Rising costs, too many tasks, too many projects: Mannheim is running out of money. That’s what Mayor Specht says and is preparing the local council for cuts.
The prospects for the future are bleak: Mannheim will run out of money in the coming years. If dramatic savings are not made now, there is a risk of a financing gap of almost 700 million euros by 2028. The liquidity reserves have been used up, which means that loans have to be taken out. In addition, there is a prospect of declining income.
There are plenty of additional tasks. Specht gives examples: the legal right to all-day care for school children, the admission of refugees, school inclusion or the Federal Participation Act.
Not a normal budget speech from Mayor Christian Specht. Dark clouds are gathering on the horizon. SWR
Construction costs increase by 30 percent
The costs are growing beyond belief and Mannheim has simply overextended itself with too many projects. That is, in a nutshell, the conclusion of the budget speech by Mayor Christian Specht (CDU) on Tuesday at the start of the budget discussions. The reasons are increased construction costs, on average around 30 percent, projects that are not fully financed and more and more tasks and specifications.
Just two examples: The new Herzogenried combined pool was planned for 50 million euros, but costs at least 65 million, the costs for the new construction of the BBC bridge between Neckarstadt and Käfertal rose from 20 to 33 million euros.
Hugely expensive national theater
The costs for the renovation of the National Theater and the alternative venues are a heavy burden. The over 400 million euros for the National Theater can no longer be recovered; the city will probably have to add almost 80 million more to its share. At least the new central warehouse for the National Theater should no longer be built.
There is also no new city library. The State Monuments Office prohibits the demolition of the old building, the N1 town hall. However, maintaining this old property is so expensive that building a new one is out of the question.
The planned youth culture center in the U-Halle on the Federal Horticultural Show site will now cost 20 million euros – from today’s perspective that does not appear to be affordable, said Christian Specht.
Unpleasant consultations begin for the new local council, which will primarily focus on painful cuts. SWR
Brocken University Hospital too heavy
A problem that the city can no longer handle is the financing of the university hospital. The city is hoping for the alliance with the Heidelberg University Hospital and thus for the state to cover most of the costs. However, the Federal Cartel Office has banned the association, which could only come about with ministerial approval from Economics Minister Robert Habeck. In the last six years, the city has contributed 250 million euros to stabilizing the university hospital.
No cuts in schools, infrastructure and climate
However, Mayor Christian Specht emphasized that the city of Mannheim is not saving money in three core areas: school construction, transport infrastructure and climate, nature and green spaces. In the coming years, 627 million euros are to be invested in this.
