"We were of the opinion that, given the overall situation of public budgets, it makes sense today to provide an overview of the districts in Baden-Württemberg in general," said District Administrator Dietmar Allgaier when introducing the item on the agenda.
The report by the Landkreistag highlighted the current financial challenges facing the districts in Baden-Württemberg. In particular, the increasing social expenditure and the deficits in hospital financing were discussed. In addition, the tense situation caused by the effects of rising interest expenses and further burdens due to legislation, such as tax relief, climate protection requirements and the expansion of social benefits, was highlighted.
Bernd Klee, Head of Finance, Personnel and Municipal Affairs at the Landkreistag Baden-Württemberg, highlighted the subsidy requirements in the social sector in particular:
"The subsidy requirements for social services will increase by a further 444 million euros or 9.1 percent in 2024," said Klee. "Despite the significant increases across the country, the revenue from the district levy is not sufficient to cover social expenditure," continued the head of department.
Head of department Klee: "The financial situation of the districts is deteriorating significantly"
28 districts are planning to withdraw 375.9 million euros from reserves in 2024. "The reserves for 2025 are almost gone," said Klee. The level of debt will increase by 1,095 million euros or 29.4 percent. Investments will increase by 310 million euros to around 1,367 million euros in 2024 compared to the previous year. "This means that the financial situation of the districts will deteriorate significantly in 2024," says Klee. "In summary, it can be said that the revenue from the district levy is once again insufficient to cover social expenditure," said Klee.
In the subsequent discussion and the statements in the administrative committee, it was emphasized several times that the state and federal governments must be held accountable. "The dramatic situation in the municipalities, local authorities and districts has not reached the state government. The federal and state governments must understand that the municipalities have to finance. And when the municipalities are at the end of their tether, we as a state are at the end," Klee summarized. The members of the committee expressed their
interest in more intensive cooperation with the Landkreistag in order to jointly search for solutions to ensure the financial ability of the districts to act.
In addition to the report from the Landkreistag, other important topics were also on the agenda of the meeting, including the reshuffle in the committees and the 2023 annual financial statements of the Ludwigsburg district.
