Local governments are preparing lawsuits against the State Treasury for underfunded assigned tasks, following years of warnings about insufficient grants.
Years of Underfunding
Local governments have long warned that grants for government administrative tasks fail to cover implementation costs. This ongoing issue has prompted the current legal actions.
System Reforms and Continued Delays
The issue resurfaced two years ago during discussions on a new financing system for local government units (JST). While local governments backed the system, improving the valuation of assigned tasks was identified as a necessary improvement. Despite this, no decisions have been made.
Legal Action Imminent
Lawsuits are now being prepared specifically targeting underfunded assigned tasks, as local governments seek to address the financial shortfall through legal means.
