Dispute Over Local Finances: Cities Association President Considers Legal Action Against Budget

The President of the Cities and Municipalities Association of Brandenburg, Oliver Hermann, has indicated that a legal challenge from several municipalities against the proposed twin budget for 2025 and 2026 is a possibility. Hermann, who serves as the non-partisan mayor of Wittenberge in the Prignitz district, stated that if a lawsuit appears likely to succeed, the association would support the municipalities in taking action. However, he emphasized that any legal proceedings would be initiated by the individual member municipalities.

Under the current plans from the state government, led by the SPD and BSW, municipalities are set to receive reduced funding in the upcoming double budget. This is attributed to slower than anticipated growth in tax revenues. Municipalities will face cuts in the distribution of savings from housing allowances and payments for family benefits.

The state parliament is yet to make a final decision on the budget. The Cities and Municipalities Association has expressed concerns regarding cuts to services and potential increases in fees. Hermann has previously announced in various media outlets that the possibility of a lawsuit is being examined, particularly concerning the removal of family benefit compensation. These compensatory payments are intended to offset the financial disadvantages that municipalities face due to increased support for families, and they contribute directly and without restrictions to municipal budgets.

Hermann highlighted the significant financial impact this decision could have on Wittenberge, with the elimination of these payments potentially resulting in a loss of approximately EUR700,000. Such a reduction would pose serious challenges for municipalities that rely on these funds for budgeting.

Furthermore, Hermann expressed frustration over the timing of the proposal to eliminate family benefit compensation, which has been presented mid-budget year without any prior notification. Many municipalities have already established their budgets, and the unexpected loss of a substantial income source is perceived as unfair. Hermann described this situation as a breach of trust.

The ongoing discussions and potential legal actions reflect the growing tensions between local governments and the state regarding financial allocations. As the budget deliberations progress, the association is keenly monitoring the developments and is prepared to advocate for its members' financial stability.