As part of the financial equalization, the federal government is making 2.3 billion euros available to the states and municipalities. Of this, 1.2 billion goes to the federal states, 100 million is reserved for structurally weak communities and the remaining 1.1 billion is available in a future fund for municipal projects in the areas of childcare, mobility and climate protection. The district SPÖ demands a fair and transparent distribution of funds and good financial resources for the communities.
In a press conference on Tuesday, SP district chairwoman Ulrike Königsberger-Ludwig, the chairwoman of the GVV Amstetten Kerstin Suchan-Mayr, Amstetten’s deputy mayor Gerhard Riegler and Waidhofen’s deputy mayor Armin Bahr emphasized the importance of a fair and transparent distribution of funds from the financial equalization and the future fund for everyone communities.
A total of 1.1 billion euros of the financial equalization – in a future fund for municipal projects – is intended for the municipalities. For Lower Austria that is 208 million euros or 120 euros per resident. The SP politicians do not see a fair distribution in the current financial equalization.
“Unfortunately, one of the most central demands for financial equalization, which the Association of Cities also emphasizes, is not being met again. In our view, a new, vertical distribution key is needed for financial equalization and the future fund. Distributing the money directly to communities would ensure that all communities are treated fairly. The municipalities could then be paid around 120 euros per inhabitant from the future fund for municipal projects. This ensures that all people in Lower Austria are worth the same. “You missed an opportunity here,” explains Königsberger-Ludwig.
“When communities are in a bad situation, it has an impact on all areas.”
A fair and transparent distribution of funds and good financial resources for the communities are necessary in order to be able to maintain services and support active community life. “Municipalities with large populations in particular are of great supra-regional importance. When communities are doing poorly, it affects all areas. “From childcare to support for sports and social clubs right through to business owners, everyone benefits from well-financed communities,” explains the SP district chairwoman.
In order to be able to cope with the tasks well, the community representatives association is demanding an additional billion for the next few years. Because even if money flows back to the communities through the municipal summit, in which the municipalities’ levies are agreed, and is made available from the future fund for the expansion of childcare, it will be difficult for the municipalities to budget balancedly in the next few years .
Suchan-Mayr sees a structural problem
GVV district chairwoman Kerstin Suchan-Mayr sees even more difficult times ahead for the communities when drawing up their budgets. Often the financial resources for important tasks in the community are no longer available. “Committed community representatives and mayors know exactly what the local people need. That’s why strong and financially well-positioned communities are so important. However, the trend is currently going in the other direction and it is estimated that around 40 percent of communities will become outgoing communities in the next few years. In many places there are currently no funds available for important investments in the areas of climate protection, the labor market or child care,” says Suchan-Mayr, describing the current situation.
The mayor of St. Valentine identifies a structural problem that the municipalities are struggling with: “The municipalities have to take on and finance more and more tasks, but they don’t have more money available. Expenses for various levies are also continually increasing and putting a strain on the municipal budget. The consequence is clear: If financial resources are no longer available, municipalities have to cut services and increase fees. We want to avoid that as much as possible.” Using the example of St. Valentin, Suchan-Mayr shows the additional financial burden on the communities. While around 4.4 million euros remained when the 2022 accounts were closed if the levies were deducted from the revenue shares, that is over a million euros less left over for the 2024 estimate at 3.26 million euros. Enormous price increases in the energy and construction sectors are doing the rest.
Riegler: “Don’t want to save money on municipal facilities”
Amstetten’s deputy mayor Gerhard Riegler also sees difficult times ahead for his municipality. “Amstetten could become a community in decline due to the enormous expenditure of the city government, the inadequate financial equalization and the high interest burden. That would be unique and historic in the city’s history. Funding for sports clubs and social issues is then at stake. There is also a fear that important community assets, such as our municipal utilities, will have to be sold. That is out of the question for us social democrats. “We don’t want to save money on municipal facilities either,” explains the deputy mayor.
In general, the question of cost distribution also arises for nationally important projects. “In the future, for institutions with a major impact beyond the municipal boundaries, there will need to be a fair distribution between the municipality, surrounding municipalities, the state and the federal government so that cities like Amstetten can also financially manage their tasks for the region.
Bahr: “Politics should take place where people live”
Waidhofen’s deputy mayor Armin Bahr emphasizes that the communities need the financial flexibility to actively shape people’s immediate living space. “Politics should take place where people live. At the community level, people notice very clearly whether things are working well or not. That’s why we set out with our partners in the Waidhofen city government two years ago to work sustainably, socially and future-oriented for our city. We bring together the best ideas and incorporate these factors into all projects. However, we need the necessary financial conditions to be able to work in the interests of our citizens,” says Bahr. In view of stagnating revenue shares and rising levies, this is proving to be more than difficult.
Nevertheless, there are important projects that one does not want to forego despite the financial challenges. “One of the most important projects that we are still fighting for is our new polytechnic school, which is being planned as part of an educational campus. Because we see good training as an important investment in rural areas. We are covering the security policy aspect by building two new fire departments. At the same time, we want to renovate municipal apartments from a social and ecological perspective, which we want to renovate well and bring down rents through state funding,” reports Waidhofen’s deputy mayor.
