Background:
The five districts in the Stuttgart region—Böblingen, Esslingen, Ludwigsburg, Göppingen, and Rems-Murr—and the state capital are facing historic financial challenges. To ensure the long-term viability of local public transportation (ÖPNV) in the region and to reliably finance the status quo, joint and concerted action by all stakeholders is urgently needed.
Against the backdrop of the dramatic budgetary situation, the municipalities are therefore calling on the State of Baden-Württemberg to promptly amend the agreement on financing the fare zone reform and to resume its co-financing. This would relieve the burden on municipal budgets by millions and would be a concrete step toward ensuring a stable public transit system even in difficult times.
Another demand is directed at the Stuttgart Region Association. It should suspend the transportation levy for two years, thereby relieving cities, municipalities, and counties of a burden amounting to millions and thus contributing to the stabilization of municipal budgets.
Structural Changes in Revenue: The Germany Ticket Impacts Financing in the VVS
As of March 31, 2019, the fare structure in the Stuttgart Transport and Fare Association (VVS) was significantly simplified through a historic fare zone reform. At the state’s initiative, the structure was reduced from over 50 fare zones to just six.
The municipal authorities explicitly welcomed and supported this step in the interest of passengers, even though it resulted in significant revenue losses amounting to 42.3 million euros at the time .
This shortfall in revenue was refinanced by the five member districts of the association, the state capital, and initially also by the state of Baden-Württemberg. However, as of 2025, the state withdrew completely from its financial participation.
At the same time, the introduction of the nationwide Deutschlandticket has fundamentally turned the public transit financing system upside down. The former fare zone reform is now relevant for only about 20 percent of all revenue from occasional travel. Nevertheless, the member districts and the state capital continue to pay the full, original compensation amount. Currently, the state benefits from its regional trains—as it did before the introduction of the Deutschlandticket—to the tune of 2.93 million euros annually, without contributing any compensation funds itself. If
adjustment to reflect the actual, reduced revenue from occasional travel, the state would thus receive 2.35 million euros too much annually under the status quo.
“In light of this massive structural shift in revenue and the extremely strained budgetary situation in our municipalities, the current financing practice is simply no longer justifiable,” the counties and the state capital declare in unison. “We cannot continue to pay unconditionally for a system that is out of touch with reality. The compensation resulting from the fare zone reform must now be urgently and consistently adjusted to the actual conditions of non-scheduled public transportation—anything else can no longer be explained to local taxpayers. We are counting on the new Minister of Transportation,” reads the demand addressed to the state.
What exactly are the local authorities in the Stuttgart region demanding now?
The first step is to reduce the payments the state receives from the revenue pool. Under the current contract, the state receives 2.93 million euros for its regional trains. If the contract were adjusted to reflect occasional service, the state’s entitlement would be reduced by 2.35 million euros; the resulting shortfall would have to be covered by the state budget, thereby relieving the burden on the local authorities (LHS: approx. 1.32 million euros, BB: approx. 334,000 euros, ES: approx. 454,000 euros, LB: approx. 453,000 euros, and RMK: approx. 371,000 euros).
Goal: A Constructive Negotiated Solution Instead of Termination
The counties and the state capital expressly emphasize that they are seeking a mutually agreed-upon negotiated solution. The top priority is a unified amendment to the contract to finance the fare zone reform. Since termination could have far-reaching and significant impacts on passengers throughout the region, this step should be avoided in the common interest of all parties involved.
Local Governments at Their Limit: Concrete Deteriorations in Public Transit Loom
On June 22, 2026, cities, municipalities, and counties made it abundantly clear just how dire their financial situation actually is through the nationwide day of action “Municipalities at Their Limit.” A sustainable improvement in municipal finances is not in sight. As a result, service reductions and cancellations—particularly in bus service in the counties—are already being publicly discussed and, in some cases, have already been implemented.
These looming cutbacks pose a massive threat to the shared goal of a successful transportation transition and an attractive S-Bahn system. For years now, the region’s residents have been plagued by the S-Bahn’s lack of reliability and complete service suspensions due to construction. Although the S-Bahn’s reputation as a reliable partner has suffered considerably, the local authorities have been paying the transportation levy for year-round quarter-hourly service for years. However, there is no refund for services not provided or for substandard services.
Second key demand: The Stuttgart Region Association should specifically use reserves from the transportation budget to finance a two-year suspension of the transportation levy by the counties and the state capital, Stuttgart
The Stuttgart Region Association’s transportation reserve grew to an impressive 154 million euros in 2026—and this at a time when municipalities, cities, and counties have nearly exhausted all their reserves. Now is the time for the Stuttgart Region Association to also contribute to stabilizing local government finances. It is unacceptable that budget structure commissions at every other level of local government are scrutinizing budgets for potential savings, while the VRS is instead considering expanding its tasks and responsibilities. It is out of step with the times for the VRS to continue building up reserves in the coming years while local municipalities are forced to make significant service cuts in public transportation. This is impossible to explain to the public. The VRS is part of the municipal family, and public transportation is a shared responsibility.
This demand is supported by all cities and municipalities in the Stuttgart region, and the demands made of the VRS have been co-signed by the chairs of the five mayoral districts.
There is no question that significant investments—such as the procurement of a new S-Bahn fleet—are on the horizon in the coming years. However, the transportation reserve fund is not, by its very nature and purpose, intended for saving in advance for such investments. The lion’s share of the payment obligations for the new vehicles will not be due until the early to mid-2030s anyway, after the vehicles have been accepted. Given the sluggish progress on the S21 project, it is also uncertain when these trains will actually begin operating. Last but not least, the association’s financing system is designed by default to be funded through assessments and not primarily from the reserve fund.
Next steps:
Discussions are to be held and a resolution from the VRS obtained before the municipal budgets are finalized.
