Art. 30 Ordinance of November 7, 2007 on Financial Equalization and Cost Compensation (OFCC) - Cost Index and Determining Excess Costs

A cost index as well as the determining excess costs for each canton are calculated for every indicator.

A canton's cost index is equal to the result, multiplied by the factor of 100, of the division of the canton's indicator value by the value of the indicator for the entirety of Switzerland. It is rounded to the first digit after the decimal point.

The cost index for all of Switzerland equals 100 points.

The determining excess costs of a canton are equal to the weighted difference between its cost index and that of all of Switzerland. The weights differ according to the indicator used and are as follows: a. for altitude: the permanent resident population of the canton living above 800 meters in altitude; b. for terrain slope: the productive area of the canton according to the land use statistics; c. for housing structure: the permanent resident population domiciled outside the main agglomeration areas of the canton; d. for low population density: the permanent resident population of the canton.

When a canton's cost index is lower than the cost index for all of Switzerland, its determining excess costs are zero.

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