Kainuu awaits state ruling that will set pace of savings

Kainuu’s wellbeing services county is waiting for a state decision on how long it will have to cover its deficit, a ruling that will determine how quickly it must cut costs, Yle reports. The county expects an uncovered deficit of about 19 million euros at the end of this year.

The decision is needed before the county’s 2027 budget is finalised, county director Sami Mäenpää said. The county was asked for further information and sent its response last week. No decision timetable has been given.

Under the original rules, deficits had to be covered within two years of the relevant accounts being confirmed. The government has allowed counties to apply for an extension. The Ministry of Finance has granted extensions to several other counties, with deadlines ranging from the end of 2027 to the end of 2029.

Funding will not rise in 2027

Mäenpää expects 2027 to be the most difficult year in the county’s current financial outlook. Its funding will not increase that year, while staff costs are expected to rise by about nine million euros and purchased services by several million euros.

Cooperation negotiations identified nearly nine million euros in savings for 2027. But a proposal to close the evaluation and rehabilitation ward in Sotkamo stalled in the county council. Mäenpää said decisions that deliver lasting savings in the service network are necessary, but did not say how they would be achieved.

Current preliminary estimates suggest funding will be nine million euros higher in total in 2028 and 2029 than previously forecast. Those estimates may change: this autumn, the county’s 2027 funding forecast was cut by 11 million euros, removing the expected increase for next year.

If the county does not receive more time to cover its deficits, its financial position in 2028 would worsen, Mäenpää said. An extension through 2029 would allow savings to be planned more gradually, but would still require new decisions.

The forecast for this year has improved. Based on the first six months, the county was expected to record a two-million-euro surplus; a forecast using September figures now puts the surplus at 6.4 million euros.