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State Government Pushes Districts into Even Higher Debt! - Exit from the Deutschland-Ticket?“We accuse the state government of breaking its promises,” declares Prof. Dr. Ariane Berger. Results of the District Administrators' Conference in Naumburg 
The recent developments in the financial policy of the Saxony-Anhalt state government raise serious questions and clearly demonstrate the government's inability to create realistic and fair financing conditions for the districts. The new draft law to amend the Financial Equalization Act is yet another example of the state government's persistent lack of responsibility and transparency. Due to unrealistic revenue forecasts and the further deterioration of their financial situation, the districts are forced to consider drastic measures. Unrealistic AssumptionsThe budget situation of the districts is apparently deliberately sugar-coated by the state government. The expected future revenues from the district levy, based on unrealistic assumptions, further exacerbate the already existing financial crisis of the districts. Instead of taking the actual circumstances into account, the districts are being sold a rosy future that is unsustainable in reality. According to current estimates, the budget deficit of the districts will amount to around 157 million euros in 2024 and grow to about 110 million euros by 2026. These figures highlight that the financial situation of the municipalities is already dramatic and continues to worsen.Districts Sink Deeper into Debt – Exit from the Deutschland-Ticket?The reaction of the district administrators to this development is alarming: Götz Ulrich, president of the Saxony-Anhalt District Association, warns that the state government is driving the districts into even deeper debt. As a direct consequence, the districts might be forced to withdraw from the Deutschland-Ticket – a move that would significantly impair citizens’ mobility and quality of life. Furthermore, more drastic measures such as reducing administrative processes and the possible closure of public buildings are being discussed. These actions are not only a sign of financial distress but also express frustration over the inadequate support from the state.Limits of Capacity ExceededMarkus Bauer, vice president of the Saxony-Anhalt District Association, emphasizes that the districts have exceeded their capacity limits. The districts are no longer able to fulfill their tasks as usual without their financial situation posing a serious threat. The announced savings and changes are inevitable consequences of the insufficient financial resources provided by the state.State Government’s Broken PromisesProf. Dr. Ariane Berger, managing director of the Saxony-Anhalt District Association, accuses the state government of a clear breach of promise. The pledge to consider the actual revenue development of the districts in the financial equalization was obviously not honored. Instead, fictitious figures were used again, undermining the right to municipal self-government. Therefore, the districts reserve the right to have the law reviewed by the State Constitutional Court and demand a more precise legal regulation of the district levy basis in municipal constitutional law.The results of the District Administrators' Conference in Naumburg, which extensively address these serious concerns and the looming consequences, can be viewed on the official website of the Burgenland district: Results of the District Administrators' Conference in Naumburg. Overall, the Saxony-Anhalt state government is under considerable pressure to take immediate action to improve the untenable financial situation of the districts. The current policy, based on unrealistic forecasts and disregard for the actual financial situation, endangers not only municipal infrastructure but also citizens’ quality of life. The state government must finally take responsibility and ensure that municipalities are funded fairly and transparently to prevent further deterioration of the situation. Author: AI-Translation - Torben Dietrich | 23.08.2024 |
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