"The tasks assigned to us by the federal and state governments are chronically underfunded. State-wide, the districts alone lack 154 million euros." The Ludwigsburg district's budget could therefore only be prepared with record borrowing and a further dip into reserves. "However, this must remain the exception," said the district administrator, who also announced that there would be further increases in the assessment rate in subsequent years. "The district will do everything in its power to keep these increases as low as possible."
Budget consolidation process initiated
For this reason, the head of the district administration continued, a comprehensive budget consolidation process had been initiated parallel to the introduction of the budget. "I am convinced that we will successfully master the budget consolidation process together. This process will make us capable of acting again in the future and create new scope for action," said District Administrator Allgaier.
Since the budget was introduced, the deficit in the operating budget has only decreased slightly from 45.6 million euros to 43.9 million euros. "The historical negative record in the previous year's district budget was therefore only just undercut, despite the increase in the district levy, and the overall negative trend will continue in 2025," the district administrator noted.
30 million euros in subsidies required for the clinics alone
According to Allgaier, one particularly pressing issue is the far from adequate funding of municipal hospitals: "The rising costs are blatantly disproportionate to the funds we receive from the federal and state governments. The resulting financial pressure is not only a burden on the hospitals, but ultimately on our entire district budget. In the coming year, we will have to invest 30 million euros in our hospitals in the Ludwigsburg district - an immense amount and even this loss compensation has been calculated optimistically." It is unacceptable, Allgaier continued, that the municipalities have to step in due to billing and system-related stipulations: "We now have our backs to the wall and there is an acute need for action." No emergency program for municipalities with 150 million euros each for 2024 and 2025 would suffice, he said, adding that the hospital reform that has now been passed also fails to provide proof of cost-covering financing. The starting signal for a strategic consolidation program has therefore also been given for the hospitals.
District Administrator: financing of municipal tasks must be fundamentally reformed
Numerous other tasks and services - from the Federal Participation Act to local transport and integration - are also being assigned to the districts and municipalities without the necessary funds being provided to an appropriate extent. This is neither fair nor sustainable, continued District Administrator Allgaier. "This situation now requires clear, responsible decisions. The budget consolidation process will mean that we will have to say goodbye to cherished projects and also to some standards." At the same time, a strong signal must be sent to the federal and state governments that the districts and municipalities can no longer cope with the structural deficits on their own: Local authorities bear 25 percent of the total public budget, but only receive 14 percent of tax revenue. "This represents a dramatic imbalance: there is an urgent need for a fundamental reform of the financing of municipal tasks - the legislators at federal and state level must bring municipal funding back into balance."
