Budget 2025: savings to secure investments

The figures provide for further significant savings in personnel and ongoing administrative expenses. These savings are the prerequisite for obtaining approval for investment loans from the government of Middle Franconia as the responsible supervisory authority. The investment volume of 69.8 million euros in the areas of schools, childcare, culture and municipal infrastructure is to be secured in this way. As the government of Middle Franconia will only approve individual investment loans and not the entire budget, the resolution reflects political guidelines. Formally, the city is subject to so-called provisional budget management until further notice. This means that only what is absolutely necessary for the operation of the city can be financed.

Financial situation of the city

The city of Erlangen is facing one of the biggest financial challenges in its recent history. In 2024, only 66 million euros in trade tax was collected - instead of the forecast 220 million - mainly due to high trade tax refunds. Only 120 million euros in trade tax revenue is also forecast for 2025, a level last seen in 2018. Added to this are rising personnel and social expenses, high construction costs and significantly higher apportionment payments to the district of Middle Franconia.

Comprehensive savings since July 2024

- Budget freeze: Reduction in material resources by 7.8 million euros.
- Investments: Reduction of 6.3 million euros.
- Personnel: Six-month staffing freeze saves 7.5 million euros annually.
- The draft budget for 2025, which had already been drawn up under pressure to save money, was cut by a further 9 million euros in the material resources budget and around 1.7 million euros in investments.
- New jobs will be created in 2025 mainly in schools and daycare centers and will be fully financed by job cuts in other areas. This will even result in annual savings of 0.5 million euros.

New jobs will only be created in the schools and daycare centers area. These will be fully financed by job cuts in other areas.

Budget consolidation concept

In order to stabilize the budget for the coming years, the city council also decided in December to submit a more extensive consolidation concept to the government of Middle Franconia. At the same time, the city wants to push ahead with digitalization and create more efficient administrative processes.

More support for local authorities

In his speech "Securing the future together", Lord Mayor Florian Janik emphasized: "Our measures are painful, but unavoidable." Despite the strained budget situation, the city remains true to its claim of developing Erlangen sustainably. Investments in schools (19.1 million euros), childcare (11.6 million euros) and municipal infrastructure (12.6 million euros) are to be continued. Layoffs for operational reasons are ruled out, and important structures such as cultural festivals and the ErlangenPass are to be retained. The Lord Mayor is calling for greater support for local authorities from the federal and state governments: "We finally need better financial equalization and higher tax shares."