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German Local Budgets for 2026 Expose Deep Deficits as Counties and Cities Add Debt

Rising social and personnel costs now outpace state support, pushing councils toward new debt.

Overview

  • Hersfeld‑Rotenburg formally presented a 2026 draft with a €44.9 million operating shortfall and €52.2 million cash deficit, citing lower key transfers and higher social outlays while keeping county and school levy rates unchanged.
  • Weilheim‑Schongau outlined a record ~€280 million budget that relies on about €17 million in new loans and lifts net debt by roughly €12 million to around €109 million, yet holds its Kreisumlage at 55 percent.
  • Werra‑Meißner forecast a €14.3 million gap next year and warned the coverage hole could reach about €60 million by 2029, operating under supervisory limits on staffing, net borrowing and annual deficits.
  • The municipality of Kirchlinteln must draw up a Haushaltsicherungskonzept after a €1.269 million deficit with no reserves, triggering reviews of voluntary services and plans to finance priority projects through loans.
  • Elsewhere, pressures continue as Lambrecht’s deficit grew to nearly €865,000 on weaker tax take and a higher county levy, and Freising struggles to close its 2026 gap with cuts after an €8.5 million ÖPNV burden tied to its expanded e‑bus fleet.