Finland's welfare regions face severe financial strain. Some districts now warn they may need to dismiss nearly 15,000 employees collectively. This crisis stems from accumulating deficits and strict legal deadlines to balance budgets.
A healthcare expert previously indicated up to 20,000 job losses might occur if funding laws aren't corrected. The situation reveals systemic funding flaws across multiple regions.
Eastern Finland's Administrative Court recently ruled South Karelia welfare district's budget and financial plans unlawful. The ruling isn't yet legally binding but signals deeper troubles.
South Karelia's director Sally Leskinen said complying with the court's decision would require preparing to dismiss 65% of staff. The district would need to cut 3,700 person-work years.
Government reforms might grant extension until 2028 for deficit coverage if regions show surplus budgets next year. But ten districts cannot achieve surplus budgets, making extensions impossible.
Leskinen noted the reform assumes initial welfare region funding was adequate. She said this ignores varying degrees of funding flaws across districts.
South Karelia accumulated €81.4 million deficit from 2023-2025. The region needs €39 million in adjustments for a balanced budget next year. Current negotiations aim to cut 565 person-work years.
Central Finland faces the grimmest scenario with projected €80.8 million deficit for 2025. Combined with existing €255 million shortfall, total adjustments reach €336 million.
Former director Jan Tollet said covering deficits by legal deadlines would require 25% operating cost reductions in one year. This translates theoretically to over 6,000 person-work years.
South Ostrobothnia predicts €27 million deficit next year with total accumulated deficit around €130 million. Director Tero Järvinen said covering this through staff cuts alone would mean eliminating 2,400 person-work years.
South Savo initially forecast €19.4 million deficit for 2025 though new projections might improve. The region cannot erase over €90 million accumulated deficit by 2026 deadline.
Director Santeri Seppälä said covering their deficit would require cutting nearly one-third of their 8,000 staff. The math simply doesn't work for providing required services.
The fundamental problem appears to be unrealistic legal requirements meeting inadequate funding structures. Without structural solutions, these regions face impossible choices between legal compliance and service provision.