ISSN 1899-5772 Journal of Agrbusness and Rural Development www.jard.edu.pl 1(11) 2009, 155-168 FINANCIAL STANDING OF COUNTIES IN THE WIELKOPOLSKIE PROVINCE IN THE YEARS 2004-2006 Anna Majchrzak, Joanna Stansławska Poznań Unversty of Lfe Scences Abstract. The artcle presents a selecton of ndexes descrbng fnancal standng of local government unts based on countes of the Welkopolske provnce. On the bass of ther values analysed local government unts were classfed usng Ward s method to form classes wth a smlar fnancal stuaton. Key words: fnancal standng, countes, Ward s method INTRODUCTION An mportant element n the management of a local government unt s the management of ts fnances. It should be done n a ratonal and effcent manner and facltate the realzaton of a long-term development strategy. Approprate management of fnancal resources s one of the key pre-requstes of success for a local government unt and ts qualty affects not only the fnancal result of ths unt, but frst of all the degree to whch needs voced by the local communty are gong to be satsfed [Flpak 2004]. Observed problems wth tmely settlement of labltes may lead to a stuaton when oblgatory tasks are no longer realzed, whch may undermne trust n the local government unt as a publc subject [Gonet 2008]. Effcency of fnancal management may vary greatly, even at dentcal resources, thus the decson-makng process plays such a sgnfcant role. Fnancal analyss consttutng one of the functons of resource management s a tool adng decson-makers n ths process. Ths analyss ncludes fnancal aspects of actons performed by local government organs,.e. expenses, costs, revenues and ncome, cash flows, fnancal economy and lqudty [Dylewsk et al. 2004]. Copyrght Wydawnctwo Unwersytetu Przyrodnczego w Poznanu Correspondng author Adres do korespondencj: mgr Anna Majchrzak, Katedra Fnansów Rachunkowośc w Agrobznese, Unwersytet Przyrodnczy w Poznanu, ul. Wojska Polskego 28, 60-637 Poznań, Poland, e-mal: majchrzak@up.poznan.pl
156 A. Majchrzak, J. Stansławska The am of the artcle s to assess the fnancal stuaton of countes n the Welkopolske provnce n the years 2004-2006. MATERIALS AND METHODS The study used data of the Central Statstcal Offce (Regonal Data Bank) and the Mnstry of Fnances (Index analyss of local government unts n the years 2004-2006: countes). These data were used to classfy countes of the Welkopolske provnce n terms of ther fnancal standng. A total of 31 land countes were analysed (muncpal countes were excluded from the analyss due to ther unque character). The classfcaton of analysed unts was conducted n the course of the followng stages [Wysock and Lra 2005]: 1. Selecton of varables descrbng fnancal standng of countes. Based on factual data a set of varables was proposed, whch s presented n Table 1. Table 1. A lst of varables used to nvestgate fnancal standng of countes Tabela 1. Zestawene zmennych przyjętych do badana sytuacj fnansowej powatów Denotaton of varable Oznaczene zmennej X1 Income X1 Dochody X2 Own resources X2 Środk własne X3 WSWI X4 Subsdes X4 Dotacje X5 WSWII X6 Taxes X6 Podatk X7 Expendture X7 Wydatk X8 Salares and wages X8 Wynagrodzena Defnton of varable Określene zmennej 1 2 X9 Property expenses X9 Wydatk majątkowe total ncome per capta (PLN) dochody ogółem na 1 meszkańca (zł) own ncome per capta (PLN) dochody własne na 1 meszkańca (zł) prmary ncome ndependence ndex calculated as a proporton of own ncome n total ncome (%) wskaźn samodzelnośc wydatkowej I stopna oblczany jako udzał dochodów własnych w dochodach ogółem (%) the proporton of grants from the natonal budget n total ncome (%) udzał dotacj celowych z budżetu państwa w dochodach ogółem (%) secondary ncome ndependence ndex calculated as the proporton of own ncome and total subsdes n total ncome (%) wskaźn samodzelnośc wydatkowej II stopna oblczany jako udzał dochodów własnych subwencj ogólnej w dochodach ogółem (%) the proporton of ndvdual and corporate ncome taxes n own ncome (%) udzał podatków od osób fzycznych od osób prawnych w dochodach własnych (%) total expendture per capta (PLN) wydatk ogółem na 1 meszkańca (zł) the proporton of salares and wages and dervatves n current expenses (%) udzał wynagrodzeń pochodnych w wydatkach beżących (%) the proporton of property expenses n total expenses (%) udzał wydatków majątkowych w wydatkach ogółem (%) Journal of Agrbusness and Rural Development
Fnancal standng of countes n the Welkopolske provnce n the years 2004-2006 157 Table 1 cont. / Tabela 1 cd. X10 Investments X10 Inwestycje X11 Labltes X11 Zobowązana X12 Repayments X12 Spłata X13 WPFI X14 Income/expenses X14 Dochody/wydatk X15 Surplus X15 Nadwyżka 1 2 nvestment expenses per capta (PLN) wydatk nwestycyjne na 1 meszkańca (zł) the proporton of total labltes n total ncome (%) udzał zobowązań ogółem w dochodach ogółem (%) the proporton of prncpal repayments and nterest repayments n total ncome (%) udzał spłat rat kaptałowych odsetek w dochodach ogółem (%) prmary fnancal lqudty rato calculated as a quotent of total ncome and revenues to total expendture, dsbursement and outstandng labltes wskaźn płynnośc fnansowej I stopna oblczany jako loraz dochodów ogółem przychodów do wydatków ogółem, rozchodów oraz zobowązań wymagalnych the rate of coverage of total expenses by total ncome (%) stopeń pokryca wydatków ogółem dochodam ogółem (%) the proporton of operatng surplus n current ncome* (%) udzał nadwyżk operacyjnej w dochodach beżących* (%) *Operatng surplus s calculated as a dfference between current ncome and current expendtures. Current ncome s understood as budgetary ncome not beng property ncome, whch ncludes subsdes and resources granted for nvestments, ncome from sale of property, ncome from the transformaton of perpetual usufruct rght nto property rght [Analza wskaźnowa... 2008]. Source: the author s study based on: Dylewsk et al. [2004], Jastrzębska [2004]. *Nadwyżka operacyjna jest oblczana jako różnca mędzy dochodam beżącym a wydatkam beżącym. Przez dochody beżące rozume sę dochody budżetowe ne będące dochodam majątkowym, do których zalcza sę: dotacje środk otrzymane na nwestycje, dochody ze sprzedaży majątku, dochody z tytułu przekształcena prawa użytkowana weczystego w prawo własnośc [Analza wskaźnowa... 2008]. Źródło: opracowane własne na podstawe: Dylewsk n. [2004], Jastrzębska [2004]. In order to elmnate excessvely correlated varables, an nverse matrx was establshed for correlaton coeffcents between assumed varables. On the bass of the analyss of dagonal elements of the matrx three varables were elmnated from further nvestgatons: X1, X5 and X10. Coeffcents of varaton were also ncluded n statstcal analyss. Due to the slght dversfcaton (constant varaton), further varables,.e. X8, X13 and X14, were rejected. As a result 9 characterstcs were ncluded n further nvestgatons, as they were consdered stmulants of fnancal stuaton of countes, except for X11 and X12 (nomnants) and X4 (a destmulant) (Table 2). 2. Normalzaton of values for dagnostc varables t conssted n the transformaton of nomnants and destmulants nto stmulants and n brngng values of varables to comparablty, usng the untarzaton procedure, based on the followng formulas: for stmulants: z for nomnants: mnx x mnx x, ( 1,2,..., n; k 1,2,..., m) max z x mnx, x nomx nomx mnx 1(11) 2009
158 A. Majchrzak, J. Stansławska Table 2. Basc statstcs of varables descrbng fnancal stuaton of countes n the Welkopolske provnce n the years 2004-2006 Tabela 2. Podstawowe statystyk zmennych opsujących sytuację fnansową powatów województwa welkopolskego w latach 2004-2006 Characterstc Cecha Mnmum Medan Maxmum Maksmum Coeffcent of varaton Współczynn zmennośc Own resources 111.04 152.52 224.97 17.74 Środk własne WSWI 20.24 28.07 53.61 33.49 Subsdes 3.32 15.37 25.37 21.55 Dotacje Taxes 29.43 45.57 64.29 15.06 Podatk Expenses 314.88 639.25 815.07 18.50 Wydatk Property expendture 5.17 10.26 20.19 35.30 Wydatk majątkowe Labltes 0.00 12.49 33.70 74.04 Zobowązana Repayment 0.00 2.49 11.24 82.12 Spłata Surplus Nadwyżka 1.62 6.84 14.97 50.19 Source: the authors calculatons based on data of the Mnstry of Fnances and the Central Statstcal Offce 2008. Źródło: oblczena własne na podstawe danych Mnsterstwa Fnansów oraz GUS z 2008 roku. z for destmulants: max max z x x, x nomx x nomx x xj x mnx max, ( 1,2,..., n; k 1,2,..., m) max where: max x maxmum value of the k-th characterstc, nom nomnal value of the k-th characterstc 1, x mn x mnmum value of the k-th characterstc. 3. Cluster analyss by Ward s method, consstng n combnng closest unts n order to generate one cluster. The analyss of varance s used to estmate dstances between unts amng at mnmzaton of sum squares for devatons wthn clusters [Stansz 2007] 2. 1 The value of a medan was assumed as the nomnal value for all analysed unts. 2 The computer software Statstca ver. 7.1 was used n the computaton process. Journal of Agrbusness and Rural Development
Fnancal standng of countes n the Welkopolske provnce n the years 2004-2006 159 EVALUATION OF FINANCIAL STANDING OF COUNTIES BASED ON PARTIAL INDEXES The objectve of ncome polcy of any local government unt s to provde adequately hgh resources requred for the realzaton of assumed tasks [Bury 1999]. Local governments may use ther own ncome and supplementary ncome, comprsng subsdes and total grant. Ther own resources should consttute the man part of budgetary ncome as they can freely use them [Śwrska 2008]. A measure of ths freedom s the prmary ncome ndependence ndex. A hgher level of ths ndex means hgher fnancal ndependence of the local government. Areas most fnancally ndependent of the state budget were concentrated around towns wth county rghts,.e. the Poznań (53.61%), Kalsz, Konn, Leszno and Szamotuły (over 32%) countes (Table 3). Ths ndependence was also confrmed by the relatvely low percentage of subsdes from the state Table 3. Values of varables descrbng fnancng standng of countes n the Welkopolske provnce n the years 2004-2006 (medan values) Tabela 3. Wartośc zmennych opsujących sytuację fnansową powatów w województwe welkopolskm w latach 2004-2006 (wartość medany) County Powat own resources środk własne WSWI Varable descrbng fnancal standng of a county Zmenna opsująca sytuację fnansową powatu subsdes dotacje taxes podatk expenses wydatk property expendture wydatk majątkowe labltes zobowązana repayment spłata surplus nadwyżka 1 2 3 4 5 6 7 8 9 10 Chodzeż 202.85 30.04 15.72 38.92 748.85 11.75 4.77 2.07 8.49 Czarnków- -Trzcanka 157.03 20.24 25.26 40.14 796.52 6.32 12.61 11.24 3.17 Gnezno 150.51 24.07 12.20 46.94 664.30 7.68 8.59 2.49 6.84 Gostyń 171.36 28.05 20.66 44.26 727.76 13.59 12.81 3.45 9.74 Grodzsk 134.22 29.30 11.94 50.82 479.69 13.20 11.71 1.64 9.64 Jarocn 126.87 23.90 16.01 45.26 714.66 15.61 16.42 1.71 7.42 Kalsz 118.51 38.77 9.29 48.90 314.88 9.92 17.10 6.42 7.23 Kępno 150.93 27.98 16.65 50.23 594.76 10.26 13.14 3.51 6.87 Koło 141.31 26.07 14.79 45.07 591.86 7.67 4.53 1.49 7.03 Konn 111.04 33.45 18.94 51.02 399.80 12.10 3.63 2.77 10.69 Koścan 150.87 30.28 17.82 48.60 537.81 19.01 8.28 0.64 10.5 Krotoszyn 133.20 21.98 16.90 45.57 639.25 8.53 18.80 6.17 4.31 Leszno 136.18 32.65 3.32 44.74 662.38 12.43 14.25 0.95 10.70 Mędzychód 224.97 28.82 23.19 34.17 677.74 6.21 0.00 0.00 6.66 1(11) 2009
160 A. Majchrzak, J. Stansławska Table 3 cont. / Tabela 3 cd. Nowy Tomyśl 1 2 3 4 5 6 7 8 9 10 153.57 31.92 9.90 55.74 508.99 5.17 1.26 1.17 5.12 Oborn 134.15 25.56 12.10 51.11 545.92 7.94 33.70 5.18 3.63 Ostrów 152.52 28.14 13.76 53.61 617.35 9.83 8.21 2.76 4.03 Ostrzeszów 183.69 26.79 24.16 36.09 724.01 5.49 1.97 1.03 5.73 Pła 213.50 31.70 16.95 52.65 724.42 8.37 1.23 0.80 5.72 Pleszew 181.38 24.14 25.37 29.43 815.07 14.65 33.39 6.19 3.16 Poznań 205.21 53.61 8.86 64.29 525.40 20.19 12.01 1.72 14.97 Rawcz 157.90 28.14 23.13 42.63 469.56 12.29 0.18 0.16 7.99 Słupca 151.54 22.99 22.70 37.65 700.35 6.66 17.82 4.82 3.92 Szamotuły 187.41 32.41 15.19 48.50 481.10 13.49 0.00 0.00 13.85 Środa 175.17 29.81 14.06 52.66 656.46 9.94 14.30 5.07 1.62 Śrem 176.41 28.07 18.14 44.53 638.02 10.60 12.49 3.51 5.55 Turek 163.05 28.45 15.37 48.67 659.90 6.15 13.82 2.75 3.86 Wągrowec 136.64 21.23 10.58 42.15 663.54 16.39 17.06 2.43 8.75 Wolsztyn 176.49 26.31 15.06 43.72 700.45 12.12 7.37 1.59 7.73 Wrześna 144.17 26.90 11.92 48.21 611.01 10.05 14.53 3.86 2.78 Złotów 130.59 22.78 11.49 40.36 585.42 11.77 13.12 2.90 6.03 Source: the authors study based on data of the Mnstry of Fnances and the Central Statstcal Offce 2008. Źródło: opracowane własne na podstawe danych Mnsterstwa Fnansów oraz GUS z 2008 roku. budget n the total ncome of these unts (less than 10%) (except for the Szamotuły and Konn countes). The hghest levels of captal grants were recorded n the Pleszew, Czarnków-Trzcanka and Ostrzeszów countes (almost 25%), whch reported ther share of ther own resources to be below average. A hgh percentage of supplementary ncome, as t was ndcated by Kańduła [2005], s not conducve of mprovng the effcency of own ncome. The level of resources generated by sources found n a gven local communty, as own ncome s frequently defned 3, at the same tme consttutes an ndcator of attractveness of a gven local government unt [Dylewsk et al. 2004]. The volume of own ncome per capta was hghest n the years of analyss n the Mędzychód, Pła, Poznań and Chodzeż countes (over PLN 200). In the local governments of Mędzychód and Chodzeż ths resulted from ther relatvely small populaton, whereas n the other countes recorded results ndcated good fnancal condton of local governments. Despte hgh populaton densty the Poznań and Pła countes recorded relatvely hgh levels of own resources per capta, whch confrms consderable attractveness of these areas. In turn, the lowest own ncome per capta was found n local gov- 3 Ths defnton s also supplemented to nclude the condton to have ncome at the dsposal of local governments for an ndefnte perod and as a whole amount [Denek 2001]. Journal of Agrbusness and Rural Development
Fnancal standng of countes n the Welkopolske provnce n the years 2004-2006 161 ernments of Konn and Kalsz (below PLN 120). It mght have been connected wth a relatvely hgh number of nhabtants n these countes. As t has been already mentoned, own ncome plays a crucal role n fnancal ndependence. However, ts range vares for ndvdual elements comprsng own ncome. In case of ther contrbuton to budget revenue,.e. ndvdual or corporate ncome taxes, local governments have no authorty. They may only am at the mprovement of ther effcency by stmulatng economc actvty [Kańduła 2003]. In every second analysed unt the proporton of ncome taxes n own resources was more than 45% (Table 2). The hghest value of the dscussed ndcator was observed n the Poznań county, whch results from hgh actvty of economc enttes, whle t was two tmes lower (mnmum) n the Pleszew and Mędzychód countes (Table 2 and 3). It also needs to be stressed here that a hgh share of ncome taxes n own ncome s concurrent wth a hgh proporton of own resources n total budgetary revenue 4. Ths proves a tremendous role of tax sources n the generaton of own fnancal resources of countes. Smultaneously wth ncome polcy, expense polcy s also conducted. The volume of expenses per capta (especally nvestment expendture) s one of the measures evaluatng attractveness of local government unts [Dylewsk et al. 2004]. In the analyzed perod the Pleszew (PLN 815.07) and Czarnków-Trzcanka countes (PLN 796.52) spent most, whle the Kalsz (PLN 314.88) and Konn countes (PLN 399.80) spent the least money (Table 3). Smlarly as n case of own ncome per capta, these results were affected by the number of nhabtants n a gven local government unt. Expense polcy ncludes polcy concernng current expendture, ncurred for the ongong functonng of these unts and property expenses allocated to nvestments. Accordng to Jastrzębska, nvestment expendture ndcates hgher ncome flexblty that current expenses, snce nvestment expendture grows wth an ncrease n budget revenue [Jastrzębska 2004]. The hghest proporton of property expenses was found for the Poznań and Koścan countes (almost 20%), whch ndcates a hgh development potental of these local government unts. An almost four tmes lower (mnmum) percentage of expenses was recorded n the Nowy Tomyśl and Ostrzeszów countes (Table 3). Investments may be fnanced from ther own resources or outsde sources thanks to subsdes. Accordng to Ruśkowsk, a certan relatonshp may be found between the level of own ncome and nvestment expendture [Ruśkowsk 2004]. However, studes dd not show a strong dependence n ths respect 5. Another possble source to cover nvestment expendture s revenue from taken credts and loans. In 1/2 analysed countes total ndebtedness exceeded 12.49% n relaton to total ncome (Table 2). The Oborn and Pleszew countes turned out to be n bggest debt (33%), although ndebtedness dd not exceed the statutory level of 60% 6 (Table 3). These unts were also relatvely heavly burdened by repayment of labltes, although the hghest ndex, recorded n the Czarnków-Trzcanka county, also dd not exceed the statutory lmt of 15% total ncome. Meetng the requrements concernng the level of ndebtedness and the amount of repayments n a gven budgetary year s not a relable guarantee of good fnancal standng of local government unts and thus credt ratng, makng t possble to take out new labltes [Gonet 2006]. A tool facltatng an evaluaton of potental capacty to 4 Pearson s lnear correlaton coeffcent was 0.63; sgnfcance at 0.05. 5 Pearson s lnear correlaton coeffcent for the proporton of property expendture and own ncome ndex was 0.38; sgnfcance at 0.05. 6 The Act of 30 June 2005 on publc fnances [Ustawa... 2005]. 1(11) 2009
162 A. Majchrzak, J. Stansławska pay debts and fnance new nvestments s the proporton of operatng surplus n current ncome [Jastrzębska 2004]. The hghest level of ths ndex was recorded for the Poznań and Szamotuły countes (almost 14%), whle the lowest for the Środa county ( 1.62%). Ths negatve value may ndcate that a porton of current expenses was covered by property ncome or rembursement fnancng sources. CLASSIFICATION Normalzed data were classfed usng Ward s method. The analyss of nodes on the dendrogram showed that there were three clusters. However, due to the low homogenety of clusters hnderng factual nterpretaton, t was decded to adopt dvson at a lower level of the clusterng process. Classfcaton was searched for at the lowest possble level, at the same tme at a relatvely bg dstance between successve stages of node formaton. As a result the adopted dvson classfed the analysed populaton nto seven clusters (Fg. 1). 4.0 3.5 Lnkage dstance Odległość wązana 3.0 2.5 2.0 1.5 Three clusters Trzy klasy Seven clusters Sedem klas 1.0 0.5 0.0 poznańsk szamotulsk rawck koścańsk nowotomysk leszczyńsk kalsk konńsk grodzsk plsk ostrzeszowsk mędzychodzk pleszewsk czarnkowsko-trzcaneck słupeck obornck krotoszyńsk kolsk średzk śremsk kępńsk wrzesńsk ostrowsk tureck gneźneńsk złotowsk wągroweck jarocńsk gostyńsk wolsztyńsk chodzesk Cluster I Klasa I Cluster II Klasa II Cluster III Klasa III Cluster IV Cluster V Klasa IV Klasa V Cluster VI Klasa VI Cluster VII Klasa VII Fg. 1. Classfcaton of countes of the Welkopolske provnce usng Ward s method n terms of selected ndcators of fnancal standng (Eucldean dstance) Source: the authors study based on data of the Mnstry of Fnances and the Central Statstcal Offce. Rys. 1. Klasyfacja powatów województwa welkopolskego metodą Warda według wybranych wskaźnów sytuacj fnansowej (odległość eukldesowa) Źródło: opracowane własne na podstawe danych Mnsterstwa Fnansów oraz GUS. Journal of Agrbusness and Rural Development
Fnancal standng of countes n the Welkopolske provnce n the years 2004-2006 163 The frst cluster conssted of only one local government unt,.e. the Poznań county (Fg. 1). Ths local government unt was characterzed by a hgh amount of own resources per capta (by PLN 53 and PLN 58 hgher than the mean for the provnce and the natonal mean, respectvely) and the hghest fnancal ndependence. It was shown by the hghest proporton of own ncome (almost two tmes hgher than n local government unts of the same level n Poland) and at the same tme the lowest percentage of subsdes n total budget revenue, amountng to 50% natonal mean (Table 4). Ths ndependence made s possble to modfy expendture relatvely more freely than t was the case wth the other local government unts of the same level both n the analysed provnce and natonwde. Ths was related wth the hghest percentage (by 20 and 14 percentage ponts hgher than n the Welkopolska regon and n Poland, respectvely) of recepts from ndvdual and corporate ncome taxes, whch shows hgh economc actvty n ths area. Good ncome stuaton made t possble to ncur consderable nvestment expendture. The proporton of property expenses n total expendture was almost 20%, whch amounted to a two tmes hgher amount of the mean both for unts of the same admnstratve level n the Welkopolske provnce and the natonwde average. The affluence of ths county (hgh own ncome per capta), combned wth hgh expense ndependence, consttuted hgh nvestment potental, whch n the future may stll wden the gap between the Poznań county and the other regons of the Welkopolske provnce. Despte the hghest partcpaton n fnancng nvestments the local government of Poznań reported average ndebtedness and the degree of burden connected wth prncpal repayment together wth nterest lower than the mean (Table 4). Ths resulted from the hghest amount, among all analysed local government unts, of operatng surplus n current ncome (14.97%), whch was almost two tmes hgher than the average level n the analyzed provnce and three tmes hgher than the mean for countes n Poland. Ths ndcates a relatvely hgh partcpaton of own fnancng sources to cover nvestment expendture. The second cluster was formed by three countes: the Koścan, Rawcz and Szamotuły countes (Fg. 1). These unts reported results slghtly over average n terms of fnancal ndependence and the proporton of ncome taxes n own ncome n relaton to the Welkopolske provnce (Table 4). In comparson to local governments of the same level n Poland, the percentage of grants and ncome taxes was below the average. Despte the low level of expenses per capta, these local governments nvested relatvely hgh amounts of money. The proporton of property expenses n total budgetary expendture was hghest among all clusters (13.49%), except for the Poznań county (cluster I), whch domnated n ths respect. In the dscussed unts nvestments were almost entrely fnanced from non-repayable fnancng sources, as t s shown by the lowest ndebtedness among all clusters (close to zero) and the degree of burden wth prncpal and nterest repayment. Ths s also confrmed by the relatvely hgh, two tmes hgher than the natonal average, proporton of operatng surplus n current ncome. The thrd cluster comprsed areas n the mmedate vcnty of county seats: Kalsz, Konn and Leszno, and those neghbourng wth the Poznań county,.e. the Grodzsk and Nowy Tomyśl countes (Fg. 1). Smlarly as n the Poznań county, hgh fnancal ndependence was found n those unts (n comparson to the provnce and the country scale), whch resulted n operatng surplus level n current ncome consderably exceedng the mean and hgher than average ndexes of property expenses (Table 4). The characterstc features for ths cluster were the worst ndexes per capta both n terms of own 1(11) 2009
164 A. Majchrzak, J. Stansławska ncome (by PLN 18 and PLN 15 lower than the mean for the analysed provnce and the natonwde average, respectvely) and total expendture (by PLN 160 lower than the average for the provnce and by PLN 70 lower than the natonwde average). Ths s connected wth the rather hgh number of nhabtants lvng n the areas classfed to the dscussed cluster and by no means ndcates poor fnancal stuaton of these unts. The level of ndebtedness and ts repayment, smlarly as n case of the Poznań county, was smlar to the average for the provnce. Table 4. Intracluster values of characterstcs selected ndcators of fnancal standng of countes n the Welkopolske provnce (medan values) Tabela 4. Wewnątrzklasowe wartośc cech wybranych wskaźnów sytuacj fnansowej powatów w województwe welkopolskm (wartośc medany) Characterstc Cecha Cluster Klasa I II III IV V VI VII Total Ogółem Natonwde county average Przecętne powaty w Polsce Own resources (PLN) Środk własne (zł) 205.21 157.90 134.22 213.50 169.21 150.93 154.00 152.52 147.00 WSWI (%) 53.61 30.28 32.65 28.82 22.19 26.90 25.10 28.07 27.16 Subsdes (%) Dotacje (%) Taxes (%) Podatk (%) Expenses (PLN) Wydatk (zł) Property expenses (%) Wydatk majątkowe (%) Labltes (%) Zobowązana (%) Repayment (%) Spłata (%) Surplus (%) Nadwyżka (%) 8.86 17.82 9.90 23.19 25.32 14.79 15.39 15.37 18.44 64.29 48.50 50.82 36.09 34.79 48.21 42.94 45.57 50.73 525.40 481.10 479.69 724.01 805.80 638.02 707.56 639.25 548.00 20.19 13.49 12.10 6.21 10.49 8.53 12.86 10.26 11.67 12.01 0.18 11.71 1.23 23.00 13.82 12.97 12.49 13.19 1.72 0.16 1.64 0.80 8.72 3.51 2.25 2.49 3.40 14.97 10.50 9.64 5.73 3.17 4.03 8.11 6.84 5.22 Source: the authors study based on data of the Mnstry of Fnances and the Central Statstcal Offce and Budżety... [2007]. Źródło: oblczena własne na podstawe danych Mnsterstwa Fnansów GUS oraz Budżetów... [2007]. The Mędzychód, Ostrzeszów and Pła countes comprsed cluster IV (Fg. 1). A specfc characterstc of these areas was the hghest amount of own ncome per capta (PLN 213.50), whch was by over PLN 60 hgher than the average n local government unts of the same level n the provnce and by PLN 66 hgher that the natonal average. Journal of Agrbusness and Rural Development
Fnancal standng of countes n the Welkopolske provnce n the years 2004-2006 165 At the same tme a hgh level of total expendture per capta was recorded here. Relatvely hgh values of ncome and expense ndexes per capta are connected wth relatvely low populaton densty n two countes n ths cluster: Mędzychód and Ostrzeszów 7. However, ths stuaton dd not guarantee an approprate structure of ncome and expenses, on the one hand provdng expense ndependence and on the other creatng nvestment potental. The proporton of resources allocated to nvestments n the above mentoned local government unts was mnmum (6.21%), over three tmes lower than n the Poznań county (cluster I) and by almost 1/2 lower than n all countes natonwde. Ths ndcates that a vast majorty of total expendture per capta was allocated to current needs of the unts. Ths also confrms lower than the provncal average ndex of operatng surplus. The low degree of realzed property expenses was also connected wth low ndebtedness and low burden wth repayment of labltes. Also the relatvely low fnancal ndependence dd not make possble hgh nvestment expendture. Although the proporton of own ncome n total ncome was comparable to the average for countes of the Welkopolske provnce, the percentage of budgetary subsdes was close to the maxmum level, whch was recorded n cluster V. Cluster V comprsed the Pleszew and Czarnków-Trzcanka countes (Fg. 1). These local governments turned out to be least fnancally ndependent due to the factors already mentoned above. One of these was the lowest percentage of own ncome (by 30 percentage ponts lower than n the Poznań county and by 5 percentage ponts lower than the natonal mean). The other was the smultaneous hghest proporton of subsdes n budgetary ncome (25.32%), whch exceeded by almost three tmes the level recorded n clusters I and III, and t was by almost 7 percentage ponts hgher than the natonal average (Table 4). The low level of prmary expense ndependence was connected wth the mnmal proporton of tax ncome n total ncome (34.79%). In ths respect the dfference n relaton to both the provncal mean as well as the natonal average was stll hgher, amountng to 10 and 15 percentage ponts. Ths results from the relatvely low number of economc enttes n these areas 8. Ths also stemmed from functons served by these local governments. The Pleszew county has a consderable potental for the development of agrculture, whle the Czarnków-Trzcanka county due to ts hgh forest cover to a consderable degree plays a role n toursm [Majchrzak and Wysock 2007]. In these countes total expenses were observed to be hghest among all classes of total expenses per capta (PLN 805.80), whch as t has already been mentoned was related wth low populaton densty, especally n the Czarnków-Trzcanka county 9. Ths stuaton n combnaton wth the lowest amount of operatng surplus n current ncome (3.17%), amountng to ½ mean for all countes n the provnce wth the average percentage of property expenses mpled the hghest degree of ndebtedness (23.00%) and burden connected wth prncpal and nterest repayment (8.72%). The proporton of labltes n total ncome was almost two tmes hgher than the average n the Welkopolske provnce, and by 10 percentage ponts exceeded the natonal average. It s also 7 In the years 2004-2006 (medan values) t was 49.29 nhabtants per 1 km 2 n the Mędzychód county and 70.56 nhabtants n the Ostrzeszów county, wth the average for all Welkopolske countres of 87.07. 8 In 2006 t was approx. 11.24 per 100 productve age ndvduals, wth the Welkopolske provnce average of 14.78. 9 In the analyzed years t was on average 47.66 nhabtants per 1 km 2. 1(11) 2009
166 A. Majchrzak, J. Stansławska dstant from the statutory lmt of 60%. The value of repayment ndex may be more dsturbng, whch over three tmes exceeded the average level n the provnce and two tmes the natonal level. Ths meant a relatvely hgh burden of prncpal and nterest. Cluster VI, the most numerous, comprsed 11 countes (Fg. 1). These local governments reported the values of partal ndexes of fnancal stuaton slghtly lower than the average, except for the proporton of ndvdual and corporate ncome taxes as well as the level of ndebtedness and repayment, whch were by approx. 1-2 percentage ponts hgher than the mean for all analysed unts n the provnce (Table 4). Natonwde the stuaton was smlar, wth only ths dfference that own ncome per capta slghtly exceeded the natonal average, the proporton of taxes was a lttle below the average, whle the percentage of subsdes was much lower (by approx. 4 percentage ponts) than the average. Expendture per capta also dffered to a large extent from the average (by PLN 90 hgher). In turn, cluster VII was formed by sx countes: Chodzeż, Gostyń, Jarocn, Wągrowec, Wolsztyn and Złotów (Fg. 1). These local governments recorded own ncome per capta, percentage of property expenses as well as ndebtedness and labltes repayment levels close to the provncal and natonal averages (Table 4). Total expenses per capta (by PLN 68 and by PLN 159, respectvely, n the provnce and n the country) and the proporton of operatng surplus were markedly above the average. In terms of fnancal ndependence the percentage of own resources was by 2-3 percentage ponts lower than the average level n the analysed regon and n the country, whereas the volume of grants n total budgetary ncome was by several percentage ponts lower than the natonal average. CONCLUSION Generalzng the above consderatons t may be stated that the fnancal stuaton n the countes of the Welkopolske provnce n the years 2004-2006 vared. The best fnancal standng was found for the Poznań county. It recorded the hghest values of ndvdual ndexes of fnancal standng, except for ndebtedness and burden connected wth repayment of labltes, whch were smlar to the average n the provnce, and lower than average expendture per capta. A good state of fnances of local governments was also observed n the Grodzsk, Kalsz, Konn, Leszno and Nowy Tomyśl countes. Ths resulted frst of all from hgh fnancal ndependence expressed n the consderable proporton of own ncome and the low proporton of grants n budgetary ncome, as well as the hgh percentage of tax revenue n own resources. These local governments were characterzed by a hgh proporton of property expenses n total expenses, whch was possble thanks to the above average amount of operatng surplus n current ncome. The above mentoned countes also had a better fnancal standng than unts of the same level throughout Poland. The Czarnków-Trzcanka and the Pleszew countes had relatvely the worst fnancal standng. Ths was caused by the relatvely smallest fnancal ndependence, the lowest proporton of recepts from ncome taxes n own ncome, as well as hgh ndebtedness and burden wth repayments, exceedng two or three tmes the provncal and natonal averages. Journal of Agrbusness and Rural Development
Fnancal standng of countes n the Welkopolske provnce n the years 2004-2006 167 Results of analyses are partly consstent wth those reported n prevous studes. They led to a concluson that the best fnancal standng n 2006 was found e.g. for local governments of the Kalsz, Konn, Leszno, Poznań as well as Jarocn and Szamotuły countes. Ths s to a certan degree consstent wth the results recorded n ths study. It s smlar n case of the worst fnancal stuaton, reported for Czarnków-Trzcanka, Pleszew, as well as Mędzychód, Ostrzeszów and Rawcz countes [Majchrzak 2008] 10. REFERENCES Analza wskaźnowa jednostek samorządu terytoralnego w latach 2004-2006: powaty. www.mf.gov.pl [dostęp 2008]. Budżety jednostek samorządu terytoralnego w latach 2003-2006. 2007. GUS, Warszawa. Bury P., 1999. Ogranczena poltyk dochodowej gmn. In: Gospodarka lokalna w teor praktyce. Ed. M. Obrębalsk. Pr. Nauk. AE Wroc. 807, 62. Denek E., 2001. Płaszczyzny rozpatrywana samodzelnośc samorządu terytoralnego. In: Samodzelność samorządu terytoralnego w Polsce. Ed. E. Denek. Zesz. Nauk. AE, Pozn.7, 17. Dylewsk M., Flpak B., Gorzałczyńska-Koczkodaj M., 2004. Analza fnansowa w jednostkach samorządu terytoralnego. Muncpum SA, Warszawa. Flpak B., 2004. Kerunk zarządzana fnansam w jednostkach samorządu terytoralnego a problemy utrzymana płynnośc fnansowej. Fnanse Komunal. 3, 23-24. Gabrusewcz W., 2005. Podstawy analzy fnansowej. PWE, Warszawa. Gonet W., 2006. Pomoc nadmerne zadłużonym jednostkom samorządu terytoralnego. Fnanse Komunal. 5, 15. Gonet W., 2008. Program naprawczy jednostk samorządu terytoralnego w sytuacj utraty zdolnośc wykonana zobowązań. Fnanse Komunal. 3, 16. Jastrzębska M., 2004. Analza samodzelnośc fnansowej sytuacj fnansowej jednostek samorządu terytoralnego w latach 1999-2003. Fnanse Komunal. 5, 34-48. Kańduła S., 2003. Samodzelność fnansowa samorządu gmnnego w Polsce po 1993 roku. Wyd. AE, Poznań. Kańduła S., 2005. Funkcjonowane sektora samorządowego w systeme fnansów publcznych. In: Fnanse samorządu terytoralnego (zagadnena wybrane). Ed. L. Patrzałek. Wyd. Wyższej Szkoły Bankowej w Poznanu, Poznań. Jastrzębska M., 2004. Poltyka wydatkowa jednostek samorządu terytoralnego na przykładze mast na prawach powatu. Fnanse Komunal. 1, 12-32. Majchrzak A., 2008. Klasyfacja powatów według sytuacj fnansowej w województwe welkopolskm. Zesz. Nauk. SGGW Ekon. Organ. Gospod. Żywn. 65, 145-154. Majchrzak A., Wysock F., 2007. Potencjał produkcyjny rolnctwa w województwe welkopolskm. Rocz. Nauk. SERA 9, 2, 217-221. Ruśkowsk E., 2004. Fnanse lokalne w dobe akcesj. Dom Wydawnczy ABC, Warszawa. Stansz A., 2007. Przystępny kurs statystyk z zastosowanem STATISTICA PL na przykładach z medycyny. V. 3. Analzy welowymarowe. StatSoft, Kraków. Śwrska A., 2008. Subwencje jako źródło dochodów gmny. Zesz. Nauk. SGGW Ekon. Organ. Gospod. Żywn. 65, 169. Ustawa z dna 30 czerwca 2005 r. o fnansach publcznych. 2005. Dz. U. Nr 249, poz. 2104. Wysock F., Lra J., 2005. Statystyka opsowa. Wyd. AR, Poznań. 10 However, only one year was analyzed and a partly dfferent set of varables was used n earler studes. 1(11) 2009
168 A. Majchrzak, J. Stansławska SYTUACJA FINANSOWA POWIATÓW WOJEWÓDZTWA WIELKOPOLSKIEGO W LATACH 2004-2006 Streszczene. W artykule dokonano oceny sytuacj fnansowej powatów województwa welkopolskego. W analze wykorzystano dane Mnsterstwa Fnansów oraz Głównego Urzędu Statystycznego z lat 2004-2006. Na podstawe przesłanek merytorycznych statystycznych dokonano wyboru wskaźnów sytuacj fnansowej jednostek samorządowych. Stosując metodę Warda sklasyfowano badane jednostk w sedem klas o podobnej sytuacj fnansowej. Najlepsza sytuacja fnansowa charakteryzowała powat poznańsk oraz powaty: grodzsk, kalsk, konńsk, leszczyńsk nowotomysk, najgorsza zaś samorządy: czarnkowsko-trzcaneck pleszewsk. Słowa kluczowe: sytuacja fnansowa, powaty, metoda Warda Accepted for prnt Zaakceptowano do druku: 5.02.2009 For ctaton Do cytowana: Majchrzak A., Stansławska J., 2009. Fnancal standng of countes n the Welkopolske provnce n the years 2004-2006. J. Agrbus. Rural Dev. 1(11), 155-168. Journal of Agrbusness and Rural Development