Read the press release from the Saxony-Anhalt Association of Counties here:
The state government of Saxony-Anhalt is leading the rural districts even deeper into debt with its latest draft bill to amend the Financial Equalisation Act.
Once again, the budget situation of the districts is being glossed over and unrealistic future income from the district levy is being used as a basis. However, due to case law, there is a significantly limited possibility of increasing the income from the district levies. This unrealistic revenue estimate by the state will result in a further funding gap of around 94 million euros in 2025 and around 110 million euros in 2026. The budget deficit of the districts of around 157 million euros in 2024 will therefore increase significantly once again.
"The state government is driving us further into debt; we need a clear signal of a change in direction before the state government revisits the FAG. Otherwise, the fulfilment of our tasks will be significantly restricted. In this case, as a first step, the district councils will submit a proposal to the county councils to withdraw from the Deutschlandticket on 1 January 2025. The continuation of the Deutschlandticket is no longer possible in view of the underfunding of the districts promised by the Ministry of Finance," said Götz Ulrich, President of the Saxony-Anhalt Association of Districts, at a conference of all district councils in Naumburg, Burgenlandkreis, today.
"The districts have exceeded the limits of their capacity. In order to avoid further indebtedness, the fulfilment of tasks must be adapted to the actual cash situation. Vacant positions cannot be refilled, administrative and authorisation procedures cannot be carried out at the usual speed, office hours in the district offices must be adjusted and reporting obligations to the state administrative office and state government can no longer be fulfilled on time. The temporary closure of public buildings must also be considered," adds Markus Bauer, Vice President of the Saxony-Anhalt Association of Counties.
"We accuse the state government of breaking its word. The rural districts were promised that the actual revenue development of the rural districts would be used as a basis for financial equalisation in future. Now fictitious figures are being used again. This violates the right to local self-government. The rural districts therefore reserve the right to review the law at the state constitutional court. In addition, we are calling on the state legislature to provide a more detailed statutory definition of the district levy bases in municipal constitutional law in order to put an end to the flood of complaints from municipalities," said Prof. Dr Ariane Berger, Managing Director of the Saxony-Anhalt Association of Counties.