Financial worries: Large district towns are fighting for stable budgets

Financial worries: Large district towns are fighting for stable budgets

Mayors of the major district towns in Bavaria meet in Nördlingen. At this meeting they draw an alarming conclusion. “Municipal finances are becoming more and more in dire straits,” explain the mayors.

Rising expenses are putting a strain on households

The situation picture shows stagnating tax revenues and sharply increasing expenses. Developments on the expenditure side are particularly causing headaches for the mayors. In addition to personnel expenses, social expenses in particular place a strain on city budgets. This has a particular impact on the district levy. The large district towns usually bear the brunt of the district levy within a district. The trend of increasing levy burdens remains unbroken.

The dynamics on the expenditure side endanger the balancing of administrative budgets. This massively limits the cities' ability to finance themselves. A lack of funds means that important investments in urban infrastructure such as daycare centers, schools, local public transport, energy supply, culture and sport have to be canceled or postponed. In some cities, the debt limits have already been reached.

Difficult budget preparation in the future

Preparing approved budgets for the coming years will be extremely difficult. “Voluntary offers will also have to be put to the test,” warn the mayors. In Schwandorf, the financial needs of the district and the district are eagerly awaited. “We would like to continue to focus on the citizens and invest in the future of our city,” saysAndreas Feller, the mayor. “For this reason, an approvable budget for 2025 is our overarching goal.”