Communities in Upper Austria: Financial crisis threatens quality of life!

Communities in Upper Austria: Financial crisis threatens quality of life!

Oberösterreich, Österreich - The financial situation of the municipalities in Upper Austria is tense. The Chamber of Labor Upper Austria raises the alarm and warns of the serious challenges with which many communities are faced. According to tips.at , the reserves of many municipalities are used up. The expenses increase while the income is falling sharply. In a recent study by the Center for Administrative Research (KDZ), it was raised that 45 percent of departure communities can be expected for 2023 that are unable to finance their ongoing operation from their own resources.

The role of the communities as regional investors is particularly alarming. They contribute up to 30 percent to public investments. These investments concern essential areas such as general interest, elementary education, infrastructure, schools and culture. But the communities' financial scope are becoming increasingly narrower. A study by the Chamber of Labor illustrates the endangered quality of life in the affected regions, since many municipalities are unable to make necessary investments and thus create a backlog on projects, reports OTS .

A central problem is the increased levies. These are higher in Upper Austria than the national average and rose by a whopping 30 percent between 2019 and 2023. Akoä President Andreas Stangl demands a sustainable securing of the municipal finances and criticizes the increasing pollution load. "We have to tackle the structural weaknesses and not just lace up aid packages," said Stangl. His wish is an infrastructure investment offensive to secure the general services of the municipalities and to avoid prioritization in various quality of life.

The reserves are empty, and many municipalities have not been able to fall back on their own funds to finance their investments since 2023. Local investment programs of the federal government are no longer available due to the total state consolidation. The investment grants from the state of Upper Austria also show a declining trend. Another study shows that the capital transfers of providers of public law cannot keep up with the increasing investment activity of the communities, which leads to impending liquidity problems.

But what can the federal and state governments do to help? A solution could be the anchoring of a connector principle that says: tasks and financial responsibility belong together. This requirement is levied by various political parties, including the FDP. Suitable programs have to come to the table for the expulsion of overloaded communities, coupled with infrastructure projects and structural reforms of the municipal refinances, such as the Berlin Institut again underlined.

The situation is serious and time is pushing. The municipalities urgently need support to continue to fulfill their vital tasks and to be able to secure the quality of life of their citizens: inside. It remains to be seen in which measures the future political decisions will lead to.