Offenbach fights with a financial crisis: 12 million euros more for children's aid!

The city of Offenbach is faced with a financial challenge in 2024, since the expenditure for child and youth welfare increases by 12 million euros. This means a significant increase compared to the previous year and helps to increase the forecast deficit in Offenbach by 9.4 million euros to up to 47.6 million euros. The background to this financial burden is lower tax revenue that requires a supplementary budget.

The financial situation of the city and other municipalities in Hesse is tightened, since legal expenses between the federal and state governments continue to increase. Offenbach's treasurer Martin Wilhelm (SPD) and representative of the alliance "For the Dignity of our cities" have submitted their demands in the Hessian Ministry of Economic Affairs. The municipalities urgently require appropriate financial resources in order to be able to cope with the increasing social expenditure without using expensive cash loans.

claims to the federal and state governments

The concept of cash loans is considered ineffectively because they are considered an expensive disposition loan. Hessen has launched a debt with the Hessenkasse for municipalities, but this has not led to permanent financial resources. Wilhelm therefore calls for the Fund and the Land to ensure the financing of the social expenditure in accordance with the principle of "who ordered, paid".

For 2026, new rules for municipal financial equalization (KFA) in Hesse are intended. The municipal alliance, which also includes Offenbach, emphasizes that the distribution of funds in the KFA should take into account the actual expenditure and increase in costs of the municipalities. Particularly growing cities such as Offenbach, which have many young residents, should receive a higher weight when calculating the KFA share.

A central concern of the municipalities is also the solution to the problem of municipal old debts. Chancellor Olaf Scholz has announced that Finance Minister Jörg Kukies will bring in a legislative proposal on this topic before the Bundestag election on February 23. However, the regulations at the federal level are still pending, which is why the municipal campaign alliance appeals to the Bundestag factions to quickly find a cross -party regulation on the mitigation of the municipal financial crisis. Further discussions in Wiesbaden are planned for the middle of the month.

The topic of municipal social spending is not new and is regulated by numerous legal requirements. These expenses fall under the product area "Youth and Social Affairs" and are based on the laws SGB II, SGB VIII and SGB XII. Historically grown, they include a wide range of services that vary from region to region. In Hesse and North Rhine-Westphalia, the municipalities have the highest proportions in social expenses with 85 %, while in other federal states like Thuringia there are only 38 %. These high output dynamics can lead to considerable budget problems, especially in financially weak municipalities.