Central Finland Welfare Area initiates cooperation negotiations for 2025 fiscal budget adjustment

The Central Finland Welfare Area has announced the initiation of cooperation negotiations related to the preparation of the fiscal budget for 2025. According to a press release from the welfare area, its current financial situation necessitates new measures for economic adjustments.

The cooperation process will involve the entire staff, with projections suggesting a reduction of up to 400 person-years. This estimate will be refined as the preparation of the 2025 budget progresses. The draft budget for 2025 is expected to include measures that could lead to personnel impacts, such as changes in employment terms, layoffs, part-time work adjustments, or temporary layoffs.

The welfare area plans to utilize retirements and other staff departures in its adjustment measures. Approximately 12,500 people are employed within the welfare area. Starting in 2025, the aim is to prevent any further increase in the welfare area’s deficit and to achieve a balanced budget. Nevertheless, the cumulative deficit is expected to remain unresolved by 2026, despite these adjustments.

To avoid additional deficits from 2025 onwards, the welfare area will require around €51 million in adjustment measures. Out of this amount, €15 million will be sourced from changes in public sector plans relating to tasks and financing, while the remaining €36 million will necessitate further adjustments within the welfare area, according to Jan Tollet, the director of the welfare area. The regional council is set to decide on the initiation of these cooperation negotiations during a meeting scheduled for August 13.