Efficiency through budget consolidation concept

Orientation towards the 10-point catalog of the Free State of Bavaria

The budget consolidation measures are to be based on the Bavarian State Ministry of Finance's 10-point catalog for applying for needs-based grants and stabilization aid. It includes, among other things, the review and reorganization of tasks, tax rates, a further adjustment of budget planning and municipal assets. The concept is intended to supplement the savings that have already been made and measures that have been taken, such as the ban on reappointments. The aim is to ensure the city's solvency in the coming year.

Challenging budget situation

Municipal finances throughout Bavaria are under pressure due to rising personnel and social expenditure as well as very high construction costs. Against this backdrop, it is becoming increasingly difficult to draw up approvable budgets. In Erlangen, the situation is exacerbated by high trade tax repayments for 2024 and a lower trade tax forecast for 2025. The financial plan up to 2028 presented on October 24, 2024 shows a considerable funding shortfall totaling EUR 183.1 million. This gap cannot be closed even by taking out a maximum of new investment loans, which are currently not approved by the supervisory authority. The government of Middle Franconia is calling for a comprehensive budget consolidation concept in order to ensure long-term efficiency and orderly budget management.

Finding solutions together

"Our aim is to secure Erlangen's financial stability in the long term and to continue to invest responsibly in the future of our city. We are facing a challenging task that we will master together," emphasized Lord Mayor Florian Janik.