Municipal finances

Burgenland’s municipalities are up to their necks in water

Financially strong municipalities will be burdened with higher deductions from revenue shares in accordance with the solidarity principle. As things stand, the municipality of Edelstal still has to pay 1,300 euros to the state.

(Bild: Huber Patrick)

The federal budget deficit is also affecting Burgenland. There will be around 1.1 million euros less for the municipalities in the coming year 

The financial situation of the municipalities is serious. In Burgenland, a third of the 171 municipalities are expected to be run-down municipalities by 2025. According to the heads of local authorities, inflation, personnel costs and the levy burden are the main reasons for the financial shortfall. Politically, the waters are running high.

Failed waste deal and 22 million euro additional claim 
The waste deal that fell through due to the ÖVP, which would have brought municipalities 38 million euros in the first year alone, already caused discussions at the beginning of the year. In the summer, a dispute then flared up between the SPÖ and ÖVP over the retroactive settlement of the hospital levy. The outstanding amounts of 22 million euros will now be withheld by the state over three years from the July revenue shares - after failing to do so for 22 years.

Association of municipalities warns of dramatic situation
All money that the municipalities are missing. The ÖVP Association of Municipalities therefore speaks of a dramatic situation. A look at the revenue shares also shows this. While Burgenland and its municipalities will receive around 346 million euros (+2.9 percent) from the federal government this year, the forecast for 2025 shows a shortfall of 1.1 million euros (0.3 percent). In the case of the municipality of Edelstal, this even means that after deducting all taxes, the municipality would still have to transfer 1,300 euros to the state.

Scapegoat and black Peter
While the SPÖ sees the ÖVP-Greens federal government as the scapegoat for the financial shortfall, the Turks are pinning the blame on the state. Municipalities are being "bled dry" while the state continues to make purchases, criticizes ÖVP chairman Christian Sagartz, who once again calls for the state levy to be stopped.

Provincial parliament passes municipal fund law
At 7.6 percent, Burgenland levies the lowest per capita levy in a state comparison. "We are not leaving our municipalities in the lurch," said Eisenkopf. Numerous measures have been taken to compensate for the omissions of the federal government and support municipalities like no other federal state, the Deputy Governor refers to the recently presented rescue package for municipalities. Around 15 to 20 municipalities could be entitled to this. The associated law is to be passed by the state parliament in December.