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There is a twelve million euro hole in the 2020 district budget

This gap in the administrative budget, the reason are ever increasing social spending.

The administrative budget should total around 974 million euros, 34 million euros more than this year. 90 percent, or around 872 million euros, flow into the social area. Integration assistance for people with disabilities is the largest item. In return, the district will receive around 18 million euros less in state compensation payments, the so-called FAG-15 funds, for the tasks performed next year. In total, only around 135 million euros should flow from Munich.

The largest item on the revenue side of the administrative budget is the district levy provided by the five independent cities and seven rural districts. This item is calculated from the municipal tax force in 2019, where Covid-19 was still a long way off. This also explains why the district can book just under 610 million euros, around 22 million euros more than in 2020, thanks to the levy. Since the municipalities are expecting huge tax shortfalls due to the pandemic, this will have massive effects on the budgets of the districts in two years at the latest.

According to the calculations of the district treasury, the budget for the investment is 40 million euros, which is just over 16 million euros more than in 2020. Of this, 14 million euros are for construction work, mostly ongoing projects at the agricultural schools in Triesdorf and on Vocational training center “Hearing – Language – Learning” in Nuremberg.

Around 17 million euros are to come into the asset budget through loans. In order to close the twelve million euro gap, the first of the options listed by District Treasurer Fritz Weispfenning is an (hoped) increase in FAG 15 funds and no additional expenditure beyond the budget draft. The Treasury mentions savings, additional withdrawals from reserves, an increase in the district levy or additional borrowing as further options for establishing a balanced budget. HK

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