<TITLE: Local Government Finance in Poland
ACADEMIC DOMAIN: economics and administration
DISCIPLINE: economics
EVENT TYPE: lecture
FILE ID: ULEC190
NOTES: continuation of ULECD120, interspersed with questions

RECORDING DURATION: 65 min 37 sec

RECORDING DATE: 11.4.2007

NUMBER OF PARTICIPANTS: 10

NUMBER OF SPEAKERS: 4

S1: NATIVE-SPEAKER STATUS: Polish; ACADEMIC ROLE: senior staff; GENDER: female; AGE: 31-50

S2: NATIVE-SPEAKER STATUS: Polish; ACADEMIC ROLE: masters student; GENDER: female; AGE: 17-23

S5: NATIVE-SPEAKER STATUS: Polish; ACADEMIC ROLE: undergraduate; GENDER: male; AGE: 17-23

S6: NATIVE-SPEAKER STATUS: Polish; ACADEMIC ROLE: unknown; GENDER: female; AGE: unknown

SS: several simultaneous speakers>


<S1> and the next er subject er local finance in poland and i've prepared er new tables statistical ones please have a look and i think that's an example these tables as an example presenting local finance er er in your country er the total presentation er of local finance er statistics in your country er so first of all you always er mhm start the presentation with erm er showing what is the public finance sector in your country and er you you may see er mhm this er data about the public finance sector in poland er on the first table , on the first table , here you have er er you have er mhm er er , (xx) levels levels er of er public finance sector so er er er from this table what you can you what you can mhm notice the main feature of public finance sector in poland , what you can notice from this ta- first table , that this sector is what un- u- er unifica- unificated or diversifi- -ficated , how do you think what was your opinion before the lecture of er from this subject <GETTING ORGANISED, P:07> <FOREIGN> (xx) </FOREIGN> <P:07> so the map is just for your mhm er for f- how to show what is the country how it is er er divided it is as you can see the divisions are very clear we've got 16 regions a region is divided into counties yes we've got er 200 erm er 315 er rural counties and we have got of course 65 cities with the right of a county and then the lowest level of local government are communes communes er er there are three types of communes rural communes municipal communes and mixed communes mu- rural and municipal commune , so here er i think that that's very nice map because you have er you have borders er er er of the com- of the counties and you have borders of regions you have even er cities er er capitals of regions and of course er even cities with the right of a county er so you can see er the map and of course the most important is the public sector let's have a look let's have a look at the first table . and see how is er how does the public sector in poland look like , what we what we can say about this sector . can you give me a feature of it mhm <P:10> <NAME S2> <SS> @@ </SS> can you give me a feature of public sector in poland </S1>
<S2> mhm sorry i don't exactly don't know how </S2>
<S1> from this first table what did you notice on this table </S1>
<S2> the public revenues are quite high state budget i mean erm this er level of state budget is <S1> [mhm-hm] </S1> [quite high] erm per cent (because) almost a half <S1> mhm-hm </S1> erm special purpose funds are in i mean er i was thinking about public expenditure is there [and] </S2>
<S1> [wasn't it er] surprising for you that er erm only a half of public revenues are gathering in public in in state budget only a half of it wasn't it surprising for you <SS> @@ </SS> was it it was obvious <S2> [@you know i@] </S2> [yes] that only half of it <S2> yeah </S2> because er in in the erm previous time when we had the total er socialistic system you can imagine that every er public er money er ga- er was gathered was collected by state budget yes during er s- communistic system er nearly 100 per cent of public finance was collected was gathered in state budget yes but everything changed when when it was in 1999 erm 1990 when solidarity started to fight with the system er erm le- with lech walesa as leaders as a leader so in 1990 everything started to changed and state budget er erm was was er getting smaller and smaller because er er other m- m- er funds other money was taken out from the budget er and put into the separate funds like for example state special purp- purpose funds er <NAME S2> can you [er mention an example] </S1>
<S6> [sorry could i (ask about the)] i was just just wanted to ask you about the state special purpose funds <S1> [yes] </S1> [what] kind of (xx) [what's that] </S6>
<S1> [mhm-hm] mhm-hm er there are lots of state p- er special purpose funds er can't you er even er er don't you e- er th- how do you think what are these funds what do we collect in the special purpose public funds , they are not collected in the state budget but they er they are collect in the s- special purpose fund for example social insurance social national social insurance fund <S6> okay </S6> <S2> yeah yeah </S2> <FOREIGN> (xx) </FOREIGN> national f- er insurance er insurance er social insurance funds er fund which er collect what we collect the er pe- mhm pension insurance yes er rate all the pension insurance rate goes to the this to this fund so before before of course pension insurance rate er mhm ga- er er was collected by the state budget but after the tra- er transformation of course we create a separate fund and pay er the the revenue of the national mhm social insurance fund goes er er erm er goes to what to pay pensions yes to pay er to pay pensions and for example w- there are about er er 20 20 special state special purpose funds in poland so er that's the biggest one national insurance pen- er social insurance er funds er for example another one erm unemployment national unemployment fund national unemployment fund because as you know poland has the biggest ratio of unemployment in europe unfortunately we er have this er this er er problem er so er the the problem of unemployment is er such impor- such an important that we have er organised it er financing this problem like er mhm unemployment er benefits unemployment er contributions yes er unemployment pensions er we paid from this fund national unemployment fund , er and who financing financing it of course of course employees financing it er erm er companies because er the obligatory rate to unemployment fund is one i- is 2.1 per cent of gross salary of gross salary of er e- employees , unemployment fund then there we have nationa- national environment protection fund national er <FOREIGN> (xx) </FOREIGN> national environment protection fund that's very interesting and very useful one er i think it should be organised like that in all the countries that that the er f- penalties and er fees for er mhm er for violation for vilo- violation of er environment protection's norms goes to the separate fund and that's er how it is in poland when you violate the environment er norm environment mechan- protection er mechanism you have to pay a fee you have to pay a penalty and it goes where it doesn't goes to the state budget or a local budget it goes to the special en- pro- environment protection fund and it spends on what and they they spend of course on the environment yes that's the very nice idea of the fund er of the special f- purpose fund erm in the er in the er sa- in the mhm er several er areas like er environment protection social insurance i think it is it is the best way to organise financing this area isn't it , okay er mhm and we have also national disabled protection fund , national disabled protection fund i don't know if your if i- if it is er li- er your in your country that disabled has got the separate system of helping or the separate system of financing disabled er in poland we have a separate national disabled protection fund erm and of course it is financing the revenues of this f- fund comes from the obligatory er er charges paid by the mhm companies who doesn't employ the proper number of disabled yes when the company er er er doesn't er emplo- erm employ er er er twen- erm the proper number for example six when erm that's the percentage of disabled people disabled ep- employee in the factory six per cent of total erm mhm total employees so when when the er company doesn't erm employ six percentage of disabled people it has to pay a fee to this fund and that's the main revenue of this fund and of course these er revenues goes to disabled to help disabled to to to buy er er wheelchairs and so on , and we have also national veteran fund , veterans , it's very interesting fund er of course veterans er after the the second world war it was v- quite long time ago but we still have veterans and er er erm state the central s- the national budget er erm take care of them in such a way that that created the separate fund national veteran veterans fund and finance their their er erm problems and f- er helping them er and of course this is the very interesting fund because it is the the main revenue of this fund comes from the er er erm from the state budget grant er on er of mhm nearly 100 per cent of the its revenue comes from the state budget state budget fund er state budget grant okay state bu- er special er purpose fund but er before we study further this table i i i think we should we should say something about history about history of poland yes let's have a look at the table er we come v- very hard er er hard way for us was er to come from the centralised authorita- er authoritarian political system to what system of course to soc- to a democratic free system based on freedom and lib- lib- liberty of the ci- citizens so now we are very proud of our way yes we started first this way as you know by the help of lech walesa and and solidarity and er i think we we are doing quite well with this system er mhm we are very young er er democratic country we have er 16 now 16 only it's only 16 years of the ma- free market er system er in the country and what is the mhm si- history so we have these dates er erm 1025 er and er 1495 we had a period of kingdom of poland and then we er er had this very sad moment when the poland was d- er disappeared from the from the as a as a from the map of europe and er mhm as disappeared as a country as a country in europe it was taken by the germany russia and austria yes and for almost 100 years we er didn't existed as a country but we did exist as a nation didn't we didn't we <NAME S2> didn't we exist did we exist as a co- as a nation during these 100 years </S1>
<S2> as a nation yes but not as a country </S2>
<S1> yes but we did existed as a nation yes that was a very the er period er a very rich of the er very famous writers yes and and and scientists and so on and we missed very much we missed very much our country so we mi- we missed it so much that after the first world war when the chance t- appeared to get an independence we take it yes and i- after the first er world war in 1918 we gained the independency and it unfortunately last for 20 er over the only 20 years till the second world war but this was the period a very er democratic and with the very strong tradition of local government in poland and of course a ve- it is very unfortunately that is was <SIC> breaken </SIC> by the second world war and then after the war by stalin er er who forced a socialistic system in our country because can you imagine if we would continue this democratic system which we had before the second world war we would be the i think the mhm one of the most er er the best developed country in europe wouldn't we er i s- think we will be the country like great britain like germany er because we had this system before the war and we had a very strong tradition of democratic er political er erm regimes so erm yeah how was poland then divided it wa- er it was divided into er like er today the map of poland looked nearly like that because we had <S5> not [really] </S5> [even] the same numbers of regions so we had communes <FOREIGN> (xx) </FOREIGN> we had counties <FOREIGN> poviat poviats </FOREIGN> and we had regions <FOREIGN> wojvodships </FOREIGN> 16 regions and cities with the rights of the county there were twent- only 27 ci- er cities like that and they w- they were all all local governments unit can you imagine before the second world war on each level of territory <SIC> territoral </SIC> subdivis- er erm division er there were local governments councils and executive organs and they were taking care of m- er the most erm er amount the most er erm public services in the country all the roads all the all schools some buildings of course the many of them were destroyed yes during the second world war but roads remains so they these roads were built by local government before the by co- county <FOREIGN> po- poviats </FOREIGN> er before the second world war hospitals er schools but unfortunately all the country was destroyed during the second world war and after the war that's very sad period isn't it er er after the war we had a little bit of freedom er er five years only five years of continuing the er solutions the system which was the er which was before the war yes only five years so er we can put here continuing of continuing five years , five years of continuing <START WRITING ON MARKERBOARD> contin- , with the system the system which was before the war , we we had an elections in 45 er er to local government even but unfortunately unfortunately in 1950 1950 you remember stalin was alive still @@ so er he decided to to er make poland er socialistic er communistic country strict- strictly and that was the period very sad one a period , of as we can say people's p- . republic people's republic , of poland , <END WRITING ON MARKERBOARD> yes and in this er period of course we er local authorities lost their legal status their democratic legitimacy their right to govern their affairs that's the period of any local government a- at all er er of course poland was divided into communes counties and regions but these were strictly strictly <SIC> territoral- territorally </SIC> subdivisions of central government er of er of the pa- and communistic party yes it wasn't at all local governments er units er and of course there was a very important date <START WRITING ON MARKERBOARD> er 1975 when counties was county county level county level was abolished . abolished and pol- and er er and and 49 regions <FOREIGN> wojvodships </FOREIGN> we we call in it in poland <FOREIGN> wojvod  </FOREIGN> , were created , were created <END WRITING ON MARKERBOARD> so erm er that was the idea of communistic party yes to create as you said in s- er in slova- in er in france yes to to erm make the er s- <SIC> territoral </SIC> subdivision weaker yes they decided to divided the country into the bigger amount of regions bigger amount of of er and and weaker amount of regions er into 49 er <FOREIGN> wojvodships </FOREIGN> and and abolished the county as a as a <SIC> territoral </SIC> subdivision of course county remain county remain <FOREIGN> poviat </FOREIGN> er remained as er administrative administrative divisions but not er <SIC> territoral </SIC> ones so that's the the very important date and th- then what happen in 1990 you all know what happen in 1990 in poland er i think er er or the whole world know yes the whole world know that in 1990 in poland the er start the big the big walk to liberty yes er the solidarity started the fight with the system and then at local government local government was restored restored at last we had we we have local government er at the the erm er communes at the communes level at the communes level so we can put here reconstructing <WRITING ON MARKERBOARD> reconstructing local government , government at the commune commune level yes we are we was very happy we then had er er er we had a democratic system and finally we ne- re- recover we erm bring it back bring back the local government at the commune level in poland in 1990 1990 and then er so er there are still the same subdi- <SIC> territoral </SIC> subdivisions <START WRITING ON MARKERBOARD> and then er from 1999 what we do have we do have this er er subdivisions like you have it on the map so it happen a great , <SIC> territoral </SIC> . and , governmental govern- , reform , which created what which which abolished of course which abolished 49 numbers of regions and bring the subdivisions which we had before the second world war so <SIC> bringed </SIC> 60 regions . er . 2478 communes , communes , in between regions and communes counties , 60 regions , and 350 counties <FOREIGN> poviati poviats(xx) </FOREIGN> <END WRITING ON MARKERBOARD> and we had also like before the war we have also cities with the right of the of a county 65 cities with that's why i was asking you er about the status of ljubljana yes in slovenia er because in poland the big city has the separate status er and they have the right of a county with because we had it before the war er with the right <WRITING ON MARKERBOARD> , right of a county 65 and now we are very happy to have a country like that and er let's talk about the local finance in in er our mhm er young very young democratic er country erm so let's let's go again to this table er one er public finance sector er so if you choose the subject like that public finance sector in your country do pap- er do a table like this one okay so say how much money gather er is gathering in state budget how much money is gathering in s- in local budgets and in other funds okay er so do the presentation like like these ones er so we er er defined already state special purpose fund yes state p- er we mentioned we mentioned the most important ones and then er you ca- you can see municipal budgets municipal budget budgets you can see the numbers how many budgets it is yes that's the budgets 65 budg- budgets of cities 2040 78 budgets of communes and so on yes so their finance finance of these budgets is not s- so m- much comparing the er comparing the mhm for example s- state special purpose funds and that's it is always er t- on their discussions in in poland er that local governments wants to have this money for example from er from the mhm national er national health fund you can see that we have the separate national health care health fund and local governments especially county this intermediate tier wanted very much to have this money because there are es- they are responsible for hospitals but er er they doesn't have any influence for financing these er these hospitals that's why that's why er municipal budget budget doesn't pay so much er role in this in this erm ed- er public finance sector as you can as you can see er and er the question er my question for you is how do you think what's it is what's er the level the the the is municipal parabudgetary units what is it how do you think , is that the public companies er erm public hospitals public schools what is it , parabudgetary units </S1>
<S6> <FOREIGN> (xx) </FOREIGN> </S6>
<S1> mhm-hm [very good] </S1>
<S6> [there's] the jails and things like that yes </S6>
<S1> like what </S1>
<S6> like jail prison i mean </S6>
<S1> no jail it is budgetary strictly not par- parabudgetary , jail jail er it is budgetary unit it is it is straight financing from from a budget isn't it </S1>
<S5> [mhm] </S5>
<S2> [so] hospitals [(some of the)] </S2>
<S1> [no] hospital is a er a separate indepen- er financially independent er legal person </S1>
<S2> the police er the main [er] </S2>
<S1> [no] it's er police er police station is a budgetar- strictly budgetary unit parabudgetary parabudgetary means it's not a budgetary strictly budgetary unit it's not a company public company it's something in the middle yes it's a form which has a feature of budgetary unit with and it's w- which has the feature of a public company and er of course i must explain it to you because er in poland it's er how does the er budgetary management look like budgetary management budgetary management units how we do organise our budgetary management , of course it is the same structure at the state level because it i- it must be the same it is the same structure at the state level and at the local level but we are talking about the local level and i will show you the budgetary management at local level okay <START WRITING ON MARKERBOARD> , so , state local budgetary , management . management units , we've got gross budgetary , management and net budgetary management <FOREIGN> brutto i netto </FOREIGN> <SIC> mudgetary </SIC> budgetary management so the main form of the gross budgetary management is , what form budgetary unit . or as you can erm you may say budgetary identity but better name is budgetary unit a- and it's what's the feature of budgetary unit it is fully fully included , into the , into the budget yes , er doesn't have budgetary unit doesn't have own resources , and expenditures yes because the it's expe- resources and expenditures it's strictly and automatically resources and expenditure expenditures of their budget isn't it and of course we can say that their , erm s- mhm-hm their expenditures er and revenues , revenues are expenditures and revenues of a budget , of a local or state budget budget mhm-hm <END WRITING ON MARKERBOARD> so examples what are the examples of budgetary units in poland er erm well state budgetary units as you as you said jails prisons er military units yes police station yes courts yes that's state local budgetary unit what are the examples unit which doesn't have er er its own finance er their finance their er revenues and expenditures where we can find th- their revenues and expenditures in the budget of the city yes so schools yes <START WRITING ON MARKERBOARD> schools erm welfare house . <FOREIGN> (xx) </FOREIGN> welfare house er erm er er fire , fire stations because in poland police station as i note- as i er told you was decentralised yes er by the communistic er er party which won the elections in 2002 er and er unfortunately only fire station er stayed in the at the local level at the county level and the county community take care and finance the fire stations er in in poland then the very important budgetary unit it is what city hall . halls or commune's halls yes city halls commune's halls er and for example transportations trans- , offices transportations offices <END WRITING ON MARKERBOARD> spatial planning offices and so on but the most important er budgetary local budgetary units are schools so we have th- that's the gross budgetary management and net we have such a er mhm er erm budgetary management we which we call net budgetary management or <START WRITING ON MARKERBOARD> para- , bud- budgetary management and the main main forms of this management is we can call it budgetary . en- ter- enterprise budgetary enterprise or in- sti- tu- tion but the better name is enterprise to understand the the the idea of of this form and what are the feature of this form this form is included in , into the budget . budget only by only by er surplus finance . surplus or or deficit , yes and what does this budgetary enterprise do sell sells , sells goods and service or services , using , market pla- er market , prices , market prices <END WRITING ON MARKERBOARD> but the most important feature is that who gives the er building and the land for the budgetary enterprise , city yes communes that's the municipal land and municipal buildings which are owned by budgetary enterprises but what does the budgetary enterprise do they o- they of course serve public services but these services are er er erm such such ones that you can take price take erm er you can sell and take the price of er of it be- er er and for example schools public schools welfare house they are usually doesn't take any any or or maybe or maybe some part yeah like like welfare house but you are usually it is impossible to finance them by the system of net yes er by including including them into the budget only by surplus or or er of their surplus or er deficits because they are not acting as a company on profit the- er they are non-profit erm ident- identities but these ones different these ones er these are er these can act as a company and can sell goods or services and take price and take money from it yes erm and examples and examples @@ there are lots of examples all over poland the the different examples of this very strange form very strange forms but for example in my town bialystok there are quite a lot of forms of it and er we can find budgetary er enterprise like mhm er municipal <WRITING ON MARKERBOARD> , kindergartens . yes it is obv- it is obvious that the pa- parents have to pay pay money for this service yes and er this er kindergarten can act can act as a company as an enterprise but of course it is not strictly strictly company and then er mhm then er city sport <WRITING ON MARKERBOARD> city s- sport city sport centre yes like er the swimming pools in bialystok er it i- it's not a company it is a budgetary enterprise erm <FOREIGN> (xx) </FOREIGN> er in bialystok and city sport centres centre mhm <WRITING ON MARKERBOARD> municipal cem- cemeteries er . cemeteries </S1>
<S5> and what with public transportation like [buses and trams and] </S5>
<S1> [public transportation] er er you mean erm city tran- er transport <S5> [yeah] </S5> [yes] like er [buses and so on] </S1>
<S5> [buses trams] yeah and [subway (xx)] </S5>
<S1> [yes sometimes] in som- i i think er it's a very rare that in some t- cities it's a budgetary enterprise but in no cities it is a municipal company or joined-stock company (xx) joined-stock company er er er er limited liabilities or the limited li- liability er company so it is strictly commercial commercial forms but of course with the mhm er er er with the property and and finance erm the the the most part of this erm finance are are from the from the city this is we call it municipal companies municipal er municipal erm er the er li- er limited liability comp- companies but some ci- in some cities yes in some small city it can be budgetary enterprise which is very easy and very pleasant way to er to serve to sell goods and sell services because what because w- whenever you have financial problems it is we c- we or you can always count on a mhm city budget or a county budget yes because it is always the budget whi- i- which will cover your er defi- deficit isn't it that's er er this is the same the same problem with the erm in my country with the kindergartens they are always have financial @problems@ but they they are existing because bu- state er city budget always cover their deficit and the same city sport centre it's of course depends o- of the er manager of the budgetary enterprise but if manager is is not so clever sto- er so then erm even city sport centre has a deficit and and city budget has to cover it cemeteries they are very nice budgetary enterprises because they are a- always having er in my town er there is one er mun- municipal cemetery and it is the budgetary enterprise and it's always have a surplus surplus er never has a deficit because as you know they they quite er cheap to to to run and and er their their service are quite expensive and then er we have er budgetary enterprise like like municipal <WRITING ON MARKERBOARD, P:12> yes men er mhm er boys would know what @is it i suppose@ sobering-up station er do you know what @is it@ when you have er er big illness and and headache after the alcohol <S2> ah [yeah] </S2> [yes] sometimes you you can you can use the service of this er of this er @station@ and in my town the sobering-up station is @the budgetary@ enterprise and this er budgetary enterprise of [course] </S1>
<S5> [is this] always surplus </S5>
<S1> yes yes never has a <SS> [@@] </SS> [deficit] @so@ their er services are er very erm expensive so that's er very interesting in my town i don't know er somewhere in poland i i notice er in the budgets of the cities that somewhere mhm er in some other cities of er er polish cities has such a budgetary enterprise and then as for example er er erm municipal er property management office <WRITING ON MARKERBOARD> municipal property property management , management office that is the budgetary enterprise who for example build municipal houses block of flats and then sells them yes <FOREIGN> (xx) </FOREIGN> it it is very nice of course budgetary enterprise which build a- and sells er municipal houses and then and then take rent er from from er from re- house rents er s- it i- and it also er also nearly all the time on surplus so we have budgetary enterprises and then the s- the second form of this net of this net ma- management <START WRITING ON MARKERBOARD> it's we we call it <FOREIGN> (xx) </FOREIGN> and in english auxi- au- auxi- auxiliary aug- , auxiliary workshop , workshops or farmsteads . farm- . farmsteads serving , these mun- auxiliary workshops serving are serving serving mhm er the purposes . of the <P:09> serving the purposes of the mhm principal budgetary unit auxiliary workshop it is a very rare er form of budgeta- net budgetary management but sometimes in for example in my city there is only one auxiliary workshop of a budgetary unit it is the er school technical er technical -nical secondary secondary school er auxiliary workshop <END WRITING ON MARKERBOARD> er which is the erm car car aux- er car er workshop er <FOREIGN> (xx) </FOREIGN> this is the aux- auxiliary workshop technical secondary school auxiliary workshop so you can imagine a technical er secondary school er mechanic yes mechanic secondary school it has the workshop like a garage like a car you can repair a car there but of course these er er auxiliary workshop the main er er the main er activity is to learn learn er students yes how to repair a a car yes so but of course er er er these f- er auxiliary workshop can repair a car for the citizen and take money from it yes er using market price using market price and er of course having money from from these services but er er we er have to imagine er we have to realise that putting a car in these auxiliary workshop of the mechanic secondary school er we have to accept that on this er on my car will er student learn how to do it <SS> @@ </SS> yes erm and i will have to pay for the reparation the same price as the er we have er o- on market that's why this is a very rare form but er sometimes we have this form like in in my town there is only one auxiliary workshop erm of the mechanical me- mechanic secondary school and of course they are the same connected with the budget the same by the surplus or deficit yes with i- if the auxiliary workshop doesn't er d- does has def- deficit budget has to cover it budget has to cover it mhm-hm okay so now you understand the this level yes municipal bara- parabudgetary units that's the units budgetary enterprises and and auxiliary workshops so you can see that this er er this level of public finance er er level of er municipal parabudgetary units are quite quite important isn't it especially especially they they do er er quite a lot of amount of public expenditure and in poland we do have such a level of public finance sector like state agencies state agencies well they they are legal persons and er these these forms are always criticising in in poland er and er state agencies we have er fo- seven seven state agencies three agencies er in the mu- military area military military's er agencies and three agriculture in the agriculture area for example in minita- military area we have erm military er housing management er military then er military property manage- <FOREIGN> (xx) </FOREIGN> military property management er a- agency military storages agency reserve material and then from agriculture er we have also three ag- age- agencies like er agency of erm agri- er culture recons- er er er restructurisation and modernisation <FOREIGN> (xx) </FOREIGN> which is a very important agency er state agency in poland because this er er er agency of restructurisation and modernisation of agriculture er er is taking er care of er erm distribution of er er european union funds and er this a- agency is very criticising poland because it has er er er a big administration er they are c- c- er in each regions er there are about er 20 stations of this agency i- in each county in in each in each <FOREIGN> poviat </FOREIGN> has w- er has to be one er er er one er er agency of of erm restructurisation and modernisation of agriculture because er because er er farmers use european union funds quite a lot and that's the agency who organise it yes farmers goes to the agency and and er er and ask for the european m- money er okay state agencies and then the municipal spe- state purpose er funds some of the er national funds are decentralised er into the local level for example the most important one are er environment protection fund er so we have communal environment protection fund county environment protection fund and regional environment protection fund er and of course national yes er so this is the most decentralised decentralised state er state er mhm mhm special purpose fund and we then w- then we call it municipal special purpose fund and the the most er decentralised is is er natio- is environment protection fund and then sta- state budgetary units and you have the whole s- public finance sector and let's have a look at the second table functions of local government tiers in poland so you have here er you have here erm er some groups some groups of er of er er activities of the responsibilities of local governments and have a look at the table and it's very interesting when w- you will ha- er for the future when you will er have to present thi- this subject please do this this like that if it is the i think the most clear er way to present it er what we can say about mhm health health services of course of course the financing of these activities are different yes for example education we sa- we already said that er that education that's it is the strictly budgetary er er budgetary way of financing schools yes schools are budgetary units and er man- municipal budgetary units and that's no er er er that's cause any problems er with the man- mhm mhm with the mechanism of financing of m- er er of er management them er so education is alright social welfare is the same welfare houses welfare homes are budgetary units financing straight from the budget a local budget so you can see schools education i think in e- each each i- in each european country it's the same that primary education nurseries kand- kindergartens er mhm are er that's the activities of the lowest tier yes communes then the sec- er the the secondary education technical trade education and er er s- special care special care schools are that's the activity of intermediate tier pov- county and higher university education and you can see the note that tha- this is a vocational fu- function of course er region can open universi- university but in poland any region er use this right and er all the universities are are mhm er independent legal er legal er mhm person mhm er which previously was the state er budgetary units and of course social welfare let's let's have a look at the these er services you can see almost the same subdivi- er s- the same divisions of of activities yes the primary social services goes to belongs to communes the mhm mhm higher secondary er er social services belongs to county and so on health services you must remember that the financing of health services are separated from the local budgets because financing health services hospitals and so on goes through the national health fund we have the separate fund and and er this fund is responsible fo- of er for financing hospitals in poland but why do did we put the health services here in this table as a function of local government why because as i told you yes coun- er county is responsible for running a hospital for running a hospital county government has to provide er hospital in the county and when the hospital has er financial problems county government has to cover it has to slow it yes er but the the current financing everyday fi- financing of the health services of course goes goes from the national health fund then er culture leisure sports that's er the other way of mechanism er another mechanism of financing public services because in poland i think in in the most countries in european countries it's like that er er cultural institutions are er separate self-financing independent legal persons so there is er culture cultural institution like theatres museums libraries philharmonics er cinemas sometimes other cultural institutions which has to manage by yourself yes which has to try to er make a profits from culture activity but as you know it is very difficult isn't it to make a profit er in a theatre yes because the income from the tickets are quite low usually yes er do you er do you go to the theatre often <SS> @@ (yeah) </SS> i suppose you doesn't go to the you don't go to the theatre often so that's why er er that's why theatre in poland museums can er can finance their activity using other other ways for example rent a building rent a room rent a building of the theatre to the company and take er money from it yes to the other institution and take er money from it er for example organised some other events than er theatre performance yes er er er and er of course erm er this is a very important to manage to be a manager of a theatre er erm and er in my city for example theatre always need help from the city budget and therefore and nearly 80 per cent of er cost of the theatre activity is covering by the city budget city budget , okay that's culture public utilities that's very commerc- that's er the the sector of commerce er erm which is erm served by the companies such er limited liability company usually environment traffic transport er urban er development and so on and have a look at the table the structure of local government revenue in poland er yes please do study these tables okay for tomorrow and please do some preparation of your country for tomorrow if you want to have a chance for a five yes please do so see you tomorrow for er on our last lecture </S1>
