Today, the government released its proposal for the state budget for 2025 and the news that Norwegian municipalities will get 6.8 billion more to deal with. Leader Gunn Marit Helgesen of the Central Union of Municipalities (KS) expresses great disappointment at the proposed grant. – The truth is that this does not solve the crisis in Commune-Norway. The situation now is that there are already reports of ten billion in budget overruns. Then a significant tax failure is not part of that figure either. Helgesen is clear that significant cuts are imminent in the country’s municipalities. She believes that it could affect both nurseries, schools, public transport and leisure facilities, – The problem is that the increase does not match the services that the government and the Storting promise that the citizens will receive. This is serious for democracy and trust, says the KS leader. – Municipality-Norway is in a crisis Mayor Birgitte Gulla Løken (H) in Larvik believes there is a large gap between what Støre’s government promises on behalf of the municipalities, and what they are actually able to deliver services. – Now these figures must be quality assured, but this is far from enough. Municipality-Norway is in a crisis. Mayor of Larvik, Birgitte Gulla Løken watches excitedly when Finance Minister Trygve Slagsvold Vedum (Sp) presents the proposal for the state budget. Photo: Håkon Lie / news Gulla Løken hoped for a much higher increase in discretionary income for the municipalities than the 6.8 billion in the government’s budget proposal. – When the government increases the use of oil money so strongly, I had expected that the municipalities would come out better. It is dramatic for the citizens that we are not put in a position to deliver a good enough service offer. Tax failure in the municipalities Municipal and District Minister Erling Sande (Sp) acknowledges that the financial situation is demanding in many municipalities now. Erling Sande (Sp), municipal and district minister. Photo: Rolf Petter Olaisen / news Sande points out that the municipalities have received increased costs and interest, while at the same time experiencing tax failure. – Then we have to stand up together to ensure the welfare offer around the municipalities. According to the government, the increase is somewhat higher than what was announced in the municipal bill. The growth is distributed by NOK 5.15 billion to the municipalities and NOK 1.65 billion to the county municipalities. This means the state budget for your county: Finnmark | Drum | Nordland | Trøndelag | Møre and Romsdal | Westland | Rogaland | Agder | Vestfold and Telemark | Buskerud | Akershus and Oslo | Østfold | Innlandet news Birgit Oline Kjerstad, municipal policy spokesperson in SVVi believes that there needs to be a bigger boost to municipalities and counties than what the government has put forward. For us, it is important that municipalities and counties receive budgets that make it possible to deliver good services to everyone across the country. It is not the school student, the carer or the grandmother who is too expensive. But it requires us to distribute benefits and burdens more fairly. This is how we build a better Norway. Yann Valerievich Belov / news Tina Bru, 2nd Deputy Leader of the Conservative Government opens the money tap at a time when most people warn against doing just that. My biggest concern is that the government is once again spending too much of the money on public consumption, instead of measures that can give Norway more legs to stand on in the future. In the worst case, the turning point the government has promised us may be postponed again. Christian Breidlid / n634520 Sveinung Rotevatn, VenstreIt is smeared thin, on everything from new sheriff’s offices, which even the police are against, to a disturbing increase in health-related social security expenses. Støre almost promised that there would be an interest rate cut this year, but the interest rate cut will not come sooner with this state budget. Oil money is being lavished again. William Jobling / news Mette Nord, head of the Trade Union Even if the government gives more to the municipalities, we are concerned about the situation. We are very happy that the government recognizes how tough it is, and warns that they will return to this in connection with the new ageing. Malin Clausen Røsberg Per Willy Amundsen, Storting representative (Frp) This is roughly in line with what was announced in the municipal finance bill, and something I do not think is sufficient given the situation the municipalities are in. Unknown Trond Ellefsen, confederation leader of the workers’ organization Delta In the proposal, the municipalities are strengthened by 6 NOK .8 billion, but almost half is eaten up by changes in demographics and pensions, so that the increased room for maneuver is NOK 3.2 billion. We receive warning calls from our union representatives and members out in the municipality of Norway. They want to deliver good quality to the citizens, but fear cuts in welfare. EmmaMarie B. Whittaker Heidi Finstad, managing director of TreindustrienTreindustrien fears that a pressured municipal economy will lead to the construction and maintenance of kindergartens, schools and other public buildings being put on hold. The connection between the construction of this type of building and housing construction means that the crisis in the housing market will also intensify further, which in turn will hit the supplier industry in the construction industry hard. Unknown Frank Jullum, chief economist at Danske Bank The budget is slightly more expansive than expected. This budget will not “rock the boat” in terms of rent. But that will make it more difficult to cut interest rates in December. Red calls for crisis package Storting representative Tobias Drevland Lund (R) believes the government and the majority in the Storting are pushing local politicians ahead of them. – There is a full-blown crisis in Municipality-Norway and cuts are being made across the board. Rødt believes the municipalities need a proper crisis package and more money. – It is in the municipalities that people’s welfare is now being cut, for example within nurseries, schools and care for the elderly. We have a rich state, but more and more poor municipalities and we have to do something about this injustice. People have little faith that there will be more money for the municipalities: Håkon Lie / news Aqil NaqviI hope we see something for that money. Håkon Lie / news Kenneth Ørbeck It is permissible to hope. It’s a bit at rock bottom right now, so let’s hope it picks up. Solveig Mæle Abrahamsen More money for the municipalities? I don’t think so! I don’t know, but I hope so. Don ThomasWhen the finance minister says something about the economy, I expect the exact opposite. So now I expect my wallet to be even slimmer. I do not believe that we will get more money in the municipality. Labor mayor: – A single big bonanza of numbers Petter Sortland (Ap), mayor of Høyanger and county leader for KS in Vestland, believes the government must compensate to a greater extent for reduced tax revenue, and increased pension costs and cost growth. – This is just one big bonanza of numbers right now, so it is a bit difficult to read out all the numbers that come. Labor mayor Petter Sortland in Høyanger. Photo: Bård Siem / news He believes there is a gap between what KS itself believes is needed, and what the government believes would be reasonable to give the municipal sector. – This is a classic. That’s how it works. We will probably never be satisfied, he adds. Estimates from the Central Association of Municipalities show that Norwegian municipalities have received additional expenses of 15 billion just in interest since 2021. – We are unable to keep up with the tasks we are assigned. High expectations In the Center Party municipality of Midt-Telemark, they are on the verge of losing control of their own finances. Municipalities in Norway spend more money than they have and take out their credit cards more often. news met a pessimistic mayor before the state budget was presented. – It has gone from bad to worse, says Siri Blichfeldt Dyrland from the ruling party Senterpartiet, about the state of affairs in the municipality. – How bad is it? – It will take a miracle for us not to end up on the Robek list at the start of 2025. ROAD TOUR: The mayor points out places in the municipality that are now under pressure. She singles out schools, care for the elderly, child protection and social assistance where the municipality has large expenses. Lars Tore Endresen The election promises can burst On Thursday, news wrote that municipalities and county councils across the country are likely to burst their budgets by a total of around 10 billion in 2024. In the four-year-old municipality of Midt-Telemark, they have now cut elderly care, and now can a school in the village will be closed down. – There are a lot of emotions, of course. I can only hope that the election is made on a good basis, which they can stand for, says headmaster Venke Raundalen at Folkestad school. Siri Blichfeldt Dyrland and principal Venke Raundalen at Folkestad school. The pupils can be moved Photo: Lars Tore Endresen / news But the mayor voted to keep the schools. – Having to close a school is tough for all municipalities, and especially for a “centre party”. Hoping for more than promised In May, the government announced that the municipalities would receive an extra 2.5 billion for the municipalities in the country. In Midt-Telemark too, the mayor acknowledges that a little more income is not enough: – I am of course grateful that the income system is being changed and we also have to do the work ourselves, but this is not enough to keep us away from Robek. We want even more for the tax-weak municipalities, says Dyrland. Folkestad school in Midt-Telemark municipality. Photo: Lars Tore Endresen / news Published 07.10.2024, at 07.06 Updated 07.10.2024, at 13.29
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6.8 billion more to the municipalities – news Vestfold and Telemark – Local news, TV and radio
