The focus of Tartu’s 2023 budget is on salary increases for teachers, social and cultural workers, and educational investments
Tartu City Government Press Release
30 November / The Tartu City Government sent the draft city budget for the coming year, totalling EUR 274 million, to the Council. The budget will increase by 12% compared to this year’s budget.
‘Preparing the draft budget for the coming year was stressful. We have to cope with large price increases and look for savings opportunities, and at the same time find means to implement important investments and raise the salaries of teachers and the city’s social and cultural workers,’ said Tartu Mayor Urmas Klaas. ‘The projected increase in income tax collection will mostly cover salary increases, with loans being needed for investments,’ added the mayor.
The city’s operating income will be EUR 211 million next year, increasing by 9% compared to this year. The biggest source of income is the personal income tax, which is planned to be EUR 12 million higher due to the increase in the average salary. The tax revenue forecast is EUR 126 million. Grants from the state and other institutions are planned in the amount of EUR 60 million, along with EUR 24 million from the sale of goods and services.
A total of EUR 209 million is planned to cover the costs of Tartu’s core activities, with costs increasing by EUR 21 million, or 11%, compared to this year. Labour costs in the coming year will be EUR 110 million, and they make up more than half of the costs of the city’s core activities. Labour costs are planned to be EUR 15 million more than this year. The salary increase is 24% for school and kindergarten teachers, and 16% for teachers’ assistants. The latter is also the average salary increase for employees in the field of education, in the cultural field the salary increase is 18%, and in the social field 20%.
Subsidies in the amount of EUR 26 million are planned. Larger grants will be going to private kindergartens and childcare providers, social assistance grants, the areas of culture and sports, and hobby education.
‘When it came to planning next year’s investments, both Tartu and all other local governments had to make a crucial decision: whether to continue implementing the planned investments with higher prices and loan interest, or to make cuts and maintain a low debt burden,’ said Priit Humal, Deputy Mayor for Finance. ‘Despite the increase in costs, Tartu continues to invest in education and the urban space.’
The city’s planned investment budget is EUR 56 million, which is EUR 9 million more than this year. Major objects are in the field of education: Construction of the Pärli School, reconstruction of Helika Kindergarten, the purchase and repair of the Miina Härma Gymnasium’s annex building. Among major infrastructure objects, the construction of the extension of Põhja Avenue to Muuseumi Road, the construction of the Emajõgi River promenade in the area between the Rahu Bridge and the Kaarsild Bridge, the construction of new cycle tracks, and also the continuation of preparations for the construction of the Downtown Cultural Centre, are of great importance. In total, the city plans to invest in more than 120 different objects in the coming year.
The city plans to borrow EUR 41 million to make the necessary investments. The city’s net debt burden will rise to 64%, which is below the permitted 80% limit.
Last changed 28.12.2022