City of Tartu sues state over care reform expenses

The City of Tartu has filed a complaint with the Tallinn Administrative Court against the Republic of Estonia seeking reimbursement for the 2024 general care service costs. Tartu is requesting that the state cover €1,622,779 in expenses related to the care reform.
The City of Tartu is seeking additional reimbursement from the state for general care service costs, arguing that the central government has failed to meet its obligations to provide the necessary funding for the care reform and must compensate Tartu for the significantly increased expenses resulting from the reform.
"The city's costs for general care services have increased substantially compared to the period before the care reform, and the state's forecasts for local governments' expenses and the number of service users have been severely underestimated. Tartu raised this issue already during the preparation phase of the care reform. The National Audit Office also pointed this out in a report published in early February," said City Secretary Jüri Mölder.
The care reform placed municipalities in a situation where they were required to cover at least part of all clients' care home bills without the state providing additional funds for this purpose.
Following the reform, Tartu's expenses for general care services have risen significantly, as has the number of clients receiving the service. In 2022, before the reform, the cost was €2.1 million. By 2024, it had climbed to nearly €8.1 million, of which the city covered just over €4 million. Without the reform, the city's likely contribution would have been €2.4 million.
To cover the additional costs of general care services, the city has been forced to cut operational expenses in both the social sector and other areas, as well as reduce the scope of other public services it provides.
Before turning to the court, Tartu submitted a demand letter to the Ministry of Social Affairs in March 2025 requesting reimbursement of the costs. However, the ministry found the request to be unfounded and rejected Tartu's claim. Based on the position of the Supreme Court, Tartu has decided to defend its rights in court.
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Editor: Johanna Alvin, Marcus Turovski