“The district has done its part. We’re taking action ourselves and not just waiting for support from the federal and state governments. Our goal was clear: We want to maintain our ability to act and not place an additional burden on our municipalities. We’ve succeeded in doing that,” says District Administrator Dietmar Allgaier.
Municipal Budgets Under Massive Pressure
The situation remains challenging: The financial situation of municipalities nationwide has reached a critical threshold. More and more responsibilities—particularly in the social sector—are being transferred to the municipal level without long-term funding being secured.
The Ludwigsburg district is also feeling the effects of this trend acutely. Last year alone, a comprehensive consolidation effort yielded savings of 43.5 million euros for the 2026 budget. Nevertheless, the financial burdens continue to rise. “The problem does not lie with the municipalities. It lies in the structural framework. Whoever decides on new services must also ensure their funding. The principle of connectivity must be consistently implemented,” emphasizes Professor Dr. Jürgen Kientz, who is serving as the external project manager for (Re-)Set 2027.
142 Measures for a Sustainable County
As part of (Re-)Set 2027, the administration, the budget committee, and—for the first time—the specialized committees worked closely together. A total of 142 recommendations for action were developed, evaluated, and prioritized.
“I would like to thank all members of the district council, especially the members of the budget committee, the staff of the district administration, and the project management team. This result shows what is possible when the administration and politicians take joint responsibility,” explains District Administrator Allgaier.
Increased Efficiency and Responsible Use of Resources
Bettina Beck, Head of the Finance Department, provided insight into the specific measures of the consolidation program. The target was clear from the outset: 19 million euros were to be saved in operating costs or generated through increased revenue, with an additional 5 million euros in personnel costs.
“The measures range from structural adjustments and savings in specific areas to the more efficient use of existing resources,” explains Finance Director Bettina Beck. For example, the budget for school administrations is being adjusted. At the same time, however, schools will also have greater flexibility in how they allocate their funds in the future. Additional savings will be made in areas such as climate protection, public transportation, tourism, and steep-slope management.
Reduction in Staff Positions
Potential for savings has also been identified in the area of personnel: a total of 16 positions will be eliminated. The affected employees will be supported through a skills pool and specifically placed in suitable open positions within the district administration.
In addition, standards are continuously reviewed and adjusted. For example, streets will be cleaned less frequently, and certain inspections and site visits will be conducted less often. Compensation for losses incurred by the hospitals will be capped at 25 million euros next year. This requires the hospitals to consistently continue their ongoing consolidation process.
Social Services: Consolidation with a Sense of Proportion
In the social services sector, a different approach was deliberately chosen: The focus was not on across-the-board cuts, but rather on how services can be organized more efficiently and in a way that is sustainable in the long term.
Together with the League of Independent Welfare Organizations, opportunities for process optimization were therefore examined. In the area of integration assistance, improved processes can yield savings of at least one million euros. Other approaches include, for example, pooling support services and reviewing existing cost-sharing arrangements.
Despite all efforts, however, it was not possible to prevent the permanent cancellation of grants to organizations such as Tragwerk e.V. and Gemeinsam e.V.
“These decisions are not easy for us to make, as these organizations make a valuable contribution to the people in the district. However, the current financial circumstances do not allow for the resumption of funding at this time. We will therefore work to find alternative financing options together,” explains District Administrator Allgaier.
“We deliberately did not fully implement the cost-cutting targets in the social sector because further cuts would jeopardize established social structures.”
Cost-saving potential largely exhausted
With (Re-)Set 2027, the district has once again demonstrated that it manages its resources responsibly. At the same time, financial pressure remains high.
Rising social spending, growing personnel costs, and hospital funding will continue to place a significant strain on municipal budgets in the coming years. Added to this are declining tax revenues in many cities and municipalities.
“After three rounds of consolidation during my term in office—two of which were major and consecutive—the potential for savings has largely been exhausted. We’ve squeezed every last drop out of the lemon,” says District Administrator Allgaier.
Whether there will be another (re)set project remains to be seen. One thing is clear, however: the tools used so far will no longer be available to the same extent in the future.
Looking Ahead: Process Management and Innovation
For this reason, the district will place greater emphasis on process management and innovation in the future. The goal is to continuously improve processes, make structures more efficient, and tap into further cost-saving potential from within the district’s own ranks.
In this way, the district is laying the groundwork to ensure that its administration remains modern, efficient, and future-proof in the long term.
The Federal and State Governments Must Improve the Framework Conditions
Despite all its own efforts, structural underfunding at the local government level persists. That is why decisive reforms are needed at the federal and state levels: less bureaucracy, a reorientation of the welfare state, and a fundamental reform of local government finances.
“Only if municipalities are once again given sufficient financial leeway can they continue to reliably fulfill their responsibilities in the future and provide citizens with the services they rightfully expect,” District Administrator Allgaier concluded.
