Association of cities supports state position on financial equalization law | PID press

2023-07-11 14:29:16

Association of cities calls for a change in the vertical distribution of federal funds

Vienna (OTS) – Cities Association General Secretary Thomas Weniger can only agree with the demand: “Sufficient financing of services of general interest must be ensured for the states and cities. We can only guarantee this with a change in the vertical distribution of the funds and thus more money – that also means ‘fresh money’”.

Weninger also emphasizes that the federal government’s proposal from the beginning of July is far from sufficient. In addition, it must be clear that it is neither a lump sum nor earmarked money. According to Weninger, the distribution of the money and the ability to plan are too unclear. “Cities and municipalities have taken on more and more tasks in recent years – especially in the areas of care, education, childcare and public transport, but they have not received more money for this, but income through various tax reforms, such as the abolition of cold progression and the corporate tax cut. That has to change now. We demand – like the four federal states today – a clear change in the vertical distribution to 14.55 percent in favor of the cities and municipalities”. According to Weninger, it must also be clear that the cities and municipalities need more money for the necessary “green transformation”.

Finally, the general secretary of the Association of Cities, Thomas Weninger, refers once more to the resolution passed at the 72nd Austrian Cities Association in Bad Ischl – unanimously and across party lines – which contains the demand for sustainable and long-term financing of the services provided by the cities.

Questions & contact:

Elisabeth Hirt
Austrian Association of Cities
Communication
Tel.: [phone]
Email: [e-mail]

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