Financial crisis in Neu-Ulm: Concerns about the 2024 budget are increasing dramatically!

Financial crisis in Neu-Ulm: Concerns about the 2024 budget are increasing dramatically!

There is a tense financial situation in Neu-Ulm: The city council passed the budget for 2025 with only eight votes against, but reality could quickly make it a waste of time. Mayor Katrin Albsteiger took a look at the explosive situation at the meeting and announced that a new treasurer would come into office from February 1st, who could bring fresh ideas to the discussion about the increasingly urgent austerity measures. "We have already identified potential. This will be extremely unpleasant and unpleasant," said Albsteiger. In particular, the increasing district levy, which is expected to climb to around 42 million euros, is forcing the city to make drastic savings, such as Southwest Press reported.

Budget planning under pressure

A new financial plan for the years 2024 to 2027 is also on the agenda to counteract the colossal mountain of debt. The draft envisages a borrowing of around 11 million euros, as enormous expenses have to be managed for collective agreements and increased construction prices. Inflation and higher interest rates are putting additional pressure on the city's budget. While trade tax revenue is expected to increase slightly to around 44 million euros, the asset budget is set at around 62 million euros.

The PRO Neu-Ulm parliamentary group unanimously approved the budget for 2024, which sends a positive signal given the challenges. In their argument, the group members emphasized the need to stay on course despite adverse circumstances and to keep the “ship” Neu-Ulm stable. “We see it positively when it comes to our city, because we actually have no reason to complain,” said a member of the parliamentary group, who pleaded for optimism in the council PRO Neu-Ulm reported. The coming months will show whether the city administration can overcome the challenges.