Financial Equalisation Ordinance (FAV) - Scope of Regulation (FAV)

1. This ordinance governs the implementation of the Financial Equalization Act (FAG) of June 25, 2009.

2. It is executed by the General Secretariat of the Finance and Church Directorate.

1. ...

1. The number of communal representatives in the Consultative Commission "Task Division and Financial Equalization" is at least 12.

2. The chairmanship of the commission is held by the Directorate of Finance and Church (short: Directorate).

**1. The Governing Council determines and decrees by the end of June for the current calendar year ("financial equalization year"):**

a. the contributions for resource equalization,

b. * the per capita contribution from the municipal communities for the hardship fund,

c. the contributions for burden compensation,

d. the transitional contributions,

e. * the contributions of the municipal communities according to § 13 of the Supplementary Benefits Act to the AHV and IV dated February 15, 1973[4],

f. * the compensation payments,

g. * the solidarity contributions,

h. * the costs of hospital schooling for kindergarten and primary school students in accordance with §§ 10a and 16a of the Ordinance of May 13, 2003[5] for kindergarten and primary school,

i. * the costs for the members of the boards of school management conferences at the primary level and music schools in accordance with §§ 11 and 18a of the Ordinance of May 13, 2003[6] for school administrations and school secretariats,

j. * the contributions of the municipal communities according to §§ 7e paragraphs 3 and 4 as well as § 30 paragraph 2 of the Registration and Register Ordinance of May 13, 2014[7].

**1bis. At the same time, the Governing Council decrees the equalization level for the following year.**

2. The contributions are allocated or charged to the municipal communities at the beginning of August.

1. The portion of the expenses for supplementary benefits that falls to the resident municipalities, in accordance with Section 13 of the Supplementary Benefits Act to the AHV and IV from February 15, 1973, is determined according to the state account of the fiscal year.

2. The population number is based on the average resident population according to the cantonal population statistics in the fiscal year.

1. The tax revenues of the municipal communities are based on the municipal accounts of the calendar year preceding the fiscal equalization year (referred to as the "accounting year").

2. The municipality submits the municipal council's draft of the annual financial statement to the General Secretariat of the Financial and Church Directorate by April 30 in electronic form via a web platform. Additionally, it submits the signed excerpt with tax values in PDF format. If the submission is not made on time, the General Secretariat of the Financial and Church Directorate estimates the tax revenues.

3. If a municipality does not correctly perform the tax accrual in accordance with § 15 para. 2 of the Municipal Accounting Ordinance of February 14, 2012, the General Secretariat of the Financial and Church Directorate, after consulting with the municipality, adjusts the tax revenues accordingly.

4. If there is a significant discrepancy between the municipal council's draft of the annual financial statement and the annual financial statement in the amounts that are decisive for tax capacity, the discrepancy is taken into account when determining the tax capacity in the calendar year following the fiscal equalization year.

5. The population count is based on the average residential population according to the cantonal population statistics for the accounting year.

6. ...

1. The compensation level for the subsequent year is generally determined such that, based on the current tax revenue forecast and a fund balance

a. * of less than CHF -15 million, with a fund deposit of CHF 5 million,

b. * between CHF -15 million and CHF -5 million, with a fund deposit of CHF 2.5 million,

c. * between CHF -5 million and CHF 5 million, with no fund deposit and no fund withdrawal,

d. * between CHF 5 million and CHF 15 million, with a fund withdrawal of CHF 2.5 million,

e. * of more than CHF 15 million, with a fund withdrawal of CHF 5 million.

2. The compensation level should not increase or decrease by more than CHF 50 from year to year.

1. The equalization fund must not fall below a balance of CHF -25 million nor exceed a balance of CHF 25 million.

2. If Paragraph 1 is not met in the financial equalization year due to the equalization level established in the previous year, the equalization level shall be adjusted accordingly.

1. The Government Council grants hardship contributions upon request.

2. The application must be submitted to the Directorate and must contain the following information

a. Description of needs;

b. Presentation of the municipal financial policy of the last 5 years;

c. Illustration of municipal perspectives for the next 10 years;

d. Financial plan, based on the previous fiscal year;

e. Type and proportion of self-financing.

1. The application is reviewed based on the following criteria

a. Necessity and appropriateness of the demand,

b. Compliance with the Municipal Accounting Ordinance of February 14, 2012,

c. Causes of any potential budget imbalance,

d. Type and proportion of self-financing,

e. Inter-municipal burden comparison, particularly regarding taxes and fees.

2. The General Secretariat of the Department of Finance and Church Affairs invites the applicant to a meeting.

1. The General Secretariat of the Finance and Church Directorate regularly reports to the municipalities and the public about disbursed hardship contributions.

1. The compensation for student numbers is set annually at CHF 7.2 million.

2. Non-German-speaking students are weighted at 1.5 times, while German-speaking students are weighted as one.

3. The calculation basis for the weighted number of kindergarten and primary school students according to § 11 Paragraph 2 Letter a of the Financial Equalization Act (FAG) is the educational statistics of the Canton of Basel-Landschaft, as well as the population number at the end of the financial year according to the cantonal population statistics.

4. The affected municipalities receive the same amount per weighted student above the average.

1. The compensation for burdens related to population density and geographical location is established annually at CHF 4.54 million.

2. The calculation basis for population density according to § 11 para. 2 lit. b FAG consists of the average resident population as per the cantonal population statistics as well as the total municipal area according to the area statistics of the Canton Basel-Landschaft. The population density is considered up to 80% of the cantonal average and weighted at 80%.

3. The calculation basis for geographical location according to § 11 para. 2 lit. b FAG comprises the travel distances between the town centers and the secondary school locations of the individual municipalities. The distance to the secondary school is considered from the cantonal average and weighted at 20%.

4. The burden compensation is distributed equally based on the number of inhabitants and the total area of the affected municipalities.

1. The compensation for social assistance is set annually at CHF 8.38 million.

2. The calculation basis for the compensation for social assistance is the Social Index.

3. The Social Index is the sum of the following shares weighted using principal component analysis

a. The share of unemployed persons in the population between the ages of 15 and 64;

b. The share of single-parent persons receiving social assistance in the total population;

c. The share of foreign persons from countries of origin which have an above-average social assistance rate measured by the cantonal population share, in the total population; and

d. The share of persons receiving social assistance in the total population.

4. The compensation is determined by the index points above the average multiplied by the population.

1. The compensation for the non-settlement area is set annually at CHF 2.56 million.

2. The basis for calculating the compensation for the non-settlement area is the area statistics of the Canton of Basel-Landschaft.

3. The affected municipalities receive the same amount per hectare of non-settlement area above the average.

1. As "aged" within the meaning of § 15c para. 2 of the Fiscal Equalization Act, the residents aged 80 and over are considered.

2. As "economic circumstances" within the meaning of § 15c para. 2 of the Fiscal Equalization Act, taxable income plus 10% of taxable assets are considered.

3. Municipalities with an above-average proportion of aged residents in economic circumstances below CHF 50,000.- will have the number of aged residents increased by the percentage difference to the average, intensified by a factor of 1.5.

4. Municipalities with a below-average proportion of aged residents in economic circumstances below CHF 50,000.- will have the number of aged residents decreased by the percentage difference to the average, intensified by a factor of 1.5.

5. The municipalities receive the same amount per income-weighted aged resident.

1. The existing project fund shall be dissolved as of December 31, 2016, and its resources shall be transferred to the Association of Basel-Landschaft Municipalities.

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1. Based on § 21 para. 2 FAG, the following discrepancy amounts (in CHF) arise for the following municipalities

1. Aesch: 549,986

2. Anwil: 164,548

3. Augst: 18,799

4. Bennwil: 69,506

5. Birsfelden: 449,258

6. Böckten: 35,373

7. Bretzwil: 211,141

8. Brislach: 279,856

9. Bubendorf: 206,734

10. Buckten: 201,040

11. Burg i.L.: 27,780

12. Buus: 9,340

13. Diegten: 212,481

14. Diepflingen: 99,271

15. Dittingen: 76,025

16. Ettingen: 251,004

17. Frenkendorf: 452,360

18. Füllinsdorf: 234,716

19. Gelterkinden: 508,025

20. Giebenach: 22,349

21. Grellingen: 161,869

22. Häfelfingen: 43,673

23. Hemmiken: 60,702

24. Hölstein: 175,897

25. Itingen: 79,607

26. Kilchberg: 13,259

27. Langenbruck: 64,864

28. Läufelfingen: 86,546

29. Laufen: 393,770

30. Lausen: 326,604

31. Lauwil: 61,850

32. Liedertswil: 12,627

33. Liestal: 656,968

34. Lupsingen: 31,963

35. Nenzlingen: 63,129

36. Niederdorf: 254,924

37. Oltingen: 127,583

38. Ormalingen: 33,056

39. Pratteln: 902,112

40. Reigoldswil: 235,374

41. Rickenbach: 104,120

42. Roggenburg: 44,953

43. Röschenz: 49,590

44. Rothenfluh: 91,484

45. Rümlingen: 102,708

46. Rünenberg: 16,111

47. Tecknau: 173,133

48. Tenniken: 7,940

49. Titterten: 77,557

50. Wahlen: 225,650

51. Waldenburg: 131,633

52. Wenslingen: 96,064

53. Wintersingen: 82,728

54. Wittinsburg: 34,586

55. Zeglingen: 115,299

56. Ziefen: 138,085

57. Zunzgen: 300,770

58. Zwingen: 177,818