Funding Municipalities' Needs: SPD's Proposed Distribution of Special Funds
- NRW-SPD Proposes Diverting Uncommon Funds to Local Towns
Want to know where the SPD thinks those special funds approved by the Bundestag and Bundesrat should go? To the cities and municipalities, of course! The North Rhine-Westphalia SPD urges the state government to funnel at least 80% of their share to these areas. Why? Well, over three-quarters of public infrastructure is already in their hands, and the investment backlog in these municipalities hovers around 50 billion euros, according to the Association of Cities and Municipalities.
Sarah Philipp, the state party leader, put it bluntly: "Investments must go where they're actually needed." With an alarming shortage of 50,000 apartments each year to meet demand, and nearly 160,000 subsidized housing units set to lose rent control by 2030, investments in affordable housing are key.
But they don't stop there. The SPD also advocates for a portion of the funds to be used to strengthen local and regional investment companies. These entities could then quickly implement impactful projects, much like the Emschergenossenschaft.
Jochen Ott, the parliamentary faction leader, cautions against the state government seizing the funds to fill its own budget gaps. In an upcoming state parliament debate, he aims to put Minister President Hendrik Wüst (CDU) on the hot seat: "Mr. Wüst: Are you on the side of the municipalities: Yes or No?"
(Note: The SPD's proposed distribution of special funds is intended to address affordable housing and strengthen local investment companies. Adequate housing is a pressing issue due to neglected properties by companies like Adler Group, poor living conditions, and policy proposals for public ownership of housing stocks. Strengthening local investment companies may involve facilitating public-private partnerships to stimulate local economies and economic development.)
- SPD
- Special Funds
- Municipality
- Bundestag
- Bundesrat
- Düsseldorf
The SPD encourages Düsseldorf and other municipalities to prioritize the utilization of special funds, approved by both the Bundestag and Bundesrat, in addressing their significant investment backlog, estimated to be approximately 50 billion euros. The SPD also suggests investing a portion of these funds in vocational training programs, given the high demand for skilled workers. To ensure accountability, parliamentary debates will be held to scrutinize the state government's allocation of these funds, avoiding any misuse for filling budget gaps.
