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District budget 2026: financial debate about a 12 million euro deficit!
Head of Finance opens discussion about the 2026 district budget in Biberach. Deficits and infrastructure plans are the focus.
District budget 2026: financial debate about a 12 million euro deficit!
In Biberach there is a buzz regarding the upcoming 2026 district budget. The head of the finance department has opened the debate and warns of a “cut-off” in spending. Instead, he advocates a sensible sense of proportion in budget planning. This comes at a time when the district is expecting a deficit of 12 million euros for 2025, while expenses have increased from 202 to 406 million euros over the last decade. Loud Swabian The Bertelsmann Foundation sees the financial situation of many municipalities as precarious. The nationwide deficit for all municipalities this year is over 30 billion euros.
Time is currently of the essence because expenses are rising rapidly. In particular, the need for subsidies for integration assistance has increased by 61% since 2020. The social transfer payments, which are scheduled to increase by 8 million euros to a total of 113 million euros in 2026, do not give rise to any hope of relief. Expenditure in local public transport (ÖPNV) is particularly tense, where the need for subsidies increases from 8 to 9.9 million euros.
Challenges and solutions
The rising personnel costs, which rose by 7.4 million to 82.8 million euros, do not make things any easier for decision-makers. Despite increased municipal tax revenues in 2024, which climbed almost 10% to 462.6 million euros, the state's key allocations for 2026 fell by 7 million to 26.9 million euros. All of this means that the district administration has to work with a tight budget and consider various savings, including in the maintenance of district roads. The number of positions remains at 1026.45, which means that no new positions will be created.
However, the need for investment is undisputed. The planned investment framework until 2029 amounts to 165.2 million euros, with investments amounting to 27 million euros planned for 2026. Important infrastructure projects, particularly in the areas of roads and schools, are on the agenda to meet the challenges of municipal and social infrastructure.
Looking into the future
The district's liquidity is projected to be depleted in 2024. Loans from 2027 are therefore on the list of necessary measures in order to remain able to act. The Municipal financial report 2025 also shows that the financial situation in Germany has collapsed across the board, with stagnating tax revenue and growing need for social services.
Structural reforms are unavoidable. The focus is on addressing the structural underfinancing of municipalities through targeted short-term financial measures and long-term reforms. A discussion about the distribution of finances between the different levels of government and the reform of the municipal trade tax are urgently needed in order to achieve a sustainable improvement in municipal finances.
The 2026 district budget will be discussed in various committees in the next few weeks. The final decision by the district council is due on December 12th. It remains to be seen what measures will be taken to meet the challenges of the municipal financial situation.