Community finances in Upper Austria: a race against bankruptcy

Community finances in Upper Austria: a race against bankruptcy

In Upper Austria, an alarming situation is making a shelf: Every second community could be bankrupt by 2025. This worrying forecast forces the state government to drastically increase financial aid for necessary communities - from 5.5 million euros to a whopping 55 million euros in the past four years. But what leads to this worrying development?

The lack of financial means already has a noticeable impact: lively social structures threaten to decay. In many communities, basic services such as warm school lunch and support for sports clubs are already at risk. A concise example is the situation in Feldkirchen an der Donau. There, the cost of lunch from currently 3.75 euros could increase to up to 7.50 euros. This would quickly make up 70 euros more per month for a family with a school -age child. Mayor David Allstorfer (SPÖ) fears that such a measure could lead to "total disposable".

Knapped means and high taxes

The finances of the communities are under strong pressure. An important problem is the increase in taxes that the state government demands from the municipalities. Bettina Lancaster, the mayor of Steinbach am Ziehberg (SPÖ), reports that her community no longer has any financial resources to promote local associations. This endangers social life on site because sports, cultural and riding clubs are massively affected.

The increasing cost of living and inflation have dramatically tightened the financial situation of many communities. If municipalities have no more own funds, they cannot apply for federal funds for necessary investments. This leads to a vicious circle: closed youth centers, dilapidated playgrounds and outdated school buildings are the consequences. Citizens feel this emergency first -hand.

The mayors accuse the state of Upper Austria to impose high financial obligations, which further reduces the municipal funds. Governor Thomas Stelzer (ÖVP) and Vice Manfred Haimbuchner (FPÖ) are particularly criticized. The municipalities have to come to terms with the higher payments - and this brings them to the limits of their performance. Transparency in dealing with the income of the so -called "state levy" is poor, and the use of these funds remains nebulous.

political demands

In order to defuse the precarious situation, the SPÖ and the municipal association of Upper Austria (GVV Upper Austria) have made a number of proposals. This includes withdrawing the current state levy, the discharge of the hospitals and a reform of the care system. In addition, they are calling for the introduction of an emergency package for care to reduce the financial burden on the municipalities without endangering the quality of care.

The situation in Upper Austria gives rise to concern. If the financial conditions of the communities do not change quickly, there is a massive loss of social and infrastructural offers. This will not only affect the quality of life of the citizens, but also endanger the social structure of many communities.