Ostallgäu before budget resolution: millions in deficit and rising levies!

Ostallgäu before budget resolution: millions in deficit and rising levies!

Things are getting serious in the Ostallgäu district: the final preparations for the 2026 budget are in full swing. District Administrator Maria Rita Zinnecker (CSU) describes the current phase as crucial, in which all eyes are on the upcoming decision in the Ostallgäu district council. This is on the agenda for Friday, December 12th. The conclusion of the district committee is clear - the draft budget was unanimously recommended, which means a clear tailwind for those responsible. Many district councilors spoke out in favor of a fair budget structure, a term that was mentioned again and again and speaks for the current situation. Allgäu newspaper reports that Wolfgang Hannig from the SPD characterized the budget as taking into account the difficult financial challenges.

Treasurer Bettina Schön added that despite all the financial hurdles, the principles of budget management are not lost sight of. The upcoming investments show that even in economically difficult times we are looking forward and want to seize opportunities.

Financial challenges in focus

But the matter doesn't sound quite so harmonious because the district is facing financial challenges. As is currently the case in other regions, the structural imbalance in municipal finances is a hot topic. The largest chunks in the household budget are subsidies for social and youth welfare, and a deficit of 12 million euros is expected for the Ostallgäu-Kaufbeuren clinics in 2025, which could also be in a similar manner for 2026. Nag Bavaria reports of an impending increase in the Swabia district levy from 21.2 to 25 percent, which amounted to over 50 million euros last year.

The current financial situation is made even more difficult by legislation at the federal level. In a savings package, the federal government also cut 1.8 billion euros to give health insurance companies some breathing room. However, the many challenges that need to be overcome are not only perceived by those responsible; The pressure on decision-makers is high because the scope is limited.

The impact on the region

While municipal finances are in a strained state, the importance of the three clinic locations in the region remains undisputed. Many citizens are dependent on a functioning medical infrastructure, which makes the issue all the more important. Although the tax capacity of cities and municipalities has increased, the ability to allocate entitlements is estimated at around 20 percent - a worrying prospect for the future financing of municipal administrations.

It is clear that the budget proposals are shaped by the seriousness of the situation and contain many promises. If those responsible manage to find a balance between necessary cuts and future investments, it is to be hoped that the Ostallgäu district not only remains solvent, but also remains attractive for its citizens.