Budget crisis in Baden-Baden: Urgent measures decided after lockdown

Budget crisis in Baden-Baden: Urgent measures decided after lockdown

In Baden-Baden, the city administration has decided to introduce a budgetary freeze that applies from today. This decision was made due to the difficult financial situation, which has led to a significant imbalance between income and expenses. The decline in trade tax revenue was foreseeable for a long time, but the consequences are now apparently more serious than expected. The legal basis for these measures comes from the municipal budget regulations of the state of Baden-Württemberg, also known as GemHVO.

The block, which is specifically made possible by Section 29 of the GemHVO, affects all influenceable expenditure in the budget of the various offices in Baden-Baden. Only expenses that are subject to legal obligations or are necessary to maintain essential city tasks can continue to be paid. This means that citizens and businesses that rely on city services may face delays or restrictions in the future.

Responsibilities and Impact

The administration, especially the treasury and the mayor, play a crucial role in the implementation of these measures. You have the authority to decide whether and when financial commitments can be made. In cases of doubt, consultation with the treasurer's office is necessary to obtain clarity about the legal framework. This will have a significant impact on the work of the city administration, as all voluntary and many mandatory tasks must be critically examined.

However, according to legal requirements, certain expenses are excluded from savings. These include interest payments or repayments of municipal loans, collectively agreed wages and salaries for staff and contractually agreed obligations. These protective measures are intended to ensure that essential services can be maintained without further cuts to the city's operations.

Despite these limitations, there is no guarantee that the fiscal freeze will immediately result in savings or an improvement in liquidity. The local council must deal intensively with the situation in order to review existing structures and financial obligations. The current development has already caused an outcry among residents and city councilors who fear this is just the first step towards more drastic austerity measures.

This news is of great importance for Baden-Baden and was described at yesterday's local council meeting by CDU parliamentary group leader Gernsbeck as a painful necessity in order to prevent further descent into financial difficulties. The discussion about the necessary steps and the next steps promises to become more intense in the coming days and weeks.

The legal basis on which the budget freeze is based is set out in the state's municipal budget ordinance, which explicitly states in Section 29 that expenses, payments and obligations can be suspended as long as the economic situation requires it. For a detailed look at the case and current information, see the current reporting on www.goodnews4.de.