The Aspects of Financing of Municipalities with Extended Power

In connection with the third phase of public administration reform in the Czech Republic, there's an ongoing discussion about delegating execution of state administration to municipalities. The basic elements, from the point of provision of delegated state administration, are "designated" municipalities with delegated state competencies ("municipalities with extended competencies"). These municipalities were founded on 1. 1. 2013 after abrogation of district offices. With planned changes in public administration, it is assumed that these municipalities should be fundamental for execution of specialised state administration, and in the future might adopt activities of other municipalities with less scope of delegated competencies. In the article we focus on the financing of delegated activities of municipalities with extended power. The aim is to find in what extent the delegated competencies of municipalities with extended power are financed by the Ministry of Finance of the Czech Republic. The analysis was performed on selected number of municipalities with extended competencies from different regions in the 2006-2011 years. The range of financing varies from 65 % to 85 % by means of the average for examined sample of cities between 2006 and 2011. In addition, we analysed the financing according to the criterion of the size of administrative district (number of residents) and according to the region in which the municipality is located. It cannot be observed any relationship between the region in which the municipality is located or the size of administrative district and the arithmetic mean of delegated competencies financed.