According to KS, there is a crisis in Kommune-Norge. Mayors despair over demanding finances and plan big cuts.
This afternoon, the municipal organization has been called to a crisis meeting with municipal minister Erling Sande (Sp) to discuss the financial situation.
– The municipalities must receive “emergency aid”, and we must discuss the fundamental challenges. The pressure on the services must be solved with long-term measures, says KS leader Gunn Marit Helgesen to NTB before the meeting.
She says KS is happy about the invitation from Sande. But:
– We have the impression that the government is beginning to understand the seriousness. Understanding is good, but it must end in concrete measures.
The municipalities are 10 billion in the red
In next year’s budget, the government increases transfers to the municipalities by NOK 6.8 billion. It is far from enough, Helgesen asserts.
– The government has referred to the budget as a historic investment, but the reality is that the money will be far from sufficient, she says.
Helgesen points out that the municipalities have already spent NOK 10 billion more than they have this year, in addition to falling tax revenues and increased interest costs.
The government has already signaled that there will be more money in the new balance of this year’s budget in December, but has not said how much it will be.
It creates uncertainty, point out the finance councils in Oslo, Bergen and Trondheim, Hallstein Bjercke (V), Jacob Mæhle (H) and Kjetil Reinskou (H) in a joint statement. When the municipalities do not know how much money they have to deal with, it is difficult for them to plan, they believe.
Takes from the rich and gives to the poor
The government has also introduced a new income system for the municipalities, where they take from the richest and give to the poorest.
Oslo, Bærum and Asker are among the municipalities that lose the most from this redistribution. “Historical” says Oslo city council leader Eirik Lae Solberg (H) about the crisis meeting on Friday.
– I can’t remember that a government already the day after they presented a budget, realizes that it is so bad that they invite a crisis meeting with themselves and the municipalities, he says to NTB.
Lae Solberg says it is important for Oslo to keep more of its own tax revenue.
– Now we lose another 600 million in addition to the 8 billion we are already giving up. We have made this clear.
– Extensive cutbacks
Bærum mayor Lisbeth Hammer Krog (H) has previously spoken very critically about the government’s new income system. She believes the meeting with Sande is important.
– The dramatic situation that far too many municipalities now find themselves in, with extensive cutbacks, the minister must take to heart, she says.
She is asking for a longer transitional arrangement for the “loser” municipalities. Asker mayor Lene Conradi (H) wants the same.
– I still believe that a government and a parliamentary majority that protects a dysfunctional municipal and county structure should lift low-income municipalities with fresh funds without hitting a few as brutally as we see the result today, she says.
The municipal minister: Busy listening
Municipal and District Minister Erling Sande (Sp) understands that the financial situation is demanding for many municipalities and county councils.
– This is due, among other things, to increased costs and the fact that the tax revenue is likely to be lower in 2024 than we thought when the year started. Many municipalities are struggling with their finances and have to make tough priorities going forward. I understand that is difficult, writes Sande to NTB.
The local government minister says he is keen to listen to the municipalities, and that the government is working on the challenge in the municipal economy.
– As announced, I will also return to the Storting with a proposal for increased allocation to the municipal sector for 2024, he says.
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