Crisis meeting of the district administrators: dry coffers and high social costs!

The financial situation of the districts in Lower Saxony is tense. Marco Prietz, the district administrator of Rotenburg and president of the Lower Saxony district council, recently addressed the urgent needs of the municipalities, which are demanding greater support from the new federal government. In the current budget situation, the Rotenburg district is missing 27 million euros, while the 37 districts in Lower Saxony together record a deficit of four billion euros. The main reason for this critical situation is the increasing social spending, which accounts for around 70 percent of expenditure in the Rotenburg district. Around 50 million euros are spent on child care every year, which further increases the financial burden.

Prietz is therefore calling for the establishment of a reform commission to develop solutions to municipal financial problems. A central proposal is to reduce standards in certain areas, such as the planned mandatory holiday care in all-day schools. In addition, he is calling for the municipal share of sales tax to be doubled to six percent, which would enable municipalities to generate an additional revenue increase of 11 billion euros. These demands also accompany concerns about reducing the burden of responsibility on municipalities and deregulation with regard to migration.

Migration issues and economic conditions

In connection with the financial situation, Prietz also expressed concerns about migration. He emphasizes the need to reduce the number of arriving migrants and deport unwanted migrants. At the same time, support should be made easier for immigrants who are willing to work and integrate. Prietz expects a coalition of the CDU and SPD that could take greater account of the needs of the municipalities.

A look beyond the borders of Lower Saxony shows similar challenges. Again Government Gazette reported, the economic situation in Baden-Württemberg will also pose serious problems in 2024. There, too, rising social spending and higher district levies are putting a strain on the budgets of districts, cities and municipalities. There is a backlog of investment in many municipalities, and financial imbalances make budget planning difficult.
The estimate of a financing deficit of 13.8 billion euros in Baden-Württemberg illustrates the serious situation that is forcing many municipalities there to take out cash loans. In view of these challenges, close cooperation between local, state and federal governments is seen as crucial to ensure future financial stability and to fulfill the multitude of mandatory and voluntary tasks.