Tyrol's communities demand: BUND has to act with financial equalization!

Tyrol's communities demand: BUND has to act with financial equalization!

Tirol, Österreich - Tirol's city representative appealed to the Federal Association of the Association of the District that the financial support for municipalities in the course of the Financial Effect Act. This requirement is in the context of the current financial equalization law on December 31, 2028. According to Kleine Zeitung , the representatives of the Tyrolean state group are of the opinion that a regulation of this topic is only "not acceptable". In her view, the financial assignment, which will be granted in 2023 to ensure sustainable housekeeping, will also be required for the following years until the new Financial Equipment Act came into force in 2024.

The Tyrolean state group, which represents 300,000 Tyroleans, also calls for more influence by the western federal states in future negotiations on financial equalization. These demands were decided unanimously and should be discussed on the city day. The federal states of Vorarlberg and Salzburg also support this initiative. The cities suffer from financial pressure due to the necessary austerity measures, which particularly underlines the need for additional federal support.

Financial equalization regulations

Financial equalization regulates the financial relationships between the federal, federal states and the municipalities and is based on mutually negotiated agreements that are redefined every four to six years. The results of these negotiations are recorded in fixed -term financial equalization laws (FAG), such as Oesterreich.gv.at informed. These laws regulate the distribution of community federal taxes, such as income tax and sales tax, and determine which tasks can be taken over and financed by which level.

A central concern is the financing of new tasks that occur during a FAG period, as these require separate negotiations. These could result in 15a agreements between the federal states and the federal government that can reach the financing of new tasks.

Financial obligations and future challenges

According to the current regulations of the 2024 Financial Effect Act, the federal government bears the costs for numerous social services and medical care services, as well as the salary costs for teachers. Especially in times of economic uncertainty, reliable financial equipment is of central importance for the communities to ensure sustainable housekeeping.

The draft law comes into force on January 1, 2024 and, among other things, provides for the provision of funds for a future fund, also to support elementary pedagogy and the measures in the area of climate and environmental protection. These aspects are crucial for cities and municipalities because they are faced with a variety of challenges.