also equipped with a new fire truck, tractor, modern fire and rescue equipment, and The Hnyvanska CTC, Vinnytsya oblast protective clothing. An energy efficiency project for public sector institutions The Hnyvanska CTC started implementing an energy efficiency project worth of almost 970 EUR. The HEALTH CARE project is being implemented on co-financing terms from the local budget and from tan EU international The Vilkhovetska CTC, Zakarpattya oblast technical assistance project. An upgraded outpatient clinic In the city of Hnyvan, the community is implementing energy-efficient activities in Gymnasium # 2, The village of Dobryanske, which is part of the CTC, opened an upgraded family medicine general practice kindergarten, and in the primary health care center. outpatient facility. The local budget spent funds in the amount of 600 thousand UAH for major repairs and Thanks to this project, the community is planning to reduce electricity consumption and reduce carbon renovation of the heating system and purchase of the necessary equipment, office equipment, and furniture. emissions. The health care felicity has a reception, children and pre-school children rooms, laboratory, four-bed day- care station, and a family doctor's office.
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The Polonska CTC, Khmelnytskyi oblast A consultative and diagnostic center opened The Polonska CTC opened the Consultative and Diagnostic Center Municipal Non-Profit Company with the funds of the local budget and sponsor contributions. The community allocated almost 700 thousand UAH for the center. The premises are equipped with modern equipment, which provides opportunities to offer high quality medical examination for citizens. The Center also has facilities for people with disabilities.
HOUSING AND MUNICIPAL UTILITY SERVICES The Muzykivska CTC, Kherson oblast Reconstruction of the water supply network The Muzykivska Village CTC has begun a major reconstruction of its water supply system in populated areas within the community. Replacing the networks built 40 - 50 years ago in the village of Skhidne costs 2.7 million UAH. Of these, 1.7 million UAH were received through the subvention from the state budget for infrastructure improvements and 1 million UAH was spent from the community budget. Next year, the replacement of water supply networks will start in two other villages. All in all, the community intends to invest 5.7 million UAH for the reconstruction of its water supply system in three villages.
The Stepanetska CTC, Cherkasy oblast Streets are lit in the community The village of Stepanets, which is part of the CTC, has installed street lighting along the dam of the Rosava river. The inhabitants of the community have been waiting for a long time to have this place lit. This project will contribute to road safety and reduce crime. The funds for the implementation of the Construction of Street Lighting Networks Project of the amount of almost 114 thousand UAH were allocated by the village council from the budget of the consolidated territorial community.
The Dunaevetska CTC, Khmelnytskyi oblast Waste sorting station After the establishment of the Dunaevetska CTC, the community began to resolve the problem with solid waste disposal. Thanks to the community efforts, the first waste sorting line was constructed. Also, residents are actively concluding agreements for the provision of solid waste disposal services. The sorting station was being built for over a year. The necessary documents were developed and the technological line was instated. Today, the facility offers employment opportunities to 10 persons, however the staff has to increase. Demand for garbage disposal and recycling is very high, with 120 - 130 tons of waste being brought to the plant on a daily basis. Thanks to the modern technologies, the employees sort, pack and sell solid waste to waste recycling plants in Poltava, Kharkiv, Dnipro, and Chernivtsi. For example, plastic bottles here are sorted into 9 types. The funds received go to the local budget.
LOCAL ECONOMIC DEVELOPMENT The Karashynska CTC, Cherkasy oblast Goat breeding cooperative opened The new cooperative, which was recently opened in the village of Hlushky, which is part of the Karashynska CTC, keeps 170 goats. In addition to opening new jobs, the company plans new opportunities for its own development, namely: production and sale of cheeses outside the community. This is the fourth cooperative opened in the community. Also, a family goat farm has been successfully working for several years in Hlushky.
The Krolevetska CTC, Sumy oblast New jobs for community residents An investor opened the Yaroslav textile factory in Krolevets on the territory of the former weaving factory in the community offering 100 employment opportunities for the CTC residents. Next year, the investor is planning to increase the number of factory employees up to 300.
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The company specialises in manufacturing knitted linen, household knitwear, bed linen, and working The Polonska CTC, Khmelnytskyi oblast overalls. A consultative and diagnostic center opened Graduates from the Krolevets Higher Vocational School # 23 will also the opportunity to find jobs at the The Polonska CTC opened the Consultative and Diagnostic Center Municipal Non-Profit Company with the factory without leaving their place of residence in the community. funds of the local budget and sponsor contributions. The community allocated almost 700 thousand UAH for the center. The premises are equipped with modern equipment, which provides opportunities to offer high quality medical examination for citizens. The Center also has facilities for people with disabilities.
HOUSING AND MUNICIPAL UTILITY SERVICES The Muzykivska CTC, Kherson oblast Reconstruction of the water supply network The Muzykivska Village CTC has begun a major reconstruction of its water supply system in populated areas within the community. Replacing the networks built 40 - 50 years ago in the village of Skhidne costs 2.7 million UAH. Of these, 1.7 million UAH were received through the subvention from the state budget for infrastructure improvements and 1 million UAH was spent from the community budget. Next year, the replacement of water supply networks will start in two other villages. All in all, the community intends to invest 5.7 million UAH for the reconstruction of its water supply system in three villages.
The Stepanetska CTC, Cherkasy oblast Streets are lit in the community The village of Stepanets, which is part of the CTC, has installed street lighting along the dam of the Rosava river. The inhabitants of the community have been waiting for a long time to have this place lit. This project will contribute to road safety and reduce crime. The funds for the implementation of the Construction of Street Lighting Networks Project of the amount of almost 114 thousand UAH were allocated by the village council from the budget of the consolidated territorial community.
The Dunaevetska CTC, Khmelnytskyi oblast Waste sorting station After the establishment of the Dunaevetska CTC, the community began to resolve the problem with solid waste disposal. Thanks to the community efforts, the first waste sorting line was constructed. Also, residents are actively concluding agreements for the provision of solid waste disposal services. The sorting station was being built for over a year. The necessary documents were developed and the technological line was instated. Today, the facility offers employment opportunities to 10 persons, however the staff has to increase. Demand for garbage disposal and recycling is very high, with 120 - 130 tons of waste being brought to the plant on a daily basis. Thanks to the modern technologies, the employees sort, pack and sell solid waste to waste recycling plants in Poltava, Kharkiv, Dnipro, and Chernivtsi. For example, plastic bottles here are sorted into 9 types. The funds received go to the local budget.
LOCAL ECONOMIC DEVELOPMENT The Karashynska CTC, Cherkasy oblast Goat breeding cooperative opened The new cooperative, which was recently opened in the village of Hlushky, which is part of the Karashynska CTC, keeps 170 goats. In addition to opening new jobs, the company plans new opportunities for its own development, namely: production and sale of cheeses outside the community. This is the fourth cooperative opened in the community. Also, a family goat farm has been successfully working for several years in Hlushky.
The Krolevetska CTC, Sumy oblast New jobs for community residents An investor opened the Yaroslav textile factory in Krolevets on the territory of the former weaving factory in the community offering 100 employment opportunities for the CTC residents. Next year, the investor is planning to increase the number of factory employees up to 300.
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89 QUARTERLY REPORT for the Policy for Ukraine Local Self-Governance (PULSE) Project Section 5. COOPERATION WITH OTHER PROJECTS
In the reporting quarter, the PULSE project continued its cooperation with partner projects and organisations. 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; PULSE Project representatives regularly participate in meetings of the Decentralisation Donor Board at the Ministry of Regional Development; The PULSE Project prepared two distance courses in cooperation with other projects. One course is devoted to gender based budgeting for community development (in cooperation with the Swedish Gender Oriented Budgeting in Ukraine Project). The DOBRE Project also joined the preparation of this course and provided hands-on materials from its pilot communities, as well as the UN Women Organisation. The course started in November 2018. Another course, the PULSE Project prepared is called: "Training Members of Local Councils Consolidated Territorial Communities" (prepared in cooperation with the Norwegian Participative Democracy and Evidence Based Decision Making at the Local Level in Ukraine Project). The start of the course is scheduled for January 2019. PULSE Project representatives regularly participate in activities of partner projects and invite representatives of other projects to their activities.
Active Citizen Forum organised by IRI in Rivne On October 02, 2018, Oleksandr Slobozhan, Executive Director of the Association of Ukrainian Cities, spoke at the Active Citizen Forum in the city of Rhine. The event was organised by the International Republican Institute (IRI) with the financial support of the United States Agency for International Development (USAID). The purpose of the forum is to promote deeper and more comprehensive cooperation between municipal authorities and citizens. Serhiy Paladiychuk, Secretary of the Rivne City Council, opened the event. He mentioned that a city community should be active and ready to participate in various projects and competitions. In the course of the panel discussion on urban development and community participation, O. Slobozhan, Executive Director of the AUC, spoke about the meaning and prospects of fiscal decentralisation saying, in particular: "Improving the revenue flow to communities, towns and villages is one of the most important issues. Collections from the personal income tax are a revenue significant source for local budgets.” O. Slobozhan also dwelt on the ways for improving infrastructure in the communities and the need to control the activities of developers: "We must retain const share contributions of developers control budget collections from this source, because this implies construction of schools, kindergartens and communication networks."
The Active Citizen Forum organised by IRI in Kherson On October 11, 2018, Executive Director of the AUC O. Slobozhan spoke at the Active Citizen Forum in the city of Kherson. The event was organised by the International Republican Institute (IRI) with the financial support of the United States Agency for International Development (USAID). The purpose of the forum was to promote deeper and more comprehensive cooperation between municipal authorities and citizens. Olena Ursulenko, Secretary of the Kherson City Council, opened the event was. She noted that the city community should be active and stressed the importance of approving the Public Budget in Kherson. In the course of the panel discussion on urban development and community participation, AUC Executive Director O. Slobozhan spoke about the peculiarities of budget process this year and the prospects of fiscal decentralisation. O. Slobozhan dwelt on the main revenue sources of local budgets and potential opportunities each municipality should seek: "Every community should take inventory of its resources to understand what it has and how to make use of it." As a result, one can translate issues into opportunities. We must be able to analyse the resources and involve communities in implementing development projects."
OSCE Round Table in the Kharkiv oblast On October 18, 2018, a Pulse Project expert on legislation and local government resources management L. Damentsova participated in a round table dedicated to voluntary community consolidation around cities of oblast significance in the Kharkiv oblast. The event was initiated by OSCE with the assistance of the Ministry of Regional Development, Construction, Housing and Municipal Utilities and with support from the AUC. In the course of the round table, the participants discussed long-term planning of consolidation of territorial communities of the Kharkiv oblast and advantages and problems of consolidation for village and town communities. 90
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Section 5. COOPERATION WITH OTHER PROJECTS 50th anniversary of IREX In the reporting quarter, the PULSE project continued its cooperation with partner projects and organisations. On November 07, 2018, PULSE Project representatives participated in a festive event on the occasion of the PULSE Project representatives participate on a weekly basis in the coordination meeting of 50th anniversary of the IREX (International Council for Research and Exchanges), an American decentralisation reform projects under the auspices of the Ministry of Regional Development in the organisation. IREX is a sub-partner of the AUC and USAID Policy of Ukraine’s Local Self-Governance U-LEAD Project office; Project (PULSE) and works with pilot communities in Ukraine to organise information events in libraries, PULSE Project representatives regularly participate in meetings of the Decentralisation Donor Board NGOs and local activists on decentralisation. at the Ministry of Regional Development; The PULSE Project prepared two distance courses in cooperation with other projects. One course is 10th anniversary of the East Europe Foundation devoted to gender based budgeting for community development (in cooperation with the Swedish On November 15, 2018, Deputy Director of the PULSE Project participated in a conference on the occasion Gender Oriented Budgeting in Ukraine Project). The DOBRE Project also joined the preparation of of the 10th anniversary of the Eastern Europe Foundation. this course and provided hands-on materials from its pilot communities, as well as the UN Women Organisation. The course started in November 2018. Another course, the PULSE Project prepared is Gender Oriented Budgeting in Ukraine Project (GOB) called: "Training Members of Local Councils Consolidated Territorial Communities" (prepared in On November 14 - 15, 2018, upon the invitation of the GOB Project, Deputy Director of the PULSE Project cooperation with the Norwegian Participative Democracy and Evidence Based Decision Making at participated in the International Conference on Gender-Oriented Budgeting in Kyiv and presented a distance- the Local Level in Ukraine Project). The start of the course is scheduled for January 2019. learning course on gender-oriented budgeting. PULSE Project representatives regularly participate in activities of partner projects and invite representatives of other projects to their activities. Second Assembly of the Sister Cities of Ukraine and France On November 29, 2018, Deputy Director of the PULSE Project participated in the Second Assembly of Active Citizen Forum organised by IRI in Rivne Sister Cities of Ukraine and France, which took place in Kyiv. The event was organised by the French On October 02, 2018, Oleksandr Slobozhan, Executive Director of the Association of Ukrainian Cities, Embassy in Ukraine and the Ukraine-France Association. spoke at the Active Citizen Forum in the city of Rhine. The event was organised by the International Republican Institute (IRI) with the financial support of the United States Agency for International First All-Ukrainian Forum of Signatories of the European Charter for Equality of Women and Men in Development (USAID). The purpose of the forum is to promote deeper and more comprehensive cooperation the Life of Local Communities between municipal authorities and citizens. Serhiy Paladiychuk, Secretary of the Rivne City Council, opened On December 06, 2018, representatives of the PULSE Project participated in the First All-Ukrainian Forum the event. He mentioned that a city community should be active and ready to participate in various projects of Signatories of the European Charter for Equality of Women and Men in the Life of Local Communities and competitions. where representatives of local governments shared their experience and discussed the methods and tools for In the course of the panel discussion on urban development and community participation, O. Slobozhan, implementing the principles of the Charter. Deputy Director of the PULSE Project informed participants Executive Director of the AUC, spoke about the meaning and prospects of fiscal decentralisation saying, in about he beginning on the distance-learning course on gender budgeting. particular: "Improving the revenue flow to communities, towns and villages is one of the most important issues. Collections from the personal income tax are a revenue significant source for local budgets.” O. Second Ukrainian Women Congress Slobozhan also dwelt on the ways for improving infrastructure in the communities and the need to control On December 07 - 08, 2018, upon the invitation of the GOB, Deputy Director of the PULSE Project the activities of developers: "We must retain const share contributions of developers control budget participated in the Second Ukrainian Women Congress in Kyiv as a speaker of one of the thematic groups collections from this source, because this implies construction of schools, kindergartens and communication and presented a distance-learning course on gender-oriented budgeting. networks." IRI Conference The Active Citizen Forum organised by IRI in Kherson On December 07 - 08, 2018, Executive Director of the AUC O. Slobozhan participated in the Second Annual On October 11, 2018, Executive Director of the AUC O. Slobozhan spoke at the Active Citizen Forum in the Conference on Effective Governance organised by the International Republican Institute (IRI) within the city of Kherson. The event was organised by the International Republican Institute (IRI) with the financial framework of the Week of Local Democracy. Participants: IRI leader in Ukraine Michael Druckman, Deputy support of the United States Agency for International Development (USAID). The purpose of the forum was Director of the USAID Mission in Ukraine John Pennell, National Deputies of Ukraine, representatives of to promote deeper and more comprehensive cooperation between municipal authorities and citizens. Olena the Ministry of Regional Development, local self-governance, and local council members. Ursulenko, Secretary of the Kherson City Council, opened the event was. She noted that the city community In the course of the session, on prospects of Ukrainian cities and communities, O.Slobozhan presented the should be active and stressed the importance of approving the Public Budget in Kherson. AUC cooperation with the parliament to safeguard interests of communities and stressed the need for In the course of the panel discussion on urban development and community participation, AUC Executive approving the Law on service in local governments. Director O. Slobozhan spoke about the peculiarities of budget process this year and the prospects of fiscal decentralisation. O. Slobozhan dwelt on the main revenue sources of local budgets and potential GIZ workshop on energy efficiency opportunities each municipality should seek: "Every community should take inventory of its resources to On December 11, 2018, PULSE expert on legislation and management of local governments resources L. understand what it has and how to make use of it." As a result, one can translate issues into opportunities. Damentsova participated in the workshop under the title: "Energy Efficiency of Companies: New Issues, We must be able to analyse the resources and involve communities in implementing development projects." New Opportunities" organised in Ternopil. The Energy Efficiency School conducts a number of such events within the framework of the Consulting Companies on Energy Efficiency Project, implemented by the GIZ OSCE Round Table in the Kharkiv oblast German Society for International Cooperation on behalf of the Federal Government of Germany. On October 18, 2018, a Pulse Project expert on legislation and local government resources management L. The event brought together the following participants: Ternopil City Mayor S. Nadal, village, town and city Damentsova participated in a round table dedicated to voluntary community consolidation around cities of mayors, representatives of the Ministry of Economic Development and Trade of Ukraine, National Agency oblast significance in the Kharkiv oblast. The event was initiated by OSCE with the assistance of the for Energy Efficiency, European Bank for Reconstruction and Development, and directors of companies Ministry of Regional Development, Construction, Housing and Municipal Utilities and with support from the working in the dairy, baking, and machine-building sectors of the Ternopil oblast. AUC. In the course of the round table, the participants discussed long-term planning of consolidation of The purpose of the seminars was to inform local business representatives about better resource efficiency territorial communities of the Kharkiv oblast and advantages and problems of consolidation for village and through energy efficiency and, accordingly, improving competitiveness of small enterprises. town communities. The AUC provided the organisational support for a series of such workshops. 90 91
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UNICEF Forum On December 11, 2018, Executive Director of the AUC O. Slobozhan participated in the Forum under the title "Children and Youth Friendly Community: Awarding Candidate Communities" organised by UNICEF. In the course of the event, 11 Ukrainian cities and CTCs received the status of candidate communities to get the status of the children and youth friendly community. O. Slobozhan congratulated them and mentioned: "Those cities that already involve children and young people in managing and developing development strategies already win. We need to work together, because young people are the driver of substantial changes." Background. On September 24, in Ternopil, during the Dialogue Day, Chairman of the AUC Vitaliy Klychko and Head of the UN Children Fund Office (UNICEF) in Ukraine Jama Guleid signed a Memorandum of Intentions and Cooperation between the AUC and UNICEF to work in the sphere of children rights protection, social service provision and implementation of the decentralisation reform. On March 29, the AUC, Cabinet of Ministers of Ukraine, UN Children Fund (UNICEF), United Nations Population Fund (UNFPA) and non-governmental organisations signed a memorandum "A Children and Youth Friendly community". The purpose of the Memorandum was to resume the Children and Youth Friendly Community initiative, which has been working in separate regions of Ukraine since 2006.
Council of Europe Office in Ukraine On November 01, 2018, Deputy Director of the PULSE Project participated in the preparatory meeting to hold a strategic session on the implementation of the Council of Europe Gender Equality Strategy for 2018 - 2023 in Ukraine.
On December 10, 2018, Deputy Director of the PULSE Project participated in a strategic session organised by the Council of Europe Office in Kyiv on the topic: "Gender Equality Strategy of the Council of Europe for 2018 - 2023 in Ukraine: Current Status and Future Prospects of Implementation at the National, Regional and Local Levels" and made presentation about the on-line course on gender-oriented budgeting.
On December 14, 2018, PULSE project staff participated in a roundtable under the title: “Open Government Partnership: Opportunities for Development" organised within the framework of the Strengthening Democracy and Trust at the Local Level in Ukraine Project.
Cooperation with the UN Children Fund (UNICEF) in Ukraine The PULSE Project continues its close cooperation with UNICEF and promotes the Children and Youth Friendly Community Initiative in Ukraine. PULSE experts participate in the signing of UNICEF memorandums with cities. Also, PULSE experts participated in the Forum Children and Youth Friendly Community: Awarding Candidate Communities" Forum where 11 local governments received the status of candidate communities to get the status of the children and youth friendly community.
Second National Youth Capital of Ukraine Competition PULSE Project experts in cooperation with the Ministry of Youth and Sport of Ukraine, Ukrainian Institute of International Policy and the National Youth Council of Ukraine organised preparations for the national Youth Capital of Ukraine Competition. The Ministry continues its cooperation with the Association of Ukrainian Cities within the framework of the All-Ukrainian Youth Capital of Ukraine Competition. The Association of Ukrainian Cities is the key partner of the Ministry in the competition and helps to interact with local governments. The purpose of the competition is to enhance and improve cooperation of young people with local authorities and promotion of youth environment in cities. On December 21, the final event of the competition took place. PULSE Project experts served as members of the selection panel. The city of Kamianets-Podilskyi became the youth capital of Ukraine in 2019.
Cooperation with the European Training Foundation On November 07, 2018, a PULSE Project expert participated in the Technical Meeting to discuss a program document for establishing centers for professional excellence and innovations in Ukraine. The event is organised by the European Training Foundation. The PULSE Project expert drew attention to the necessity of motivating the founders of such centers and not only stakeholders. 92
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The main ideas PULSE Project managed to include in the text of the draft document are: 1. The Center for UNICEF Forum Professional Excellence is not a new type of institution, but is an institution that already has such a status. 2. On December 11, 2018, Executive Director of the AUC O. Slobozhan participated in the Forum under the The founders may be both the state and local governments, as well as private individuals. In addition to this, title "Children and Youth Friendly Community: Awarding Candidate Communities" organised by UNICEF. the right to public-private partnerships should apply to centers for professional excellence. 3. The Center for In the course of the event, 11 Ukrainian cities and CTCs received the status of candidate communities to get Professional Excellence may be established a new institution, or may function on the basis of a vocational the status of the children and youth friendly community. O. Slobozhan congratulated them and mentioned: education institution with the appropriate material and technical base and staffing level. 4. The management "Those cities that already involve children and young people in managing and developing development of the center for professional excellence is performed out by the executive director of the center and the strategies already win. We need to work together, because young people are the driver of substantial board of the center for professional excellence, which includes the founder, its executive bodies and other changes." stakeholders. The final version of the program document will be presented by the European training Background. On September 24, in Ternopil, during the Dialogue Day, Chairman of the AUC Vitaliy Foundation no later than March, 2019. Klychko and Head of the UN Children Fund Office (UNICEF) in Ukraine Jama Guleid signed a
Memorandum of Intentions and Cooperation between the AUC and UNICEF to work in the sphere of children rights protection, social service provision and implementation of the decentralisation reform. Cooperation with the Central Office of Reforms under the Ministry of Regional Development On March 29, the AUC, Cabinet of Ministers of Ukraine, UN Children Fund (UNICEF), United Nations On December 13, 2018, the Ministry of Regional Development together with the Central Office of Reforms Population Fund (UNFPA) and non-governmental organisations signed a memorandum "A Children and organised a Strategic Session under the title: “Sectoral Decentralisation and Education Management at the Youth Friendly community". The purpose of the Memorandum was to resume the Children and Youth Local Level”. The event brought together representatives of the Ministry of Education and Science of Friendly Community initiative, which has been working in separate regions of Ukraine since 2006. Ukraine, directors of oblast departments of education, directors of departments from CTCs, and experts. A PULSE Project expert and Deputy Korostyshiv City Mayor represented the Association of Ukrainian Cities Council of Europe Office in Ukraine at the event. On November 01, 2018, Deputy Director of the PULSE Project participated in the preparatory meeting to hold a strategic session on the implementation of the Council of Europe Gender Equality Strategy for 2018 - The event participants prepared a draft roadmap to improve community capacity to build effective education 2023 in Ukraine. management at the local level. For example, the participants outlined the main problems and issues in education management at the local level and reasons. In addition to this, the participants of the strategic On December 10, 2018, Deputy Director of the PULSE Project participated in a strategic session organised session came up with a general vision of effective management, developed mid-term goals and priorities, and by the Council of Europe Office in Kyiv on the topic: "Gender Equality Strategy of the Council of Europe tasks that should be the basis for the effective education management model at the local level. for 2018 - 2023 in Ukraine: Current Status and Future Prospects of Implementation at the National, Regional At the end of the meeting, the participants of the meeting together with Deputy Minister of Education and and Local Levels" and made presentation about the on-line course on gender-oriented budgeting. Science of Ukraine P. Hobsey and Deputy Minister of Regional Development, Construction, Housing and Municipal Utilities L. Partzhaladze discussed the proposed education management models in communities On December 14, 2018, PULSE project staff participated in a roundtable under the title: “Open Government and future prospects for the construction of typical schools and kindergartens with the help of the National Partnership: Opportunities for Development" organised within the framework of the Strengthening Regional Development Fund. Democracy and Trust at the Local Level in Ukraine Project.
Cooperation with the UN Children Fund (UNICEF) in Ukraine Congress of Local and Regional Authorities of the Council of Europe Strengthening Democracy and The PULSE Project continues its close cooperation with UNICEF and promotes the Children and Youth Trust at the Local Level in Ukraine Project Friendly Community Initiative in Ukraine. PULSE experts participate in the signing of UNICEF On December 13 - 14, in cooperation with the Congress of Local and Regional Authorities of the Council of memorandums with cities. Also, PULSE experts participated in the Forum Children and Youth Friendly Europe Strengthening Democracy and Trust at the Local Level in Ukraine Project the PULSE Project Community: Awarding Candidate Communities" Forum where 11 local governments received the status of organised a round table discussion of the future prospects for the legislation on the status of local council candidate communities to get the status of the children and youth friendly community. members. The event brought together representatives of 25 local councils, mostly secretaries of local councils. Second National Youth Capital of Ukraine Competition PULSE Project experts in cooperation with the Ministry of Youth and Sport of Ukraine, Ukrainian Institute Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH Partnership for Modernisation: of International Policy and the National Youth Council of Ukraine organised preparations for the national Energy Efficiency in Hospitals Project Youth Capital of Ukraine Competition. The Ministry continues its cooperation with the Association of On November 06, 2018, a PULSE Project expert participated in the meeting of the Energy Efficiency in Ukrainian Cities within the framework of the All-Ukrainian Youth Capital of Ukraine Competition. The Hospitals section of the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH Partnership Association of Ukrainian Cities is the key partner of the Ministry in the competition and helps to interact for Modernisation: Energy Efficiency in Hospitals Project. The event participants presented the goals, with local governments. The purpose of the competition is to enhance and improve cooperation of young objectives and results of the Partnership for Modernisation: Energy Efficiency in Hospitals Project, in people with local authorities and promotion of youth environment in cities. On December 21, the final event particular, the peculiarities of implementation of energy efficiency activities in hospitals using the experience of the competition took place. PULSE Project experts served as members of the selection panel. The city of of health care establishments in the cities of Chernihiv and Sumy as examples, and hands-on Kamianets-Podilskyi became the youth capital of Ukraine in 2019. recommendations for the step by step implementation of an energy efficient projects.
Cooperation with the European Training Foundation On November 07, 2018, a PULSE Project expert participated in the Technical Meeting to discuss a program document for establishing centers for professional excellence and innovations in Ukraine. The event is organised by the European Training Foundation. The PULSE Project expert drew attention to the necessity of motivating the founders of such centers and not only stakeholders. 92 93
93 QUARTERLY REPORT for the Policy for Ukraine Local Self-Governance (PULSE) Project Section 6. SUGGESTED PLAN OF ACTIVITIES FOR THE COMING QUARTER
The project will focus on accelerating the progress of the decentralisation reform in the following spheres: establishment of territorial communities in the rayons not a single CTC has been established (currently there are 99 such rayons of 490);
acceleration of the establishment of territorial communities around cities of oblast significance. This will provide an opportunity to significantly improve the indicator of the number of CTC residents as percentage to the total Ukrainian residents. As of December 31, 25 such CTCs were established in Ukraine (in total, there are 187 cities of oblast significance in Ukraine now including the cities in the occupied territories of Crimea and Donbas).
Also, the project will try to pay more attention to the territories where the reform is sluggish: Zakarpattya and South of the Odesa oblast (Bessarabia), Kharkiv and Kyiv oblasts.
The main activities will take part in the following spheres:
ER 1: Decentralisation enabling legislation reflects local government input
- Drafting legislation - Legislation monitoring - Providing consultations for local governments on legislation application - Conducting a meeting of the AUC Land Resources and Communal Property Professional Group (February 07 - 08 in Yaremche, Ivano-Frankivsk oblast) - Conducting a meeting of the AUC Local Finance Professional Group within the framework of the Lviv Municipal Forum (2nd half of March) - 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 - 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 - Presentation of the regular issue of the "Status of Local Self-Governance in Ukraine in 2018" annual publication (February – March, 2018)
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94 October – December, 2018 Quarter twelve of the Project implementation
Section 6. SUGGESTED PLAN OF ACTIVITIES FOR THE COMING QUARTER
The project will focus on accelerating the progress of the decentralisation reform in the following spheres: establishment of territorial communities in the rayons not a single CTC has been established (currently there are 99 such rayons of 490); ANNEXES
acceleration of the establishment of territorial communities around cities of oblast significance. This will provide an opportunity to significantly improve the indicator of the number of CTC residents as percentage to the total Ukrainian residents. As of December 31, 25 such CTCs were established in Ukraine (in total, there are 187 cities of oblast significance in Ukraine now including the cities in the occupied territories of Crimea and Donbas).
Also, the project will try to pay more attention to the territories where the reform is sluggish: Zakarpattya and South of the Odesa oblast (Bessarabia), Kharkiv and Kyiv oblasts.
The main activities will take part in the following spheres:
ER 1: Decentralisation enabling legislation reflects local government input
- Drafting legislation - Legislation monitoring - Providing consultations for local governments on legislation application - Conducting a meeting of the AUC Land Resources and Communal Property Professional Group (February 07 - 08 in Yaremche, Ivano-Frankivsk oblast) - Conducting a meeting of the AUC Local Finance Professional Group within the framework of the Lviv Municipal Forum (2nd half of March) - 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 - 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 - Presentation of the regular issue of the "Status of Local Self-Governance in Ukraine in 2018" annual publication (February – March, 2018)
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95 QUARTERLY REPORT for the Policy for Ukraine Local Self-Governance (PULSE) Project
Annex A Schedule of PULSE project activities for October-December 2018 No. Date Venue Impleme Activity nter 1. October 3, Ivano-Frankivsk AUC / Vacancy fair 2018 PULSE 2. October 3, village of Sokolivka AUC / Study tour to the Sokolivska 2018 (Kirovohrad oblast) PULSE Village CTC, village of Sokolivka (Kirovohrad oblast) for representatives of potential CTCs of the Kirovohrad oblast within the framework of the «Itinerary of Successes» nation-wide exchange study tour Project component
3. October 03, village of Pavlivka AUC / Press tour to the Pavlivska 2018 (Volyn oblast) PULSE Village CTC 4. October 4, village of Zelenyi Pid AUC / Study tour to the 2018 (Kherson oblast) PULSE Zelenopilska Village CTC for representatives of potential CTCs of the Kherson oblast within the framework of the «Itinerary of Successes» nation-wide exchange study tour Project component 5. October 4, city of Irpin (Kyiv AUC / Press tour to the potential 2018 oblast) PULSE Irpinska City CTC 6. October 4, city of Khmelnytskyi AUC / Regional legislation 2018 PULSE application laboratory in the Khmelnytskyi AUC RO 7. October 5, town of Mykhailivka AUC / Press tour to the 2018 (Zaporizzhya oblast) PULSE Mykhailivska Town CTC 8. October 5, town of Bilozerka AUC / Regional legislation 2018 PULSE application laboratory in the Kherson AUC RO 9. October 9, city of Dnipro UAROC Professional workshop for 2018 / PULSE representatives of rayon and oblast councils 10. October 10, city of Velyki Mosty AUC / Study tour to the 2018 (Lviv oblast) PULSE Velykomostivska City CTC for representatives of potential CTCs of the Lviv oblast within the framework of the «Itinerary of Successes» nation-wide
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exchange study tour Project component 11. October 11, city of Uzhhorod UAROC Professional workshop for 2018 / PULSE representatives of rayon and oblast councils 12. October 11, city of Horodnya AUC / Press tour to the 2018 (Chernihiv oblast) PULSE Horodnyanska City CTC 13. October 11, Shpola (Cherkasy region) AUC / Study tour to the 2018 PULSE the Shpola City CTC for representatives of potential CTCs of the Kyiv oblast within the framework of the «Itinerary of Successes» nation-wide exchange study tour Project component 14. October 11, city of Kherson AUC / Regional legislation 2018 PULSE application laboratory in the Kherson AUC RO 15. October 11- city of Vinnytsya AUC / working session of the 12, 2018 PULSE AUC Public Education Professional Group 17. October city of Chernivtsi AUC / Regional legislation 12th PULSE application laboratory in the 2018 Chernivtsi AUC RO 18. October 12, village of Polyana AUC / Press tour to the Polyanska 2018 (Zakarpattya oblast) PULSE Village CTC 19. October 12, village of Polyana AUC / Study tour to the Polyanska 2018 (Zakarpattya oblast) PULSE Village CTC for representatives of potential CTCs of the Zakarpattya oblast within the framework of the «Itinerary of Successes» nation-wide exchange study tour Project component 20. October 12, villages of Semenivka, AUC / Press tour to the 2018 Ivankivtsi, and Krasivka PULSE Semenivska Village CTC (Zhytomyr oblast) 21. October 14, village of Lyubymivka AUC / Press tour to the 2018 (Dnipropetrovsk oblast) PULSE Lyubymivska Village CTC
22. October 16, city of Cherkasy city UAROC Professional workshop for 2018 / PULSE representatives of rayon and oblast councils 23. October 16, town of Novopskov AUC / Study tour to the 2018 (Luhansk oblast) PULSE 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
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24. October 17, city of Hnivan AUC / Press tour to the Hnivanska 2018 (Vinnytsya oblast) PULSE City CTC 25. October 17, city of Lviv AUC / Regional legislation 2018 PULSE application laboratory in the Lviv AUC RO 26. October 17, City of Khmelnitsky UAROC/ Professional workshop for 2018 PULSE representatives of rayon and oblast councils 27. October 18, town AUC / study visit to the Ivansvka 2018 of.Ivanivka(Kherson PULSE CTC for representatives of oblast) the potential CTCs of the Kherson oblast within the framework of the «Itinerary of Successes» nation-wide exchange study tour Project component 28. October 18, city of Vinnitsa UAROC Professional workshop for 2018 / PULSE representatives of rayon and oblast councils 29. October 18, town of Vyshnivets AUC / Study tour to the 2018 (Ternopil oblast) PULSE Vyshnivetska Town CTC for representatives of potential CTCs of the Rivne oblast within the framework of the «Itinerary of Successes» nation-wide exchange study tour Project component 30. October 19, city of Odessa AUC / Regional legislation 2018 PULSE application laboratory in the Odesa AUC RO 31. October 19, city of Kyiv AUC / Regional legislation 2018 PULSE application laboratory in the Kyiv AUC RO 32. October 19, city of Mykolaiv UAROC Professional workshop for 2018 / PULSE representatives of rayon and oblast councils 33. October 19, City of Chernivtsi UAROC Professional workshop for 2018 / PULSE representatives of rayon and oblast councils 34. October 19, town of Letychiv AUC / Study tour to the 2018 (Khmelnytskyi oblast) PULSE Letychivska Town 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 35. October 19, city of Severodonetsk AUC / Regional legislation 2018 PULSE application laboratory in the Luhansk AUC RO
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36. October 22, city of Lutsk AUC / working session of the 2018 PULSE Volyn regional policy Dialogue Platform 37. October 23, City of Kropyvnytsky UAROC Professional workshop for 2018 / PULSE representatives of rayon and oblast councils 38. October 23, city of Kyiv AUC / Regional legislation 2018 PULSE application laboratory in the Kyiv AUC RO 39. October 23- city of Odesa AUC / Study tour within the 24, 2018 PULSE framework of the «Itinerary of Successes» nation-wide exchange study tour Project component for representatives of local governments 40. October city of Kherson AUC / working session of the 24th2018 PULSE Kherson Regional policy Dialogue Platform 41. October 24, city of Mykolaiv AUC / Regional legislation 2018 PULSE application laboratory in the Mykolaiv AUC RO 42. October 24, town of Krasnorichenske AUC / Press tour to the 2018 (Luhansk oblast) PULSE Krasnorichenska Town CTC 43. October 25, town of Zatyshshya AUC / Study tour to the 2018 (Odesa oblast) PULSE Zatyshanska Town CTC for representatives of potential CTCs of the Odesa oblast within the framework of the «Itinerary of Successes» nation-wide exchange study tour Project component 44. October 25, city of Storozhynets AUC / Press tour to the 2018 (Chernivtsi oblast) PULSE Storozhynetska City CTC 45. October 25, city of Storozhynets AUC / Study tour to the 2018 (Chernivtsi oblast) PULSE Storozhynetska City 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 46. October city of Kharkiv AUC / Regional legislation 25, PULSE application laboratory in the 2018 Kharkiv AUC RO 47. October 25, City of Sumy UAROC Professional workshop for 2018 / PULSE representatives of rayon and oblast councils 48. October 25, city of Khmelnytskyi AUC / working session of the 2018 PULSE Khmelnytskyi Regional Policy Dialogue Platform
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49. October 25- city of Chernihiv AUC / working session of the 26, 2018 PULSE AUC CTC Professional Group 50. October 12, city of Kropyvnytskyi AUC / working session of the 2018 PULSE Kirovohrad Regional Policy Dialogue Platform 50. October 26, city of Trostyanets AUC / Study tour to the 2018 (Sumy oblast) PULSE Trostyanetska City CTC within the framework of the «Itinerary of Successes» nation-wide exchange study tour Project component 51. October 26, city of Lviv AUC / working session of the Lviv 2018 PULSE Regional Policy Dialogue Platform 53. October 29, Lyman (Donetsk region) AUC / Study tour to 2018 PULSE the Lymanska СTC for representatives of potential CTCs of the Luhansk oblast within the framework of the «Itinerary of Successes» nation-wide exchange study tour Project component 54. October 30, Sumy AUC / working session of the 2018 PULSE Sumy Regional Policy Dialogue Platform 55. October 30, city of Dubno AUC / working session of the 2018 PULSE Rivne Regional Policy Dialogue Platform 56. October 30, city of Chernihiv AUC / working session of the 2018 PULSE Chernihiv Regional Policy Dialogue Platform 57. October 30, city of Pyryatyn AUC / Regional legislation 2018 PULSE application laboratory in the Poltava AUC RO 58. October 31, village of Babyn (Rivne AUC / Study tour to the Babynska 2018 oblast) PULSE Village CTC for representatives of potential CTCs of the Volyn oblast within the framework of the «Itinerary of Successes» nation-wide exchange study tour Project component 59. October 31, city of Vinnytsya AUC / working session of the 2018 PULSE Vinnytsya Regional Policy Dialogue Platform 60. In October Newsletter № 157 was published by AUC / PULSE
61. November 2, village of Pervozvanivka AUC / Press tour to to the 2018 (Kirovohrad oblast) PULSE Pervozvanivska Village CTC
100 October – December, 2018 Quarter twelve of the Project implementation
62. November 8, town of Lyubeshiv AUC / Press tour to 2018 (Volyn oblast) PULSE the Lyubeshivska Town CTC 63. November 8, city of Ternopil AUC / Vacancy Fair 2018 PULSE 64. November 8, town of Bilovodske AUC / study tour to the 2018 (Luhansk oblast) PULSE Bilovodska 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 65. November 9, city of Krasyliv AUC / Press tour to the 2018 (Khmelnytskyi oblast) PULSE Krasylivska City CTC 66. November 9, city of Lutsk UAROC / Professional workshop for 2018 PULSE representatives of rayon and oblast councils 67. November 9, city of Kropyvnytskyi AUC / Regional legislation 2018 PULSE application laboratory in the Kirovohrad AUC RO 68. November town of Viytivtsi AUC / study tour to the 13, 2018 (Khmelnytskyi oblast) PULSE Viytovetska Town 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 69. November village of Mala Lyubasha AUC / Press tour to 14, 2018 (Rivne oblast) PULSE the Malolyubashivska Village CTC 70. November city of Mykolaiv AUC / working session of the 14, 2018 PULSE Mykolaiv Regional Policy Dialogue Platform 71. November city of Nizhyn AUC / study tour to the potential 14, 2018 (Chernihiv oblast) PULSE Nizhynska City CTC for representatives of potential CTCs of the Chernihiv oblast within the framework of the «Itinerary of Successes» nation-wide exchange study tour Project component 72. November town of Nova AUC / study tour to the 15, 2018 Vodolaha (Kharkiv PULSE Novovodolaha CTC for oblast) representatives of potential CTCs of the Kharkiv oblast within the
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framework of the «Itinerary of Successes» nation-wide exchange study tour Project component 73. November city of Severodonetsk AUC / Working session of the 15, 2018 PULSE Luhansk Regional Policy Dialogue Platform 74. November city of Chernivtsi AUC / working session of the 15, 2018 PULSE Chernivtsi Regional Policy Dialogue Platform 75. November city of Odesa UAROC / Professional workshop for 15, 2018 PULSE representatives of rayon and oblast councils 76. November city of Kherson UAROC / Professional workshop for 15, 2018 PULSE representatives of rayon and oblast councils 77. November city of Sumy AUC / Regional legislation 15, 2018 PULSE application laboratory in the Sumy AUC RO 78. November city of Ternopil AUC / Regional legislation 15, PULSE application laboratory in 2018 year the Ternopil AUC RO 79. November city of Lutsk AUC / Regional legislation 16, 2018 PULSE application laboratory in the Volyn AUC RO 80. November city of Lviv AUC / Regional legislation 16, 2018 PULSE application laboratory in the Lviv AUC RO 81. November city of Soledar AUC / study tour to the 16, 2018 PULSE Soledarska City CTC for representatives of potential CTCs of the Donetsk oblast within the framework of the «Itinerary of Successes» nation-wide exchange study tour Project component 82. October 16, city of Terebovlya AUC / Press tour to the 2018 (Ternopil oblast) PULSE Terebovlyanska City CTC 83. November city of Hulyaipole AUC / study tour to the 16, 2018 (Zaporizzhya oblast) PULSE Hulyaipilska City CTC for representatives of potential CTCs of the Zaporizzhya oblast within the framework of the «Itinerary of Successes» nation-wide exchange study tour Project component 84. November town of Berezanka AUC / study tour to the 19, 2018 (Mykolaiv oblast) PULSE Berezanska Town CTC for representatives of potential
102 October – December, 2018 Quarter twelve of the Project implementation
CTCs of the Mykolaiv oblast within the framework of the «Itinerary of Successes» nation-wide exchange study tour Project component 85. November town of Berezanka AUC / Press tour to the 19, 2018 (Mykolaiv oblast) PULSE Berezanska Town CTC 86. November village of Vozdvyzhivka AUC / study tour to the 19, 2018 (Zaporizzhya oblast) PULSE Vozdvyzhivska Village CTC for representatives of potential CTCs of the Zaporizzhya oblast within the framework of the «Itinerary of Successes» nation-wide exchange study tour Project component 87. November town of Kozyn UAROC / All-Ukrainian Professional 19, 2018 PULSE Workshop for rayon and oblast councils 88. November city of Kyiv AUC / working session of the 19-20, 2018 PULSE AUC Personnel Professional Group 89. November city of Bar (Vinnytsya AUC / study tour to the Barska 20, 2018 oblast) PULSE 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 90. November city of Khmelnytskyi AUC / Regional legislation 20, 2018 PULSE application laboratory in the Khmelnytskyi AUC RO 91. November city of Odessa AUC / Regional legislation 22, 2018 PULSE application laboratory in the Odessa AUC RO 92. November city of Uzhgorod AUC / Regional legislation 22, 2018 PULSE application laboratory in the Zakarpattya AUC RO 93. November city of Pokrovsk AUC / Regional legislation 22, 2018 PULSE application laboratory in the Donetsk AUC RO 94. November town of Nikolske AUC/ Professional workshop for 22, 2018 PULSE representatives of rayon and oblast councils 95. November city of Zhytomyr AUC / Professional workshop for 22, 2018 PULSE representatives of rayon and oblast councils
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96. November city of Chernihiv AUC / Regional legislation 23, 2018 PULSE application laboratory in the Chernihiv AUC RO 97. November city of Zaporizzhya AUC / Regional legislation 23, 2018 PULSE application laboratory in the Zaporizzhya AUC RO 98. November city of Ivano-Frankivsk UAROC / Professional workshop for 23, 2018 PULSE representatives of rayon and oblast councils 99. November city of Dnipro AUC / working session of the 23, 2018 PULSE Dnipropetrovsk Regional Policy Dialogue Platform 100. November village of Buhryn (Rivne AUC / study tour to the 23, 2018 oblast) PULSE Buhrynska Village CTC for representatives of potential CTCs of the Zhytomyr oblast within the framework of the «Itinerary of Successes» nation-wide exchange study tour Project component 101. November city of Kyiv AUC / National Press Club for the 26-27, 2018 PULSE Decentralisation Reform 102. November city of Ternopil IREX / Meeting of representatives 28, 2018 PULSE of the Ternopil Press Club, media representatives (radio, TV, and printed and Internet based media) and regional AUC consultants in the local library 103. November city of Zhashkiv AUC / working session of the 29, 2018 PULSE Cherkasy Regional Policy Dialogue Platform 104. November, city of Rivne AUC / Regional legislation 292018 PULSE application laboratory in the Rivne AUC RO 107. November city of Ivano-Frankivsk AUC / Regional legislation 29, 2018 PULSE application laboratory in the Ivano-Frankivsk AUC RO 108. November city of Dnipro AUC / Regional legislation 29, 2018 PULSE application laboratory in the Dnipropetrovsk AUC RO 109. November city of Zhytomyr AUC / working session of the 29-30, 2018 PULSE AUC Housing and Municipal Utilities Professional Group 110. November city of Zaporizzhya AUC / working session of the 30, 2018 PULSE Zaporizzhya Regional Policy Dialogue Platform
104 October – December, 2018 Quarter twelve of the Project implementation
111. November city of Lutsk AUC / Regional legislation 30, 2018 PULSE application laboratory in the Volyn AUC RO
112. In November, Newsletter No. 158 was published AUC / PULSE
113. December 5, city of Kherson AUC / Regional legislation 2018 PULSE application laboratory in the Kherson AUC RO
114. December 6, city of Sumy AUC / Regional legislation 2018 PULSE application laboratory in the Sumy AUC RO
115. December town of Brusyliv AUC / study tour to the 10, 2018 (Zhytomyr oblast) PULSE Brusylicska Town CTC for representatives of potential CTCs of the Zhytomyr oblast within the framework of the «Itinerary of Successes» nation-wide exchange study tour Project component 116. December city of Zaporizzhya UAROC / Professional workshop for 10, 2018 PULSE representatives of rayon and oblast councils
117. December city of Kyiv AUC / Web-conference with 11, 2018 PULSE participation of the State Service of Ukraine for Geodesy, Cartography and Cadastre and local governments 118. December city of Chernivtsi AUC / Regional legislation 11, 2018 PULSE application laboratory in the Chernivtsi AUC RO
119. December city of Odessa AUC / Regional legislation 12, 2018 PULSE application laboratory in the AUC Odessa Regional Office
120. December city of Vinnytsya AUC / Regional legislation 12, 2018 PULSE application laboratory in the Vinnytsya AUC RO
121. December city of Rivne UAROC / Professional workshop for 13, 2018 PULSE representatives of rayon and oblast councils
122. December city of Radyvyliv (Rivne AUC / study tour to the 14, 2018 oblast) PULSE Radyvylivska City CTC
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for representatives of potential CTCs of the Rivne oblast within the framework of the «Itinerary of Successes» nation-wide exchange study tour Project component 123. December city of Lutsk AUC / Regional legislation 20, 2018 PULSE application laboratory in the Volyn AUC RO
124. December city of Dnipro AUC / Regional legislation 21, 2018 PULSE application laboratory in the Dnipropetrovsk AUC RO 125. December city of Kropyvnytskyi UAROC / Professional workshop for 21, 2018 PULSE representatives of rayon and oblast councils 126. December town of Kazanka AUC / study visit to Kazankivska 21, 2018 (Mykolaiv oblast) PULSE CTC for representatives of potential CTCs of the Mykolayiv oblast within the framework of the «Itinerary of Successes» nation-wide exchange study tour Project component 127. December city of Zhytomyr AUC / Regional legislation 27, 2018 PULSE application laboratory in the Zhytomyr AUC RO 128. In December, Newsletter No. 159 was published AUC / PULSE
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Report on the survey of village, town and city mayors conducted in 2018 In August – September of 2018, the Association of Ukrainian Cities (AUC) working within the framework of the Policy for Ukraine’s Local Self-Governance Project
(PULSE) conducted an annual survey of village, town and city mayors, which are
members of the AUC to spot problem issues, identify achievements and needs, as well as to collect data for Project monitoring purposes and track the progress of
reforms. Representatives of 283 AUC member communities participated in the survey including 119 oblast significance cities and 117 consolidated territorial communities mail: - Iryna Korduba, Iryna Chairman of Deputy the UAROC Secretariat e [email protected] (CTCs).
This year, the survey was conducted on-line using Google forms, which significantly aine accelerate the collection and generalisation of the information and are reduced the work load on the AUC staff. It is worth mentioning that this survey is not a traditional sociological survey, since
Organisation of Organisation expert workshops representatives for oblast and of rayon in Ukr councils the AUC did not use the classical methodology for sociological research. This survey was rather a ”working” poling of the communities, which are members
of the AUC, and is based on the willingness of community mayors to participate in it. Therefore the number of communities, which participated in the survey, was different in different oblasts. The most active participation in the survey was demonstrated by communities from
11,815.89 USD the Cherkasy oblast (22), Poltava oblast (19), Vinnytsya oblast (18), and Kirovohrad oblast (18). The least active were communities form the Chernivtsi oblast (4), Mykolaiv oblast (4), Zakarpattya oblast (5), Zhytomyr oblast (6), Donetsk oblast (7),
and Odesa (7) oblast.
965,400 = UAH approximate ly 34,478.57 USD The highest number CTCs participating in the survey was in the Vinnytsya oblast, Ternopil oblast, Cherkasy oblast, and Chernihiv oblast (8 CTCs in each). The
smallest number was in the Donetsk oblast (0), Dnipropetrovsk oblast (1), and in the Mykolaiv oblast (2). till September 30, 2019 Therefore, the biggest number of responses on a given question was observed in those oblasts where the highest number of communities participated.
Below you can find the questions proposed for the survey and the generalised information about the responses to them.
# 153 of October October # 153 of 01, 2018 In your opinion, has the overall legislative framework for local self-governance
improved in 2018? Yes-154/No-129.
Ukrainian Ukrainian Association of Rayon Oblast and Councils (UAROC) The highest number of communities with the «Yes» responses was in the Poltava oblast (14 of 21) and Vinnytsya oblast (13 of 18).
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The highest number of communities with the «No» responses was in the Lviv oblast (13 of 16) and Kirovograd oblast (12 of 18).
In your opinion, is the legislative framework sufficient to ensure the powers of local governments in the following sectors: Administrative services Yes-191/No-75 The biggest number of the «Yes» responses came from mayors of communities in the Vinnytsya oblast (13), Cherkasy oblast (13), Poltava oblast (12), Ternopil oblast (11), and Chernihiv oblast (11).
The biggest number of the «No» responses came from mayors of communities in the Cherkasy oblast (9), Dnipropetrovsk oblast (6), Luhansk oblast (6), Lviv oblast (6), and Poltava oblast (6). As one can see, the «Yes» responses predominate in the Cherkasy and Poltava oblasts. Construction and architecture Yes-83/No-186 The biggest number of the «Yes» responses came from mayors of communities in the Vinnytsya oblast, Kyiv oblast, and Poltava oblast (7 each). The biggest number of the «No» responses came from mayors of communities in the Cherkasy oblast (16), Lviv oblast (13), Rivne and Sumy oblasts (12 each), and Vinnytsya, Kirovohrad and Luhansk oblast (10 each). As one can see, the «No» responses predominate with a small margin in the Vinnytsya oblast. Housing and municipal utilities Yes-99/No-167 The biggest number of the «Yes» responses came from mayors of communities in the Poltava oblast (12). The biggest number of the «No» responses came from mayors of communities in the Cherkasy oblast (18), Lviv and Sumy oblasts (12 each), and Kirovohrad, Luhansk and Rivne oblasts (10 each). Land relations Yes-79/No-191 The biggest number of the «Yes» responses came from mayors of communities in the Vinnytsya oblast (9). The biggest number of the «No» responses came from mayors of communities in the Cherkasy oblast (17), Kirovohrad oblast (16), and Luhansk (12) and Poltava oblasts (11). Culture Yes-192/No-73
110 October – December, 2018 Quarter twelve of the Project implementation
The highest number of communities with the «No» responses was in the Lviv oblast The biggest number of the «Yes» responses came from mayors of communities in the (13 of 16) and Kirovograd oblast (12 of 18). Poltava and Cherkasy (14) oblasts.
The biggest number of the «No» responses came from mayors of communities in the In your opinion, is the legislative framework sufficient to ensure the powers of Cherkasy (8) and Dnipropetrovsk (7) oblasts. local governments in the following sectors: As one can see, the «Yes» responses predominate in the Cherkasy oblast. Administrative services Yes-191/No-75 Local economic development Yes-103/No-160 The biggest number of the «Yes» responses came from mayors of communities in the Vinnytsya oblast (13), Cherkasy oblast (13), Poltava oblast (12), Ternopil oblast (11), The biggest number of the «Yes» responses came from mayors of communities in the and Chernihiv oblast (11). Poltava oblast (9).
The biggest number of the «No» responses came from mayors of communities in the The biggest number of the «No» responses came from mayors of communities in the Cherkasy oblast (9), Dnipropetrovsk oblast (6), Luhansk oblast (6), Lviv oblast (6), Cherkasy (14) and Lviv (12) oblasts. and Poltava oblast (6). Local budgets Yes-109/No-158 As one can see, the «Yes» responses predominate in the Cherkasy and Poltava The biggest number of the «Yes» responses came from mayors of communities in the oblasts. Poltava (9) and Vinnytsya (8) oblasts. Construction and architecture Yes-83/No-186 The biggest number of the «No» responses came from mayors of communities in the The biggest number of the «Yes» responses came from mayors of communities in the Cherkasy (16) and Sumy (10) oblasts. Vinnytsya oblast, Kyiv oblast, and Poltava oblast (7 each). Organisational and legislative aspects of local self-governance Yes-97/No-163 The biggest number of the «No» responses came from mayors of communities in the The biggest number of the «Yes» responses came from mayors of communities in the Cherkasy oblast (16), Lviv oblast (13), Rivne and Sumy oblasts (12 each), and Cherkasy oblast (8). Vinnytsya, Kirovohrad and Luhansk oblast (10 each). The biggest number of the «No» responses came from mayors of communities in the As one can see, the «No» responses predominate with a small margin in the Cherkasy oblast (13), Poltava oblast (12), and Lviv (12) and Kirovohrad oblasts (11). Vinnytsya oblast. As one can see, the «No» responses predominate in the Cherkasy oblast with a little Housing and municipal utilities Yes-99/No-167 margin. The biggest number of the «Yes» responses came from mayors of communities in the Public education Yes-133/No-132 Poltava oblast (12). The opinions split into two equal parts. The biggest number of the «No» responses came from mayors of communities in the Cherkasy oblast (18), Lviv and Sumy oblasts (12 each), and Kirovohrad, Luhansk The biggest number of the «Yes» responses came from mayors of communities in the and Rivne oblasts (10 each). Cherkasy and Kirovohrad oblasts (10 each), Kyiv and Vinnytsya oblasts (9 each). Land relations Yes-79/No-191 The biggest number of the «No» responses came from mayors of communities in the Cherkasy oblast (12) and Poltava oblast (11). The biggest number of the «Yes» responses came from mayors of communities in the Vinnytsya oblast (9). As one can see, the «No» responses predominate in the Cherkasy oblast. The biggest number of the «No» responses came from mayors of communities in the Health care Yes-95/No-170 Cherkasy oblast (17), Kirovohrad oblast (16), and Luhansk (12) and Poltava oblasts The biggest number of the «Yes» responses came from mayors of communities in the (11). Vinnytsya oblast (8), Kyiv oblast (7), and Cherkasy oblast (7). Culture Yes-192/No-73 The biggest number of the «No» responses came from mayors of communities in the Cherkasy and Poltava oblasts (15), Kirovohrad oblast (14), and Lviv oblast (11).
111 QUARTERLY REPORT for the Policy for Ukraine Local Self-Governance (PULSE) Project
As one can see, the «No» responses predominate in the Cherkasy oblast. Social protection Yes-100/No-165 The biggest number of the «Yes» responses came from mayors of communities in the Vinnytsya, Volyn, Kyiv and Kirovohrad oblasts (8 each). The biggest number of the «No» responses came from mayors of communities in the Cherkasy oblast (15), Poltava oblast (12), and Ivano-Frankivsk, Rivne and Sumy oblasts (11 each).
Have you initiated proposals for amendments to the legislation and/or participated in the preparation of the necessary legislative amendments? Yes- 163/No-120
The most active were the Poltava oblast (13) and Vinnytsya oblast (11). The smallest number of proposals came from the Chernivtsi oblast, Zakarpattya oblast, and Zhytomyr oblast (3 «Yes» responses each). The Cherkasy oblast 50% of respondents said «Yes», 50% - said «No» (11 each).
In your opinion, did the efficiency of the local government performance improve in 2018? Yes-179/No-20/Hard to tell-84
The biggest number of the «Yes» responses came form the Cherkasy oblast (13), Vinnytsya, Poltava, and Rivne oblasts (12 each), and Kirovohrad, Kherson, and Chernihiv oblasts (10 each).
In your opinion, do local government officials in your community have enough professional expertise to resolve work related issues on their own? Yes-204/No- 40/Hard to tell-39
The biggest number of the «Yes» responses came from the Cherkasy and Kirovohrad oblasts (16 each), Poltava oblast (14), and Lviv and Rivne oblasts (13 each).
What is your attitude to the decentralisation reform? Positively-237/Negative-10/Hard to tell-36
The majority of the respondents mentioned they have a positive attitude to the implementation of this reform.
In your opinion, did the autonomy of local budgets increased in 2018? Yes- 130/No-72/Hard to tell-54
112 October – December, 2018 Quarter twelve of the Project implementation
As one can see, the «No» responses predominate in the Cherkasy oblast. The biggest number of the «Yes» responses came from the Vinnytsya oblast (13), with 3 «No» answers in each oblast. The biggest number of those who found it hard Social protection Yes-100/No-165 to tell was in the Poltava oblast (7), while 8 communities in the same oblast gave the The biggest number of the «Yes» responses came from mayors of communities in the «Yes» response. Vinnytsya, Volyn, Kyiv and Kirovohrad oblasts (8 each). The biggest number of the «No» responses came from mayors of communities in the Did the resources for the implementation of exclusive local government powers Cherkasy oblast (15), Poltava oblast (12), and Ivano-Frankivsk, Rivne and Sumy (discretionary resources) of your community increased in 2018? oblasts (11 each). Yes-156/No-86/Did not change-41 The biggest number of the «Yes» responses came from the Vinnytsya and Poltava oblasts (15 each), with the smallest number in the Chernivtsi oblast (2), given the Have you initiated proposals for amendments to the legislation and/or smallest number of communities participating in the survey. participated in the preparation of the necessary legislative amendments? Yes- 163/No-120 The biggest number of the «No» responses came from the Cherkasy oblast (12).
Did the local government attract additional off-budget funds (grant funding, The most active were the Poltava oblast (13) and Vinnytsya oblast (11). loans, credit resources, investments, charity, etc.) for the development of your The smallest number of proposals came from the Chernivtsi oblast, Zakarpattya territorial community in 2018? oblast, and Zhytomyr oblast (3 «Yes» responses each). Yes-218/No-65 The Cherkasy oblast 50% of respondents said «Yes», 50% - said «No» (11 each).
The biggest number of the «Yes» responses came from the Poltava oblast (18), In your opinion, did the efficiency of the local government performance improve Cherkasy oblast (16), Vinnytsya oblast (16), Luhansk and Rivne oblasts (13 each), in 2018? Yes-179/No-20/Hard to tell-84 and the Sumy oblast (12).
The biggest number of the «Yes» responses came form the Cherkasy oblast (13), How did the level of interference of the state executive (local state Vinnytsya, Poltava, and Rivne oblasts (12 each), and Kirovohrad, Kherson, and administrations, Treasury Service offices, State Fiscal Service, etc.) in the work Chernihiv oblasts (10 each). of local governments changed in 2018? Increased- 9/Decreased-60/Did not
change-170 In your opinion, do local government officials in your community have enough professional expertise to resolve work related issues on their own? Yes-204/No- The biggest number of communities saying the level of interference increased came 40/Hard to tell-39 from the Cherkasy oblast (7 of 21), Vinnytsya oblast (5 of 17), and Khmelnytskyi
oblast (5 of 10). The biggest number of the «Yes» responses came from the Cherkasy and Kirovohrad At the same time, in the Vinnytsya oblast 5 communities informed that the level of oblasts (16 each), Poltava oblast (14), and Lviv and Rivne oblasts (13 each). interference decreased, while 7 communities mentioned that it did not change.
The biggest number of responses saying the level of interference did not change came What is your attitude to the decentralisation reform? from the Ivano-Frankivsk and Kirovohrad oblasts (13 each) and Lviv (12), Poltava Positively-237/Negative-10/Hard to tell-36 (11) and Cherkasy (10) oblasts.
As one can see, the responses from the Cherkasy oblast also split: 10 communities The majority of the respondents mentioned they have a positive attitude to the think that the level of interference did not change, while 4 communities think that it implementation of this reform. decreased.
In your opinion, did the autonomy of local budgets increased in 2018? Yes- Do authorities take active steps to consolidate your territorial community with 130/No-72/Hard to tell-54 the adjacent territorial communities? Yes-128/No-66/There are objective
barriers-82
113 QUARTERLY REPORT for the Policy for Ukraine Local Self-Governance (PULSE) Project
The biggest number of the «Yes» responses came from the Vinnytsya and Cherkasy oblasts (11 each) and Ivano-Frankivsk, Luhansk and Chernihiv oblasts (8 each). The biggest number of responses mentioning the objective reasons came from the Poltava oblast (9) and Kirovohrad (8) oblast. Inn the Rivne oblast: 6 «Yes», 6 «No», and 4 «There are objective barriers».
Question for oblast significance cities: do authorities take active steps to consolidate your city territorial community with the adjacent village and town territorial communities? Total oblast significance cities: 119, Yes-53/No-26/There are objective barriers-40
The biggest number of the «Yes» responses came from the Kyiv oblast (7), while the biggest number of objective barriers came from the Kirovohrad oblast (6 of 7).
Is the process of consolidation of your community with other communities or merger of your community with other communities blocked? Yes-106/No-161 The biggest number of the «Yes» responses comes form communities in the Cherkasy oblast (10), Kirovograd oblast and Sumy oblast (9 each) and Luhansk and Poltava oblast (8 each). The biggest number of the «No» questions comes from the Cherkasy oblast (12), Poltava oblast (11), Vinnytsya, Zaporizzhya, Rivne and Ternopil oblasts (10 each), and Ivano-Frankivsk oblast (9).
If your answer to the previous question is «Yes», please indicate who exactly blocks the process of consolidation/merger of your community? Rayon council - 19/rayon state administration - 23/oblast council - 4/oblast state administration - 8/Ministry of Regional Development - 0/Oyther - 67.
Will the decision of the Verkhovna Rada to transfer lands located beyond the boundaries of populated areas (within the boundaries of the consolidated community) to consolidated territorial communities accelerate the decision made by the city to merge the adjacent populated areas into one city community? Yes-170/No-83
The biggest number of the «Yes» questions came from the Poltava (13), Ivano- Frankivsk (11), Zaporizzhya, Kirovohrad, Rivne, and Cherkasy oblasts (10 each).
At the same time, 9 communities both in the Cherkasy and Vinnytsya oblasts think that will not accelerate the process of decision making on community consolidation.
In your opinion, is it worth stopping the voluntary community consolidation and pursue it by approving the special law to consolidate communities on the
114 October – December, 2018 Quarter twelve of the Project implementation
The biggest number of the «Yes» responses came from the Vinnytsya and Cherkasy principles specified in the Methodology for the establishment of CTCs? Yes- oblasts (11 each) and Ivano-Frankivsk, Luhansk and Chernihiv oblasts (8 each). 121/No-61/Hard to tell-96 The biggest number of responses mentioning the objective reasons came from the Poltava oblast (9) and Kirovohrad (8) oblast. The biggest number of the «Yes» responses came from communities in the Ivano- Inn the Rivne oblast: 6 «Yes», 6 «No», and 4 «There are objective barriers». Frankivsk oblast (10), Lviv oblast, and Cherkasy oblast (9). The biggest number of the «No» responses came from communities in the Kyiv oblast and Poltava oblast (5 each). Question for oblast significance cities: do authorities take active steps to The biggest number of the “Hard to tell” responses came from the Cherkasy oblast consolidate your city territorial community with the adjacent village and town (10), Chernihiv oblast (9), and Vinnytsya oblast (8). territorial communities? Total oblast significance cities: 119, In your opinion, is it worth consolidate rayons by merging some of the current Yes-53/No-26/There are objective barriers-40 rayons into one? Yes-118/No-150
The biggest number of the «Yes» responses came from the Kyiv oblast (7), while the The biggest number of the «Yes» responses came from the Cherkasy and Poltava biggest number of objective barriers came from the Kirovohrad oblast (6 of 7). oblasts (9 each) and Kirovograd and Luhansk oblasts (8 each). The biggest number of the «No» responses came from communities in the Cherkasy oblast (12) and Is the process of consolidation of your community with other communities or Vinnytsya and Chernihiv oblasts (11 each). merger of your community with other communities blocked? Yes-106/No-161 The biggest number of the «Yes» responses comes form communities in the In almost all oblasts the opinions split in two equals parts. For example, in the Cherkasy oblast (10), Kirovograd oblast and Sumy oblast (9 each) and Luhansk and Poltava oblast there were 8 «Yes» responses and 8 «No» responses and in the Cherkasy oblast there were 9 «Yes» responses and 12 «No» responses. Poltava oblast (8 each).
The biggest number of the «No» questions comes from the Cherkasy oblast (12), Do you support the introduction of state oversight of local government acts on Poltava oblast (11), Vinnytsya, Zaporizzhya, Rivne and Ternopil oblasts (10 each), the part of the special new state service (inspectorate)? This entity will be and Ivano-Frankivsk oblast (9). authorised to suspend local government acts with the simultaneous appeal to the
court. Yes-51/No-159/Hard to tell-73 If your answer to the previous question is «Yes», please indicate who exactly blocks the process of consolidation/merger of your community? The biggest number of the «No» responses came from communities in the Poltava Rayon council - 19/rayon state administration - 23/oblast council - 4/oblast state oblast (12), Kirovohrad and Rivne oblasts (11 each), and Luhansk, Lviv and administration - 8/Ministry of Regional Development - 0/Oyther - 67. Cherkasy oblasts (10 each).
Will the decision of the Verkhovna Rada to transfer lands located beyond the Do you support amendments to the Constitution of Ukraine with regard to the boundaries of populated areas (within the boundaries of the consolidated introduction of prefects? Provided that prefects are politically neutral and community) to consolidated territorial communities accelerate the decision made by the city to merge the adjacent populated areas into one city highly professional experts. Prefects will have the right to oversee local community? Yes-170/No-83 government compliance with the Constitution and Laws of Ukraine within the limits established by the legislation. Yes-132/No-69/Hard to tell-82 The biggest number of the «Yes» questions came from the Poltava (13), Ivano- Frankivsk (11), Zaporizzhya, Kirovohrad, Rivne, and Cherkasy oblasts (10 each). The biggest support comes from the Ivano-Frankivsk oblast (10), Vinnytsya, Kirovohrad and Lviv oblasts (9 each) and the Cherkasy oblast (8). The least support At the same time, 9 communities both in the Cherkasy and Vinnytsya oblasts think comes from the Rivne oblast (8). At the same time, the biggest number of the “Hard that will not accelerate the process of decision making on community consolidation. to tell” responses comes from communities in the Cherkasy oblast (11).
In your opinion, is it worth stopping the voluntary community consolidation and pursue it by approving the special law to consolidate communities on the
115 QUARTERLY REPORT for the Policy for Ukraine Local Self-Governance (PULSE) Project
REPORT ON THE SURVEY OF VILLAGE, TOWN AND CITY MAYORS CONDUCTED IN 2018
In August – September of 2018, the Association of Ukrainian Cities (AUC) working within the framework of the Policy for Ukraine’s Local Self-Governance Project (PULSE) conducted an annual survey of village, town and city mayors, which are members of the AUC to spot problem issues, identify achievements and needs, as well as to collect data for Project monitor- ing purposes and track the progress of reforms. Representatives of 283 AUC member communities participated in the survey including 119 oblast significance cities and 117 consolidated territorial communities (CTCs).
Yes 154
In your opinion, has the overall legislative frame- work for local self-governance improved in 2018?
No 129 In your opinion, is Yes Yes the legislative No No 191 No 192 No No framework sufficient 186 191 No No No Yes 167 No 170 165 to ensure the powers Yes Yes 160 Yes 158 Yes 163 133 Yes Yes Yes Yes 132 of local governments 99 103 109 97 95 100 No 83 79 No in the following 75 73 sectors: care care Land Local Social Public Health Culture Culture services budgets relations relations education protection protection architecture architecture Housing and development development Administrative Administrative Local economic Construction and municipal utilities Organisational and legislative aspects of legislative local self-governance local self-governance
Yes 179
In your opinion, did the efficiency of the local Hard government performance improve in 2018? to tell 129 No 20
Positively 179
What is your a itude to the decentralisation reform? Hard Negative to tell 10 36
1161 October – December, 2018 Quarter twelve of the Project implementation
REPORT ON THE SURVEY OF VILLAGE, TOWN AND CITY MAYORS CONDUCTED IN 2018 Yes In August – September of 2018, the Association of Ukrainian Cities (AUC) working within the framework of the Policy for 130 Ukraine’s Local Self-Governance Project (PULSE) conducted an annual survey of village, town and city mayors, which are In your opinion, did the autonomy of local budgets increased in 2018? No Hard members of the AUC to spot problem issues, identify achievements and needs, as well as to collect data for Project monitor- 72 ing purposes and track the progress of reforms. to tell Representatives of 283 AUC member communities participated in the survey including 119 oblast significance cities and 117 54 consolidated territorial communities (CTCs).
Yes 154
In your opinion, has the overall legislative frame- work for local self-governance improved in 2018? Yes 156
Did the resources for the implementation of exclusive local government powers of your No community increased in 2018? 86 Did not change 41 No 129 In your opinion, is Yes Yes the legislative No No 191 No 192 No No framework sufficient 186 191 No No No Yes 167 No 170 165 to ensure the powers Yes Yes 160 Yes 158 Yes 163 133 Yes Yes Yes Yes 132 of local governments 99 103 109 97 95 100 No 83 79 No in the following 75 73 sectors: care care Land Local Social Public Health Culture Culture services budgets
relations relations Yes 218 education protection protection architecture architecture Housing and development development Did the local government a ract additional off-budget Administrative Administrative Local economic funds (grant funding, loans, credit resources, invest- Construction and municipal utilities
Organisational and ments, charity, etc.) for the development of your legislative aspects of legislative local self-governance local self-governance territorial community in 2018?
Yes 179
In your opinion, did the efficiency of the local Hard government performance improve in 2018? to tell No 65 129 No 20
Positively 179 How did the level of interference of the Did not state executive (local state administrations, change Treasury Service offices, State Fiscal 170 Increased Service, etc.) in the work of local govern- Decreased ments changed in 2018? 49 What is your a itude 60 to the decentralisation reform? Hard Negative to tell 10 36
1 1172 QUARTERLY REPORT for the Policy for Ukraine Local Self-Governance (PULSE) Project
Yes 128 Do authorities take active steps to consoli- There are date your territorial community with the objective No barriers adjacent territorial communities? 66 82
Question for oblast significance cities: do Total oblast authorities take active significance steps to consolidate your cities city territorial community 119 with the adjacent village and town territorial Yes There are communities? 53 objective No barriers 26 40
Is the process of consolidation of your Who exactly blocks the process community with other communities or 19 Yes 106 of consolidation/merger of your merger of your community with other community? communities blocked?
Rayon council 23 Rayon state administration 67 Oblast council Oblast state administration 4 Ministry of Regional Development 8 No 161 Other
Will the decision of the Verkhovna Rada to transfer Yes 170 lands located beyond the boundaries of populated areas (within the boundaries of the consolidated community) to consolidated territorial communities accelerate the decision made by the city to merge the adjacent populated areas into one city community?
No 83
1183 October – December, 2018 Quarter twelve of the Project implementation
Yes 128 Do authorities take active steps to consoli- There are date your territorial community with the objective No barriers adjacent territorial communities? 66 82 In your opinion, is it worth stopping the volun- Yes 121 tary community consolidation and pursue it by Hard approving the special law to consolidate to tell communities on the principles specified in the No 61 96 Methodology for the establishment of CTCs?
Question for oblast significance cities: do Total oblast authorities take active significance steps to consolidate your cities city territorial community 119 with the adjacent village and town territorial Yes There are communities? 53 objective No barriers 26 40 Do you support the introduction of state oversight of local government acts on the part of No the special new state service (inspectorate)? 159 This entity will be authorised to suspend local Yes Hard government acts with the simultaneous appeal 51 to the court. to tell 73
Is the process of consolidation of your Who exactly blocks the process community with other communities or 19 Yes 106 of consolidation/merger of your merger of your community with other community? communities blocked?
Rayon council 23 Rayon state administration 67 Oblast council Oblast state administration 4 Ministry of Regional Development 8 No 161 Other
Do you support amendments to the Constitution Will the decision of the Verkhovna Rada to transfer Yes 170 of Ukraine with regard to the introduction of lands located beyond the boundaries of populated prefects? Provided that prefects are politically Yes areas (within the boundaries of the consolidated neutral and highly professional experts. Prefects 132 will have the right to oversee local government community) to consolidated territorial communities Hard accelerate the decision made by the city to merge the compliance with the Constitution and Laws of No 69 to tell adjacent populated areas into one city community? Ukraine within the limits established by the 82 legislation.
No 83
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