Janakkala’s 2025 financial statements are in deficit

The confirmed financial statements of the municipality of Janakkala for 2025 show a deficit of -1 156 299.96 euros.
The municipality’s external revenues were 13.5 million euros and expenses 56.1 million euros. The operating margin deficit was approximately 42.3 million euros and the annual margin approximately 6.0 million euros, compared with 8.8 million euros the previous year. The annual margin weakened as operating expenses grew faster than tax funding and operating income.

Tax revenues amounted to 39.6 million euros. The municipal tax rate was raised (8.4% => 8.7%), so tax revenues increased compared with the previous year, but they fell short of the original budget by 0.6 million euros and the revised budget by 0.3 million euros. State subsidies amounted to 9.5 million euros, almost in line with the revised budget.

– Several budget amendments during the year reflect the year’s challenges for financial management. For example, the revised public transport agreement, costs related to employment services, home municipality reimbursements paid for pupils from outside the municipality, and the warm weather’s impact on heating and snow-clearing costs affected the result differently than estimated, says finance director Juha Halen.

Depreciations and impairments totalling 7.1 million euros were recorded during the year. Planned depreciations remained below the budgeted level because investments were carried out smaller than budgeted and projects have been delayed. A one-off extra depreciation of approximately 800,000 euros was made for the old Tervakoski school building.

Overall, the municipality’s finances remained under control, but the financial balance deteriorated from the previous year. Ensuring the sustainability of finances going forward requires controlling expenditure growth, strengthening the revenue base and careful prioritisation of investments.

Efforts to balance the finances began

Because, as in 2025, both the 2026 budget and the financial plan years 2027–2028 were prepared with deficits, work to balance the finances began already in 2025. Savings are being sought, for example, from the service network, whose mapping work began in the spring together with the preparation of a property plan. The municipal executive has decided that the service network plan should achieve annual savings of 1–2 million euros by 2028. In addition, a financial consolidation programme was prepared at the end of 2025 and submitted to the municipal council for approval immediately in January 2026. The measures included in the programme aim to reduce the 2026 deficit.

Alongside savings, reforms were also implemented to strengthen the municipality’s vitality and economic growth. As a key measure, a regional agreement was concluded with the municipalities in the Riihimäki region and a new operating model for arranging business services in cooperation with Janakkala Business Development was prepared. These measures will start in 2026.

– Janakkala’s goal is to continue to secure services for residents, strengthen the municipality’s vitality and safeguard long-term financial sustainability. Forecasts indicate that Janakkala’s finances will continue to develop with a deficit without reforms. For this reason, the need for structural changes and reforms is even more important than before, says chief executive Riikka Moilanen.

A difficult employment situation challenges municipal finances

The TE reform transferred responsibility for the provision of employment services and integration services from the State to municipalities as of the beginning of 2025. Janakkala belongs to the South Häme employment area, but it has also invested in its own employment services. The economic effects of the severe unemployment situation have significantly impacted the overall balance of municipal finances. As the financing model for unemployment benefits changed, municipalities’ payment responsibility expanded, significantly increasing the municipality’s costs. In Janakkala, the rise in unemployment has particularly affected young people (unemployment 16.6%) and jobseekers in a challenging labour market position; in December the share of unemployed jobseekers of the workforce was 9.4%. The new organisation responsibility for municipalities challenges municipal finances across Finland and its effects are being monitored nationally.

School center Valo was the largest investment

The municipality’s investment expenditures were 9 million euros in 2025. Most of this was taken up by the school center Valo in Tervakoski, which was commissioned in August 2025. After a multi-year pause, a row-house development was also completed in Janakkala when Janakkala Homes built a 16-unit site with 16 apartments and one building for shared use.

The financial statements can be found in full on the municipal executive’s agenda (in Finnish).