Social fund

Highest alert level for funding

The costs of care will certainly not decrease in the coming years.

(Bild: stock.adobe.com/Fotowerk)

Around a third of local authorities no longer know how they are supposed to service the social fund, while another third are barely making ends meet. But an end to the cost explosion is not in sight. 

"As far as the social fund is concerned, cooperation with the representatives of the association of municipalities has become much more difficult over the past one and a half years," said former state councillor for social affairs Katharina Wiesflecker shortly before she left the state government. According to Wiesflecker, the reason for the difficult cooperation is the difficult budget situation of some municipalities. "It has become very clear that around a third of the municipalities no longer know how to operate the social fund. A third of the municipalities are barely making ends meet, while the remaining third still have financial leeway. The same applies to the health and rescue funds." By law, however, all 96 mayors in Vorarlberg are obliged to contribute 40 percent of the social fund. The other 60 percent is paid by the state.

The demographic development will continue to lead to rising costs in the area of senior citizens and care provision.

Katharina Wiesflecker, ehemalige Soziallandesrätin (Grüne)

Bild: Mathis Fotografie

The state will have to fork out a whopping 194.7 million euros in 2023, while the municipalities will have to fork out 129.8 million euros, bringing the total cost of financing requirements to around 324.5 million euros. But what is the money in the social fund spent on? In terms of expenditure, 54.5 million euros were spent on child and youth welfare last year, while 87.6 million euros were spent on securing livelihoods. The area of equal opportunities accounted for around 127.6 million euros. By far the most money was needed in the area of senior citizens and care provision: Expenditure ran to 198 million euros, which was offset by income of 93 million.

Strict austerity measures vs. urgent aid 
There is no end in sight for the state and municipalities. Compared to 2022 alone, the financing requirement has increased by almost 30 million euros. While the municipalities are calling for a strict austerity course, Wiesflecker has struggled in the past to implement the common goals. "We have demographic trends that are leading to rising costs in the area of senior citizens and care provision. But more funding is also needed for child and youth welfare. We will hopefully not abandon children who suffer from mental illness or grow up in problematic homes. We must not lose these children, because if we don't invest there, it will cost much more in economic terms when they are older."

As a first measure to relieve the municipalities, Wiesflecker advocates a change in the funding formula between the state and municipalities. "Not on the scale of 80:20, as the municipalities imagine," said Wiesflecker, however, putting the brakes on expectations. After all, a one percent shift would already amount to 3.8 million euros, which would have to be borne by the state. From her point of view, however, a shift of up to five percent in favor of the municipalities would make perfect sense. One thing is certain: Her successor Martina Rüscher is not taking on an easy job.