# Vaud public sector budget dispute > Developing situation record from CLSTR: https://clstr.news/situations/vaud-public-sector-budget-dispute > Updated: 2026-11-04T16:32:42.000Z. Sources: 2. Developments: 2. Public sector unions in the canton of Vaud, including the FSF, SSP, and SUD, have entered a dispute with the State Council over proposed budget cuts. The conflict stems from a need to address declining tax revenues and a projected deficit, which includes 100 million francs in planned savings following the acceptance of the ‘12%’ initiative. Unions have demanded that the government utilize financial reserves to compensate for the revenue shortfall rather than reducing services. After failing to reach an agreement, the unions announced they would refer the matter to a conciliation body. The dispute escalated into a large scale demonstration in Lausanne. Between 6,000 and 8,000 participants, according to police and Keystone-ATS, or up to 15,000 according to organizers, marched to protest the austerity measures planned for the 2027 cantonal budget. While protesters urged the government to use extraordinary revenues and reserves, the State Council has maintained that its measures are necessary to address the decrease in tax receipts without delaying the budget calendar. ## Timeline ### 2026-11-04: Lausanne protesters march against public service budget cuts Thousands of demonstrators marched in Lausanne to protest proposed austerity measures and budget cuts to the Vaud public service, demanding the government use reserves to cover deficits. 2 sources. https://clstr.news/cluster/lausanne-protesters-march-against-public-service-budget-cuts ### 2026-10-28: Vaud unions and State Council clash over budget cuts Vaud public sector unions (FSF, SSP, and SUD) will seek conciliation after failed talks with the State Council over 100 million francs in proposed budget cuts. 3 sources. https://clstr.news/cluster/swiss-unions-clash-over-budget-cuts-and-pension-funding --- Cite as: Vaud public sector budget dispute. CLSTR, https://clstr.news/situations/vaud-public-sector-budget-dispute