Tense situation

Financial difficulties: “Province leaves no municipality in the lurch”

The financial threads come together in Wolfgang Wlattnig's municipal department.

(Bild: Jauschowetz Christian/Christian Jauschowetz)

Municipal finances in Styria are tighter than ever before, and mayors are very worried. The state experts are monitoring the situation closely, but do not yet see any impending bankruptcies.

Stagnating income, sharply rising expenditure: This toxic mix is currently causing problems for Styrian local politicians, and the preparation of next year's budgets, which are currently being approved by local councils across the province, is turning into a Herculean task - we reported.

The Styrian Association of Municipalities under Erwin Dirnberger and the Association of Towns under Kurt Wallner now want to actively approach the FPÖ and ÖVP coalition negotiators to point out the urgency of finding solutions. "Otherwise we don't know how we are going to make it to 2025," says Dirnberger to "Krone".

We don't see any municipalities facing imminent insolvency - also due to our tight audit system.

Wolfgang Wlattnig

"The financial situation is tense"
The municipal department in the province (A7) has a precise overview of the financial situation of the current 286 Styrian municipalities. Its head Wolfgang Wlattnig emphasizes to the "Krone": "The financial situation is tense - but not because the municipalities cannot manage." Rather, external factors are decisive: no increases in tax revenue, but much higher energy, social and personnel costs, and interest rates also play a role.

However, Wlattnig also states: "The state is not letting any municipality down!" He praises the "much-maligned system of needs-based grants": From this €207 million pot, the municipal advisors - most recently Christopher Drexler and Anton Lang - can give municipalities a helping hand, for example with important investments.

All municipal budgets are closely scrutinized
On the one hand, the municipalities actively contact the state in the event of liquidity problems: the A7 experts examine the matter and make a recommendation to the state government. On the other hand, all budget estimates and (every year in spring) the financial statements of the municipalities are examined. This year, 80 municipalities were recommended for financial support: "There will probably be no fewer next year," says Wlattnig, not daring to make a risky forecast.

However, the head of department does not want to paint the financial devil on the wall: "We do not see any impending insolvency in any Styrian municipality - also due to our tight audit system."