Hesse in the financial crisis: Four out of five municipalities in the red!

In 2024, four out of five Hessian municipalities will record a significant financing deficit, totaling 2.6 billion euros. This corresponds to a per capita deficit of 410 euros. Compared to the previous year, the deficit increased by 2.0 billion euros, as it was only 597 million euros in 2023. The causes of the deficit lie primarily in increased spending, particularly for social benefits.

The adjusted payouts from Hessian municipalities rose by 8.0 percent to 31.9 billion euros in 2024, while adjusted deposits only increased by 1.3 percent to 28.9 billion euros. This discrepancy between expenditure and income highlights the financial difficulties in which many cities and municipalities find themselves. According to the Hessian State Statistical Office, all independent cities and 17 of 21 district administrations have to accept deficits, which further increases the financial burden.

Communities particularly affected

Marburg and Frankfurt am Main are at the top of those suffering from deficits, with a deficit of minus 227.3 million euros and minus 222.2 million euros, respectively. Darmstadt and Wiesbaden also have high deficits of minus 168.5 million euros and minus 119.7 million euros. Around 20 percent of Hessian municipalities were able to complete their 2024 budget with a plus, but this does not apply to the majority.

The data for 2024 is based on preliminary cash results and includes a significant increase in spending in the areas of social, child, youth and family welfare, which increased by 1.3 billion euros. Compared to 2023, the median financing balance has fallen sharply and is now minus 1,465,464 euros.

For further information on the financial challenges facing Hessian municipalities, we refer to the reports from star and Hessian State Statistical Office.