New municipality Vision of the future of local government
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1 New municipality Vision of the future of local government Ari Kolehmainen, Project Leader, Association of Finnish Local and Regional Authorities
2 New Municipality local development challenges New Municipality local development challenges Operating environments, rapid change (for example: aging, financial problems, multiculturalism, environmental issues, industry changes, market, availability of staff ) Changes in the municipalities Vitality and capability of the municipality i Emphasis on municipal economy Regional differentiation and polarization Democracy and management Productivity Good practices and innovations 2
3 Examples of differences between local authorities Average Smallest Largest Population 31 Dec (total) Population density inh./km Area (excl. waters) km (total) Economic structure Agriculture and forestry % Manufacturing % Services % Age structure aged 0 14 % aged % aged 65 and over % Local tax rate 2009, % of taxable income
4 Number of municipalities by size of population Inhabitants < and over 7 (Population 31 Dec 2007)
5 Total municipal sector revenue Tax revenue 47 %, 17.7 billion Division of responsibilities and financing between central and local government Central government transfers in operational finances 19 %, 7.3 billion Operating revenue 27 %, 10.2 billion Investment revenue 2 %, 0.8 billion Raise of tariffs How much are municipalities able to cope with? Estimate for 2009 (external income) Total 37,7 billion euro
6 Total municipal sector expenditure Social welfare and health care 50 %, 18.8 billion Education and culture 22 %, 8.5 billion Other operating expenditure 13 %, 5.1 billion Productivity Investment expenditure 10 %, 3.9 billion Debt servicing 3 %, 1.1 billion No to new tasks Estimate for 2009 (external expenditure) Other expenditure 2 %, 0.6 billion Total 38,0 billion euro
7 The distribution of the population across Finland 2008 ROVANIEMI KEMI OULU 75 % KAJAANI KOKKOLA 80 % VAASA SEINÄJOKI KUOPIO JOENSUU JYVÄSKYLÄ 50 % PORI RAUMA TURKU KAARINA NOKIA HÄMEENLINNA TAMPERE LAHTI RIIHIMÄKI HYVINKÄÄ NURMIJÄRVI JÄRVENPÄÄ KERAVA SALO TUUSULA PORVOO LOHJA KIRKKONUMMI HELSINKI KOUVOLA MIKKELI KOTKA SAVONLINNA LAPPEENRANTA Municipal boundaries: Statistics Finland
8 Cities with over 30, 000 residents and the 30, 40, 50 and 60 km zones surrounding them About people or 88 % of all Finns live within the 50 km zones ROVANIEMI KEMI OULU KAJAANI KOKKOLA VAASA SEINÄJOKI KUOPIO JOENSUU JYVÄSKYLÄ PORI TAMPERE MIKKELI SAVONLINNA RAUMA TURKU KAARINA NOKIA HÄMEENLINNA LAHTI RIIHIMÄKI HYVINKÄÄ NURMIJÄRVI JÄRVENPÄÄ KERAVA SALO TUUSULA PORVOO LOHJA KIRKKONUMMI HELSINKI LAPPEENRANTA KOUVOLA KOTKA Municipal Boundaries: Statistics Finland
9 Residents/municipality Number The number of municipalities in Finland : trend Average size of municipality: trend
10 Basic task for the project New Municipality 2017 To formulate together with the Finnish municipalities a vision of and policies on; how to build a viable municipality structure for various environments and how to strengthen self-government and meet the service and welfare needs of citizens
11 Objectives New Municipality 2017 programme is a future-oriented project for helping municipalities to cope with their challenges The programme s goal is to ensure that by the end of 2012 the basic task to formulate a common vision of local government, future operating structure and how to co-operate with the market has been completed. The project will also produce the necessary information for the Local Government Act reform in the coming 3-4 years. The project will also try to provide an answer to the question Do we need more than one legal municipality model. The new Local Government Act will hopefully come into force on 1 Jan Relating to the structural change, it is necessary to find solutions for financing services and for enabling a strong local self-government. that there is a balanced co-operative relationship between state administration and local administration The project also raises the question of citizens responsibility for their own welfare, good life and their environment
12 Analysis of concepts For example: Self-government concepts for preparing the Local Government Act and for public use Vitality of local communities Ratio active age/dependency age City Equality Comparison between the Nordic countries
13 What should the policy for self-government (structures) be in the future? - Alternative directions 1) Strong municipalities one model for all municipalities? 2) Strong regional municipalities and small local municipalities with minor responsibilities two-level model of representative democracy 3) Multi-Model: Municipalities and regional municipal entities side by side, where the selection of the model takes place according to natural development paths Service provision structure and municipality structure are gradually becoming separate purchaser provider Ari Kolehmainen
14 Development paths lead to the new Local Government Act? (multi-model) Metropolitan area (or Helsinki region) Municipality based on the commuting area Municipality following provincial boundaries (province municipality) Strong central municipality surrounded by a province municipality Identity municipality Ari Kolehmainen
15 Programme stages Scenarios alternative dev. lines 3/ Analysis present stage 6/ Hearing feedback 5/ Theory for the conceptual basis 12/ International comparison something to learn 12/ Conceptual analysis new language 12/ Pilot projects new models 12/ Local Government Act new law 12/ Structural and operational models new models /2012 Structure alternatives Management group management, network management Resources where to find new, productivity Processes quality and productivity 10.Democracy how to improve 12/ Municipality interest policy pro activity 12/2012 Government politics 12. Scientific Advisory Board established
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