SSG demands better funding for local authorities

The Saxon Association of Towns and Municipalities (SSG) is insisting on significantly better funding for local authorities. SSG President Bert Wendsche said that they expect to set the course in the coming legislature - in the interests of both the municipalities and the state. In terms of the distribution of tasks and expenditure, Saxony's local authorities are underfunded compared to the other federal states. There is a shortfall of around 200 euros per inhabitant per year in order to have adequate funding for the tasks - a total of around 800 million euros. There were still three rescue packages in 2023, but these are highly unlikely to come this year. The annual result will therefore be "dark red" for the municipal family.

According to Wendsche, total allocations to the municipal level have not developed as badly as in Saxony since 2010. This is less to do with the municipal financial equalization system than with the trend towards ever-decreasing grants and reimbursements from the state budget of the Free State, such as cuts to funding programmes. Municipal finances must be sustainably improved and the scope for cities and municipalities increased. Otherwise, it would not be possible to compete with the new federal states and make progress with economic development.

"He who orders must pay!"

The SSG proposes that the state should contribute financially to the tasks that are transferred to the municipalities. In order to compensate for additional burdens, these should either be dynamically adjusted or permanently taken into account in the municipal financial equalization system. The connectivity regulation should also be applied to the federal government according to the principle "Whoever orders must pay! And permanently!" should also apply at federal level. The SSG is calling for the state of Saxony to launch an initiative in the Bundesrat to give the Federal Association of Local Authority Associations the right to be heard in the Bundesrat. In future, the federal and state governments should no longer be allowed to adopt new obligations whose costs are passed on to the municipalities. There is a demand for compensation for additional burdens caused by federal laws, which should first benefit the federal states and then the municipalities.

If the municipalities do not receive better funding, there will not be much investment in the coming years. This would primarily affect construction investments at a time when the construction industry is already at rock bottom.

SSG against moratorium on daycare closures

At the same time, the SSG spoke out against a moratorium on daycare closures. The time was not ripe for an extension of standards. Several parties had spoken out in favor of using declining child numbers to improve the care of girls and boys in daycare centers. The number of children would fall drastically in the long term. "We cannot afford to leave daycare centers empty," said Wendsche.