Local Governments and Regional Policy
Session: 15th Estonian Parliament, third sitting, information briefing
Date: 2024-04-10 16:43
Participating Politicians:
Total Speeches: 7
Membership: 15
Agenda Duration: 8m
AI Summaries: 7/7 Speeches (100.0%)
Analysis: Structured Analysis
Politicians Speaking Time
Politicians
Analysis
Summary
This agenda item addresses the position of local governments at the state level, along with associated funding and the assurance of service quality. Jaanus Karilaid posed a question to Prime Minister Kaja Kallas, expressing concern that the position of local governments is not clearly reflected within the framework of the coalition agreement, and that bureaucracy and the rising cost of services due to the influence of the State Shared Service Centre (RTK) create an additional burden. He highlighted regional inequality and deemed it necessary to find out when the cabinet discussed the position of local governments and what results or decisions stem from that discussion. It was also brought up that the discussions proceed through specific examples of local governments (Viimsi, Rae municipality, Tallinn), which represent larger financial burdens and whose impact must be understood more broadly. The second part of the discussion focused on the government's recent steps: the reorganization of income tax in 2024 and the resulting more equal revenue base among local governments; the land tax pricing reform and the proposal to grant local governments greater decision-making power over the size of the land tax; the opportunities promised by 2026 for determining the percentage increase of land tax and tax exemptions; changing the school funding model to preserve small schools in the immediate community, and taking into account the needs of different demographic groups (children vs. pensioners). Furthermore, it was noted that while compromises must be dictated within the coalition, they strive for balance, navigating regional inequality and the efficiency of local governments. In this context, the issue of funding for crisis preparedness and civil protection was emphasized, as well as the limitations in the budget or state budget, which affect the ability of local governments to respond accordingly. Finally, it was acknowledged that cooperation and taking into account the circumstances of different local governments is a continuous priority, and the coalition seeks to actualize measures that promote the quality of life and the capability of local governments.
Decisions Made 1
Decisions were not made.
Most Active Speaker
The most active speaker was Jaanus Karilaid (pid: M_I0ti5l7pQ). He is a member of the Riigikogu, and his political position in this discussion is 'other'.
Aseesimees Toomas Kivimägi
AI Summary
Toomas Kivimägi announces that we are moving on to the next question, which is being presented by our colleague Jaanus Karilaid and is addressed to Prime Minister Kaja Kallas.
Jaanus Karilaid
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Jaanus Karilaid voiced concern that the current government is indifferent to the standing and welfare of local municipalities, despite the coalition agreement promising to improve their revenue base and investment climate. He specifically highlighted the bureaucracy of the State Shared Service Centre (RTK) and the cost of waste management, while simultaneously questioning when the cabinet last discussed the overall situation of local governments in contemporary society and whether the actual circumstances of various Estonian municipalities have been taken into account, rather than just the figures dictated by large centers like Viimsi, Rae Parish, and Tallinn.
Peaminister Kaja Kallas
AI Summary
Prime Minister Kallas stated that the government is addressing the concerns of local municipalities. In 2024, the government implemented an income tax reform and adjusted land taxation rates, which increased land tax revenue and created the opportunity for local governments to determine the specific rate of the land tax starting in 2026. Discussions are also underway regarding the redistribution of the income tax base to reduce regional inequality, as well as the school funding model, in order to promote the operation of schools located close to home and those offering up to six grades.
Jaanus Karilaid
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Jaanus Karilaid is posing a specific question about Regional Minister Madis Kallas’s public protest, asking whether it’s just an emotional outburst or a genuine problem, given that solutions are available, yet the Prime Minister is completely failing to move things forward.
Aseesimees Toomas Kivimägi
AI Summary
Vice-Chairman Toomas Kivimägi asks Jaanus Karilaid to present a clarifying question.
Peaminister Kaja Kallas
AI Summary
Prime Minister Kallas stated that the coalition functions as the art of compromise, and although local governments require funding and crisis preparedness, and the budget is complex, we cannot immediately promise the necessary funds. She added that the Estonian state is not merely the government or local authorities; rather, we are all in this together, and we will continue our cooperation and the advancement of reforms.
Aseesimees Toomas Kivimägi
AI Summary
He thanks them and says he is concluding his handling of this matter.