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Financial policy New Year's reception of the Groß-Gerau district
The future of municipal finances was the topic of the financial policy New Year's reception hosted by the Groß-Gerau district council on Friday, January 17th. The aim was to highlight the precarious financial situation and the resulting difficulties in fulfilling all responsibilities. Around 100 guests from politics and society gathered in the Georg Büchner Hall of the district administration building, where they were welcomed with a thematically appropriate musical piece by the "Duo Tastenstreich," who provided musical accompaniment for the event.
Following the welcoming remarks by District Administrator Thomas Will, the event got straight to the point: Professor Dr. Thomas Döring (economist and sociologist, Darmstadt University of Applied Sciences) – briefly introduced by the moderator, Christian Döring (who happens to share the same name) – delivered a compelling keynote address illustrating the dramatic state of municipal budgets nationwide. He cited quotes from the presidents of leading municipal associations ("Municipal finances are in a state of chronic disarray") and presented data on the overall economic situation, revenues and expenditures, and the financial situation of municipalities. Professor Döring's presentation can be found here .
The scientist cited several reasons for the imbalance, which deprives municipalities of any room for maneuver, including economic downturn, inflation, rising social welfare expenditures, new responsibilities transferred to the municipal level by the federal and state governments, and simultaneously declining allocations (both operating and investment). Regarding the figures projected for the coming years, Professor Döring cautioned that caution is advised because everything is based on the assumption of future economic growth.
According to the speaker, it is already clear that municipal debt will increase, that necessary investments can only be implemented with delays, and that previously implemented cost-cutting measures will be ineffective. The subsequent discussion made clear what all this means in concrete terms. "In our district, we have an investment need of one billion euros. As things stand, we need 25 years for implementation. We don't have that kind of time. Something urgently needs to change," said the district administrator.
Stefan Stein, chairman of the district parents' council, also described the dire situation of schools, which are "bursting at the seams." He emphasized the importance of investing in children's education, as "this creates a strong economy in the long run." Juliane Kuhlmann from Nauheim, president of the Hessian State Sports Federation, noted that sports facilities also require renovation. She stressed that municipal sports funding is a crucial pillar. Without it, "activities can no longer take place, even though the demand is there." Furthermore, she added, the constant lack of funding demotivates volunteers in sports clubs.
Nils Kliesing, head of the Groß-Gerau district craft association, said that tradespeople are receiving fewer orders because both municipalities and private individuals (who are increasingly burdened by taxes, contributions, and fees) have less money available. Furthermore, smaller businesses in particular are burdened by excessive bureaucracy: "We need structural change in many areas. 'Business as usual and raising taxes' won't achieve anything."
Lucian Lazar, head of the regional Diaconal Service for Groß-Gerau/Rüsselsheim, emphasized that social peace had so far been maintained in the Groß-Gerau district. He appealed for the good structures not to be destroyed due to a lack of funds: "We still need these resources to integrate people into our community." So-called voluntary services are "not just expenditures, but investments in democracy and humanity.".
Christian Suhr, director of the Riedstadt BüchnerBühne, supported this approach in the cultural sphere. "Culture reflects a community's self-image," he concluded. It is detrimental, he added, when different sectors of society are pitted against each other. "We must re-examine our fundamental values," he urged.
Professor Döring also sees the financial issue as the crux of democratic responsibility. "Without reforms, municipalities are threatened with collapse. We must rethink the system, otherwise there will be major problems," he concluded. He brought several suggestions: change the unbalanced distribution of expenditure burdens and tax revenues in the overall public budget; improve municipal tax revenue by increasing the share of value-added tax from 2 to 6 percent; expand the scope of discretionary taxes; separate the "social budget" from the rest of the municipal budget; eliminate gaps in the system of cost reimbursement; convert integration assistance into a social security benefit; restructure fiscal equalization (less retrospective, more focused on future needs such as climate protection and adaptation); reduce funding programs in favor of lump-sum, unrestricted allocations; and lower standards.
(Gross-Gerau district-PSKGG)
For implementation, science must engage with practice. Panel discussion at the New Year's reception on financial policy with (from left) moderator Christian Döring, Juliane Kuhlmann, Nils Kliesing, Lucian Lazar, Stefan Stein, Christian Suhr, Prof. Dr. Thomas Döring and District Administrator Thomas Will. Photo: District Administration
