The report, which was first published online and then in print, focuses on state payments for the temporary housing of refugees. The author writes that, unlike other counties, Ludwigsburg County did not request advance payments for the years 2023 through 2025. A commentary states: “The amount in question is apparently more than 30 million euros—liquid funds that would undoubtedly have stabilized the budget.”
The headline may give the impression that the district suffered significant financial damage as a result of its administrative actions. In this financial fact-check, we explain why this is not the case.
The key message
The Ludwigsburg district has not suffered any financial loss; every euro and every cent is reaching the district’s coffers. No millions have been “left on the table” in the settlement for the temporary housing of refugees, as the headline and commentary suggest.
What are “advance payments”?
Advance payments are a “prepayment” of amounts due at a later date. It would be easier to understand if they were referred to as “installments.” The Ministry of Justice’s bureaucratic language refers to them as “advance payments.”
Advance payments are primarily about the timing of when funds are disbursed—in this case, to the district. They do not constitute a permanent waiver of reimbursement for the costs that are actually recognized. An advance payment is therefore an installment and not a final settlement.
What are advance payments used for?
In this case, they cover the costs of temporary housing for refugees.
Baden-Württemberg has a three-stage reception system:
- Initial reception by the state
- temporary housing provided by cities and counties
- followed, if necessary, by follow-up housing provided by cities and municipalities.
Cities and counties are responsible for temporary housing. They organize the housing, document occupancy, and track costs.
Since this is a state responsibility, the county is reimbursed by the state. The settlement process, including verification with the state, is time-consuming and drags on for years.
Why is the settlement process so time-consuming?
The costs of temporary housing consist of many different components:
- Housing and management of the properties
- Personnel and administrative expenses
- Social work with refugees
- Benefits under the Asylum Seekers Benefits Act, including healthcare expenses
Until 2014, the costs of temporary housing were reimbursed exclusively through a flat rate per assigned refugee. Starting in 2015, the state committed to reimbursing cities and counties for the actual costs incurred for temporary housing. Since then, costs have been collected retroactively for each fiscal year and settled with the state.
If the lump sum is higher than the final reimbursement amount, the difference must be repaid. If the final amount is higher, an additional reimbursement is made—provided the state does not make any deductions.
Reimbursements from the state are not disbursed until the statements of account from all cities and counties have been finally reviewed and approved by the state. Due to this lengthy process, the state granted cities and counties the option of advance payments years ago.
If the advance payment procedure is chosen, the question arises as to when and which reimbursements can be requested with a reasonable level of risk.
A thorough risk analysis is required to determine the actual expected costs and, consequently, the projected amount of reimbursements. In addition, the state has repeatedly redefined the criteria for which costs are eligible for reimbursement. Consequently, in the past, the district regularly applied for advance payments only after the calculated costs had been substantively approved by the Stuttgart Regional Council. For example: The settlement for 2022 was only recently (October 2026) approved by the Stuttgart Regional Council. Otherwise, there is a risk
of having to repay millions for fiscal years long past. Another factor in the risk assessment was that the Ludwigsburg district, unlike other districts, does not have a liquidity problem.
Comparison of Advance Payment and Final Settlement
| Question | Advance payment | Final Settlement |
| Purpose | Funds are disbursed earlier to ensure liquidity. | Costs that have actually been incurred and approved are settled definitively. |
| Basis | Preliminary calculation or forecast. | Supporting documentation and actual evidence or costs. |
| Amount | For the years in question, 80 or 90 percent of the underlying amount, as reported. | Final reimbursement amount recognized by the state. |
| Risk | If the forecast is too high, a repayment is required. | - |
| Implications for the county | Earlier inflow of funds, but significant—and in some cases double—calculation and audit effort. | Reliable final settlement. |
How do other counties handle this?
It varies from year to year. For 2025, just under two-thirds of the districts have requested advance payments. Slightly more than one-third of all districts, including the Ludwigsburg District, have not yet requested advance payments for 2025 for the reasons mentioned above.
Summary
The advance payment process is complex and fraught with risk. For this reason, Ludwigsburg County has opted for a settlement based on actual costs and refugee numbers (i.e., retroactively)—as have 36 percent of the counties in Baden-Württemberg (source: Landkreistag).
Ludwigsburg District Office
Information as of:
October 9, 2026
