Communities worried

“Now have to turn over every euro three times”

The situation of many municipalities is dramatic. The bottlenecks should now be alleviated.

(Bild: HANS KLAUS TECHT)

More expenditure, less income - the financial situation of many municipalities is precarious. SPÖ, ÖVP and FPÖ present plans as a way out of the crisis.

"We are not leaving our municipalities in the lurch," emphasizes Leonhard Schneemann (SPÖ), the provincial councillor for economic affairs. A wide range of relief measures are planned in the program of the red-green state government. In addition to a special support package, a separate municipal fund law is already on the table to cushion financial bottlenecks. "An individual solution will be sought and found for each municipality," says Schneemann. His criticism was directed at the federal government. Changes to financial equalization that have long been demanded have been ignored and the unfair distribution formula continues to put many municipalities at an unjustified disadvantage.

According to current figures, the discrepancy that a Burgenlander is worth less than a citizen in western Austria amounts to far more than 30 percent. This is incomprehensible.

Wirtschaftslandesrat Leonhard Schneemann

Tax progression abolished
Furthermore, start-up funding from the federal government had expired and now the provinces and municipalities had to pay for it. Schneemann points out that relief measures such as the abolition of progressive taxation would also have an impact on the money available to the provinces and municipalities, as the amount available for distribution has become smaller.

As reported, the date for the "municipal summit" announced by Governor Hans Peter Doskozil has already been set for March 25. These talks will focus on structural relief. There is also talk of the "waste association deal". "We are still prepared to take over the waste association into the state holding company and relieve the municipalities through structural regulations," explains Schneemann.

Municipalities slip significantly in the rankings
The President of the ÖVP-affiliated Association of Municipalities, Leo Radakovits, sees the financial decline of the municipalities confirmed by statistical analyses. In terms of the public savings rate, which shows the extent to which funds from current expenditure are available to finance investments, Burgenland has slipped from the best federal state (19.5% in 2019) to the worst (0.5% for 2025) in five years.

Association of municipalities open to discussion
The sharp rise in hospital contributions to the state, childcare costs and the minimum wage are cited as the causes. "If the municipalities do not have enough free funds at their disposal, this shortfall shakes the foundations of autonomy. This means that the municipalities are no longer free to decide in which direction they want to develop," says Radakovits. The federal government is also in demand. The at best moderate increases in revenue shares would by no means be enough, Radakovits notes. "We are open to discussion in order to find good solutions," says the president of the Association of Municipalities on behalf of the ÖVP mayors.

Aid package with conditions
The FPÖ sees the waste association as political leverage. "The supposed aid package as part of the 'municipal summit' does not come without conditions. The aim is to take over the waste association," warns MP Markus Wiesler. The Freedom Party is calling on the provincial governor to present "transparent, fair solutions that actually benefit the municipalities - without lazy deals in the background".