Proposed Law Could Cut 5,000 Quito City Jobs and Gut Municipal Services — From Mental Health to Metro Expansion

Quito's municipal government is warning that a new national law could fundamentally reshape the services residents depend on — and not in a good way.

The Proposed Law

The National Assembly is debating an urgent efficiency law for GADs (Gobiernos Autónomos Descentralizados — Ecuador's decentralized autonomous governments, which include municipal and provincial governments). The law establishes "fiscal sustainability and spending rationality rules" that would force major changes in how cities like Quito allocate their budgets.

The key provision: GADs would be required to allocate at least 70% of investment budgets to infrastructure maintenance and public service restoration, leaving only 30% for current operational expenses.

What Quito Stands to Lose

Mayor Pabel Muñoz has publicly identified the services at risk if the law passes as written:

• Mental health services — community-based psychological care programs
• Community dining facilities (comedores comunitarios) — subsidized meals for low-income residents
• Comprehensive care centers — social service hubs in underserved neighborhoods
• Municipal health services — clinics and preventive care programs
• Animal welfare programs — pet rescue, sterilization, and adoption services
• Strategic infrastructure projects — including hospital construction, school upgrades, and Metro de Quito expansion

The mayor estimates approximately 5,000 municipal employees could be terminated to comply with the new spending caps. That's a massive workforce reduction for a city that already struggles with service delivery.

Why Critics Are Alarmed

The law's opponents raise several concerns:

• Municipal autonomy: The constitution grants GADs the authority to set their own development plans and budget priorities. A national law dictating spending ratios arguably violates that autonomy
• Classification problems: Essential operational costs — like transit operators who run Quito's public bus system — would be difficult to classify under the rigid 70/30 framework
• Metro impact: Technical studies for the Metro expansion would be excluded from "investment" classification, effectively stalling the project
• Privatization risk: Gutting municipal service budgets could open the door to privatization of traditionally public services
• Timing questions: The law is labeled "urgent" but wouldn't take effect until 2027, undermining the justification for fast-tracking it

What This Means for Expats

• Quito residents: If you use any municipal service — public transit, health clinics, community programs — this law could directly reduce what's available to you
• Pet owners: Quito's municipal animal welfare program (rescues, sterilization campaigns, adoption events) would be at risk. If you've relied on municipal vet services, explore private alternatives
• Metro riders: The Metro de Quito currently carries 172,000+ daily passengers and has been one of the city's biggest quality-of-life improvements. Expansion plans for new lines could stall indefinitely
• Property implications: Reduced municipal services and a 5,000-person workforce cut would affect Quito's quality of life and economic activity, which eventually flows through to property values and the rental market
• Not law yet: This is still being debated in the Assembly. The mayor's public pushback suggests a fight ahead. Watch for amendments

Source: Expreso