Fanø faces budget crisis as mayor calls for urgent government support

Fanø Municipality is facing unprecedented difficulties in establishing its budget, according to the island’s mayor, Frank Jensen. The administration has proposed a savings plan that is now open for public consultation, aiming to cut 20 million kroner from the budget, affecting all sectors.

Despite an announcement by Finance Minister Nikolaj Wammen that struggling municipalities could receive additional government funding, Jensen argues the 19.3 million kroner allocated to Fanø is insufficient. He noted that the municipality has already made significant cuts over the past three years, leaving only challenging and unpleasant decisions to be made.

Proposed reductions include the closure of the Bakskuld daycare center in Sønderho, an increase in parent fees for daycare services, budget cuts related to the elderly care system, and a reduction in public transportation routes. Additionally, there are plans to close the local library in Sønderho, cut back on elderly care services, and potentially reduce the number of council members in the next election, while culture and tourism budgets could also face cuts. The municipality may increase the local tax rate from 25.77% to 27%.

Vice Mayor Erik Nørreby expressed alarm at the financial situation, which he described as unprecedented since he began his tenure in 1989, urging the national government to seriously consider the municipality’s plight. The substantial savings target equates to about 6,000 kroner per resident, raising questions about how much larger municipalities would need to cut if faced with similar challenges.

The financial strain is linked to changes in the revenue equalization system established in 2021, which redistributes funds from wealthier to poorer municipalities. As a result, Fanø will need to transfer 44 million kroner to less affluent areas next year, further exacerbating its financial difficulties.