FAQs on the 2027 Budget

Erlangen—like many municipalities in Germany and Bavaria—faces significant financial challenges. Rising social security and personnel costs, high construction costs, and the burden of short-term loans are limiting the city’s financial flexibility. In Erlangen, the financial situation is further strained by large trade tax refunds from 2024 and declining trade tax revenues. As a result, the city is increasingly reliant on so-called cash advances.

To improve the financial situation in the long term and accelerate the reduction of short-term loans, further cost savings and structural improvements are necessary.

Along with the 2027 draft budget on September 24, 2026, a comprehensive consolidation package was introduced. The city administration has now presented the city council with an additional list of options for reducing expenditures and services and increasing revenue. The goal is to achieve an annual improvement in the operating budget of just under 8.5 million euros starting in the 2027 fiscal year.

In addition, consolidation options for the subsequent years 2028 through 2030 are presented. However, the savings required by the government will not yet be achieved for the years 2028 and 2029. Even after this round of consolidation, further savings opportunities must therefore be sought for the subsequent years.

The list is available in the Council Information System

In 2025 and 2026, the City Council had already approved consolidation measures totaling approximately 68.1 million euros through 2028. These include, among other things, efficiency improvements, reductions in standards, and adjustments to fees and taxes. The total savings were increased through additional resolutions passed in November 2025 and April 2026.

The measures already adopted are not sufficient to fully address the city’s financial challenges. The government of Middle Franconia, as the supervisory authority, has demanded additional cost-cutting measures in day-to-day administrative operations. An additional 29 million euros are to be saved by 2029 to enable the reduction of short-term loans.

Since October 2024, a six-month hiring freeze has been in effect in the city administration. Vacant positions will remain unfilled for the time being. This will result in annual savings of approximately 7.5 million euros. New positions will be created only in areas where they are absolutely necessary, particularly in education and childcare. These will be offset by eliminating positions in other areas, resulting in additional savings of approximately 500,000 euros.

An important next step is the discussion in the standing committees in November. There, the various options will be

• be discussed
• in terms of their implications and
• adjusted as necessary.

The public meetings are open to anyone interested (see here for the dates). The documents will be published in the Council Information System no later than one week before the meeting.

The specialized committees will review and evaluate the proposals in November, as will the General, Finance, and Personnel Committee of the Erlangen City Council in December. The measures are then scheduled to be approved along with the budget on January 21, 2027.