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Municipalities in Finland

Municipalities in Finland. Ms Hannele Häkkinen Director, Brussels Office Estonian Delegation 2.6.2010. Association of Finnish Local and Regional authorities: Competence to support change.

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Municipalities in Finland

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  1. Municipalities in Finland Ms Hannele Häkkinen Director, Brussels Office Estonian Delegation 2.6.2010

  2. Association of Finnish Local and Regional authorities: Competence to support change The way services are provided by municipalities will undergo radical changes over the next few years. The service needs of residents will also change. The Association of Finnish Local and Regional Authorities and its companies support municipalities in their efforts to bring about the change. The objective is a viable municipality that will ensure the wellbeing of its residents and their opportunities for participation also in the future. All municipalities are members of the Association by their own will.

  3. Short-term challenges for the Association’s operations Balance between local government functions and internal financing • Basic services programme and budget • Revision of the financing and central government transfer systems • Secure the bases of tax revenues Functional local government and service structure • Functional local government structure • Effective service structure • productivity, effectiveness, availability • methods of provision and financing • service strategies, information technology • competitive tendering • Functional democracy, opportunities for residents to exert influence, and management

  4. Association of Finnish Local and Regional Authorities and its affiliated companies in 2009 Association of Finnish Local and Regional Authorities Gustavelund Ltd Hotel and restaurant business Audiator Ltd auditing firm Suomen Kuntaliitto Finnish Consulting Group, FCG Ltd 58 % Association-owned (other owners: universities, central government, private comp) Consulting in: physical planning and the environment municipal infrastructure and administration training for local authorities share of international business 40 % turnover over 70 million €,personnel over 600 KL-Publications Ltd Publications e.g. Associations periodical and municipal trade fair KL-Hallintopalvelut Ltd Property investments

  5. Central figures • Number of municipalities (cities, towns and municipalities) 342 on 1.1.2010 • Number of joint municipalities now over 200, diminishing due to new models of co-operation and mergers of municipalities • Total expenditure 36,5 billion € • Municipalities share of public expenditure almost 2/3 • Number of employees in municipal sector 424,000(17% of all employees in Finland)

  6. Municipal revenue and expenditure* • Expenditure (total 36,5 billion €): • welfare and health care 52% • education 25% • infrastructure 19% • financing and other exp 5% • Revenues: • tax income 52% of which • income tax (varies 16,0–21,0%) 41% • corporate tax, municipal share 4% • property tax 2% • Charges and fees 27% • State subsidies 19% • Other (loans and other) 7% * includes both municipalities and joint municipalities

  7. Municipal organisation COUNCIL Auditors MUNICIPAL EXECUTIVE BOARD MUNICIPAL COMMITTEES Main tasks: Education and culture Social welfare and health care Environment and technical infrastructure

  8. Municipal elections, 2008Percentage of votes received by each party Election turnout 61,3 %

  9. Percentage of women in municipal councils women men

  10. Examples of differences between municipalities Average Smallest Largest Population 31.12.2007 5 300 484 (total) 116 568 531 Population density inh./km2 17,4 0,2 3 051,0 Area (net of water areas) km2 303 901 (total) 6,0 15 052 Economic structure Agriculture and forestry % 3,9 0,1 33,2 Manufacturing % 25,1 5,1 48,0 Services % 70,1 38,0 86,3 Age structure 0–14 year-olds % 16,9 9,6 34,6 15–64 year-olds % 66,6 54,2 72,1 65 and over % 16,5 7,4 35,6 Local tax rate 2009, % of taxable income 18,60 16,50 21,00

  11. < 2 000 48 2 001–5 999 134 6 000–9 999 66 10 000–19 999 45 20 000–39 999 31 40 000–99 999 17 100 000 and over 7 Number of municipalities by size of population Inhabitants (Population 31.12.2007)

  12. Municipal employees in various branches Employees in total 424 000

  13. Finland’s regionsand municipalities 19 regions and Åland 342 municipalities

  14. People over 65 years

  15. Population Density in Europe (person/ km ² ) Population in Finland 5,3 million Population Density 15/km ²

  16. Background Finland • 5,3 million people • 342 municipalities in 2010 (415 in 2008) • Population varies from 116 inhabitants to 560 000 (Helsinki) • Decision-making power lies within the municipal council • Elected in every four years by general elections • Appoints executive board and different committees (social and health committee, basic services committee etc.) • Municipalities have the right to levy tax (income tax and real estate tax)

  17. Responsibility for basic welfare services • The municipalities are responsible authorities for arranging of basic welfare services • The way these services are arranged is decided by the municipality: it can • produce services self • have joint service provision with neighbouring municipalities • buy services from other municipalities, joint councils or private service providers (Local Government Act 1995) • use service voucher

  18. Reform to restructuring of municipalities and services 2005-2012 Objectives of the Reform • A sound structural and financial basis for the services that municipalities are currently responsible for • In order to secure the organisation and provision of such services in the future • With due regards to the required standard of quality, effectiveness, availability, efficiency, and technological advancement • Municipalities themselves lead the process of change within the limits of the framework legislation

  19. Reform to restructuring of municipalities and services • Social welfare and health services play a key role in the modernisation of the entire services structure Results • Primary health care and social services • 260 municipalities plan to achieve the 20 000 population base by establishing a partnership area (responsible for primary health care and social services) > 66 partnership areas • 20 would administratively be joint municipal boards, and 35 have chosen “host-municipality-model” (joint municipal organ) > 36 of the areas function already, others will start in 2010-2013

  20. Reform to restructuring of municipalities and services Results • Integration of social and health care • 25 municipalities plan to give all primary health care and social services to the partnership areas • 90 plan to give all other above mentioned services excluding children day care • Rather many (67 municipalities) plan to give only some separate services, 10 none of these services and 68 haven’t made decisions

  21. Levels of Structural Reform Managing the change within Municipalities (strategy, management, expertise, resources, evaluations) State Strategy and Guidelines (legislation, municipalities policies, financing, restructuring state administration) Administrative Structures (basic municipality, service districts, regional municipalities) Service Production (companies, enterprises, Inter-communal cooperation, purchasing) Service processes (expertise and know-how, technologies, productivity)

  22. Regional Cooperation (20 - 30 000 population) Private Producers and Third Sector (NGOs) - Occupational Health - Services for the Elderly - …. Basic Team Basic Team Population Responsibility - Basic Services Basic Team Regional Cooperation Basic Team Basic Team Services with special expertise as regional services - digital Imaging - Specialists - Special services - Psychiatrics - …… - Qualitative and Cost effective Services Regional Cooperation Cooperation in Hospital District - Electronic Patient Record - Laboratory - Imaging - Emergency Services (Telemedicine, call centre) - Medicine - Specialized Health Services Source: Talja 2003

  23. Solutions in Finland • Reform to restructure municipalities and services • Long-distance consultations, TeleHealth • Joint emergency services • Labour division between medical doctor and nurse, between dentist and dental assistant • Mobile services (medical doctor, specialists, rehabilitation) • Call Centres • Health Promotion / Prevention

  24. Further Challenges in Finland • Availability of professional labour force • More input in primary health care

  25. Summary: Health care reforms

  26. Brussels Office of the Association of Finnish Local and Regional Authorities since 1992 • The Brussels Office of the Association of Finnish Local and Regional Authorities is a centre for lobbying towards the European Union for the Association and the Finnish local and regional authorities • In March 2007 the office moved to the House of Municipalities, Cities and Regions in Brussels • In the fourth floor there are 8 national offices: Denmark, Estonia, Finland, Iceland, Latvia, Norway, Scotland and Sweden • In the house there are about 30 offices of national associations and of cities, and CEMR (Council of European Municipalities and Regions) and EUROCITIES

  27. Brussels Office • It acts as a channel of communication towards the EU institutions and other partners and stakeholders in Brussels • The office maintains contacts with EU institutions, Finnish opinion leaders and representatives of other countries • It builds co-operational relationships and participates to the work of different networks relevant to the local and regional level • It keeps the association, Finnish Municipalities and other stakeholders posted on initiatives of EU institutions and the drafting of regulatory acts and makes Finnish regional and local government known to the EU

  28. Brussels Office • The office arranges training, meetings, and visits in the premises of the House • The office also serves as a base for the members and experts of the Finnish delegation of the Committee of the Regions

  29. Communication • The office has contact with the specialists of the Association and partners in Finland and in other countries • The office has contact via e-mail and phone, meetings and conferences in Brussels are important for the dialogue and exchange of views with other European actors • The office has visiting groups from Finland and other countries • EU-newsletter (in Finnish)

  30. Networking • In Brussels, there are about 300 offices which represent local and regional administration • Different networks are precondition to have your voice heard • The office has a close cooperation with other European sister organisations offices in Brussels and with CEMR (Council of European Municipalities and Regions) • In networks it is possible to change information and experiences and work together for common opinions

  31. Influencing • Influencing through • the Association of Finnish Local and Regional Authorities in Finland and in Brussels • the networks: shared interests, common opinions • the Committee of the Regions: the Association holds the technical secretary for the Finnish delegation • The office has contacts with officials and politicians in EU and with experts of the Finnish permanent representation to EU • The office works in different networks and mediates through them the views of Finnish regional and local government • The office is a link between Helsinki and networks in Brussels

  32. Thank you for listening! Further information: hannele.hakkinen@aflra.fi Ms Hannele Häkkinen Director, Brussels Office The Association of Finnish Local and Regional Authorities Square de Meeûs 1 1000 Brussels, Belgium Phone: +32 478 338 322

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