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Hesse Equalization Cuts Jolt Local Budgets, Triggering Tax Rises, Loans and Delays

Revised payments tied to 2024 trade tax receipts have opened sudden gaps that force rapid fiscal adjustments in multiple municipalities.

Overview

  • Eiterfeld’s 2026 draft is not approvable, showing a result deficit above €5.3 million, with councillors raising Grundsteuer B to 320 points and Gewerbesteuer to 400 as talks continue on January 10 ahead of a planned January 29 vote.
  • To manage liquidity, Eiterfeld approved a €1.7 million investment loan at 3.9% with a 20‑year term, deferred a decision on an additional €3 million, and warned debt could reach €7.9 million by end‑2026, with a further €5.4 million needed to fully fund the current draft.
  • Bebra’s 2026 gap widened after KFA changes, with €1.88 million less in Schlüsselzuweisungen and roughly €1.5 million more in district and school levies, moving the shortfall from €1.9 million to €5.3 million before partial offsets lowered it to €4.2 million; the budget vote is now slated for February 19, 2026.
  • Buch am Buchrain approved a €1.5 million loan after a planned €1 million land sale and other revenues fell through, lifting debt to €6.6 million while keeping the fire station project on track.
  • Ronshausen adopted a supplementary budget that includes a €500,000 commitment authorization for the first phase of sewer rehabilitation within an estimated €5.5 million program, with tenders targeted in 2025 and construction entry planned for 2026 despite one dissenting vote.