Explosive figures

51 Styrian municipalities have hardly any funds left

Anton Lang (left) and Christopher Drexler are confronted with financially strapped municipalities

(Bild: Jauschowetz Christian)

Just how precarious the financial situation of Styrian municipalities is was revealed in the state parliament on Tuesday: No fewer than 51 municipalities currently have a strained liquidity situation, i.e. hardly any money left in cash. Nevertheless, the provincial government does not want to lose confidence. 

Stagnating (tax) revenues because the economy is weakening, but exploding costs at many levels: The municipalities are facing huge challenges, and some of them are running out of money. The most recent examples are Bruck and Fohnsdorf, where so-called budget freezes have been imposed: Only core expenditure will be made. In the provincial capital of Graz, too, ten percent cuts are to be made across almost all departments.

The FPÖ wanted more detailed information on the state of the municipalities by means of urgent questions in the provincial parliament, information was provided by Governor Christopher Drexler (ÖVP) and his deputy Anton Lang (SPÖ). Explosive: No less than 51 Styrian municipalities have reported a strained liquidity situation as of the end of June! This means that they barely have the means to meet their day-to-day payment obligations.

The facts

• In the previous year, Styria received 1.407 billion euros in revenue shares (tax revenue distributed by the federal government). This year, a slight increase to 1.459 billion euros is forecast.
• 18 Styrian municipalities currently have the worst credit rating. Names are not mentioned.

Also alarming: while 32 municipalities were informed by the municipal supervisory authority last year that they need to consolidate their financial budgets, this year it is already 38. However, neither Drexler nor Lang mentioned specific names: the legal basis for such information would be lacking.

Bruck: Little advance information for the state
SPÖ leader Lang did, however, provide some insight into the fact that communication with Bruck on June 18 was in need of improvement. On the evening of that day, SPÖ mayor Andrea Winkelmeier communicated the budget freeze she had imposed. There had been phone calls between her and the municipal supervisory authority and between Lang's office and the city councillor for finance, but there had been no mention of a budget freeze. 

Lang does not want to lose her optimism. "We will dive through this valley together." Drexler also emphasizes that he is not aware of any investment backlog in the municipalities. The 70 million euros for the expansion of elementary education, which are about to be transferred, should provide some relief.