St. Pölten in austerity mode: Which services are at risk?

St. Pölten in austerity mode: Which services are at risk?

The city of St. Pölten is facing comprehensive austerity measures in order to significantly improve its financial situation by 2026. With a savings target of around 11 million euros, the city administration wants to implement various measures that include savings in administration as well as reductions in personnel and material expenses. The first consolidation measures were taken in 2024 and are already showing positive effects on the financial situation, which is performing better than originally forecast despite tense circumstances, as [5min.at](https://www.5min.at/5202505302103/st-poelten-muss-sparen-was-jetzt-alles-gestrichen- Werden-koennte/) reports.

In order to effectively overcome the financial challenges, a budget consolidation concept is being developed, which is intended to ensure the city's ability to act without impairing citizen services. A steering group, which includes representatives from all parties represented on the local council, will meet at the beginning of June to work on the final consolidation plan. The plan is scheduled to be approved at the next council meeting in June.

Savings and affected areas

A central component of the austerity package is savings in various areas of the city administration. This includes subsidies for political work amounting to 150,000 euros as well as cuts in city center and tourism marketing and parts of the public bus system. The savings potential in road construction is particularly striking, where around one million euros could be saved annually. Postponing or canceling large construction projects, such as the renovation of the Karmeliterhof, could also save over a million euros annually. Almost half of the savings should result from the reduction of city services, while 10% should be achieved through increases in income, for example through higher parking tariffs, informs ORF.

Mayor Matthias Stadler emphasizes that unpleasant discussions are also necessary to ensure the city's financial stability. However, security-related services and support for clubs and youth work facilities will not be affected by the austerity package.

The context of fiscal consolidation

The book ESV, which deals with consolidation measures for municipalities, highlights the challenge that cities often experience: scarce resources conflict with the increasing demands of the population. The methodically structured measures described there are aimed at preventing municipal budget crises and identifying and using targeted consolidation potential.

With its savings plan, St. Pölten has taken a step that many municipalities in similar situations can understand. By relying on a comprehensive analysis of its financial situation, the city gives itself the opportunity to not only find short-term solutions, but also to ensure long-term financial stability.