Jevgeni Ossinovski: City of Tallinn finances are healthy

Despite a lack of surplus funds to be found within the City of Tallinn's budget, the capital's overall finances are good, Social Democratic Party (SDE) deputy Jevgeni Ossinovski said Wednesday.
Ossinovski and SDE are currently in coalition negotiation talks in Tallinn, along with Eesti 200, Isamaa and the Reform Party.
Speaking to Wednesday's edition of ETV politics show "Esimene stuudio," Ossinovski said that, in his view, the city's governance would become more efficient under the planned four-party coalition.
SDE had been in office with the Center Party from late 2021 until last week, a situation which Ossinovski said was both more efficient politically speaking, but also carried with it a significant bureaucratic clumsiness.
He said: "There's no doubt that a bureaucratic burden had accumulated over the years under [Center co-founder and former Tallinn mayor] Edgar Savisaar, along with inefficiency, from the perspective of institutions."
"We have quite a few small entities that could actually be merged. This would save on management costs and other expenses. This is one area that will undoubtedly improve," Ossinovski went on.
He added: "Another question is, naturally, whether everything that had been conducted incorrectly before and will now be done in a different way. In my view, there are some areas where the old city government, the previous one, actually didn't succeed, even though we had the will," referring to the Center-SDE coalition of which he was a part.
Ossinovski said he believes the coalition's proposed free public transport system is better than the one currently in place in Tallinn. "I do believe so, as we want to move forward not so much with the ticket issue, but with a network reform, which will include looking at mobility across the capital region," he said.
The coalition-in-waiting also plans to consolidate the capital's hospital network with that of the state, Ossinovski said.
"We want to create one large healthcare institution, incorporating the state, and to create a joint foundation with the North Estonia Regional Hospital (PERH). This is not a new idea; we proposed it in the previous coalition," Ossinovski elaborated.
Ossinovski noted that the City of Tallinn budget will not allow for a reduction or elimination of kindergarten fees, and for example, a birthday benefit for the elderly will not be scrapped either.
"In the previous coalition, SDE achieved a position where the cost of a kindergarten place has not risen in Tallinn since 2021; it remains at about €70," Ossinovski said.
"We have agreed that this will continue in place for another year and a half; the kindergarten fee will remain the same. But why couldn't we have taken the next step, to lower it or didn't reach an agreement there? The candid answer there is that the budget situation is not the rosiest, so choices will have to be made," he continued.
"With the items as they are in the budget today, we will manage. We will not cut existing universal benefits. It would also be fair to say that we likely won't raise them either. As for additional budget entries, we will certainly have to be quite conservative," he added.
Tallinn City Government will also not be hiking the land tax, Ossinovski said. "I did not detect much enthusiasm around the negotiating table for raising the land tax. /.../ The city does, indeed, need funds. However, the Land Tax Act is to be amended at the state level and is currently under development. By the time those amendments have been passed at the Riigikogu, the mandate of this current city government will be more or less over," he added – referring to the fact that the next local elections take place in the fall of 2025.
Ultimately, and in spite of everything, Tallinn's financial situation remains sound, according to Ossinovski.
"My colleagues have said that the situation was worse than they thought. I can't given an answer on what they thought or did not think, in that sense, but we knew the situation. Tallinn's financial situation is healthy. Our debt burden is low; our operating revenues exceed operating costs," he said.
Ossinovski added: "It is the case, though, that the volume of investments in recent years, ie. the planned investment volume, has been record-breaking at over €200 million. This means there's no free space, no available funding sitting around awaiting new political parties to come and spend. this has to come at the expense of other choices."
Ossinovski tight-lipped on whether he might become next mayor
Ossinovski also expressed hope that a coalition agreement will be reached in the coming days. He confirmed that SDE is interested in the mayoral position, but would not reveal whether that next mayor will be him personally.
"I can't even go into those possible outcomes. What is important is that we manage to reach an agreement on fundamental, substantive issues, that will improve life in the capital," he said, adding that personnel issues follow on from resolving these substantive issues, and not vice versa.
On being asked if he would accept the mayor position if offered it, Ossinovski responded, "At this point in time, I can't give an answer to that."
He rejected claims that he was demurring on becoming mayor due to the new coalition's stability being uncertain, though did not reject the idea of that uncertainty itself.
"I would argue that the coalition is on infirm ground. I believe we can put together a stable governing coalition that will lead the city until the next local elections. As to whether [the mayoral consideration] is related to my personal employment issue, then, no it isn't, and I don't think anyone can accuse me of a lack of courage in my political career," he summed up.
Ossinovski said his party also has an advantage over the other three in the negotiations, when it comes to the top job, due to its experience in city governance.
SDE had been in office since late 2021 with the Center Party, and prior to that Center had ruled over Tallinn alone, for nearly two decades.
Ossinovski also believes the new coalition could take office within the next couple of weeks.
SDE already has a caretaker mayor in Madle Lippus. At present it is thought either she or Ossinovski will become the mayor on a more permanent basis.
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Editor: Andrew Whyte, Merili Nael
Source: "Esimene stuudio", interveiwer Mirko Ojakivi