Thirteen Cities Warn Planned Transfer Cuts Would Slash Municipal Funding and Threaten Services

A coalition of 13 city governments has called for urgent reform of the national state subsidy system, arguing in a press release on ePressi on 6 October 2026 that negative social and health care transfer adjustments treat cities unequally and threaten residents' equal access to services. The group includes Jyväskylä, Kemi, Kouvola, Kuopio, Lappeenranta, Mikkeli, Oulu, Pori, Rovaniemi, Seinäjoki, Tampere, Turku and Vaasa.

The coalition says the current system still relies on exceptional social and health care costs from 2021–2022, years marked by the coronavirus pandemic, hospital deficits and large investments. Basing ongoing municipal funding on those figures, it argues, distorts financing and will affect more than 3.4 million Finns in 2027. The change would also make long-term budgeting and service provision harder for growing municipalities.

Kouvola commissioned a legal opinion from Professor Tuomas Ojasen, who concluded the state subsidy system is highly problematic from the standpoint of constitutional municipal self-government, the principle of appropriate financing and residents' equality. "Kouvola will lose just over €20 million a year because of the transfer adjustments. Ojasen's opinion shows this is not only about municipal finances but also about municipalities' ability to carry out statutory duties and secure equal services for residents. The transfer adjustments must be removed and the state subsidy system urgently reformed," said Kouvola Mayor Marita Toikka.

The coalition published municipality-level estimates of the planned 2027 cuts: Tampere would lose about €47.2 million, Oulu €24.8 million, Jyväskylä €23.9 million and Vaasa €21.5 million. On a per-resident basis, the coalition estimates the impact amounts to several hundred euros a year in the hardest-hit municipalities. "This money is taken from current services and Tampere's future development; past social and health care costs cannot determine Tampere’s future," said Tampere Mayor Ilmari Nurminen.

A broad reform of state subsidies was prepared during the current government but collapsed in late 2025. This echoes the coalition's April appeal that the subsidy system breaches the constitution, and comes as Tampere already faces a large 2027 budget shortfall Tampere's September warning about its 2027 budget gap. The coalition says technical solutions and background work already exist and urges the next government to prioritise reform, remove the negative social and health care transfer adjustments and restore fairness to municipal funding.