Suche
Mein Konto
Financial distress! Thuringian municipalities urgently demand more support!
Thuringia: Municipalities in the Saale-Orla district are in financial difficulties. Mayors are calling for more robust support in the double budget.
Financial distress! Thuringian municipalities urgently demand more support!
In Thuringia, the municipal coffers are currently bubbling. Cities and municipalities are facing major financial challenges that are difficult to ignore. The Thuringian municipalities report very precarious financial circumstances. This has prompted the government coalition to plan more money in the planned double budget for 2025/2026. However, there is still uncertainty about what exactly this will bring. MDR reports that the CDU budget expert Ulrike Jary is calling for improvements to the municipal financial equalization (KFA). The KFA ensures that financial resources are distributed fairly between the state and the municipalities so that they remain able to act.
The starting position is not rosy: municipalities will need around 280 million euros more in 2026 to cover the increasing costs for personnel, social benefits and local public transport. Christian Herrgott, President of the District Council, warns urgently about the resulting financial bottlenecks. The municipalities are also struggling with falling trade tax revenues, which doesn't exactly make the situation any easier.
Growing problem
The Thuringian government's efforts could not come in time enough. Steffen Kania, President of the Association of Municipalities and Cities, criticizes the current draft of the KFA and describes it as immature, especially with regard to the planned cuts in subsidies for smaller municipalities and in the care of Ukrainian refugees. The need to robustly increase allocations to municipalities in double budgets elsewhere becomes clear here in order to adequately meet the challenges.
What could municipalities use as a solvent in this tense situation? Financial experts Alexander Kästner and Janine Merz from the SPD are optimistic and hope for an autumn tax estimate that may give municipalities more financial leeway. Nevertheless, the difficulties in reallocating budget funds remain a key obstacle that cannot be ignored.
The look ahead
According to current analyses, there is a loss of 145 million euros for the districts, although the possibility of receiving money from the municipalities via the district levy is considered to be practically impossible. The municipalities are therefore required not only to plan realistically, but also to think creatively in order to get out of the financial misery.
Amid these serious financial discussions that could shape the future of many communities, hope remains for constructive solutions. The coming months will be crucial in clarifying how far the planned financial support can really go and whether the municipalities will soon be able to regain a stable footing.