Kaiserslautern in the crisis: 50 million euros of deficiency and increasing unrest!

Kaiserslautern in the crisis: 50 million euros of deficiency and increasing unrest!

The resentment of the supervisory and service directorate (ADD) in Trier is noticeably increasing in the city of Kaiserslautern. According to a report of the Rheinpfalz The sound in the letter to the city will always be rougher. Already on January 22, the ADD expressed considerable legal concerns regarding the city's budget plan, which called local politicians on the scene to again request complaints against the authority. This development throws a shadow about the planning and financial management of the city.

On November 18, the city council decided on the budget statute, the budget and the job plan for 2025. The approved budget has a worrying shortfall of 50.5 million euros. This means that the city will not meet the statutory budget equalization requirement in the coming financial year. The situation could further tighten in the coming years, because the deficits will probably increase continuously by 2028.

causes of the financial crisis

The causes of the teasing underlay are complex. A central point is the loss of financial support mechanisms, including measures such as the Baubaubonus, the interest rate security umbrella and the state allocations for the municipal debt fund Rhineland-Palatinate. In addition, the expenses in the social and youth welfare sector as well as at the personnel expenses increase continuously.

However, the city's income can be improved by 9.1 million euros by higher key assignments. Despite this positive development, the shortfall was temporarily increased because the city council decided not to increase the property tax. In order to compensate for loss of income of 12 million euros, the rate of property tax B would have to be raised from 610 to 985 percent.

outlook for future consultations

The city council will again advise on possible lifting scenes adjustments in December. It remains to be seen how the implementation of these adjustments and the further cooperation with the ADD will take place. The draft budget was brought in by Mayor Kimmel on July 8th and discussed in the meetings of the main and finance committee on September 2 and 3. After the city council's decision, the budget was sent to the ADD in Trier for approval, which now leads to legal tensions.

The developments in Kaiserslautern, as from kaiserslautern.de , show that the city urgently has to find solutions to master the financial challenges. Local politics faces the challenge of managing the management of finances and the necessary expenses at the same time and at the same time escaping the pressure from the add.