Sustainable economy

The proposed harmonization of the real estate tax rate for power plants in the central government transfers reform must be removed. If all property taxes were considered at a 50 % rate in the calculation of adjustments to central government transfers that are based on tax revenues, the incentives for municipalities to promote renewable energy projects would be lost.

Comparison between municipalities in eastern and western Finland should stop: the geopolitical situation has affected all municipalities, and the proposed reform cannot be justified on the basis of regional fairness.

Kokkola’s goal is that the principles of power plant taxation are kept unchanged in the 2027 central government transfers reform and that the transfer sums related to the social and health care reform will be removed from the funding framework.

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Objective:

The City of Kokkola maintains that the principles of power plant taxation should remain unchanged in the upcoming central government transfers reform. Furthermore, the transfer sums related to the social and health care reform should be removed from the funding framework.

Measure:

It is proposed that the real estate tax rate treatment of power plants be harmonized in the calculation criteria so that all property taxes are considered at a 50 percent rate when determining the central government transfer based on municipal tax revenues. This would eliminate municipalities’ incentives to promote renewable energy projects.

Comparison between municipalities in eastern and western Finland should stop: the geopolitical situation has affected both the eastern and the western parts of the country. The proposed reforms cannot be justified on the basis of fairness.

The transfer sums related to the social and health care reform should be excluded from the funding framework to improve clarity in the funding of services that fall under municipal responsibility.

Advocacy target:

• Members of the Parliament of Finland, ministers, Ministry of Finance of Finland, Kuntaliitto

Schedule:

• As of 1 January 2025

The Finnish government must ensure adequate funding for employment services.  The additional appropriation granted to municipalities in the supplementary budget proposal of spring 2025 does not cover the appropriations granted by the Employment and Economic Development Offices in 2024. The funding must match to the actual service needs.

Kokkola’s goal is to ensure that the responsibilities for organizing employment services, which have been transferred from the government to municipalities with insufficient funds, do not weaken the municipal economy in the future. The TE services reform should not further weaken the financing base of municipalities.

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Objective:

The TE services reform should not further weaken the financing base of municipalities. Adequate funds must be ensured for the services in the Government’s budget.

Measure:

A significant portion of the appropriations is tied to pay subsidies, start-up grants, subsidies for arranging working conditions, which were granted by the TE-offices in 2024, but are actually allocated in 2025. In Central Ostrobothnia this means that the amount of appropriations available in 2025 varies by municipality. In three municipalities within the employment region, the appropriations have already been exceeded before any decisions have been made by the employment region authorities. In 2024, the TE-offices had access to appropriations for services, however, the decisions made during that period have simultaneously committed the funding intended for 2025 and for which municipalities now bear responsibility.

In connection with the supplementary budget proposal of spring 2025, it must be ensured that additional funding is allocated to municipalities in accordance with the financial commitments already made in 2024.

Advocacy target:

• Members of the Parliament of Finland, ministers, Ministry of Finance of Finland, Kuntaliitto

Schedule:

• As of 1 January 2025