日本財団図書館（電子図書館）　市町村合併について

(3)	27^th Local System Investigation Committee

In January 2001, Prime Minister Koizumi referred a matter on structural reform of local administrative and fiscal systems from the aspect of promoting local autonomy. The Committee decided matters of discussion on July 1^st and classified these matters as following.

i)	Matters of discussion

(a)	Fundamental municipalities
	a)	General affairs on fundamental municipalities
	b)	Small municipalities
	c)	Administration within small municipalities
	d)	Neighborhood communities within fundamental municipalities
(b)	Metropolitan cities
	a)	Metropolitan cities
	b)	Relationship between Metropolitan cities and prefectures
(c)	Prefectures
	a)	Function of prefectures
	b)	Mergers of prefectures and state system
	c)	How to reorganize prefectures
(d)	Local taxes and local finance
	a)	How to make sound finance in local governments
	b)	How to establish tax and financial system of local governments in the 21st century
	c)	Local tax and financial system in accordance with the new local administrative system.
(e)	Other problems
		Cooperation with residents

i)	Classification of matters

(a)	Fundamental municipalities
	a)	General affairs on fundamental municipalities There is a discussion that what kind of municipalities should be called as fundamental municipalities. There is another discussion that fundamental municipalities should be in the same classification or not. In this discussion, there is another point at issue whether fundamental municipalities in the same classification should have same powers, responsibilities, and organizations. Moreover, there is another issue whether prefectures should transfer their powers to fundamental municipalities that are built by mergers.

	b)	Small municipalities First, we should discuss how to maintain small municipalities that are difficult to administrate fundamental matters because of financial and other reasons. Second, there is an issue how to decide the size of municipalities that would be reorganized in the case we set the minimum size of municipality. We should decide whether we should decide the size only by objective standard such as population or we should also consider subjective standard such as the proposal from municipalities. Thirdly, we should consider whether we fix powers and organizations of small municipalities or make these elective.

	c)	Administration within small municipalities In a case when small municipalities are difficult to administrate fundamental matters because of financial and other reasons, we should decide whether we allocate these matters to prefectures (vertical complement system) or other municipalities (horizontal complement system). In the latter case, we should also consider about the will of the people who lives in small municipalities. There is another issue that small municipalities can choose between vertical and horizontal complement systems. Moreover, we should recognize these municipalities as fundamental municipalities or not.

	d)	Neighborhood communities within fundamental municipalities We should discuss on the matter whether we should systematize autonomy system such as neighborhood governments or communities in fundamental municipalities after the development of city mergers. There is another issue whether we should give these communities only limited powers or various powers.

(b)	Metropolitan Cities
	a)	Metropolitan Cities First, there is an issue of the standard size of metropolitan cities. We should consider whether Core Cities would be appropriate or Ordinance Designated Cities would be appropriate for metropolitan cities. Second, there are three types of metropolitan cities; cities with commercial and resident areas after merger with surrounded municipalities; cities only with central functions and lots of daytime population; cities with only resident areas with lots of nighttime population. We have to think about these differences among metropolitan cities.

	b)	Relationship between metropolitan cities and prefectures We have to think about whether we should transfer more powers from prefectures to metropolitan cities or we should enhance powers of prefectures. There is an issue whether metropolitan cities should be independent of prefectures or prefectures can regulate metropolitan areas. We should also discuss whether we should systematize 'Special Cities' with powers of both cities and prefectures. In this case, we should think about how these special cities can function as fundamental municipalities. Besides reform of relationship between metropolitan cities and prefectures, we should argue how we should reallocate tax sources between metropolitan cities and prefectures. Moreover, we should investigate the fact that lots of prefecture congressmen are elected from areas of Ordinance Designated Cities, though prefectures have limited powers inside these cities. This issue is related to the theory of 'No representatives without taxes.'

(b)	Prefectures
	a)	Function of prefectures There is an issue how we should change powers and functions of prefectures when municipalities become bigger in areas, sizes, and abilities after mergers of municipalities.

	b)	Mergers of prefectures and state system We have to reexamine the relationship between prefectures and municipalities, after administrative works ordered by central government has eliminated and mergers of municipalities have developed. There is an issue of mergers of prefectures like those of municipalities. We should also discuss about state system as one of future choices. In this case, there are two ways of thinking; how to reorganize local administrative body from the view of central government; and how to enhance powers of local governments from the view of local governments. There is also an issue that we should abolish the powers of central government branches. Prefectures after mergers or states can manage functions of central government branches. We should also have to keep in mind that administrative works ordered by central government should not be restored.

	c)	How to reorganize prefectures There is an issue whether we should only accept one system of prefectures or states ;or we should accept differences between prefectures or states. There is also same issue of the process of proceeding mergers of prefectures.

(b)	Local taxes and local finance
	a)	How to make sound finance in local governments How can we manage sound finance in local governments when both central and local governments have huge negative balance of finance? Some people discuss that we should reexamine the balance between public investments and the burdens of people in order to balance the finance. Moreover, expenditures of local governments are closely related to the budget and the policy of the central government. We may have to reexamine the policy of central government in order to decrease local expenditures.

	b)	How to establish tax and financial system of local governments in the 21^st century First, there is an issue that we should transfer tax sources from central government to local governments and make it clear that those who get benefits pay taxes in the local areas. Local governments can independently decide the burdens of people with regard to the administrative services they offer to people. Secondly, we may have to make it clear that those who get benefits pay taxes even at individual level in local governments. Thirdly, we should introduce the way of levying local enterprise taxes according to the sizes of corporations because even corporations of negative balance get benefits from services offered by local governments. Forth, we should decrease or eliminate powers of central government like regulations or national grants and make local governments can decide their expenditures more freely. Fifth, we should first decrease national grants and increase local taxes because central governments can participate local administration through these grants. In this case, we should think about which taxes we should transfer in consideration of the differences of the sizes and financial powers of local governments. Sixth, we should appropriately respond to the problems such as differences of financial powers among local governments after reallocation of tax sources. We should reallocate tax sources by using local allocation.

	c)	Local tax and financial system in accordance with the new local administrative system. There is an issue what kind of local financial system is required in response to the new local administrative system such as fundamental municipalities, metropolitan cities, and prefectures.