Vantaa and Kerava face funding crisis as government dismisses welfare region’s financial needs

Thursday 26th September 2024 on 11:19 in Finland

finance

The Vantaa and Kerava welfare region is facing challenges regarding its financial assessment and the evaluation of social services needs, deeming the current situation unjust and inadequate. This is the first time the welfare region has sought additional funding from the state. Local representatives were not surprised by the news of a funding shortfall, as the issues had been previously acknowledged.

According to Welfare Area Director Timo Aronkytö, the government’s decisions rely solely on legal definitions that fail to account for the region’s specific needs. He criticized the state’s assessment of the social service requirements in Vantaa-Kerava as inaccurate. The welfare region presented special reasons and evidence for the need for financial support in its application, but all evidence was dismissed. “We were told that the law specifies how much funding you will receive,” Aronkytö stated.

Vantaa and Kerava is the most multicultural welfare area in Finland, grappling with metropolitan challenges. A study conducted by a professor from Aalto University indicated that the region’s social service funding should be increased by €60-70 million to meet actual needs. Consequently, the welfare area’s finances have fallen into deficit.

Despite extensive negotiations with government ministries—40 hours of discussions and 14 meetings—no substantial results were achieved. Now, Vantaa-Kerava must adjust its services within these financial constraints, which could lead to cuts in certain services. A list of €13 million in cuts for next year has already been prepared, alongside a current deficit of €100 million, which has made it difficult to deliver statutory services at the previous level.

Although no decision has yet been made to discontinue specific services entirely, there will be cuts in administration, ICT costs, and facilities to generate savings. The welfare area’s admission to the government’s monitoring category has led to an invitation for new negotiations. “I am actually looking forward to attending,” Aronkytö added, hopeful for guidance during these discussions.

Source 
(via yle.fi)