Co-production of public services on rural areas – the Polish way? Dorota Bednarska-Olejniczak, Phd Jarosław Olejniczak, PhD Department of Marketing Managemant Department of Finance Wrocław University of Economics, Poland Aim of presented research: The purpose of this paper is to present the structure of sołecki fund as a solution that promotes governance and co-production of public services, as well as to analyse the use of this tool by urban-rural communes in Poland in the years 2014-2017. According to OECD's definition, co-production is “a way of planning, designing, delivering and evaluating public services which draws on direct input from citizens, service users and civil society organisations”. It can be noticed that co-production may be understood as ”simple input into service delivery (e.g. feedback on services)” or “extensive and enduring relationships with service users” The administrative division of Poland separates commune (GMINA) as the basic unit of territorial division and its authorities implement the majority of public tasks of a local nature. The legislator envisaged the possibility of creating auxiliary units in the form of sołectwo, in the rural areas of communes. Sołectwo is a non-obligatory auxiliary unit of the urban-rural or rural commune that is created in order to implement this part of own tasks of the commune, which due to the limited territorial scope are specific for the given sołectwo. The sołecki fund means a pool of funds guaranteed in the commune budget for the sołectwo, for the implementation of undertakings that are aimed at improvement of the living conditions of its residents. Three conditions must be fulfilled cumulatively: (1) the submitted task must be own task of the commune, (2) it must be conducive to the improvement of the living conditions of the residents, (3) it must be compliant with the commune's development strategy. This is a form of the co-production of public services, because the residents themselves, in addition to participation in the consultation process (participation, co-governance), can participate in the co-production of public services thanks to the direct engagement in their creation (own work, co- creation). The research included all communes with urban-rural status in 2017 - 621 units (commune that covered the area of ​​at least one city and surrounding villages). The time range covered the years 2014-2017 and the communes for which data was available in the Local Data Bank of the Central Statistical Office (CSO) The basic research method consisted of statistical analysis of the data made available in the Local Data Bank (CSO) concerning the scale and directions of expenses of the examined communes within sołecki funds. Results of study Percentage of communes that implemented expenses within the framework of SF in the years 2014-2017 and percentage of communes that implemented expenses from the SF in the main sections of budgetary classification Year 2014 2015 2016 2017 Total 66.34% 72.30% 76.17% 79.39% Transport and communication 88.11% 87.97% 88.79% 90.47% Housing 18.69% 21.83% 27.70% 24.14% Public safety and fire protection 54.37% 57.91% 60.89% 64.50% Educational services 31.55% 32.29% 31.71% 32.25% Municipal management and environmental protection 80.58% 83.52% 85.84% 88.24% Culture and protection of national heritage 85.19% 86.64% 87.32% 86.41% Physical culture 69.66% 72.61% 71.67% 74.44% Share of expenses by the sections of budget in the total amount of expenses within the SF Year 2014 2015 2016 2017 Transport and communication 30.70% 29.40% 28.60% 28.60% Housing 2.50% 2.60% 2.90% 2.60% Public safety and fire protection 4.40% 4.60% 4.20% 4.40% Educational services 1.80% 2.00% 1.70% 1.90% Municipal management and environmental protection 15.30% 15.80% 17.00% 17.80% Culture and protection of national heritage 29.80% 29.70% 29.70% 28.20% Physical culture 8.10% 8.90% 9.70% 10.30% Share of expenses within the sołecki funds in 2014 (left) and 2017 (right) in the researched communes in the total current expenses Share of expenses in the section of transport and communication within the sołecki funds in 2014 (left) and 2017 (right) in the researched communes Share of expenses in the section of culture and protection of national heritage within the sołecki funds in 2014 (left) and 2017 (right) in the researched communes 1. The scale of the use of sołecki funds in Poland significantly increased and as much as 80% of communes started (or continued) to use the sołecki funds. 2. Five main areas of spending, five can be distinguished, which reflect the main needs of residents reported to communes in the area of ​​improving the quality of life within the individual communes. 3. Due to the scale of expenses, three of the above-mentioned directions of spending dominate here (Transport, culture and management) 4. It can be noticed that there is a strong diversification of directions of the sołecki funds’ expenses between the regions. 1. It is not possible to indicated the reasons for such differences between the regions without further in-depth research. 2. Another issue is the lack of possibility to assess the degree of co-production of public services, due to the lack of a system for monitoring and collecting data regarding this topic. 3. It can be assumed that studies concerning the co-production processes within the sołecki funds may constitute a significant contribution to the development of new public governance theory, however this will require the research on the scope of citizens' participation in decision making, provision of public services, as well as reasons that they are guided by. Thank You for attention. Acknowledgement. The project is financed by the Ministry of Science and Higher Education in Poland under the programme "Regional Initiative of Excellence" 2019 - 2022 project number 015/RID/2018/19 total funding amount 10 721 040,00 PLN