City day in Eisenstadt: Finance in focus - Tasks about money!

City day in Eisenstadt: Finance in focus - Tasks about money!

The 74th City Day will take place in Eisenstadt with around 1,300 participants in Eisenstadt from Wednesday. The main topic of the congress is the tense finances of the cities and municipalities. Vienna Mayor Michael Ludwig (SPÖ) calls for a fundamental change in the vertical distribution key in the financial equalization. Currently, 68% of the funds are eliminated on the federal government, 20% on the countries and only 12% on cities and municipalities. Ludwig brings up that the tasks of the municipalities grow faster than that of the federal.

The mayor of Eisenstadt, Thomas Steiner (ÖVP), warns that municipalities can no longer perform their tasks in the expected quality. These concerns are particularly relevant because the city day takes place at a time when the financial resources are increasingly under pressure.

financial challenges and solutions

The Federal President Alexander Van der Bellen comments in a video message about the budgets as a "balancing act" and emphasizes the need for compromises between the different levels of politics. Interior Minister Gerhard Karner (ÖVP) also speaks about the challenges of scarce budgets and emphasizes the importance of cooperation between cities and municipalities.

Community Association President Johannes Pressl demands more partnership and cohesion in view of the financial challenges. Leonard Schneemann, Burgenland State Councilor (SPÖ), underlines that no municipality can go bankrupt and refers to necessary measures at the state level.

The central areas of responsibility of the communities develop dynamically, especially in elementary pedagogy and at all -day schools. These areas are characterized by high output dynamics, but there is a lack of long -term financing protection. The sources of financing of cities are increasingly restricted by measures by the federal and state governments.

The gray financial equalization

A look at the structural problems shows that the “gray financial equalization” focuses on. This describes financial load shifts from the federal and state governments to the communities without adequate compensation. A recently published study by the KDZ for the urban association of the state group Tyrol, such as tax reforms, high levies and new tasks are increasingly restricting the financial scope of the communities.

The requirements for the communities grow in areas such as compulsory school, elementary pedagogy, care and climate protection. At the same time, the lack of sustainable financing leads to significant funding gaps. Lack of personnel in care and childcare represents another limiting factor.

In order to relieve the municipal finances, experts recommend reducing the levy dynamics and a stronger say in communities in the field of social and health tasks. Appropriate compensation for transferred tasks as well as the promotion of community cooperations and fusions are considered necessary.

The discussions during the city day in Eisenstadt are not only up to date, but also crucial for the future of municipal households in Austria. In view of the financial challenges that endanger the continued existence and the quality of the municipal services, a realignment of the internal transfer system is urgently required.