At today’s city council meeting, Lord Mayor Sven Schulze presented the draft biennial budget for 2027 and 2028, including the financial planning for subsequent years.
The financial situation of the city of Chemnitz will remain strained in the coming years. Despite a continued high volume of investment, the city’s financial manoeuvre room is severely restricted by significant deficits in the operating budget and a rising need for borrowing.
For the years 2027 and 2028, the budget comprises expenditure of around 1.2 and 1.25 billion euros respectively. At the same time, the operating budget shows deficits of 132 million euros in 2027 and 128 million euros in 2028. In subsequent years, the deficit rises at times to as much as 166 million euros (2029) and remains at a high level thereafter, at around 138 million euros annually.
Nevertheless, the City of Chemnitz is planning substantial investments: €109 million in 2027 and €107 million in 2028. To finance these, borrowing of €28.5 million and €20 million per year respectively is planned. At the same time, the need for overdraft facilities to ensure ongoing solvency is expected to rise to up to 225 million euros in 2027 and 233 million euros in 2028.
Mayor Sven Schulze: “It is no longer a secret that local authorities across the country are under considerable financial pressure. However, the causes of this lie not only in past and ongoing crises, but also – and this is a very significant problem – in the chronic underfunding of districts, towns and municipalities. After all, local authorities continue to face ever-increasing demands from the federal and state governments, the consequences of which are also reflected in rising social expenditure and soaring costs for youth welfare services.”
Despite the difficult circumstances, the draft budget will continue to enable investment in the future in the social sector, in schools and childcare centres, in sport, in the arts and culture, as well as in public infrastructure and local transport services.
The draft budget includes, for example:
- additional funding for digital equipment in schools and for the implementation of the ‘Startchancen’ programme,
- a slight increase in grants for youth and family education in accordance with the funding guidelines for youth, social affairs and health, and the guidelines for the funding of school social work,
- more funding for direct and indirect support for sport,
- a five per cent share of cultural funding allocated to independent organisations.
In addition, the 2027/2028 budget allocates sufficient funds to maintain senior citizens’ social centres at their current level.
Lord Mayor Sven Schulze: “With this plan, we cannot implement everything that is necessary or desirable. And yet this budget provides a sound basis for action in the years ahead. My fellow mayors and I will continue to fight hard to finally bring about a significant improvement in the financial situation of local authorities – within the Saxon Association of Towns and Municipalities, the German Association of Towns and Cities, and in our regular discussions with federal and state politicians.”