District fights with a deficit of 24 million euros - what now?

District fights with a deficit of 24 million euros - what now?

The district faces a significant financial problem that is expressed in a deficit of over 24 million euros. Despite this precarious situation, the district administration decided not to increase the district levy. The relief rate therefore remains unchanged at 45.6 percent. This means that the municipalities pay a total of 84.7 million euros to the district in order to cover its financial needs. The district's expenses amount to 115 million euros, which shows that the income from the district levy cannot compensate for the deficits. This topic raises questions about the financial future of the district and requires an in -depth analysis of the current financing structure.

The funding of the counties is carried out by various mechanisms that differ from independent cities. While real taxes, such as property tax A and B and trade tax, are entitled to the municipalities, circles can raise a circular levy from the associated communities. This levy is often faced with the conflict between circles and municipalities, since high allocation rates can often lead to financing restrictions at the local level. The district council has the sovereignty over the determination of the levy, which is influenced by relevant legal framework and not without review by the local supervision. Kommunalwiki.boell.de % have decided.

Legal framework of the district levy

The district levy plays a central role in the distribution of financial resources within the municipalities. It fulfills three main functions: the fiscal, the redistributive and the allocative function. These structures are crucial for the financing of all district tasks and for reducing the differences in financial strength between the communities. Despite its importance, however, the circular levy is also a common area of ​​dispute. In various federal states, such as in Mecklenburg-Western Pomerania, there are always disputes over high all-rounds and their effect on the respective communities.

At the latest since the final judgments of the Federal Administrative Court on the topic, there are clear requirements for the training of the district levy. These requirements are intended to ensure that the output paid does not lead to structural underfunding of the municipalities. Above all, the “Rastede decision” of the Federal Constitutional Court has clearly specified the distribution of tasks between circles and the municipalities that the social and economic performance of the communities must not be impaired. The current situation in the district, such as rheinpfalz.de in particular the question reports on how future expenses and income can be compensated for without the municipalities being additional.