Standard expenditure simulation model: pilot project with the Municipality of Ancona
Within its research activity concerning fiscal federalism SOSE is elaborating a standard expenditure estimation model in collaboration with the municipality of Ancona.
The project includes the realization of an analysis tool supporting local governments in management control. The model allows to simulate standard expenditure estimation defining the determinant variables for each basic function and service as described by Legislative Decree No. 216/2010, and the variables used to estimate standard expenditure needs that are sterilized in the implementation phase and that affect, however, the above-mentioned expenditure.
The test phase began officially in January 2018 and focused on the analysis and the estimation of the variables related to 2016 of the municipality of Ancona, chosen to test a model supporting local governments to realize the strategic/operative management control also through benchmark analyses.
In the future standard expenditure calculation model will orientate management policy choices, help local authorities make the most profitable choices (make or buy) and benchmark analyses on municipal administrations.