Municipal finances

Municipalities now have to “play the lottery” with their budgets

Many municipalities have their backs to the wall financially. The failed waste association deal further exacerbates the situation.

The financial situation of the municipalities continues to worsen: falling revenue shares are offset by massively increased expenditure. Governor Hans Peter Doskozil (SPÖ) made an offer of relief in the form of the municipal package, but this was rejected by the opposition. As reported, the deal would have promised an increase in subsidies for kindergarten staff in return for the waste management association being incorporated into the state holding company. In the first year alone, this would have saved local authorities 38 million euros.

Financial statements more negative than positive
The financial imbalance is particularly evident in Bad Sauerbrunn and Winden am See, for example. The financial imbalance of many municipalities is now becoming apparent when the financial statements are prepared. Hardly any municipality is reporting positive results these days.

Oberwart received 700,000 euros less in revenue shares than forecast
Not even the municipality of Oberwart, which has had extremely stable finances in recent years. Drawing up a budget is now like "playing the lottery", according to the local council. Specifically, because in the end they received 700,000 euros less in revenue shares from the state than they had forecast when drawing up the budget. The result: a negative financial statement of around 700,000 euros. When the municipality of Oberwart asked the state why it had received so little, it was told in a letter that the figure was provisional when the budget was drawn up in November of the previous year and that the actual amount could only be communicated once the state budget had been adopted, which was in December. Municipalities are therefore required to budget economically and with foresight.

Oberschützen: Managing with the reserves
Consistent budget policy is also the order of the day in Oberschützen, not least because the free financial tip has slipped into the red for the first time. While this was still positive at EUR 740,000 in the previous year, this year it was negative at EUR 160,000. "We have to tap into our reserves in order to finance day-to-day business and there is no question of investing in projects," says local leader Hans Unger (ÖVP), who once again criticizes the state and the waste association deal. "While the federal government is supporting us with money from the municipal investment package, the state has still not launched a municipal package."

Neusiedl: No scope for investment
It is precisely this deal that Neusiedl's mayor Elisabeth Böhm (SPÖ) mourns, as she would have seen it as an important measure when it comes to relieving the financial burden on municipalities. At 1.3 million euros, the deficit in the accounts of the northernmost district capital was particularly large this year, even though it was once again possible to reduce the number of schools. "With rising costs, there is no scope for investment without releasing liquid funds," says Böhm.