Participatory Budgeting - Porto Alegre

Porto Alegre

The first full participatory budgeting process was developed in the city of Porto Alegre, Brazil, starting in 1989. Participatory budgeting was part of a number of innovative reform programs started in 1989 to overcome severe inequality in living standards amongst city residents. One third of the city’s residents lived in isolated slums at the city outskirts, lacking access to public amenities (water, sanitation, health care facilities, and schools).

Participatory budgeting in Porto Alegre occurs annually, starting with a series of neighborhood, regional, and citywide assemblies, where residents and elected budget delegates identify spending priorities and vote on which priorities to implement. Porto Alegre spends about 200 million dollars per year on construction and services, this money is subject to participatory budgeting. Annual spending on fixed expenses such as debt service and pensions, are not subject to public participation. Around fifty thousand residents of Porto Alegre now take part in the participatory budgeting process (compared to 1.5 million city inhabitants), with the number of participants growing year on year since 1989. Participants are from diverse economic and political backgrounds.

The participatory budgeting cycle starts in January and assemblies across the city facilitate maximum participation and interaction. Each February there is instruction from city specialists in technical and system aspects of city budgeting. In March there are plenary assemblies in each of the city's 16 districts as well as assemblies dealing with such areas as transportation, health, education, sports, and economic development. These large meetings—with participation that can reach over 1,000—elect delegates to represent specific neighborhoods. The mayor and staff attend to respond to citizen concerns. In the following month's delegates meet weekly or biweekly in each district to review technical project criteria and district needs. City department staff may participate according to their area of expertise. At a second regional plenary, regional delegates prioritize the district's demands and elect 42 councillors representing all districts and thematic areas to serve on the Municipal Council of the Budget. The main function of the Municipal Council of the Budget is to reconcile the demands of each district with available resources, and to propose and approve an overall municipal budget. The resulting budget is binding, though the city council can suggest, but not require changes. Only the Mayor may veto the budget, or remand it back to the Municipal Council of the Budget (this has never happened).