"It is not a budget of convenience, but a budget of responsibility. It reflects the challenges we face - and at the same time shows that we as a district remain capable of acting and are determined to continue on our path into the future," said the head of the district administration. Process management was introduced as a strategic instrument as part of the budget consolidation process. The establishment of process management in the administration should lead to more digitalization and citizen satisfaction in the future, continued District Administrator Allgaier. He therefore also sees the crisis in the district's finances as an opportunity and a new start.
Budget situation will continue to deteriorate
Despite the budget consolidation, the budget situation will continue to deteriorate, as in almost all districts and municipalities, noted the head of the district administration. Against this backdrop, District Administrator Allgaier did not rule out a new budget consolidation process for 2027. The financial imbalance of the municipalities is still largely due to federal and state policy requirements, which now have structural causes. In this context, Allgaier expressed the expectation "that the welfare state will be realigned at all levels and made fit for the future. In addition, it must be ensured that the financial resources of the districts are commensurate with their tasks. He who orders, pays. As long as there is an imbalance here, the budget situation will remain tense. As a final demand, the relief alliance that has been initiated with the state must be consistently continued and pursued with more seriousness.
Figures show a deficit of 26.9 million euros
Due to the significant increase in expenditure, particularly in the social sector, and despite the savings made through budget consolidation and the moderate increase in the district levy, the district's figures show a deficit of 26.9 million euros. A "genuine negative result" of 4.9 million euros remains if the hospital reserve of 22 million euros is deducted, as decided by the district council. Due to the deficit, the financial budget of the district budget has a cash requirement of 5.6 million euros. Borrowing of 15 million euros is therefore planned for the 42.7 million euros in investments planned for 2026. These are exclusively investments that are necessary for the district to fulfill its tasks. The deficit in the ordinary result will reduce the surplus reserve from the original 241 million euros to 72 million euros at the end of 2026. In terms of debt, the planned borrowing of 15 million euros will result in a new high of 147.6 million euros in the core budget at the end of 2026.
Loss compensation for hospitals shrinks to 12 million euros by the end of the financial planning period
On the subject of hospitals, however, District Administrator Allgaier was able to report good news: "The clinics will be able to achieve a balanced operating result on their own in five years. At the end of the financial planning, the loss compensation will shrink to 12 million euros. However, there is one condition: during this period, the clinics must consistently pursue the consolidation course they have already embarked on. The hospital reform will not restrict us in this respect. We have been allocated all the service groups we need by the state. We can now develop our medical care forward with planning certainty." The aim is to raise the profile of the Ludwigsburg site, further expand the Bietigheim site and focus the service portfolio at the Markgröningen site on economic growth. In future, the clinics should complement each other in their work and not compete with each other, according to the District Administrator and Chairman of the Supervisory Board of the clinics. His conclusion: "Targeted site development will position the Ludwigsburg-Bietigheim clinics as an efficient and attractive healthcare provider."
Cost risk for bus transport and Germany ticket
A net resource requirement of 52.9 million euros is planned for public transport in the 2026 budget - 0.8 million euros less than in the previous year. In bus transport, however, the district administration expects costs to increase by 3.0 million euros to 21.4 million euros, as it must be assumed that the municipal side will have to bear the cost and revenue risk due to the negative economic development. There is also a cost risk with the compensation payments for the Deutschlandticket: the federal and state governments are providing a total of 3 billion euros, but the expected deficit is likely to be between 3.5 and 3.8 billion euros.
District Administrator: "Keeping the promise of light rail for all of us"
District Administrator Allgaier also addressed the largest infrastructure project in the district: the LUCIE light rail system. "The constant back and forth in recent months, particularly by the Ludwigsburg city administration, has led this project into a phase of uncertainty - also in the perception of the citizens. From here, I clearly reject the City of Ludwigsburg's current proposal to dissolve a viable, intelligent and coherent network and instead only implement partial sections. With the proposals it has now submitted, the Ludwigsburg city administration is ignoring the positive results of the standardized evaluation and the holistic funding framework and is jeopardizing the economic benefits of this project." The head of the district administration announced that he would only recommend the continuation of the project to the district council if it makes sense from a transport perspective and develops local public transport in the district in an intelligent and future-oriented manner. He appealed to them to "keep the promise of light rail for the future for all of us, especially for future generations". However, this will only succeed if the city of Ludwigsburg actively participates and helps to shape the project.
Social budget again accounts for the largest share of total expenditure
He then turned to the social budget, which - as in other districts - accounts for the largest share of total expenditure at 63.0 percent. Around 114.6 million euros of this is spent on integration assistance for people with disabilities. The changeover to the Federal Participation Act is leading to considerable additional expenditure. Although the state has increased its advance payments, the amounts announced are far from sufficient to fully cover the additional requirements actually incurred. Expenditure on integration assistance would have been 8.8 million euros higher if the needs assessment process had not been optimized by strengthening the social services. Social welfare services in accordance with Social Code XII accounted for 44.6 million euros, youth welfare services for 67.2 million euros and the job center, including benefits for education and participation, for 31.2 million euros.
Significantly lower allocation figures: District reduces further accommodation capacities
District Administrator Allgaier also addressed the significant reduction in the number of refugees admitted compared to the previous year. This enabled the district to let rental contracts for older and expensive properties expire and to adjust accommodation capacities to actual needs. The reduction of a further 276 places is planned by the end of 2025.
On the subject of the disaster control center, the head of the district administration said: "The planned disaster control center offers a unique opportunity to integrate the integrated control center into the disaster control center. This will create a continuously staffed contact point in the district for major emergencies, which will allow the control center to be closely networked with the civil protection structures. Combining the competencies of the lower disaster control authority and the integrated control center can significantly strengthen the current incident command system." Despite the tight budget situation, he is firmly committed to the planned disaster control center and is asking the district councillors to approve the construction decision.
Road construction will focus on the construction of cycle paths in the coming years
Finally, District Administrator Allgaier addressed road construction. In this area, 2026 will be a record year for the district. An estimated 13 million euros are to be invested in road infrastructure by the end of the year. District Administrator Allgaier made it clear that this will look significantly different in the coming years because the investment ceiling of 20 million euros per year leaves little room for manoeuvre in this electoral term and requires strict prioritization of measures. With the approval of the district council, the focus in the coming years will be on the construction of cycle paths, for which the district can receive high state subsidies, announced District Administrator Allgaier.
The budget will now be discussed in the district council committees. The budget is to be adopted on December 12, 2025.
