Israeli local municipal authorities began an open-ended strike Monday morning in protest over government funding.

Prime Minister Benjamin Netanyahu's meeting with Union of Local Authorities (ULA) representatives on Sunday night did not succeed in averting Monday's nationwide strike.

The strike was participated by all municipal services countrywide, including all local authority offices, garbage collection, welfare offices, parking and veterinary inspectors, school transportation, and other related services.

"We were not able to reach an agreement, because we demanded written agreements," according to ULA Chairman Shlomo Bohbot, who is also mayor of the northern Galilee town of Ma'alot-Tarshiha.

Among other contentions, Bohbot and the ULA oppose a recent Interior Ministry decision of giving tax breaks to large families, students, reserve soldiers and religious seminaries, according to The Jerusalem Post.

"We do not want to strike, but we have no other choice," Buhbut said. "I hope the government will realize we've had enough," according to the report.

However, Netanyahu said that "now is not the time to upset the economy with a general strike," and claimed the action would be a blow to the population over issues that it is possible to resolve within a short time.

The prime minister warned that "if the economy collapses, in the end it will be the population that pays the price," according to a statement by his office.

However, Dimona Mayor Meir Cohen denied Netanyahu's allegation, saying that "this strike is for the public's benefit, and we apologize to those residents who will be hurt by it," according to the Ha'aretz daily.

Cohen charged that "every time we complain about the authorities' lost revenues, at the treasury they wink at us and say that the following year they'll let us raise the property tax. "

"It's time the treasury started sticking its hand into its own pocket, and not the residents' pockets," according to Cohen.

Netanyahu instructed officials in his office to set up a dialogue group that is to include directors-general of the Prime Minister's Office (PMO), the Finance and Interior ministries, and the ULA, the PMO statement read.