Alicante and Elche — Regional Funding Debates and Budget Outcomes

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Alicante and Elche

Provincial data show that the Cerca Plan has tripled the Cooperation Fund investment in Alicante’s municipalities. While the alternative proposed by the Provincial Assembly set aside 43.5 million for provincial towns, the Generalitat’s share for the investment project stood at 14.3 million. From the national government’s point of view, a more compelling figure stands out: out of 141 municipalities in Alicante, only two places with larger populations, Alicante and Elche, exceed the Council’s plan. Thanks to the state agency’s initiative, 139 of the 141 towns in Alicante are showing gains under this approach.

The Provincial General Assembly’s investment plan was included in the provincial budgets approved during the extraordinary general assembly held last Friday. In that session, the PP and Cs retained their majority, while the two left-wing groups PSPV-PSOE and Compromís opposed the measure. The Socialists voted against the current proposal for the third time, with abstentions only recorded in 2020 during the health crisis. Compromís cast a no vote for the first time in its term after its spokesperson Gerard Fullana had abstained in the prior three years as elections approached. PSPV spokesperson Toni Francés explained the vote against the government team’s rejection of the Co-operative Fund. Compromís criticized the provincial surcharge, arguing it could cost the budget nine million euros that would otherwise go to the City Council.

Alicante and Elche

With the Cooperation Fund, Alicante would receive 857,510 euros next year, compared with 535,000 euros contributed by Cerca. For Elche, the Generalitat would provide 696,670 euros, while the Provincial Assembly would allocate 540,000 euros. These figures illustrate two clear cases where the Consell-promoted distribution increases available resources. The municipalities with the next highest populations already benefit from the commitments of the provincial agency. They include Torrevieja with 527,842 euros versus 435,522 euros, Orihuela with 603,940 euros versus 416,868 euros, Benidorm with 434,118 euros versus 389,491 euros, Alcoy with 469,822 euros versus 358,857 euros, and Elda with 432,551 euros versus 338,77 euros.

According to Javier Gutiérrez, spokesperson for Cs and a deputy for Infrastructures and Municipal Attention, the Cerca de la Diputación plan shows that the province obtains more funding through this model than through other schemes such as the Cooperation Fund. He argues the model offers more flexibility because it enables city councils to allocate resources for both investment and ongoing expenses. The approach also avoids excessive concentration of funds in larger towns and directs support to smaller communities where it is most needed. He notes that some regions could receive around 200,000 euros under this distribution, while the Generalitat would allocate as little as 15,000 euros in certain scenarios.

Gutiérrez emphasizes that Diputación provides more than money for distribution. It offers municipalities other forms of support as well. He explains that a town hall with 500 residents cannot be handed two million euros for a school project without additional resources because the project would be unaffordable on its own. This is one of the key reasons the proposal aims to improve overall funding for local education infrastructures and prevent bottlenecks in smaller towns.

Mason

Gutiérrez maintains a close working relationship with President Mazón. As budget approvals neared last Friday, the provincial leadership used arguments similar to those raised by the Infrastructure MP. He stated, “We have disagreements with the opposition about the Co-operative Fund, but the municipality remains unhurt. The province records substantial investment, and citizens face inflation pressures that we are addressing by eliminating the IAE surcharge.”

The government team also acknowledged support from the Valencian Community TSJ, noting the ongoing institutional dispute with the Autonomous Administration. With election year approaching and the Provincial Assembly expected to finalize allocations to the Cooperation Fund, the resolution granted full authority to the provincial body to approve budgets. In recent months, preparations had been under way for a contingency plan, and ultimately 13.4 million euros were allotted to the plan promoted by the Consell.

Gutiérrez argued that the Generalitat tried to reshape financing with an aggressive scheme that would erode the province’s financial autonomy. He emphasized that the budget balances autonomous and central government efforts to ease the underfunding faced by the province. Eduardo Dolón, spokesman for the popular group, said the TSJ decision to suspend the obligation to contribute 13.4 million to the Co-operative Fund serves the interests of the people of Alicante, as it prevents reductions in aid and ensures funding reaches all municipalities.

Those who disagreed with the judiciary’s ruling and the government’s stance included mayors from socialist-led provinces, who gathered at the gates of the Provincial Palace last Tuesday. PSPV councilors argued that refusing to participate in the Co-operative Fund has caused losses of around one hundred million euros over seven years, and they accused President Mazón of backing a policy that fosters institutional conflict.

Following the socialist rally, the government team attempted a maneuver with Compromís spokesperson Fullana to boost the Cerca donation by 13.5 million. Even so, the Valencian coalition could not abstain in the general assembly where budgets were approved. Notably, the City Council’s investment plan rose by 45 percent, ensuring that Alicante’s municipalities secure more resources, especially for the smallest towns.

A record budget where the mission is over

Beyond the controversy over the Co-operative Fund, the City Council delivered a record budget last week to close the current mandate. The accounts approved at the general meeting on Friday total 283.7 million, marking a 4.3 percent increase from the previous year. The plan also includes freezing MPs and advisers’ salaries, delivering a saving of 114,000 euros, and a full suspension of the provincial IAE surcharge that reduces the burden on local companies.

Citations: (Official provincial budget records, 2024) (Regional government communications, 2024) (Civic council minutes, 2024) (Valencian Community judiciary statements, 2024) (Cs spokesperson remarks, 2024)

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