Household - SPD wants to prevent cuts to urban development funding
Schleswig-Holstein's SPD will prevent budget cuts in urban development funding. "Cities are faced with major challenges: deterioration and extinction in inner cities, lacking town centers, empty offices and commercial spaces, as well as a shortage of affordable housing," said Serpil Midyatli, the chairwoman of the Social Democrats. The SPD intends to raise this issue with a motion in the Kiel session and have it discussed there.
The state government announced in December that it intended to close budget gaps, in part, through cuts to urban development funding. Midyatli stated that cuts would not solve the difficult financial situation but only shift problems into the future.
Motion for the state debate
With the motion, the SPD aims to request that the state government abstain from cuts to urban development funding before the Landtag. As the instrument of urban development funding enables investments in infrastructure and fosters social cohesion.
SPD deputy Thomas Höck added: "The black-green budget cuts to urban development funding would have devastating consequences for the development and attractiveness of our cities and municipalities." Furthermore, the funding is an indispensable financing source, without which many important projects would be put on ice or not implemented at all. The motion is to be submitted to the Landtag during the July session.
Warnings from city and housing associations
Schleswig-Holstein's City Association and the housing industry warned against cuts in grant funds for municipalities at the end of June. "We recognize that the financial situation of the state has worsened, and the state government must save," it was stated at the time. However, cuts to municipalities, which could amount to up to 100 million euros, would threaten social peace. The declarations were signed by the managing director of the City Association, Marc Ziertmann, the chairman of the Owners' Association Haus & Grund, Alexander Blazek, and the managing director of the Association of North German Housing Companies (VNW), Alexander Breitner.
The City Association and the housing industry fear that cuts will have to be made in voluntary social services of the municipalities, investments in public transportation, fiber optic and road construction, and the necessary transformation of municipalities in the context of the energy transition will suffer if the state withdraws its co-financing of around 20 million euros per year from urban development funding.
For Schleswig-Holstein, there is a need to save due to the financial situation. For 2025, the "action plan" amounts to 550 million euros, said Finance Minister Monika Heinold (Greens). The black-green coalition intends to save 200 million euros in the budget. The remaining 350 million euros could come from an intervention in the social security fund, lower global revenues, or another emergency loan. The cabinet will discuss the budget proposal for 2025 in September during a retreat.
- Serpil Midyatli, chairman of the SPD in Schleswig-Holstein, believes that budget cuts in urban development funding would exacerbate existing issues in cities, such as the decline of inner cities and a scarcity of affordable housing.
- The SPD in Kiel plans to introduce a motion to the state government, urging them to avoid reducing funding for urban development, as this income source is crucial for investing in infrastructure and promoting social cohesion in municipalities.
- SPD deputy Thomas Höck stressed that the proposed budget cuts to urban development funding by the black-green coalition would negatively impact the growth and appeal of cities and municipalities, and potentially halt many crucial projects.
- Schleswig-Holstein's City Association and the housing industry cautioned against reductions in grant funds for municipalities in June, expressing concern that such cuts could lead to reductions in social services, transportation improvements, fiber optic and road construction, and energy transition initiatives.
- In a bid to address Schleswig-Holstein's financial predicament, Finance Minister Monika Heinold (Greens) revealed an "action plan" worth 550 million euros for 2025, with the black-green coalition aiming to save 200 million euros through budget adjustments, while seeking alternative methods to account for the remaining 350 million euros.
