Hof continues to fight: Social spending is putting a strain on the city's finances!

Hof continues to fight: Social spending is putting a strain on the city's finances!

On October 30, 2025, an agreement on municipal financial equalization for 2026 was reached between the Free State of Bavaria and the municipal umbrella associations. This was welcomed by the city of Hof, which, however, continues to face major financial challenges. Mayor Eva Döhla emphasizes that, as an independent municipality, the city has to bear almost all of the social burden itself. Despite the relief that was indicated on the occasion of the agreement, increasing social spending and district levies remain a matter of concern.

A crucial point of the agreement is that the district levy will not increase to the extent feared, but an increase cannot be ruled out. The district of Upper Franconia will make new calculations of the district levy in the short term in order to clarify the financial framework for the coming years.

Döhla says that the announced relief for the districts makes sense, but is considered insufficient given the dramatic increase in social spending. In the city of Hof, these social expenditures tie up around 37 percent of the administrative budget and limit the financial scope for infrastructure, education and urban development, which does not make the challenge any easier.

Financial framework conditions for 2026

Across Bavaria, the volume of municipal financial equalization for 2026 will increase by an impressive 845 million euros to 12.83 billion euros. This is a welcome financial injection, but at the same time local authorities' expenditure, particularly in the social sector and due to rising personnel costs, will increase significantly. The allocations to the districts will be increased by 480 million euros to 1.32 billion euros, which corresponds to an increase of 57.4 percent. This is intended to reduce the pressure on municipalities and improve financial planning.

What is particularly challenging in Hof are the above-average child poverty rates and the large number of people with refugee and migration experience. In this context, youth and social work is increasingly being financed from the city's own resources. This means that Hof also shows great commitment in these sensitive areas.

In order to overcome these challenges, the city of Hof is investing in key future projects. The new building of the Christian Wolfrum School is just one of many examples. In addition, ongoing work on daycare centers, school buildings and additional childcare rooms is planned. Basic infrastructure such as bridges, roads and public buildings also urgently need to be secured in order to meet the demands of the growing population. Projects such as bridge renovations, the further development of the Eisteich area and plans for the Grüne Au show the city's active assumption of responsibility.

The coming months will be crucial in determining whether a noticeable increase in the key allocation for Hof is possible in 2026. Clarification is expected in December 2025. The focus is on financing in order to further expand the social infrastructure and to do everything possible for positive urban development in Hof, which, according to Döhla, has the goal of offering “brighter prospects for Hof”.

Overall, it is clear that despite the positive declarations of intent, the challenges on site should not be underestimated. Hof remains challenged to find creative solutions to continue to create a livable environment for all citizens.

Further information can be found here: Frankenpost, Hof.de, Bavarian State Ministry.