The negotiations for next year’s municipal budgets have begun, and tensions are running high. The Association of Danish Municipalities (KL) and the government are currently in discussions on how the financial framework should be for the country’s 98 municipalities, responsible for everything from schools to eldercare. According to KL chairman Martin Damm, who is also the mayor of Kalundborg, it has become impossible to continue finding savings in general welfare areas to finance increasing expenses in the specialized sector. “It becomes evident when municipalities need to set a budget because then they have to cut back on public school and eldercare to make room for these expenses that are rising rapidly,” he says.
Expenses for the specialized social area, covering children and adults with special needs, have increased significantly – from 56.7 billion Danish kroner in 2018 to 62.7 billion in 2023. This has put pressure on municipal budgets and created an economic imbalance that now requires political action. A recent framework agreement between the government and several parties, including the Liberal Alliance, the Conservatives, and the Radical Left, aims to curb expenditure increases in the disability sector through various initiatives, including simplifying rules and case processing.
Mayor of Helsingør, Benedikte Kiær (Conservative Party), acknowledges the necessity of the agreement, but points out that it does not address the current economic challenges. “I can be concerned that the Ministry of Finance says, ‘So it’s fixed with this agreement,'” she says, emphasizing that there are still significant economic challenges in the specialized areas. While negotiations continue, there is a broad understanding that solutions must be found that can both ensure necessary assistance for citizens with special needs and maintain the quality of general welfare services.
KL chairman expresses hope that a balance can be found that benefits all parties. “We approach the further work with a great desire to ensure that citizens in need receive the right help and support – while also being able to manage the economy across welfare areas,” says Martin Damm.