Tampere proposes 43.9 million euro deficit budget and future fund

Tampere Mayor Ilmari Nurminen has proposed a 43.9 million euro deficit budget for next year, while keeping tax rates unchanged and planning a new fund to support future services and investments, Yle reports.

The municipal tax rate will remain at 7.6 per cent and the general property tax rate at 1.25 per cent. The city expects its operating result to improve by about 22 million euros next year, but weak employment and tax revenue mean savings measures will continue. Tampere has identified about 60 million euros in permanent adjustments for this year and next.

The city plans to invest nearly 230 million euros, mainly in schools and daycare centres. It is also preparing for construction of the Pirkkala-Linnainmaa tram line to begin in 2028. Most investment will be financed through borrowing. Tampere’s debt is forecast to grow by more than 126 million euros next year, from about 1.2 billion euros at the end of this year.

Support for organisations and services

The proposal includes no cuts to grants for organisations. Tampere plans to make grant criteria more flexible and increase funding for food aid by 100,000 euros, bringing the total to 435,000 euros.

The city also plans to continue free swimming sessions for older people and add assistants to its service transport. Class sizes in basic education will remain unchanged, while literacy support and Finnish-language teaching for pupils who speak other languages will be expanded. Upper secondary schools will have 100 additional places.

A new neighbourhood alliance is intended to support young people aged 18 to 29 who are without work or a study place and at risk of social exclusion. The city is also proposing that students be able to buy an annual public transport pass at the student rate from the start of 2027. The public transport committee will decide where any fare increases are applied.

More plans for the city

Tampere plans to design a gymnastics hall to replace the run-down sports hall in Ikuri. The new hall would also accommodate competitions and events. The city intends to renovate the Pikku Kakkonen playground and begin renovations to Hämeenpuisto.

A jobs package planned for 2027 is intended to improve how the labour market functions and encourage the creation of new jobs, while reducing the city’s rising unemployment benefit costs.

Although Tampere has met a 60 million euro target for balancing its finances, the city says the need for adjustments has risen again to 100 million euros because of national economic and employment trends and the failure of a state subsidy reform. Nurminen has also proposed additional savings for next year’s budget.

The proposed future fund would invest city funds, with returns used to finance services and investments.