This follows an agreement on taxes by the Folketing from 2009. The income tax that each of the 98 municipalities levy was raised by three percentage points 1 January 2007 thus replacing the rest of the county tax to finance health care. 90% of the budgets of the regions is allocated to the national health service. Health has remained the main issue in regional politics, especially because major changes to Denmark's hospital layout were announced immediately after the municipal reform. History Earlier mergers After the 1970 reform, in 1974 Sengeløse Municipality was merged with Høje-Taastrup, and the parish municipalities Store Magleby and Dragør merged to form Dragør Municipality, reducing the number of municipalities from 277 to 275. Countrywide, many local mergers were proposed through the years, but none took place until 2003. The five municipalities of Bornholm merged with Bornholm County on 1 Jan 2003 to form Bornholm Regional Municipality. This reduced the number of counties from 14 to 13, and the number of municipalities from 275 to 271. On 1 January 2007 it became part of the Capital Region, but retained its unique name of Regional Municipality since it has been allocated some regional powers due to its isolated location. These include being an employment region of its own, regional development, pollution control and public transport, but healthcare is in the hands of the Capital Region. Ærø Municipality was allowed to be formed already 1 January 2006 from the island's former two municipalities of Ærøskøbing and Marstal, reducing the number of municipalities to 270. Transitional process The reform implied deep changes of the whole Danish public sector. It took effect from 1 January 2007, but was prepared from 2005. In the local elections of 15 November 2005, municipal councils for the upcoming 98 municipalities and five regions were elected. These councils were officially merger committees () from 1 January 2006 through 31 December 2006. During that year, their task was solely that of preparing the mergers. On 1 January 2007 these elected committees were renamed municipal councils and now ruling the new municipalities, without new elections taking place. The councils of the older, smaller municipalities, as well as the old municipalities themselves, were in force until the end of 2006. They were elected in November 2001 and would normally have been in power for a four-year term of office, from 1 January 2002 until 31 December 2005, but their