Budget draft 2026: Main-Taunus district under financial pressure!

Budget draft 2026: Main-Taunus district under financial pressure!

On November 6, 2025, District Administrator Michael Cyriax presented the draft budget for 2026 to the district council, which faces a significant financial challenge. “We can only balance the budget with effort,” Cyriax made clear. The main cause of the pressure on finances is the sharp increase in compulsory expenditure, which not only puts a strain on the Main-Taunus district, but also reflects the situation in many municipalities across Germany. According to Cyriax, however, the draft budget can be approved, even if the federal and state governments have promised aid, which he is skeptical about in terms of its effectiveness against structural underfinancing.

The forecast data shows a worrying picture: the municipal deficit could grow to over 35 billion euros in the coming years. A budget deficit of 14.4 million euros is expected for 2026, which means an increase of around 10 million euros compared to the previous year. The net new debt is estimated at 30.5 million euros, and in order to stabilize the financial situation, the district is dipping into reserves, reducing expenses and increasing fees.

Rising social spending

The challenges in the social sector are particularly serious. Transfer payments are expected to increase to around 120 million euros in 2026, almost doubling since 2020. The majority – around 80 percent of income – goes to social spending. While the costs of social assistance only increase slightly, the costs of asylum decrease slightly, which does not relieve the burden on the coffers. The extremely necessary youth welfare and integration assistance will also be more expensive in the coming year.

Another aspect that influences future finances is the investments in school construction made over the last five years, which amount to around a quarter of a billion euros. This corresponds to around 8,000 euros per student. While the district levy remains stable at 36.25 percent, the school levy must be increased by 1.4 percentage points to 19.07 percent, which could further increase the burden on citizens.

The overall situation of the municipalities

The imbalance in many municipalities in Germany is not new. Chancellor Friedrich Merz spoke about the pressing financial problems at the CDU state party conference in North Rhine-Westphalia. In 2024, the highest deficit since reunification was recorded at 24.8 billion euros. The total expenditure of the municipalities was over 400 billion euros, while the income was only around 376 billion euros. Projected deficits suggest that municipal debt could rise to 30 billion euros in 2025, exacerbating the precarious situation.

The dependence on allocations from the federal and state governments, which amounted to 41 percent of municipal revenue in 2024, increases the pressure on many municipalities. While costs in the social sector continue to rise, cities and municipalities have to take on new tasks without the necessary financial support being provided. In this context, Burkhard Jung, Mayor of Leipzig, also developed an authentic view of the situation, which was perceived as “dramatic”.

The draft budget, which will be discussed in the committees in the coming weeks, is scheduled to be approved by the district council on December 15th. The outlook for municipalities remains tense, and it remains to be seen whether the federal government's announced reforms, such as those relating to the Old Debt Settlement Act, will have positive effects in the near future.