Biberach district plans to be debt-free by 2026: budget under pressure!

Biberach district plans to be debt-free by 2026: budget under pressure!

The financial situation in the Biberach district is currently a hot topic. Next Wednesday, the district council will deal with the draft budget for 2026. The district's goal is to remain debt-free next year. The district even has the lowest unemployment rate in the country, which makes it particularly attractive. But here too, challenges cannot be overlooked. The district levy, a mandatory contribution from cities and municipalities to the district, is expected to increase by 4.5 percentage points to 31 percent in order to meet the increasing financial needs. This measure could raise further discussions, particularly with regard to the burden on municipalities that are under pressure due to their financial flexibility. According to [SWR].

But what exactly is the district levy? It is collected by the municipalities belonging to the district and is used to finance the tasks that the district has to take on. The amount depends on the tax capacity of the municipalities and their key allocations. What is exciting is that in 1997, 46% of income in West German districts came from the district levy. In recent years, the municipal associations have repeatedly warned about the financial challenges. The Landkreistag reports that in 2025 a total of 85.4% of the districts will have problems with budget balancing. A real problem that the community representatives will certainly raise in the district council.

High social spending and necessary reforms

Another aspect that should not be ignored: At 207 million euros, social expenditure amounts to just over half of the planned total expenditure of over 400 million euros. This expenditure overview shows how important but also how complex the social tasks are for the district. Despite the solid fiscal position, problems could arise if social costs are not brought under control. According to Holger Adler, the head of the finance department, the current situation represents the “biggest crisis in local finances since the founding of the Federal Republic”. The reasons for this are less tax revenue and excessive legal requirements and demands in the social sector. Adler calls for a reform of the welfare state and better funding for municipalities by the federal and state governments.

The pressure on households is not only felt in Biberach. In 2024, the district deficit reached a record low of -5.84 billion euros, which shows that many federal states are also struggling with financial difficulties. This could have a domino effect on the budget plans in Biberach.

The look into the future

It looks like Biberach plans to remain debt-free in 2026, but the first debts are to be taken out in 2027. The district council is aware of the need for savings. But how these savings will be implemented remains questionable, as even the smallest cuts could impact the social fabric of communities. There could possibly be painful cuts or deletions that would be noticeable to citizens.

Overall, the Biberach district is facing a crucial time in which both the financial structure and social obligations must be brought into line. The discussions in the district council will certainly cause one or two surprises.