Financial Equalization Act - More money for local authorities: schools to benefit
The state parliament in Schwerin passed an amendment to the municipal financial equalization scheme on Thursday with the votes of the coalition. This clears the way for additional investment in schools and fire station buildings. Accordingly, the state and local authorities intend to provide a total of 200 million euros for school construction over the next four years. As the school authorities themselves are to bear 50 percent of the costs, total investment of 400 million euros is expected.
The state government expects that schools in rural areas in particular will benefit from this. In the past, it has usually been difficult for these schools to obtain funding, explained Interior Minister Christian Pegel (SPD). Particularly financially weak local authorities are to receive additional funding.
A further 50 million euros will come from the state for the construction of new fire stations. The municipalities will also receive a slightly higher share of the state's tax revenue. For 2024, local authorities and districts can expect allocations of a good 1.54 billion euros, and 1.66 billion euros for 2025. The municipalities' own tax revenues are of a similar order of magnitude.
The AfD, CDU, Greens and FDP abstained from the vote because their more far-reaching demands regarding the school construction program were not included in the law. For example, the CDU, FDP and Greens wanted the calculation of regional funding allocations to include pupils at private schools as well as those at state schools. However, these motions did not receive a majority. The opposition parties also criticized what they saw as too short a consultation period for the amendment to the law.
Timetable of the state parliament session with links to laws and motions
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- The additional funding for schools and fire station buildings will mainly benefit financially weak municipalities within mecklenburg-vorpommern.
- Under the amended Financial Equalization Act, municipalities and communes in mecklenburg-vorpommern will receive a higher share of the state's tax revenue, contributing to their financial stability.
- The state parliament in Schwerin, through the amendment to the municipal financial equalization scheme, is aiming to provide equitable financing across all municipalities in mecklenburg-vorpommern, ensuring that heavy financial burdens do not fall disproportionately on certain communes.
Source: www.stern.de
