The municipal financial equalisation is a socio-economic system. Changes in tasks, spending or income as well as the population figure of single municipalities generally require the reallocation of financial compensation means. The criteria of distribution which are constituted in a financial equalisation act are necessarily generalising and therefore not applicable when capturing fundamental structural changes. Thus revisions and updates concerning the settlements are necessary in certain intervals. In line with the report the core elements of the municipal financial equalisation in Rhineland-Palatinate will be examined in financial regards. If a need for reforms will be assessed, accordant recommendations will be provided which take the requirements above in account and assure that the municipal financial equalisation in Rhineland-Palatinate is put on a secure quantitative basis and conceived with qualitative sustainability.
The report examines the vertical as well as the horizontal aspects of the financial equalisation. A comprehensive simulation model of the municipal financial equalisation which patterns the distribution of means according to current law will be the basis of the analysis. After resolving the question which community features should be considered from a financial view when assigning unconditional grants, multivariate regressions will be employed in order to allow for a systematic evaluation of the requisition. Furthermore, principal question concerning the municipal financial equalisation will be discussed.
Land Statistical Office Rheinland-Pfalz
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