- Berger: Municipalities lack room for manoeuvre
Grimma's Mayor Matthias Berger (independent) sees Saxony's municipalities in a precarious situation. "The budgets are no longer balanced because costs have exploded. We have no money left to be active and innovative. The municipalities are micromanaged in every aspect," the 56-year-old told the German Press Agency. There is a disconnect between the state and the municipal level. Premier Minister Michael Kretschmer, although more communicative than his predecessor Stanislaw Tillich (both CDU), and a nice person, "has not made structural changes that would benefit the Free State," he said.
Former Saxon Finance Minister Georg Unland (CDU) had already raised this issue years ago. In a speech at the tax office in Grimma, Unland said that Saxony was heading towards a financial cliff if bureaucracy was not reduced and structures changed. "The number of civil servants should once drop to 70,000, now we're heading towards 100,000. 40 percent of the state budget goes to personnel costs. That's bitter from the perspective of a municipal politician," Berger emphasized.
Mayor calls for honest assessment
Ten years ago, the Free State was only treading water. Now, it seems to be moving backwards. This is evident in many areas, such as the healthcare system, internal security, and education. "We need an honest assessment to determine what we can still afford," said Berger, who is running as the top candidate of the Free Voters for the state election on September 1. A lot of money is being spent on things that are not really decisive.
"We think we're doing well, but we've been living beyond our means for a long time. When I became mayor of Grimma in 2001, the city had tax revenues of one million DM and a per capita debt of 1,800 DM, or around 500,000 and 900 euros. Currently, the tax revenue is 12.5 million euros, and the debt is 240 euros." Nevertheless, money is not enough because new tasks keep being added by the federal and state governments.
Communities lack room to maneuver
In Berger's view, municipal self-government has become a mere formality because municipalities no longer have any room to maneuver. Many ideas are brought in, but their implementation does not work. Therefore, many local responsibility bearers today adopt a mentality reminiscent of DDR times - "let the top ones just talk."
"We need an honest assessment. We need clear structures and responsibilities," said Berger. Extreme hierarchies like those in Saxony are wrong. Municipalities must be given more responsibility. It should not be the case that they have to "beg to change a light bulb."
Dispute over municipal finances temporarily resolved
At the end of June, a dispute over municipal finances in Saxony was temporarily resolved. The state agreed with the municipal associations on key points for the municipal financial equalization for the years 2025 and 2026. Among other things, the districts and independent cities will each receive a total of 162.5 million euros for the two coming years, primarily to support social expenses. The municipalities belonging to the districts will receive an investment allowance of 82 million euros from the municipal financial equalization for the years 2025 and 2026.
The peak associations had previously repeatedly emphasized that without a significant improvement in funding allocations, the high cost increases of cities and municipalities in the next two years would no longer be controllable. CDU county administrator Henry Graichen had put the deficits of the counties for this period at 833 million euros.
Grimma, the city where former Saxon Finance Minister Georg Unland delivered a warning speech about bureaucracy and budget issues, is now governed by Mayor Matthias Berger. Berger highlighted that the city's tax revenues have significantly increased from one million DM in 2001 to 12.5 million euros today, yet new tasks and financial pressures from the federal and state governments limit the city's ability to maneuver.
