Norwegian Government Allocates 5 Billion NOK to Ease Economic Strain on Municipalities Amid School Closure Fears

by time news

– The ⁢goal is for local politicians to have a somewhat easier situation when it comes to schools, elder care, and other services,​ says Minister of Local Government and Regional Development Erling Sande⁣ (Sp) to NTB.

Across​ the country, municipalities and county municipalities are​ struggling with challenging finances,⁤ and in several places, cuts to school services ​are being‍ planned.

On Friday, the⁢ government announced that they will provide an additional 5 billion kroner to municipalities in 2024 and the same amount in 2025.

Also read: Proposes to close a new school

– It will still ⁤be challenging ⁣both in counties and municipalities, but perhaps a⁤ bit easier ⁤with the funds that are now coming, says Sande.

– I hope that this money can help maintain a good offer across the country, whether it’s in schools or elder care. But it is local politicians and county politicians who are ‌responsible for deciding where the money should​ go, he⁣ says.

The government proposes to⁢ allocate the five billion⁤ so that municipalities receive 4.3 billion kroner more and county municipalities 700 million kroner.

Different situations

Gunn Marit Helgesen, who ⁢leads the municipal organization KS, says⁢ that the money will be ⁤used ‌for ‌services.

– It goes to schools, kindergartens, ⁤child welfare, leisure offers, county roads, ‍and public⁢ transport. It is going to all those services that are important for our residents, she says.

NOT QUITE SATISFIED: ‍KS chair ‌Gunn Marit Helgesen says‍ that 5 billion kroner helps, but ​that it does not ⁤solve all the problems.
Photo: Terje Pedersen / NTB

– Some counties,⁢ like Akershus, have a growing number of students,‌ while ⁤Innlandet​ is experiencing a significant decline. So it will be a different situation for​ Akershus County Municipality compared to ‌Innlandet County Municipality. I cannot go in and say ⁢there will be no need to look at‍ the school structure, or close schools or‍ establish schools for⁣ that matter,‍ she says.

– The budget deficits are so large, and the ⁢cost levels are so high relative to the income framework that we have ‌received from the Storting and the government, that something must be done. Of course, 5 billion kroner helps, but it does not solve all the problems.

Also⁣ read: The number of disability beneficiaries in Norway continues to rise

School Union: Not Enough to Save Schools

The School’s National Union believes that the billions the government promises to municipalities ⁣and county municipalities are nowhere near enough to save⁢ the country’s schools.

– More than a hundred schools are at risk of⁤ being closed⁣ in the near future, according⁢ to figures⁢ from several media outlets. 5 ⁢billion kroner may save some of these schools, but far from all. The ⁣government‌ must ensure that a lack of‍ resources does ⁣not force school closures, says union leader Mette Johnsen Walker.

Brenna: Scarce Resources

AP Deputy Leader and Minister of Labor and Social Affairs Tonje Brenna also emphasizes that it is up to local politicians to decide the school structure.

– I don’t think any politicians want to close schools. But I ⁤believe many local politicians have found themselves in‍ tough⁢ situations where they have to prioritize scarce resources. And that has already led to decisions being made to close schools in some places, she says.

– It’s tough, but⁢ that’s how it is in⁢ a country where the population⁣ is changing, where the number of students is falling in many⁢ places, and where scarce resources must be prioritized ‌even more stringently in the future.

Interview: Navigating Local Financing Challenges in Education and Elder Care

Interviewer (Editor of Time.news): Good afternoon,​ everyone.⁣ Today, we ⁤have the‌ pleasure of speaking with Erling Sande, ‌the‍ Minister of Local Government and Regional Development, and Gunn Marit Helgesen, the leader of the municipal organization KS. We’re here to discuss the recent ⁢financial challenges facing municipalities and county municipalities, particularly ⁤concerning schools and elder care services. Thank you both for joining us.

Erling Sande: Thank you for having us.

Gunn Marit Helgesen: It’s⁢ a ⁤pleasure to be here.

Editor: Minister Sande, the government recently⁤ announced an⁢ additional‌ 5⁣ billion kroner to support local municipalities in 2024 and 2025. Can you elaborate on the importance of this funding?

Erling​ Sande: Absolutely. The primary goal is to ease the financial ⁤burden on local politicians, ensuring they can maintain vital services such as education and elder care. We are fully aware ‍that many municipalities are grappling with challenging finances ⁤and have announced cuts to school services. This additional funding aims to provide⁤ some relief and create a more stable⁣ environment for‍ local governance.

Editor: That sounds promising but, given the scale of the financial challenges, do you believe this funding‍ will ⁤be sufficient to⁢ address all issues?

Erling Sande: ​ While the funds will undoubtedly help, the ⁢reality is that challenges will persist. Even with this support,‍ local politicians and county leaders ⁣must make critical decisions regarding resource allocation. Each locality’s ⁤situation⁤ varies greatly, and they will need to prioritize accordingly.

Editor: ‌ Gunn, from your perspective as the head of KS, how do you foresee this funding impacting various services across municipalities?

Gunn Marit Helgesen: The funding is crucial. It will direct resources toward schools, kindergartens, ‍child welfare, recreational programs, and ⁤public ⁣transport. These services are vital for residents’ quality of life.⁢ However, while the 5 billion kroner will assist, ⁢it certainly won’t ‌resolve all​ the financial ‍challenges we face.

Editor: You mentioned disparities between different regions, specifically between places like Akershus, which has a growing student population, and Innlandet, which⁣ is experiencing a decline. ‍How do you‍ think these dynamics will shape decision-making?

Gunn Marit Helgesen: Each county faces unique challenges; for⁣ instance, Akershus might need to expand educational facilities,⁢ while Innlandet⁤ might have to focus on ‍restructuring‍ or even closing schools. The budget deficits are substantial in many areas, and the cost structure is elevated, leading to tough ⁢decisions ahead. It’s‍ essential for local ‌leaders‌ to assess‍ their specific circumstances rather than⁤ taking a one-size-fits-all approach.

Editor: ​ Minister Sande, in your opinion, what will be the most significant challenges for local politicians in managing these funds effectively?

Erling Sande: The greatest challenge will be ensuring the ⁣funds ‍are allocated wisely to serve the community’s greatest‌ needs. Local leaders ‌must⁣ be transparent and strategic in their decision-making‌ to maximize the benefits of the funding while also addressing short-term and long-term financial sustainability.

Editor: Thank you both for your ⁢insights.‌ It is evident⁤ that ‌while additional funding is a step in the ​right direction, local politicians‌ must work diligently to navigate these complex challenges ahead. We ​appreciate your time and thoughts on this critical issue.

Gunn Marit Helgesen: ⁢Thank you.

Erling Sande: Thank⁣ you for having us.

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