The chief executive’s budget proposal: Janakkala’s finances turn into a deficit – only our own actions can change the direction

The municipality of Janakkala is preparing next year’s budget in a deteriorating economic situation. The surpluses accumulated in recent years, about 13.7 million euros in buffers, are quickly melting away with an estimated annual deficit of around 2-3 million euros over the next few years, unless actions are taken to address the situation. The chief executive’s budget proposal for the municipality and Janakkala Water for the year 2026 shows a deficit of 2.7 million euros. The financial plans for 2027 and 2028 are not significantly better, and the accumulated surplus is expected to be about four million euros by the end of 2028.

– I propose that a balancing program be initiated in connection with the approval of the budget. The program should begin as soon as possible so that actions can have an impact by 2026. The financial balancing program and the service network plan must find structural changes that will permanently strengthen the municipality’s financial foundation, says chief executive Riikka Moilanen.

The new strategy for Janakkala will be completed in December, at which point the preparation of the service network plan based on it can pick up speed. A decision on this is intended to be made in June 2026. The purpose of the plan is to respond to the long-term sustainability of the municipality’s finances, the growing repair debt of the property portfolio, and changes in demographics and service needs.

The municipal tax increase of 0.3% for the current year was meant to be temporary, but instead of decreasing, the tax rate is proposed to be raised by another 0.2%.

– The preparation of the budget was initiated with a framework that included a 0.3% lower municipal tax. In this scenario, the deficit would be significantly larger for 2026 (approximately 4.5 million euros). This would have plunged us into such a deep deficit spiral that recovering from it would have been extremely difficult. I make this tax proposal feeling frustrated but responsible, states chief executive Moilanen.

The finances of Janakkala, like those of other municipalities, are currently challenged by many external factors, such as the development of state subsidies, declining tax revenues, and the general rise in cost levels.
As municipalities are responsible for employment services, the weak employment situation, along with “penalty fees,” directly impacts municipal finances. Additionally, the salary agreements made in the municipal sector, with contract increases, raise the costs of a labor-intensive municipal organization.

Furthermore, the new public transport agreement for the Hämeenlinna region increases Janakkala’s payment share for public transport by approximately 570,000 euros. This effectively doubles the previous amount, as in 2025, 591,600 euros were allocated for public transport in the budget, and for 2026, it is 1,163,000 euros.
Despite the tight situation, preparations for the second phase of the Turenki school center’s construction will continue in the coming years. A budget of 17.3 million euros has been allocated for the school center project.

– The municipal executive tabled the Turenki II project plan in its meeting on September 15, 2025, which states that a large sports hall would also be built in connection with the school building. Unfortunately, we cannot afford this entire project right now. A modern school complex could be built more economically than the project plan suggests. I hope a common understanding can be found for this, says Moilanen.

The chief executive describes the financial outlook as bleak, but the situation is not so bad that it cannot be turned around.

Now is the time to roll up our sleeves and get to work building a stronger future for Janakkala. Although we must seek savings, we are simultaneously making strong investments in vitality and the development of our services. A good example of this is the regional agreement made with our southern neighbors Riihimäki, Loppi, and Hausjärvi, which is beginning to show results. Additionally, Janakkala’s own economic services are intended to be developed together with Janakkala Business Development.

The municipal executive of Janakkala will discuss the budget on October 20-21, 2025, and the council on November 10, 2025.

The entire budget document can be found in the presentation materials from the municipal executive meeting. (In Finnish)