District of Vorpommern-Greifswald lowers district levy despite deficit!

District of Vorpommern-Greifswald lowers district levy despite deficit!

The financial situation in the Vorpommern-Greifswald district remains tense. After all, the district council decided today to reduce the district levy from 48.5 percent to 42 percent. This represents a noticeable relief for the municipalities, allowing them to save around 14 million euros. Despite a budget deficit of around 74 million euros, the district levy rate was not increased any further, which is seen by some as a small ray of hope in the desolate budget situation. Sascha Ott, chairman of the finance committee, emphasizes that the financial situation particularly affects young people and future generations. The social and youth sectors urgently need more support than they have previously received from the federal and state governments. Opinions about lowering the levy varied; While a majority of some parliamentary groups advocated a reduction to 40 percent, these proposals were rejected and a proposal from the CDU to reduce it to 42 percent was finally accepted (52 votes in favor, 7 against, no abstentions). reports the Nordkurier.

District Administrator Michael Sack (CDU) expressed concern about the catastrophic financial conditions and is calling for measures from the federal and state governments. “The supplementary budget is described as a financial break and a cry for help,” explains Ott. A comprehensive municipal financial analysis attempts to document the alarming deterioration in the finances of the district municipalities, which seriously endangers local self-government. The district has the highest district levy rate in the entire country and will also have to cope with a new maximum rate of 44 percent for the 2026/27 budget planning clarifies NDR.

Budget problems at the federal and state levels

Unfortunately, Vorpommern-Greifswald is not alone with its financial worries. At the federal and state level, the districts are threatened with deficits totaling 2.6 billion euros in 2024, which represents a deterioration of around 800 million euros compared to the previous year. What is particularly striking is that 80 percent of the districts, i.e. 240 out of 294, are having great difficulty balancing their budgets. The German District Association is therefore calling for the municipal share of sales tax to be tripled because the current allocations to the districts are too low as can be read on the district council website.

Spending on social services is cutting ever deeper into the districts' coffers and has already risen to 47.2 percent of total municipal spending. This means that counties must find new ways to address their budget financing problems. This means that not only those responsible in the district council have to find new solutions, but also at higher levels in the federal and state governments a rethink is required in order not to further burden future generations.