Lolland deficit falls to 347 million kroner but cuts remain

Lolland Municipality’s projected deficit for next year has been revised down to 347 million kroner from more than half a billion, but substantial cuts are still expected, DR reports.

The new estimate, included in an update received by the municipal council and reported by TV2 Øst, is 184 million kroner lower than previously forecast.

“The catastrophe has taken on a lighter colour, but it is still a lot of money that needs to be saved,” said Henrik Jacobsen of the Conservative Party, who chairs the Climate, Technical and Environment Committee.

More people have found work

The lower deficit is partly due to several construction projects being postponed and wage growth developing differently than expected.

Unemployment has also fallen to 1.9 per cent, a development that surprised councillors.

“We did not foresee this happening. We simply did not dare to,” said Vibeke Grave of the Social Democrats, who chairs the Social and Labour Market Committee.

The increase in employment has strengthened the municipal budget by 73 million kroner.

Large savings still expected

Jacobsen welcomed the improved outlook but said cuts would still be necessary.

At the beginning of August, the municipal administration presented a catalogue of possible savings totalling 200 million kroner. The proposals include closing two schools and merging two others.

Jacobsen said tough cuts could not be avoided, despite the lower deficit, because the municipality had not adjusted its finances to the population decline.

According to the update, Lolland Municipality is still facing deficits of around half a billion kroner in 2028 and 2029.