Municipal finances in Styria are under more pressure than ever before and mayors are very concerned. The state experts are closely monitoring the situation, but do not yet see any impending bankruptcies.
Stagnant incomes, sharply rising expenses: this toxic mix is currently causing problems for local politicians in Styria. Preparing next year’s budgets, which are currently being decided in local councils across the country, will be a huge task – we reported.
The Styrian Association of Municipalities under Erwin Dirnberger and the Association of Cities under Kurt Wallner now want to actively contact the coalition negotiators of the FPÖ and ÖVP to point out the urgency of solutions. “Otherwise we don’t know how we are going to get to 2025,” Dirnberger told “Krone”.
“Financial situation is tense”
The state’s municipal department (A7) has an accurate overview of the financial situation of the currently 286 municipalities in Styria. Its head, Wolfgang Wlattnig, emphasized to the “Krone”: “The financial situation is tense – but not because the communities cannot function.” On the contrary, external factors are decisive: no increase in tax revenues, but much more energy, social and personnel costs. Costs and interest also play a role.
But Wlattnig also states: “The state does not abandon any community!” He praises the “much maligned system of needs allocation”: community representatives – most recently Christopher Drexler and Anton Lang – can help municipalities with this €207 million. pot play a role, for example when it comes to important investments.
All municipal budgets are closely scrutinized
On the one hand, municipalities actively turn to the state if they have liquidity problems: the A7 experts investigate the matter and provide advice to the state government. On the other hand, all budget estimates and (every spring) the municipal accounts are checked. This year there were recommendations for financial support for 80 communities: “Next year there will probably be no fewer,” says Wlattnig, who does not dare to make a risky prediction.
But the department head does not want to paint the financial devil on the wall: “We do not see an impending bankruptcy in any municipality in Styria – not even because of our strict audit system.”
Source: Krone
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
