Stavanger Kommune: Deficit shrinks but challenges remain

Stavanger Kommune's second tertial report for 2025 projects an operating deficit of NOK 197 million for the year, a significant improvement from the NOK 349 million projected earlier. This reduction is primarily attributed to internal cost-saving measures, including recruitment freezes, travel restrictions, and a more stringent procurement policy. The net operating result remains at 0.9%, falling short of the politically mandated target of at least 2%. The largest portions of the deficit are in health and welfare (NOK 119 million) and education (NOK 86 million), driven by staffing challenges and increased user numbers.

The Kommune has also adjusted its budget by reducing overall investment expenditures by NOK 303 million. This includes a NOK 217.9 million reduction in borrowing needs. This adjustment stems from delays in major projects and a temporary halt to new investments. Financial metrics show a debt ratio of 69%, above the 60% target, and a limited general disposal fund of 1.1% of operating revenues.

Furthermore, the municipality has reduced its refugee settlement target from 415 to 310, reflecting national adjustments due to lower arrivals. The sick leave rate has also seen a slight decrease, down by 0.7 percentage points from the previous year to 9.3% in Q2 2025.