State compensation to municipalities and wellbeing services counties

State compensation to municipalities and wellbeing services counties

Municipalities and wellbeing services counties can receive state compensation for providing services that promote integration. Compensation is paid both on a calculated basis and according to actual costs incurred.

Municipalities, wellbeing services counties and Åland's public healthcare services are entitled to central government compensation for the organisation of services promoting integration in accordance with the Integration Act. In municipalities, the compensation is intended for guidance and counselling and other activities that support integration, while in wellbeing services counties, it is intended for the organisation of social and healthcare services that promote integration. In addition, the organisation of basic services is financed with central government transfers to local government.

Compensation payments are divided into imputed specified transfers and payments based on actual costs. Compensation to municipalities, wellbeing services counties and Åland's public healthcare services is paid by the Development and Administrative Services Centre (KEHA Centre). Some compensation payments also require a decision by the Economic Development Centre.

The payment of compensation to municipalities other than those in the province of Åland is conditional on the municipality having prepared an integration programme. 

The payment of reimbursements to municipalities in the province of Åland is conditional on the municipality having prepared the municipal integration programme referred to in section 26 of the provincial act on the promotion of integration (2012:74). 

A further condition is that the municipality has concluded the agreement referred to in section 42 with the Economic Development Centre.

More detailed information about the compensation period and the Economic Development Centre’s decision is available in the instructions on the reimbursement of costs under the Act on the Promotion of Immigrant Integration to municipalities and wellbeing services counties (available in Finnish).