Offenbach under pressure: increasing deficits endanger the future!

The city of Offenbach is faced with a considerable financial deficit. For 2024, a budget deficit of 47.6 million euros is forecast, which represents an increase of 9.4 million euros compared to the previous year. Comerator Martin Wilhelm (SPD) reported that a desired savings fee of 150,000 euros was perceived as inadequate. In addition, measures to reduce the cost of water supply in the Schultheis pond are required, which underlines the serious financial situation of the city. The mandatory editions that are imposed by federal laws are not sufficiently taken into account in the previous financial situation of the municipalities.

Wilhelm also pointed out reserves of 120 million euros, which will be used up in the near future. The forecasts indicate rising costs from legal regulations and falling income from trade tax. Despite successful company settlements, such as the move of Samson AG from Frankfurt to Offenbach, which affects 2000 jobs, economic recovery will take time. The move should be completed by the beginning of 2027, with the aim of taking electronics production in autumn 2023. It is emphasized that a successful economic strategy does not abolish the responsibility of the federal government to support the municipalities financially. A reorganization of the municipal financial equalization is planned for 2026 and is considered a potential opportunity.

financial challenges of the municipalities

The general financial situation of the municipalities in Germany has deteriorated rapidly. Last year, the municipal level recorded a deficit of 6.2 billion euros, a deterioration of 8 billion euros, and the expected deficit this year is stated at 13.2 billion euros, which doubles the situation again. A forecast by 2027 shows that the deficits should remain at a similar level. The presidents of the municipal umbrella organizations require a larger proportion of community taxes and criticize that the tasks of the municipalities are expanded without adequate financing.

New investments are hardly possible, and a decline in municipal investments is expected from 2025. It is also found that municipalities are unable to invest sufficiently in climate protection, energy or traffic transition. The municipal investment deficit is already 186 billion euros and will continue to increase. The expenditure of the municipalities is growing without any significant influence on the income, which is not only due to inflation, but also on increasing social costs, the crisis on the housing market and inadequate hospital financing. The forecast in the municipal financing balance for the current year is over 7 billion euros, which complement the drastic decline from the previous year by 8 billion euros.