The small municipality’s economy collapsed with the reform of the social services and now it sells almost everything it can: ‘We took a big hit’

The municipality of Myrskylä in Uusimaa has, in its own words, become a paymaster in the social welfare reform. Many other municipalities in Finland are in the same situation.

The centre of Myrskylä in the north-eastern part of Uusimaa is like any other small municipality in Finland. At the junction of two roads you can see a pharmacy, a shop, a library, a health centre and a bank.

The rural idyll is overshadowed by the municipality’s bleak financial situation.

In the light of the financial figures, Myrskylä is one of the municipalities in Finland that was left with the role of payer in the social welfare reform.

When social and primary health care and rescue were transferred to the well-being of the welfare areas, the principle of the reform was that the amount corresponding to the municipalities was cut.

At the same time, municipal tax law and corporate tax share decreased.

The funding transferred to the welfare areas was based on the actual war and rescue costs of 2021 and 2022. In a small town of less than two thousand inhabitants like Myrskylä, the annual variations are great.

– Even one hip surgery may swing up all year down, Ukkola says as an example.

If, for some reason, if the municipal social expenses occurred in those years before the welfare areas were formed, it is now reflected in their cash description, even though the sote is no longer the responsibility of the municipalities.

One of the key objectives of the Sote reform is to curb the increase in the cost of care and to safeguard local services.

League of Local and Regional Authorities: a tragic result

State shares will continue to fund other basic municipal services.

The financial statements of Myrskylä municipality collapsed from a surplus of EUR 2020 million to last year’s million euros.

This year, this year, the municipal state subsidies will cut EUR 369 per capita due to the so-called social depreciation items.

In the case of Myrskylä, covering the amount would require an increase in the municipal tax rate by about two percentage points.

The municipality has sought and continues to bake its economy by selling much of everything: fields, forests, two closed village schools, one of its terraced houses, and even a municipal building if there are replacement facilities for the administration.

But what when there is no more sale?

– I hope this state subsidy will be repaired. It cannot be that we have to pay for providing basic services to our residents, Esa Ukkola is frustrated.

This year, Myrskälä will receive the same amount of state subsidies per capita as Helsinki. For example, the pot of Lapinjärvi, a neighbor of Myrskylä, is double compared to this.

– So at least in Myrskylä, you cannot use an argument that is often heard that big municipalities fund small. I do not want to take anything out of Lapinjärvi, but I hope that in the future the euros will be distributed more evenly, Ukkola emphasizes.

Sote gobbled up money under the reform

Myrskylä is located closer to Lahti than Porvoo and was a member of the Päijät-Häme Social and Health Consortium before the Sote Reform.

According to Riikonen of the Association of Finnish Local and Regional Authorities, the rising rise in social costs throughout the country was just under the reform. The current welfare areas made the state accessible the money that the war managed to spend before the reform.

-So the old municipal federations and municipal social services have been incentive to spend as much money as possible. Managing Sote costs has failed and is now realized in a stupid way.

In addition, Riikonen notes that for 21 municipalities, the loss of state subsidies for sote levels has been even higher than the storm per capita.

Myrskylä’s financial statements for last year are one of the weakest in Finland per capita in euro. The municipality is undergoing a financial balancing program that should repair the now accumulated deficiency by 2027.

Mayor Ukkola believes that Myrskylä will continue to succeed as an independent municipal, including community and vibrant companies.

The municipality has, for example, the famous Kalasavaisto, Finland’s only wooden shoe factory, a successful aggregate company and a furniture manufacturer.

– This is a beautiful area. In accordance with our strategy, we are a everyday life -safe residence, and for example, early childhood education and basic education are in good shape for us, Ukkola boasts.

The log -based primary school in the center of the municipality is one of the biggest investments in Myrskylä in recent years.