- Government plans to increase funding for music institutions and sports organizations.
The coalition of SPD and Greens in power has planned to funnel more funds from the gambling tax to entities such as music schools, the state sports federation, and consumer centers in Lower Saxony. This shift in funding is anticipated due to a legislative amendment aimed at providing these associations with more financial predictability.
The potential upsurge in funding for music schools is set at approximately 2.6 million euros from the current 400,000 euros, while the state sports federation could see an increase of around 2.7 million euros to reach 13.5 million euros. Similarly, consumer centers are looking at an estimated boost of 3.3 million euros, ascending from the current 600,000 euros.
Other organizations like welfare, the Bingo Environmental Foundation, and the Lottery-Sports Foundation are also set to reap the benefits. This could potentially elevate the total funding from the gambling tax to around 40 million euros, a notable increase of approximately 14.8 million euros compared to last year's figure.
Lower Saxony currently rakes in around 190 million euros from gambling taxes.
Historically, consumer centers have often faced the uncertainty of whether they would secure sufficient funds from the state to carry out their operations. With the proposed new procedure, these associations are expected to gain improved financial planning abilities and bolster societal harmony in Lower Saxony.
As per the bill, the gambling tax revenues, which currently account for around 59% of the total funding, are projected to reach nearly 94% in the future. In 2023, Lower Saxony collected about 190 million euros through gambling taxes.
The SPD, being a part of the coalition in power, is instrumental in this funding shift. The SPD and Greens have proposed to allocate more resources from the gambling tax to organizations like music schools, the state sports federation, and consumer centers, boosting their budgets significantly.
