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Palma.—Palma City Council has cut subsidies to residents associations by 50 percent, down from 160'000 to 80'000 this year, Social Welfare Councillor Sandra Fernandez confirmed yesterday.

Fernandez explained that the drastic reduction has been made because the neighbourhood associations do not now organize and pay for festivals in Palma on their own account. In an effort to save on expenditure, the City Council has taken over the responsibility with an 80 percent cut in the budget.

Collaboration
Although the City Council now funds the contracts for festivals, organisation remains a close-knit collaboration between the Council and the federation of residents associations on the occasions of Sant Joan, Sunday of the Angel, the Mare de Deu and the Festival of the Standard.

Meanwhile, the City Council yesterday approved subsidies - a further 90'000 euros - for the Parents Association for the organisation of school festivities during the 2012-2013 academic year.

The funding is additional to the 40'000 euros already approved for the purpose. The sum is in fact a 50'000 reduction on last year's budget, a drop of 28 percent.

The City Council has also agreed to fund the Youth department to the tune of 148'000 euros, a significant downturn to the 210'000 euros the department was allocated in 2011.