The financial imbalance of the local authorities is largely structural due to federal and state policy requirements: More and more statutory duties have been transferred to the districts and existing duties have become more expensive. The municipalities are responsible for 25 percent of the overall public budget, but only receive 14 percent of the tax revenue. District Administrator Allgaier cites hospital care as a particularly glaring example, for which there is still not nearly enough financial compensation.
Federal Participation Act entails immense administrative burden
The Federal Participation Act (BTHG) is another area with many question marks. "If more money is going to be spent, then it would make sense for it to benefit disadvantaged people directly and not be spent on the immense administrative burden that the BTHG entails," says District Administrator Allgaier.
In other areas, such as the state's reimbursement of costs for refugees, the principle of connectivity enshrined in the state constitution must be applied again and the state must also fully assume the costs for this mandatory task of the municipalities. "Leaving the districts, cities and municipalities out in the cold here would be fatal and a further loss of credibility in politics," said District Administrator Allgaier.
Budget consolidation process launched will bring painful cuts
"The district of Ludwigsburg has to save 56 million euros - not least due to the large deficit of its clinics. To this end, it has launched an extensive budget consolidation process, which will certainly result in painful cuts that will be felt by the administration and the citizens," states District Administrator Allgaier. However, it is also obvious that the district will not be able to get the budget deficit under control if the federal and state governments do not fulfill their responsibility to support the municipalities in such a way that they are able to cope financially with the increase in demands and tasks in the future. "It is important to create a balance between the mandatory municipal tasks and the funds earmarked for them for the municipalities and therefore also the districts. This is the urgent demand of the municipalities to the negotiating partners in Berlin - if nothing happens now in terms of financial resources for cities, municipalities and districts, municipal self-government will be massively jeopardized."
