Offenbach fights: deficit of 47.6 million euros causes an alarm!

Offenbach fights: deficit of 47.6 million euros causes an alarm!

The city of Offenbach is faced with a significant budget deficit of 47.6 million euros in the coming year, which corresponds to an increase of 9.4 million euros compared to the previous year. A planned savings fee of 150,000 euros is assessed as inadequate, and Mayor Martin Wilhelm (SPD) indicates the need to make savings in the water balance in Schultheis-Weiher, which illustrates the serious financial Situation of the city.

The financial challenges for the municipalities in general should not be underestimated. According to the results of an investigation into the German City Day, the financial situation of the municipalities deteriorates rapidly. Last year, the overall German deficit was 6.2 billion euros, with a forecast doubling to 13.2 billion euros in the current year. These developments are in the context of a structural underfunding of the municipalities, which can only be compensated for by short -term emergency aids.

economic strategy and challenges

Despite the tense financial situation, Offenbach has achieved success in the settlement of companies, but they need time to reflect on trade tax revenue. The city supports Samson AG in relocating the company headquarters and production from Frankfurt to Offenbach, which affects up to 2000 jobs. The move should be completed by the beginning of 2027, and electronics production will begin in autumn 2023.

While the city tries to successfully implement its economic strategy, it must also adapt to rising costs through legal regulations and falling income from trade tax. It is expected that the reserves of 120 million euros that treasurer Martin Wilhelm have shown will be used up in a few years. The municipal financial equalization is to be regulated in 2026, which is considered an opportunity to improve the financial situation of the cities in the future.

like FAZ , the question remains as the municipalities with the rapid deterioration of their financial position, while The German City Day notes that a fundamental reform of financial support for the municipalities is necessary, to counteract the ongoing deficits.

-transmitted by West-Ost-Medien