The head of the district administration compared the current plan in the district's anniversary year with the first one from 1973: "The immense increase in the total volume is striking, one can almost speak of a tenfold increase in total expenditure and total income. Incidentally, this not only affects us, but also the tax revenue of the towns and municipalities in our district."
Personnel expenses alone increase by 13.4 percent
He then went on to explain that the district would have to expect rising costs in all areas of administration next year: Personnel expenses alone would rise by 13.4 percent, of which 10.4 percent would be due to pay increases alone. The collective wage agreement would also lead to higher personnel costs for the independent providers and therefore also to higher transfer payments from the district. Due to high inflation, the cost increases for energy costs, external services and procurements of all kinds would continue. On the other hand, continued District Administrator Allgaier, there has been a slump in income. The budgeted figure for land transfer tax alone had to be reduced by around 13 million euros to 35 million euros compared to the previous year, as the high interest rate level is slowing down the real estate market and the entire construction industry.
The total volume amounts to 1.077 billion euros. In the income budget, ordinary income of 929 million euros is offset by ordinary expenses of 987.4 million euros. "This means that we have to report a deficit of 58.5 million euros and submit today's draft plan with a large deficit," stated District Administrator Allgaier.
District would like to show consideration for local authorities by not increasing the district levy
Nevertheless, the district is proposing an unchanged district contribution rate of 27.5 percentage points. "The district would like to show consideration for the towns and municipalities belonging to the district by not increasing the levy rate. We have opted for this approach and are doing so out of conviction, because we believe that our towns and municipalities are entitled to receive solidarity from the district in difficult years - such as now," said the head of the district administration.
This is made possible by the fact that the tax base of the municipalities belonging to the district has risen by eleven percent in 2022. As a result, the district levy revenue will increase by 29.5 million euros compared to this year, with the levy rate remaining unchanged. However, the district administrator already
that the low levy rate compared to other districts in the region would no longer be sustainable from 2025, as the district's budget situation had changed. It will no longer be possible to generate surpluses as in previous years. An assessment rate of 33.5 percentage points is expected for 2025, which is likely to increase in 2026 and 2027. "In return, however, I also expect the district council to look forward and not backwards when assessing the district's finances. The time of good, very good annual financial statements is over. We are facing difficult years ahead and we must prepare ourselves for this in terms of a budget policy that is fair to all generations, but also forward-looking and realistic."
"I am certain that we will be able to continue on this successful path in the future"
District Administrator Allgaier then went on to address several key issues in the district, such as the clinics, climate policy, the social sector, public transport and schools. In conclusion, he said: "After my sometimes gloomy and critical words on the various risks and challenges in the coming years, however, I would like to end by looking back on the fact that the district of Ludwigsburg has already had to go through several valleys in the past 50 years. I am therefore certain that we will be able to continue on this successful path in the future and that there will always be time and opportunity to celebrate with you and the residents in a cheerful atmosphere, as we did last summer at our big 'Landkreisfeschd'."
