Municipalities - Districts sound the alarm after financial decision
Following the end of a financial dispute in the district of Mansfeld-Südharz, the Saxony-Anhalt Association of Districts has warned of far-reaching consequences. "This is knocking us off our feet," said Managing Director Heinz-Lothar Theel to the German Press Agency. "The financial resources of the administrative districts are slipping completely." It is now necessary to talk to the state about how the financing of the districts can be secured.
The district of Mansfeld-Südharz announced on Friday that it would have to apply for emergency financial aid from the state. The background to this was a defeat in the legal dispute over the so-called district levy. In one fell swoop, the district is missing a total of 157 million euros, as district administrator André Schröder (CDU) said. "With the enforced reduction in the district levy, the district is no longer in a position to fulfill its legally assigned tasks."
The districts do not have their own tax revenues. They receive money for their tasks from the state and from the municipalities belonging to the district via a levy. Several cities and municipalities took legal action against the amount of this payment - and were successful before the Halle Administrative Court in June 2023. According to the district of Mansfeld-Südharz, the Saxony-Anhalt Higher Administrative Court has now refused to allow an appeal against the rulings.
This could have far-reaching consequences for municipal funding in Saxony-Anhalt as a whole. According to District Administrator Schröder, the judges have ruled that the level of the levy is unlawful if a quarter of the municipalities permanently make a budget deficit. "The levy is too high because many municipalities are too poor." For this reason, the district levy in Mansfeld-Südharz is to be reduced for 2023 and 2024, and there will also be corrections for previous years.
As many municipalities in Saxony-Anhalt are in the red, this could also affect other regions. "We see the financial resources of the districts at risk," said Theel. "We will have to take legal action against the Financial Equalization Act if this is not resolved."
Just last week, the state parliament passed a reform of the Financial Equalization Act. From 2024, local authorities will receive a total of 249.6 million euros more from the state, of which 126.6 million euros are earmarked for the districts. According to Theel, however, this will not help with the district levy problem. The money would have to be used to finance higher expenditure for refugees, citizens' benefits and other social services.
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- In response to the financial crisis in the district of Mansfeld-Südharz, the County Council, which represents the Association of Districts in Saxony-Anhalt, expressed concern about the potential impact on all administrative districts.
- Sangerhausen, a municipality within the district of Mansfeld-Südharz, could be affected by the financial repercussions, as the district announced it would need emergency financial aid from the state due to a defeat in a legal dispute over the district levy.
- The German Press Agency reported that Managing Director Heinz-Lothar Theel of the County Council stated, "The financial resources of the administrative districts are slipping completely," amidst these budgetary challenges.
- The CDU, the Christian Democratic Union, which has a member serving as district administrator in Mansfeld-Südharz, Andre Schröder, acknowledged the significant financial shortfall as a result of the court ruling, with the district missing out on 157 million euros.
- The Saxony-Anhalt Municipalities, which are financially dependent on the district levy, may need to reassess their budgets in light of the court ruling and potential reductions to the district levy, as the German Press Agency reported.
Source: www.stern.de
