- SSG calls for better financial support for local authorities
The Saxon Association of Towns and Municipalities (SSG) is insisting on a significant improvement in the financial resources provided to municipalities. In the upcoming legislative period, decisions need to be made - in the interest of both the municipalities and the state, said SSG President Bert Wendsche. In terms of the distribution of tasks and expenditures, Saxon municipalities are underfunded compared to other federal states. They are short by around 200 euros per capita per year, amounting to roughly 800 million euros in total. There were three rescue packages in 2023, but they are unlikely to come this year. Consequently, the annual result will be "deep red" for the municipal sector.
According to Wendsche, the overall allocations to the municipal level have not developed as poorly as in Saxony since 2010. This is less due to the municipal financial equalization and more due to consistently decreasing contributions and reimbursements from the Free State's state budget, such as cuts in funding programs. The municipal finances must be sustainably improved, and the scope of cities and municipalities must be increased. Otherwise, they will not be able to compete with the new federal states and keep up with economic development.
"Whoever orders, must pay!"
The SSG proposes that the state be financially involved in the tasks transferred to the municipalities. To offset additional burdens, these should either be adjusted dynamically or permanently considered in the municipal financial equalization. The principle of "whoever orders, must pay - and permanently!" should also apply at the federal level. The SSG is calling on the state of Saxony to initiate a federal council initiative to give the Federal Association of Municipal Spokespeople the right to be heard in the federal council. In the future, the federal government and the states should not be allowed to adopt new commitments whose costs are passed on to the municipalities. Compensation for additional burdens caused by federal laws is being demanded, first for the states and then for the municipalities.
If there is no improvement in the financial equipment of the municipalities, not much will be invested in the coming years, especially in construction investments, at a time when the construction industry is already struggling.
SSG against moratorium for closures of daycare centers
At the same time, the SSG spoke out against a moratorium for Kita closures. The time is not right for an expansion of standards. Several parties had advocated for this, using declining child numbers to improve the care of girls and boys in daycare centers. The number of children will permanently decrease significantly. "We cannot afford to let Kitas stand empty," said Wendsche.
The SSG urges the state to financially contribute to the tasks assigned to municipalities, as they are currently underfunded by approximately 800 million euros annually. Without sustainable improvement in municipal finances and an increase in their scope, they may struggle to compete with new federal states and keep up with economic development.
Given the financial strain on municipalities, the SSG suggests that any additional burdens should be either dynamically adjusted or permanently included in the municipal financial equalization, following the principle of "whoever orders, must pay."
