Espoo proposes €354 million budget for 2024 amidst economic uncertainties

Espoo’s Mayor Jukka Mäkelä announced the proposed budget for the city for the upcoming year, along with an investment plan for the future, during a council seminar on Thursday. Several uncertainties impacted the budget’s formulation, including reforms to state funding, the transfer of employment services from the government to municipalities starting next year, and the overall international economic situation. The Espoo City Council is set to decide on the budget on December 4.

Espoo continues to see population growth, necessitating investments particularly in early childhood education and schooling. Total investments in the city are projected at €354 million for next year, which is an increase of €41 million compared to this year. The entire Espoo corporation plans to invest approximately €533 million in 2025, representing a growth of about €40 million.

Key areas of investment include new and renovated daycare centers and schools, with nearly €27 million earmarked for these facilities in the coming year. The renovation of the Espoonlahti health center has been allocated €2.7 million, with an overall estimated cost of €15 million. Funds are also designated for upgrading the Tapiola swimming pool, with €15 million planned for its renovation and expansion.

The budget proposal marks the last one from Mäkelä, who will retire early next year. He noted that the upcoming municipal elections next spring will influence budget discussions, stressing traditional concerns about spending levels from various stakeholders.

Kai Mykkänen, the current Minister for Environment and Climate, has been selected as the new mayor and will commence his role on February 1, 2025.