Corona hits the budgets

Theresa schiffl the income and thus also the budget volume of the municipalities vary very strongly in some cases. This depends on several factors – such as gross or infrastructure. Now the current corona crisis will also make itself felt in the coffers.

Corona influences budget

This is also what rottenbach’s mayor ludwig wahl (freie wahler) has long said. The municipality has no debts at the moment and also sufficient reserves for investments. "In our town, the quite good income tax is making itself felt. The trade tax is also a part of it, but it is not so important for the budget", so choice. The reason for the positive balance is the stringent spending policy, which the municipality attaches great importance to.

Because of corona, the budget has been re-examined and some points have been redesigned. "We are planning for 12.5 percent less income tax. That’s 485,000 euros less in the coffers. In the case of trade tax, it will be as much as 1.5 million euros" says ludwig wahl. Investments will then also have to be adjusted accordingly.

Helmut lottes (CSU), mayor of vestenbergsgreuth, also does not yet know what impact the corona crisis will have on the budget. "Our companies have not yet sent any signals that trade tax payments or prepayments should be deferred or reduced."

Nevertheless, the municipality was able to withstand a small period of drought, as the budget was always very prudent in terms of income and expenditure. Nevertheless, the municipality is cautious with regard to revenues: "we set them without surcharges and with regard to expenditures, this means that we also plan for such and in sufficient amounts, even if it is not certain whether they have to be paid at all or in the budgeted amount", according to lottes. The liquidity of the community was nevertheless secured by existing reserves.

In lonnerstadt, the current per capita debt is around 609 euros – the national average, says mayor stefan himpel (freie wahler). Overall, lonnerstadt is currently in the green-yellow zone, says himpel about the financial situation of his community.

This per capita debt will double, however. The renovation and expansion of the kindergarten have been advanced. An investment that is of great relevance for the infrastructure and the lives of the residents, but which will never be refinanced.

"Rough investments like those in the commercial sector will pay off again at some point", so himpel. Other compulsory tasks are financing for schools or the fire department. Investments that are also supported with demand funds. Buried was the mayor of lonnerstadt an increase in the demand funds.

Bureaucracy reduction was help

There is not much demand in lonnerstadt, and so only about 50 percent of the costs will be covered. According to himpel, bureaucracy reduction in the application process has also made many things easier. In terms of revenue, the situation in lonnerstadt is rather poor: "a little business tax, property tax and dog tax". The income tax accounts for a larger item, but that’s about it", says himpel.

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