Fight for finances: St. Valentine's mayor in austerity mode!

Fight for finances: St. Valentine's mayor in austerity mode!

The financial challenges of municipalities in Austria are increasing as costs rise and revenues fall. This leads to a dramatic budget crisis that also affects the city of St. Valentin. Mayor Kerstin Suchan-Mayr (SPÖ), who has led the municipality with an absolute majority for over 15 years, is faced with a high municipal debt of 22,983,401.70 euros. According to the estimate, these debts could increase by a further three million euros. The financial situation is also compounded by nationwide pressure on communities, which are being asked to save.

In St. Valentin, the municipalities are not only responsible for the libraries, but also for waste disposal, flood protection and the Meals on Wheels service. It became clear to the mayor that the diverse tasks of the municipal administration require adequate financial resources in order to meet these requirements. A clear need for investment is seen, particularly in the areas of education and childcare, which is reflected in the high running costs of expanding the kindergarten from 14 to 20 groups.

Investments in infrastructure

The municipality has already taken flood protection measures, including the renaturation of the Erlabach, which cost 34,000 euros. St. Valentin is also planning to convert and expand the Langenhart elementary school, for which almost 4 million euros have been earmarked. However, these necessary investments contrast with the greatly reduced investment resources, which have been halved compared to pre-pandemic times.

The planned projects are also affected by financial bottlenecks. The construction of the “Valentinum” community center ultimately required 17.5 million euros, which significantly exceeded the original budget of 12.6 million euros. The financial bottlenecks are forcing the authorities in St. Valentin to creatively look for solutions to stabilize the municipal finances.

Necessary reforms and challenges

Mayor Suchan-Mayr emphasizes the urgency of savings, especially in the area of ​​road financing, in order to be able to invest in education and childcare. The local council sees the bypass as an ecological disaster, which further complicates the construction proposal. The Green politician Lothar Hasenleithner expresses concerns about the road planning. Furthermore, regional cooperation and an increase in property taxes could help relieve the burden on municipal finances.

The forecast development for 2025 shows that almost half of the communities could be dependent on financial support. This reflects the general challenges facing municipalities in Austria and beyond. How staedtetag-nrw.de shows, cities need long-term and reliable investment financing in order to meet the increased demands in social security, education and local public transport. The municipal financial equalization plays a crucial role in ensuring adequate municipal financial resources.

In the current situation, a reform of the internal Austrian stability pact has been announced, but the effects on the communities remain unclear. A valuable step would be to examine the unbundling of transfers and thus achieve sustainable financial stability that enables municipalities to carry out their tasks efficiently.