Helsinki budget cuts will not affect school lesson framework or public transportation
Mayor Pajunen: halving of savings objectives translates to 0.5 per cent in municipal taxation
|
|
The lesson framework for Helsinki schools and the funding for public transportation will remain unaffected by economic measures in next year’s budget. The policy was included in the budget guidelines drawn up by the city government on Monday.
Helsinki plans to cut its operating costs by EUR 50 million next year. This translates to a 1.3 per cent deduction compared to this year’s budget.
A lengthy debate took place over the economic measures among the largest parties on the City Board, as a result of which the intended EUR 113 million budget cut put forward by Helsinki Mayor Jussi Pajunen (Nat. Coalition Party) was reduced by a half.
The politicians also abandoned the aim of reducing the number of city employees by 3,000 individuals in the next three years.
According to the agreed policy, the city’s civil service departments can independently adjust the size of their staff to fit the agreed budget frame.
“A compromise agreement is better than no agreement at all. Now the various administrative departments can get on with their plans”, says Helsinki City Board Chairwoman Suvi Rihtniemi (Nat. Coalition Party).
According to Rihtniemi, with regard to the budget it would have made sense to keep a harder line at this stage, and then loosen it if needed in connection with the actual budget negotiations in the autumn.
“At the moment we are in such a thick fog that no one knows for sure how deep the economy will plunge”, Rihtniemi says.
The request by the Social Democratic Party to increase the municipal taxation rate was not included in the framework. The matter will be discussed in the autumn.
The framework outline also includes a productivity programme, which encourages for example the catering and facility services firm Palmia to streamline its administration.
According to Mayor Pajunen, holding back some 50 million euros from the savings objective translates to an added expense of 0.5 per cent in municipal taxation.
“However, it is still too early to start talking about a tax hike”, Pajunen adds.
“The framework decision is part of the budget preparation work for the various administrative departments. Every stone gets turned over now. The Mayor’s proposal is presented in the autumn, based on which the City Council makes its decision in November”, Pajunen clarifies.
According to Pajunen, what complicates the drafting of next year’s budget is, for instance, the fact that in the past six months every presented business cycle prediction has been bleaker than the one before.
“Hopefully by the autumn this uncertainty has already dispersed in some way.”
According to Pajunen the City of Helsinki will continue to adhere to the principle that those in permanent employment will not be dismissed in the future either.
Helsingin Sanomat
|
| 7.4.2009 - TODAY |
 Helsinki budget cuts will not affect school lesson framework or public transportation |
|
