Leipzig Mayor Calls for Increased Funding for Municipalities Amidst Financial Crisis
Leipzig’s Mayor, Burkhard Jung, has expressed grave concerns regarding the dire financial situation faced by German municipalities, urging for immediate and significant financial support.
"Municipalities are facing a growing burden of responsibilities that they are increasingly unable to fulfill due to insufficient funding," stated Jung, a member of the Social Democratic Party (SPD). "It is imperative that the federal government, states, and municipalities collaborate towards a more equitable distribution of resources."
Jung emphasized the crucial role of municipalities in implementing major national initiatives, such as the transportation and energy transitions. However, he lamented that these ambitious projects often fail to provide adequate financial support to the very communities responsible for their execution.
"While the federal government initiates grand projects, many municipalities are being forced to cut crucial services like bus and rail lines," said Jung. "It remains unclear how these substantial investments are expected to be financed."
The Mayor proposed increasing the share of value-added tax (VAT) allocated to municipalities. "Municipalities are responsible for approximately one-quarter of all national responsibilities, yet they only receive a seventh of the tax revenue," he explained. "This glaring disparity must be addressed."
The German Association of Cities and Towns (Städtetag), of which Jung is Vice President, has raised the alarm regarding the perilous financial situation of municipalities. A recent survey conducted by the Städtetag among 100 cities revealed that the vast majority are no longer able to present balanced budgets.
"The federal government and states must cease assigning additional responsibilities to municipalities without providing the necessary financial resources," Jung demanded. "We cannot afford to continue burdening our communities with unfunded mandates."
Jung’s plea for increased municipal funding is particularly relevant in light of the escalating energy crisis and the ongoing COVID-19 pandemic. Municipalities have borne the brunt of the financial fallout, providing essential services while simultaneously facing reduced tax revenues.
The Mayor highlighted the urgent need for a "fair partnership" between the federal, state, and municipal governments in order to address the challenges facing Germany’s cities and towns. "We need a system that ensures municipalities have the resources they need to fulfill their vital responsibilities for the benefit of all citizens," he concluded.
