On June 04, Injaz Center for Professional Arab Local Governance (Injaz), an organization working to advance professionalism in and among local Arab municipalities in Israel, held a convening for the Forum of CEOs of Arab Local Authorities and the Forum of Treasurers. 77 participants, including government representatives from various ministries and the Economic Development Authority, gathered to discuss the impact of major cuts to government budget for Arab society on the Arab community in Israel, and local authorities in particular.
The convening sought to assist Arab local authorities in coping with the complex challenges brought about by the cuts. This includes challenges ranging from continuing to provide essential services through the risk of bankruptcy and potential takeover by the Ministry of Interior—a scenario that has been occurring less frequently in recent years.
The budget cuts, approved by Israel’s cabinet on January 15, entail a 5% reduction across all ministries and a 15% cut to all government resolutions for socio-economic development for Arab citizens. This amounts to a total cut of NIS 1.2 billion in 2024 and NIS 4.7 billion from 2024 to 2026.
Within this, local authorities are most pressed by the elimination of NIS 200 million in balancing grants, annual budgets that can be used to address shortfalls in operating revenues. Though many of these cuts are still pending final approval by the Knesset Finance Committee, the Ministry of Finance is withholding the funds, while also not putting the decision on the committee’s agenda, yielding a de facto cut.
Comptrollers surveyed by Injaz anticipate major disruptions in essential services like education, culture, sports, welfare, and waste management as a result. The newly appointed chairman of the committee of mayors, Mazen Ganaim, spoke about the struggles the committee is facing and the positive cooperation with the National Local Government Center, headed by Haim Bibas.
Do you need support integrating these resources and issues into your philanthropic, communal, or Israel education work? Reach out for consultations, connections to experts, program support, training, or to plan your next event or mission. If you’ve used our resources, tell us about your experience!
Do you need support integrating these resources and issues into your philanthropic, communal, or Israel education work? Reach out for consultations, connections to experts, program support, training, or to plan your next event or mission. If you’ve used our resources, tell us about your experience!
