Analysis of the Financing of Local Communities in Slovenia in Times of Economic Downturn and Crises

Based on the sample of all municipalities in Slovenia from 2008 to 2014, the authors answered how austerity measures affect the expenditure side of the revenue and expenditure account of municipalities. The authors used a statistical program to process the data. The research intends to anticipate timely action in the next economic crisis. The results showed that the austerity measures represent a reduction in annual holiday pay abundantly visible in the first year. Other savings measures in wages and expenses for employees are less visible in the first year and more visible in the following years. There is a positive correlation between the variables payroll and other employee expenditure and the number of employees. The authors propose to change the legislation in the area of financing of municipalities.