Municipal chiefs in the "golden circle" as it is known in Estonian say they will not have funds to erect new schools and kindergartens, important given the burgeoning population in what is in effect Tallinn's commuter belt.

Municipal leaders learned from the regional minister on Monday that, in addition to funds which will be redistributed from the more well-heeled authorities to the less so, they must also pay fees for the use of school buildings, in the case where these are in county centers (Maakonnakeskus).

This will hamper these municipalities' ability to invest, particularly in education, some of the local government leaders say.

Andres Laisk (Parempoolsed) Mayor of Saue, told ETV news show "Aktuaalne kaamera" (AK): "As far as the depreciation component is concerned, on the one hand, it is reasonable that when municipalities settle with each other, they also consider necessary investments."

"However, in the context of Harju County, where many children attend the county center, especially at the high school level, this means an additional cost being incurred," Laisk continued.

Saue municipality would lose around four million euros a year due to the redistribution, said, while the local school's depreciation fee would require another million from the municipal coffers. In the worst-case scenario, the municipality would as a result not have the money to build any new kindergartens or schools over the next four years.

This at a time when the local population will grow, particularly the young families' demographic.

Laisk also pointed towards serious restrictions on the use of the funds arising from carbon emissions quotas, which is in any case is an additional option remaining on paper, whose implementation will not work out in reality, at least in Harju County municipalities, he said.

Illar Lemetti (Reform), leader of Viimsi Rural Municipality, just outside Tallinn, told AK: "Currently, we are in a situation where the richer, child-rich municipalities surrounding Tallinn do not have access to investments. When they do have access, their own participation (ie. a municipality's own invested funds, not including support measures – ed.) is substantial compared with other municipalities."

Despite its municipal nomenclature, Viimsi is a mostly residential area adjacent to Tallinn, which has seen much population growth and construction pressure in recent years.

Around 20 percent of Viimsi municipality's residents are minors, Lemetti said; whereas the municipality has to spend around €500 per elderly person, the figure for children in the local government area is around 10 times that, once school and kindergarten places have been factored-in.

On Monday, municipal leaders found out at a Riigikogu state budget select committee that they would likely have to pay to use the county center school facilities.

Regional Minister Kallas wants to redistributed income from some of the wealthiest municipalities to poorer and/or more rural ones, known as the "Robin Hood" effect.

Minister Kallas also pledged to put subsidies from carbon emissions quotas towards the construction of children's institutions in Harju County municipalities, in order to make up the shortfall those municipalities may experience.

"Estonia has a considerable amount of carbon funds which can be used for the construction of schools and kindergartens based on that," he said, putting the overall figure at around €120 million, although "naturally a lot of it will also go to other regions."

"We have to offer some mitigation measures to the municipalities of Harju County," he added.

Kallas put the losses which some, ie. the most affluent, municipalities will incur with the redistribution plan at €500,000.

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