Hessian City Association Demands More Funding from State Government
Urgent Need to Fulfill Essential Municipal Services
The Hessian City Association (Hessischer Städtetag) has issued a pressing demand for significantly increased financial support from the state government. The association’s President, Gert-Uwe Mende, the Mayor of Wiesbaden, emphasized the crucial need for these funds to enable municipalities to effectively fulfill their responsibilities.
Inadequate Financial Compensation for 2025
Mende highlighted the insufficient level of municipal financial equalization for the year 2025, which falls short of the €7.4 billion requested by the municipalities. Instead, they will receive €7.13 billion, a significant discrepancy.
Inflationary Adjustments and Rising Demands
For 2026, the association estimates a minimum requirement of €7.7 billion, which accounts for rising inflation rates and additional expenses. Despite this adjustment, the existing financial deficit will remain substantial.
Consequences of Underfunding
Failure to provide adequate funding will necessitate service reductions, particularly in areas such as sports and cultural initiatives. Tax increases may also become inevitable. "Neither option is desirable," Mende emphasized, "which is why the state must increase its contributions to the municipal financial equalization."
Financial Equalization: A Balancing Act
The financial equalization system aims to support municipalities in Hesse and promote a more balanced distribution of financial resources. The funding amount is determined annually.
Allocation Challenges
Mende proposed a reassessment of allocation principles to ensure that cities with a higher proportion of children receive additional support, as they face increased expenses in providing childcare services.
Financial Dire Straits
"We have reached the limits of our financial capacity," declared Heiko Wingenfeld, Mayor of Fulda and Vice-President of the Hessian City Association. Numerous member cities are operating with deficits, raising concerns about the sustainability of essential services such as childcare, education, and public transportation. Ultimately, citizens will bear the brunt of these funding shortfalls.
Unresolved Situation for Hanau
Mende also addressed the uncertain financial situation of Hanau, which will become a district-free city on January 1, 2026. He emphasized the need for a distinct allocation formula to account for the increase in district-free cities from five to six.
Echoed Concerns
The Hessian Association of Cities and Municipalities (Hessischer Städte- und Gemeindebund) has previously voiced similar concerns, calling for urgent financial relief for municipalities in the face of growing financial pressures. The association has described the financial situation in many municipalities as extremely challenging.
Conclusion
The Hessian City Association’s demand for increased state funding underscores the urgent need for municipalities to receive adequate financial support to maintain essential services and address the challenges of an ever-changing financial landscape. The association’s recommendations and proposed allocation adjustments aim to ensure equitable distribution of resources and sustainable municipal operations for the benefit of all citizens in Hesse.
