City council adopts 2026 budget

The figures consistently continue the consolidation course for the administration's current expenditure in order to enable future investments on a large scale. An investment volume of 80.6 million euros is to be secured, particularly in the areas of schools, childcare, culture and urban infrastructure. At the same time, the resolution allows the administration to make payments for many necessary and unpostponable so-called voluntary tasks - including the promotion of numerous facilities, institutions and associations - in the coming year in accordance with the requirements of provisional budget management.

Difficult framework conditions

The general conditions for municipal budgets remain extremely difficult - in Erlangen as well as nationwide. Across Germany, the local authority deficit amounted to around 25 billion euros last year, and the trend is rising. For 2026, the German Association of Cities assumes that the municipal deficit will grow to at least 32 billion euros.

In Erlangen, high trade tax repayments from 2024 and declining trade tax income are having a particularly negative impact on the financial situation. As a result, the city is increasingly reliant on so-called cash loans. Added to this are rising personnel and social expenditure as well as continued high construction costs.

Comprehensive consolidation measures

Comprehensive savings in expenditure and personnel were already introduced in Erlangen in 2024. The city has developed a far-reaching consolidation concept for 2025, which is being systematically implemented. At the same time, the city is pushing ahead with digitalization in order to make administrative processes more efficient. Mobile working concepts are also helping to achieve savings when renting real estate.

Thanks to these consolidation efforts and high key allocations, the budget shows a positive balance from current administrative activities for both this year and the coming year.

High investments

On the one hand, the budget resolution makes it possible to continue investments that have already been started. Among other things, investments are planned

• in schools amounting to 22.6 million euros
• in childcare amounting to 6.1 million euros
• and in municipal infrastructure with a volume of 19.3 million euros.

The city plans to take out investment loans of 54.5 million euros for this purpose.

In addition, important new measures can be initiated as part of the investment program set up by the federal government, including the renovation of the Fridericianum and other daycare centers and sports facilities.

Reliable funding

The resolution also forms the basis for reliable funding for numerous facilities, institutions and clubs. "With the budget resolution, we are giving many clubs and initiatives the necessary planning security - even if we still have to make savings," explains Lord Mayor Janik.

Continuing the course of consolidation

At the same time, he makes it clear that the consolidation course must be continued: "Budget consolidation is not without consequences. It entails noticeable restrictions for citizens - for example through higher taxes or fees and the need to set priorities. And if we want to continue with the necessary investments in our city, we cannot do so without additional new debt. That is unpleasant, but unavoidable."

Erlangen as a location for the future

Despite all the challenges, however, there is good reason to be confident, according to Janik: "Erlangen is not in a structural economic crisis. Companies are continuing to invest in the location. Siemens, the Friedrich-Alexander University and the University Hospital are consistently developing Erlangen as a location for the future. Our task is to make this development possible: through smart investments, reliable framework conditions and responsible decisions."

More information on the budget is available online at www.erlangen.de/haushalt.

Photo and graphic: City of Erlangen