Cantonal Council decides this week on tax cut and Olma aid

Cantonal Council decides this week on tax cut and Olma aid

One of the outstanding issues before the November session is about the reduction of health insurance premiums. More funds demand the factions of the Greens, Center-EPP and SP. Green liberals are also in favor of this. Image: KEYSTONE/GIAN EHRENZELLER

In the November session of the cantonal council, the budget is one of the central issues. As always, there will be debates about the level of taxes and spending on staff. Clear majorities are emerging there. However, the question of whether an increase in the premium reduction will be approved is still open.

For the three most important items of business in the November session, the outcome can be predicted without much risk: the Finance Committee's budget requests, the capital increase to benefit hospitals and support for Olma Fairs are all expected to be approved with clear yes majorities in each case.

The need for funds for the four hospital associations due to the loss of income during the pandemic is generally recognized. With a cash injection totaling 163 million Swiss francs, an equity ratio of 23 percent is to be achieved everywhere again. The expansion of Grabs Hospital has been planned for some time. There is a repayable loan of 100 million Swiss francs for this purpose.

Criticism of the Olma strategy

The clear majorities on many important items of business do not mean, however, that there will be no heated debates during the three-day session: For example, critical votes are to be expected on the "Olma trade fairs" agenda item. For the centrist EPP parliamentary group, the restructuring plan is "in part too optimistic". For the SVP, there are "still big question marks". The parliamentary group wants to introduce "mandates for future strategy", as it announced before the session.

There will also be lengthy discussions about the budget for 2023, which has a deficit of 43 million francs. On the central points, however, the starting position is clear: FDP, Mitte-EVP and SVP have already announced that they will unanimously support the proposals of the Finance Commission.

This applies to the tax cut of five percentage points, which will probably be pushed through against the opposition of the SP and the Greens, but also to the cost-of-living adjustment for staff, which will be reduced from 1.7 to 1.5 percent compared to the budget. In return, the funds for individual wage measures are to be slightly increased (+0.2 percent).

Dispute over premium reduction

It is more difficult to gauge the majority vote on whether to increase funding for premium subsidies for 2023. The SP and the Greens have been campaigning for this for a long time. The two parliamentary groups demand that measures be taken for people with low and medium incomes who are suffering from energy costs and rising health insurance premiums. The canton has behaved in a "very smarmy" manner in recent years.

The Green Liberals are also in favor of improvements in premium reductions. The centrist EPP parliamentary group now also wants to get behind the idea. Specifically, the funds are to be increased by 16.4 million francs. The parliamentary group wrote for the session that it wanted to relieve the middle class effectively and sustainably, which is why "a tax cut and a reduction in premiums are indicated now".

No alcohol ban in the swimming pool

On the program of the November session, in addition to the factual business, there are also numerous elections: for example, to the cantonal courts and to the administrative appeals commission.

The Council will also decide on several motions. The question here is, for example, whether there is a Legionnaires' disease in the canton of St. Gallen. The SVP also wants to know whether there will be higher language barriers for naturalization applicants in Gallen or whether the commuter deduction in the tax return will be increased. Not all decisions are equally weighty: one proposal calls for the lifting of the ban on alcohol in swimming pools. Chances are good, the government supports the demand.

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