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Bavarian Counties Plan Higher Levies and Heavy Borrowing as Mayors Sound Fiscal Alarm

Local leaders say escalating state‑mandated duties lack stable funding.

Overview

  • Landsberg’s 2026 draft foresees about €70 million in new loans and an €18.8 million results deficit covered by reserves, with total debt projected to reach roughly €370 million by 2029.
  • Ostallgäu’s planners report a structural imbalance with clinic losses of about €12 million again next year and another rise in the Schwaben district levy likely, with the county budget slated for a December 12 vote.
  • The proposed Kreisumlage in Landsberg rises to 56%—still short of fully balancing the financial plan—which municipal leaders warn will force cuts locally, exemplified by Pürgen’s estimate of an extra €150,000 from a 2.75‑point increase.
  • Fifteen municipalities from the Munich region warned in a joint briefing that their self‑governance is at risk as roughly 70% of state tasks have shifted to local levels without adequate compensation, citing a nationwide €25 billion municipal shortfall in 2024.
  • Concrete strains include Garching’s €9 million school expansion for full‑day care with only a €0.5 million subsidy, prompting calls for structural fixes such as VAT relief on municipal projects and earlier involvement in lawmaking.