Money is getting less

The battle for finances in Salzburg’s municipalities

David Egger will probably be affected in Neumarkt.

(Bild: Scharinger Daniel)

Alarm bells are ringing in Salzburg! More and more municipalities are unable to meet their expenses on their own. This year, a total of 13 municipalities are in danger of becoming equalization municipalities. In contrast to Carinthia, this is extremely low.

Twice as many municipalities as last year could need financial help from the state this year to make ends meet. 13 municipalities in Salzburg have applied for financial equalization. Last year, six municipalities - Ebenau, Hüttschlag, Rauris, Stuhlfelden, St. Andrä and Thomatal - were still affected. Rising expenditure in all areas and falling income from federal tax revenues are making it increasingly difficult for the towns. Now larger towns such as Neumarkt could also be hit. However, this is not yet certain. Experts from the municipal supervisory authority are currently examining the finances of the affected towns in detail. "It may be that one or two of them will still be able to get their act together," says the office of provincial deputy Stefan Schnöll (ÖVP).

Seeham has no money to expand the kindergarten.

(Bild: Tröster Andreas)

First, the experts look at the liabilities and income and how growth can be created. They then assess whether or not the municipality is confident that it can take out a loan. They also check whether projects can be put on hold in order to ease the burden on future finances. Only after a detailed analysis of all points does the state decide on the financial equalization.

This would have far-reaching consequences for a municipality. This is because the state then decides on expenditure and, for example, projects are no longer approved. The bottom line is that the municipality must remain solvent.

Prospects for the heads of local authorities are very bleak
In contrast to other federal states, Salzburg's local authorities are still doing relatively well. In Carinthia, for example, there were 101 equalization municipalities last year, out of a total of 132. Nevertheless, the local mayors fear that the situation will become even more devastating in the coming year, as Straßwalchen's Tanja Kreer (SPÖ) has repeatedly emphasized.

At the moment, towns can still budget because they are building up reserves. Köstendorf's village head Wolfgang Wagner (ÖVP) reports that 1.5 million euros will be added to the budget from reserves this year. In comparison: Mayor David Egger (SPÖ) will lose more than three million euros in the Neumarkt budget for 2025.

Seeham is one of the municipalities that just managed to do it again. It was still possible to prevent the budget from being balanced at the last printing. However, it will not be financially viable to expand childcare in the village.