Counties in Hesse raise the alarm: Financial crisis threatens municipal future!

Counties in Hesse raise the alarm: Financial crisis threatens municipal future!

In a dramatic appeal, the district councilors of the five North Hessian counties of Kassel, Schwalm-Eder, Waldeck-Frankenberg, Werra-Meißner and Hersfeld-Rotenburg have called out a financial emergency. They turn to the state of Hesse and the federal government in a joint letter to draw attention to the exploding costs and the empty budgetary cash registers. As a result, the income is no longer sufficient to cover the expenditure, which ended in such a bitter state that the district administrators have to speak of a bankruptcy. They urgently call for support because before the upcoming Bundestag election, none of the parties can present a sustainable concept to solve these financial problems.

A particularly alarming example is the Waldeck-Frankenberg district, which ended around 30 million euros by the end of 2024, but is now in front of empty health insurers. The district administrators explicitly ask for permission to debt or additional financial resources. These demands are particularly important because the municipal hospitals cause high deficits that ultimately have to be worn by the local citizens.

urgent demands to the federal and state governments

The district councils have formulated a number of specific claims, including the adjustment of the distribution of taxpayers, such as the redistribution of sales tax, and the full coverage of the costs for all -day care. In addition, it is required to take the effects of legislative proposals into account more and to check the effectiveness of (social) performance laws. Another central point is the restoration of municipal self -government, which is significantly restricted by various legislative measures. A reduction of bureaucracy and the return of competencies to the counties are also on the wish list.

The Situation is not only tense in Northern Hesse. According to Hessenschau.de, the municipalities in Hesse have had a deficit of 688 million euros for the first time since 2015, with only 44.5 percent of the municipalities still work with surpluses. City such as Frankfurt have a surplus of 152 million euros, but in Darmstadt and Marburg there are alarming deficits of 130 million euros or 128.4 million euros. These deficits are primarily due to increased social spending and personnel costs, which result from a collective bargaining in the public service.

a worrying development

The statistical state office shows that almost half of the deficit is eliminated on the counties that provide social services. In 2022, the municipalities still had a surplus of 45.1 million euros, which now appears like a distant memory. It does not look better at the federal level, because the forecasts indicate that the deficit of the municipalities will increase to 13.2 billion euros in the current year, which represents a doubling compared to the previous year. President of the local top associations are calling for a change in public financial policy and a larger proportion of community taxes to cope with this critical situation.

The challenges for the municipalities therefore continue to increase, while new investments in key areas such as climate protection or the turnover of the traffic hardly seem possible. A decline in municipal investments is expected from 2025, the already tense situation is further exacerbated. The municipalities are structurally underfunded and are increasingly faced with emergency households that become the new reality in town halls and district offices. The reduction of bureaucracy and ensuring adequate financial support from the federal states and the federal government remains essential to secure the future of municipal self -government in Hesse.