Perspectives for local and regional development in Saxony-Anhalt

1. Perspectives for local and regional development in Saxony-Anhalt Dr. Bernd Kregel General Manager of the Local Government Association of Saxony-Anhalt Conference „EU funds for improvement of services provided by the municipalities“ Riga, 20th November 2008

2. Structure of local governments and the demographic problem of Saxony-Anhalt • area 20.446 km² • before 2004 three regional governments, then creation of the „Landesverwaltungsamt“ as the general administration unit below the ministries, 14 (County-/City)Districts (40 until 1994, 24 until 2007), 1.039 Municipalities • declining population in Saxony-Anhalt 1989: 2.964.971 1999: 2.648.737 2006: 2.441.787 Prognosis for the Year 2025: 1.976.237

3. Administration of the State of Saxony-Anhalt 1991: 95.712 1999: 85.505 2007: 63.655 2011 (planning): 55.021 Administration of the districts and the local authorities 1991: 119.508 1999: 74.857 2007: 49.460 Number of civil servants in Saxony-Anhalt

4. The Local Government Reform – different kinds of local authorities now • „united“ communities with their own administration (i. e. only one council, one budget), minimum size: 8.000 inhabitants • joint administration for a few small communities, which keep important competences, minimum size: 10.000 inhabitants • Problem: German constitutional law does not allow to assign self-administration competences by law to a legal body without a directly elected council

5. The Local Government Reform - Local authorities after finishing the Reform in 2011 • „united“ communities with at least 10.000 inhabitants (except those regions with an extraordinarily low density of population - at least 8.000 inhabitants) • „associated“ communities with at least 10.000 inhabitants (except those with a directly elected council and a mayor) as members between at least 3 and at most 8 local communities (also with its own council and its own mayor) with at least 1.000 inhabitants for each

6. Assumption 1: Local affairs must adapt to the effects of demographic change in time. Saxony-Anhalt is faced with an inconsistent demographic change, but it will have a major impact on the whole society. • reorientation of planning and governance of municipal responsibilities • analysis of current and prognosis of future development • definition of new objectives in fields of municipal investment (facilities, streets, social public affairs…) • setting up cooperative and humanitarian commitments (network between all institutions)

7. Assumption 2: Municipalities must emerge as places of active participation, which focus on one's own initiative. • is indispensable to describe municipal supply of services to the public • cooperation becomes more and more important • operating and encouraging instead of acting itself • for example delivery of different kinds of clubs and associations

8. Assumption 3: The organisation of municipal administration must become more efficient and must gear towards better customer service. • further development of administration and area structure • continuous qualification of personnel • focus on service • cost awareness • adoption of modern communication media

9. Assumption 4: The development of municipalities must concentrate on land consolidation of built-up areas with an optimal utilisation of existent infrastructure. • reduction of settlement areas • increasing quality demands in fields of living areas, trade and business • grade up historical areas • considering the consequences of a growing elderly population

10. Assumption 5: The demographic change in context of financial and familial general conditions requires an integrated and middle-term demand planning of day care facilities for children and youth. • update demand planning for day care facilities for children, childminder (kindergardens, day nurseries) • demand planning of facilities and other supplies for youth Assumption 6: Demand of educational and cultural institutions will change extremely. To save quality it will be necessary to cooperate in questions of school system and culture. • network for cultural institutions

11. Assumption 7: Municipal policy for seniors will become one of the most important duties for municipalities. It will be necessary to generate conditions that allow a self dependent living in familiar surroundings. • specific policy for seniors > equal participation in society > medical care / outpatient and home care Assumption 8: Planning, maintenance and development of a municipal infrastructure must be adapted to the long term development of population (in quantity and structure). Voluntary offers must be organised in cooperation with other municipalities or private institutions. networks of roads, places, local traffic systems, sports fields, cemetery, utility (water, sewages, gas, electricity ), leisure facilities

12. Assumption 9: In the mainly rural area it will be necessary to adapt to the declining population with a more intensive cooperation with private institutions and mobile municipal services. • in the mainly rural area the effects of a declining population for municipal services are even stronger • increasing pressure to generate other forms of cooperation between different municipalities and neighbours • voluntary posts become even more important • citizens office in municipalities with more than 1.000 inhabitants for supply of municipal and private services • use of modern communication media

13. Assumption 10: The financial situation of municipalities will get even worse – decreasing incomes and increasing costs especially in the social area. It`s the function of the federal state to reduce duties and costs for cities to create opportunities to respond to demographic changes. • self-administration of municipalities is important • reform of the municipal finance system is necessary • decrease of duty, standards and commitments

14. Without the opportunitity of creative options regarding demographic changes there will be no sustainable development for the municipalities and finally for the federal state of Saxony-Anhalt. Paldies!

17. The Local Government Reform in Saxony-Anhalt • the „united“ community as the preferred type of local authorities in Saxony-Anhalt (1) • „associated“ communities are only allowed to be set up in rural areas under special conditions • „associated“ communities can only be established optional by the participating „member communities“ till the 01.01.2010 • communities, which do not reach the minimum size of 10.000 inhabitants till the 01.01.2010 voluntarilly, will be joint together to „united“ communities by Law in 2011

18. The Local Government Reform in Saxony-Anhalt • the „united“ community as the preferred type of local authorities in Saxony-Anhalt (2) • with only one council, one mayor and one budget, the „united“ community (as a „one-level-type“) is the most effective form of a local authority • in the case of the „associated“ community the most important self-administration competences are assigned to it; nevertheless some competences still belong to the „member“ communities. So this is a „two-level-type“ of a local authority, which is less effective.

19. The reform of the allocation of competences • it is a political objective of the State Government of Saxony-Anhalt to delegate competences of the State Administration to the (County-/City-) Districts (principle of subsidiarity) • this was one of the main reasons to extend the (County-/City-)Districts a second time in 2007 • in 2005 the „First Functional-Reform-Law“ came into force, which delegated some competences (first and foremost those of the Ministry of Environment) from the „Landesverwaltungsamt“ to the (County-/City-)Districts