Vaud must find 300 million francs after tax-cut vote

The government of Vaud must make an additional 300 million francs in savings after voters approved a 12% cut to income and wealth taxes, SRF reports. The pressure comes as public employees protest against possible job cuts and demand higher wages.

About 8,000 state employees took part in a rally last week. The government has already approved automatic salary increases and compensation for inflation. With cantonal elections due in February, the government may be keen to avoid a prolonged dispute with its workforce.

Health and Social Affairs Councillor Roger Nordmann, whose department accounts for 42% of Vaud’s state spending, has reportedly been asked to cut its expenses by 30%. He said the tax initiative had left him with very limited room to manoeuvre. In 2028, Vaud is expected to spend 1.2 billion francs more than it takes in.

Social workers, representatives of social welfare organisations and universities of applied sciences are calling for a substantial increase in social spending. Clémentine Hirschi, who works at a residential home for children and young people placed outside their families, said low wages and staff shortages were putting pressure on both workers and residents. Children and young people were being moved between institutions, she said, while staff took on more responsibility and faced growing emotional strain.

Alessandro Pelizzari, director of a university of applied sciences for social work, said workers in neighbouring cantons earned an average of 1,000 francs more per month, making it harder for Vaud institutions to recruit qualified staff. He expects demand for residential care places to grow in the coming years, citing an ageing population and an increase in young people with mental health problems. Nordmann said he could not guarantee broad improvements, and protests are likely to continue.