Skipping the Shadows: Thuringia's Budget Woes Linger On
Nine-shot rampage leaves residential areas in Thuringia momentarily without domestic services - Nine local areas in Thuringia continue without resident families established.
Rolling the dice, taking a gamble, whatever you call it, that's exactly what many cities, municipalities, and districts in Thuringia are doing. These local bodies are playing a game without knowing the rules - they're operating without a budget for the year, leaving them in a financial limbo. Among the big fish clinging to the riverbank are the independent cities of Suhl and Weimar, seven districts out of 17, and countless smaller municipalities.
The culprit? The indecisiveness at the state level. The approval of Thuringia's own budget is still hanging in the balance, leaving these local bodies high and dry. Carsten Rieder, the CEO of the Association of Municipalities and Towns, explains the predicament bluntly: "When the big cheese ain't cooked, it's hard for the little guys to make their own grub."
Thuringia doles out a hefty annual sum to its municipalities, courtesy of the state budget. This fund is their primary income source, second only to the trade tax and disbursements from the federal government. The absence of a state budget means these local bodies are swept up in a whirlwind of uncertainty, unsure of which projects, initiatives, and investments they can fund.
As of now, Gotha, Sonneberg, Nordhausen, Ilm district, Saalfeld-Rudolstadt, Saale-Orla, Unstrut-Hainich-Kreis are among the districts yet to approve their budgets. While the rest have already gotten their act together, the spokesperson for Thuringia's heaviest hitter confirms. Sustainable performance, a critical approval criterion, is like a red light flashing for these districts, signaling a potential inability to shoulder future financial burdens.
Rieder speculates that this budgetary paralysis affects more than just the big fish. "If the state's still stuck in its mud, it's tough for these little critters to swim upstream and get their budgets in order," he quips. Municipalities rely on the state budget breaking free and making its way through the political mill to reach parliament by early April, like a much-needed salmon leap.
An investment need of 1.6 billion euros looms large over these municipalities, according to the Municipal Barometer of the State Promotion Bank. Yet, the state budget only dishes out a paltry 125 million euros for municipal investments, a quarter of what's actually required. Thisnumber is expected to rise by 25 million euros due to an application by the CDU, BSW, and SPD coalition.
Rieder keeps a cautious eye on the so-called municipal package worth 155 million euros proposed by the government coalition, currently being wrestled with by the state parliament and the Left party for support. "No cigar yet, we need guarantees that this money's for real," he sighs. The Association of Cities and Municipalities, along with the Thuringian District Association, demanded almost double this amount, considering the financial straits and the colossal investment backlog.
The package supposedly includes aid for small municipalities and districts to ease their social burdens, a fire protection allowance of ten million euros, help for sports facilities, and investments in schools and municipal baths, struggling under mounting pressure. The icing on the cake? An influx of 15 million euros to help municipal baths improve energy efficiency and reduce costs.
However, the federal context paints a murky picture. Thuringia's state government, with its far-left bent, diverges from federal policy priorities. This conflictual stance could lead to wrangles over resource allocation and project prioritization, potentially hampering the implementation pace.
In the grand scheme of things, Thuringia's municipalities are waiting for the state budget tide to turn, hoping for increased investment opportunities to bail them out of their financial quagmire. But the politics of the state and federal levels lurk like shadows over these sunken ships, jeopardizing their chance to navigate clear waters.
- The annual sum given by Thuringia to its municipalities is crucial for their financial stability, with the state budget being their primary income source, second only to the trade tax and disbursements from the federal government.
- The independent cities of Suhl and Weimar, seven districts out of 17, and countless smaller municipalities are struggling due to the absence of a state budget, causing them to be unsure of which projects, initiatives, and investments they can fund.
- The Association of Municipalities and Towns has demanded almost double the proposed municipal package worth 155 million euros, considering the financial straits and the colossal investment backlog, as they hope for increased investment opportunities to help them navigate clear waters.
