City Council Approves 2026 Budget

The budget figures consistently continue the course of consolidation in the administration’s operating expenses in order to continue enabling large-scale investments in the future. This will secure an investment volume of 80.6 million euros, particularly in the areas of schools, child care, culture, and urban infrastructure. At the same time, this resolution—in accordance with the provisions of provisional budget management—will allow the administration to make payments in the coming year for many necessary and urgent so-called “discretionary” tasks, including funding for numerous facilities, institutions, and associations.

Challenging Conditions

The conditions for municipal budgets remain extremely difficult—in Erlangen as well as nationwide. Across Germany, the municipal deficit amounted to approximately 25 billion euros last year, and the trend is upward. For 2026, the German Association of Cities anticipates that the municipal deficit will grow to at least 32 billion euros.

In Erlangen, high trade tax refunds from 2024 and declining trade tax revenues are placing a particular strain on the financial situation. As a result, the city is increasingly reliant on so-called cash advances. Added to this are rising personnel and social spending, as well as persistently high construction costs.

Comprehensive Consolidation Measures

As early as 2024, Erlangen initiated comprehensive spending and staffing cuts. For 2025, the city has developed a far-reaching consolidation plan, which is being consistently implemented. At the same time, the city is continuing to advance digitalization to make administrative processes more efficient. Mobile work concepts are also helping to achieve savings on real estate rentals.

Thanks to these consolidation efforts and high block grants, the budget shows a surplus from ongoing administrative activities for both this year and the coming year.

Significant Investments

The budget resolution makes it possible, on the one hand, to continue investments that have already begun. Planned investments include

• in schools totaling 22.6 million euros
• in childcare totaling 6.1 million euros
• as well as in municipal infrastructure totaling 19.3 million euros.

To this end, the city plans to take out investment loans totaling 54.5 million euros.

In addition, important new measures can be initiated as part of the federal government’s investment program, including the renovation of the Fridericianum as well as additional daycare centers and sports facilities.

Reliable Funding

The resolution also lays the foundation for reliable funding for numerous facilities, institutions, and organizations. “With this budget resolution, we are giving many organizations and initiatives the planning certainty they need—even as we must continue to cut costs,” explains Mayor Janik.

Continuing the Consolidation Course

At the same time, he makes it clear that the consolidation course must continue: “Budget consolidation is not without consequences. It entails noticeable restrictions for citizens—such as higher taxes or fees and the need to set priorities. And if we want to continue making the necessary investments in our city, we cannot do so without taking on additional new debt. This is unpleasant, but unavoidable.”

Erlangen as a City of the Future

Despite all the challenges, however, there is good reason for optimism, according to Janik: “Erlangen is not facing a structural economic crisis. Companies continue to invest in the city. Siemens, Friedrich-Alexander University, and the University Hospital are consistently expanding Erlangen as a city of 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