Presentation of the budget consolidation check

The budget consolidation check envisages a further improvement in the budget of 59.8 million euros for the period up to 2028. The proposals include

• Staff savings
• Efficiency improvements
• Reductions in standards
• Additional revenue.

The city council will decide on the package on April 30.

City expects around 120 million euros this year

Now that trade tax revenues have already fallen drastically in 2024, the treasury is also expecting significantly lower revenues for 2025 than originally forecast. Originally, trade tax income of 220 million euros was estimated for 2024. In reality, it is expected to be only 71 million euros due to tax refunds. The city is also expecting lower trade tax revenue for 2025.

What has been done so far

• Back in July 2024, the city responded with a budget freeze and cut material resources by 7.8 million euros and investments by 6.3 million euros.
• The draft budget for 2025 was also revised further under pressure to save money: In September, additional savings of 9 million euros were made in the material resources budget and 1.7 million euros in investments.
• Since October 2024, there has been a six-month ban on filling vacant positions. Savings: around 7.5 million euros per year
• New jobs will only be created this year in urgently needed areas such as schools and daycare centers. These will be compensated for by the reduction of positions in other areas. Savings: 500,000 euros.

Further measures

In order to overcome the financial challenges, the city has developed a consolidation concept that summarizes savings that have already been implemented and includes a consolidation check for the next three years. In an intensive consolidation process, the city administration has succeeded in identifying an annual savings potential of 19.9 million euros in the city budget. The savings can largely take effect as early as 2025 / 2026.

Most of the budget consolidation, amounting to 9.6 million euros, is to be achieved by increasing efficiency, optimizing and reducing standards. This includes

• Savings on services such as the Active Card for volunteers
• Abolition of cab vouchers for ErlangenPass holders
• Further streamlining of administrative processes through digitalization
• Reduction of rental expenses for office buildings

Another important area of savings is the personnel area (5.3 million euros). The following are proposed

• Job cuts
• Cancellation of benefits for municipal employees that are not mandatory

Additional revenue of 5 million euros is to be achieved through tax and fee increases, among other things. Fee increases are planned in the daycare sector, for example. It has already been decided to increase the entrance fees for the city museum and the fees for the city library. The lists with the proposals can be accessed via the council information system.

Overview of the consolidation check

Lord Mayor Florian Janik:

"The city of Erlangen has always managed its finances responsibly in recent years. The high trade tax revenues have been used to reduce the investment backlog, tackle important future projects such as the climate change project and strengthen social cohesion. At the same time, per capita debt was almost halved. Reserves have been built up to cushion financial challenges. We have already taken important steps towards budget consolidation. We have two important goals: we want to secure key investments in the future of our city, i.e. childcare, schools and the transport transition. And we want to preserve structures. The savings already made have not been imposed on individual areas and we are continuing along this path. Thanks to our efforts, the government has already approved investment loans again as a first step."

The final approval of the concept by the city council is scheduled for April 30. In some cases, further city council resolutions will then be required for implementation, for example in the case of fee increases.

There is also a report in the city newspaper "Rathausplatz 1" - April 2025 issue.

Photo: Canva