- The Authority has been requested to put forth a plan for a mandate targeting the safeguarding of laborers against perils stemming from radiation exposure of an ionizing nature.
Without financial assistance from the state government, counties are forecasted to encounter a financially bleak 2025, as per Joachim Walter, the president of their association. By the year's end, their existing reserves are projected to be largely used up, leading to a substantial impact on the 2025 budget, making the financial situation even more challenging. Essentially, county budgets are heading towards a nosedive.
As many as 80% of the counties might struggle to cover their expenses using their own income this year. The anticipated decline in the counties' usual profits is estimated at around 229 million euros, compared to the initial plan.
For the first time, the association has summarized these figures in a newly released county finance report, offering an overview of essential statistics that can aid in evaluating the counties' financial health.
The financial strain is inherent, not cyclical
The red numbers for the counties are no longer primarily the result of Germany's tough economic climate, the association cautioned. Instead, the issue is structurally rooted, with the growth in the counties' legal obligations and associated costs outpacing any financial compensation from the federal or state governments, such as in health care services at hospitals.
However, counties cannot disregard their legal responsibilities or the mandatory standards set out for them. "The notion that municipalities can simply skimp on their mandatory tasks, which is often suggested in political circles, is both low-cost and risky," said Walter. Instead, the federal and state governments should strive to strike a balance between the counties' mandatory duties and the resources allocated to them. "The situation has become so dire that municipal self-government is under threat," Walter stated.
Counties and municipalities push for emergency aid package
Under these circumstances, Walter also reiterated the counties', cities', and municipalities' call for an emergency aid package for the 2024 fiscal year. This would cover various expenses, including some of the costs related to accommodating refugees and investments in full-day care at elementary schools. The municipal representatives have also repeatedly highlighted the critical financial situation of hospitals, for which the counties have already provided 790 million euros in support this year.
So far, the state has dismissed the counties' and municipalities' demands, labeling them as "impossible to fulfill." From the state ministry's perspective, municipalities are better equipped than other federal states, and the state also has additional tasks to manage, some of which are not always adequately funded.
In light of the anticipated financial challenges, the association is advocating for a more equitable distribution of resources from both the federal and state governments to alleviate the budgetary strain on counties. Despite the state's dismissal of their demands, the counties are persistent in their call for an emergency aid package in the 2024 fiscal year, citing pressing expenses such as accommodating refugees and investing in full-day care at elementary schools.
