How do the many crises affect Linz’s city finances? The long-awaited special session of the Linz City Senate lasted one and a half hours. One thing straight away: The situation is better than feared. According to the figures and projections presented by Finance Director Christian Schmid, the city should even be taking in 46 million euros more than budgeted this year. This is due to the strong economy in the first three quarters. Of course, inflation will also affect the city, but it won’t be fully affected until next year. In 2023, additional expenditure of around 57 million euros is therefore expected.
Salaries, electricity and interest rates rise
Almost 20 million of these are personnel costs, 7.8 million are rising energy costs and 6.5 million are higher interest payments. Land transfers will also increase. In 2023, the city will transfer 9.6 million euros more than planned. Nevertheless, the double budget decided a year ago is holding up. “We don’t need a supplementary budget and we don’t need any changes in budget execution,” says Mayor Klaus Luger (SP). In order to absorb the additional expenses, the city senate unanimously decided today to carry over the unexpected surplus from this year to next year. The difference of eleven million euros is to be compensated for by additional income and savings due to the economy. The digitization of the magistrate should also save costs.
Clubs should be supported individually
But does the city now have leeway to support the population in the face of inflation? What is fixed is that there will be help at least for clubs. To what extent, however, is still unclear. First you want to wait and see who gets how much from the federal and state governments. A decision will be made in the first quarter of 2023 at the earliest. “We will discuss their financial situation with the clubs and help in cases of hardship, but not across the board and not according to the watering can principle,” says finance officer, Deputy Mayor Tina Blöchl (SP). There will be no general cost-of-living compensation for the three-year funding.
“Not much wiggle room”
The Greens would also like free lunch in Linz’s child education and childcare facilities for low-income families. The FPÖ calls for the city’s solidarity fund to be increased and the money from the municipal vaccination campaign that has not been used so far to be used. Under no circumstances should there be any fee increases in the coming year. “We have our budget under control, but not much leeway,” says Luger about the demands for help. He does not want to rule out additional measures. He sees the federal and state governments as primarily responsible.
“Not much wiggle room”
ÖVP leader Martin Hajart is pursuing a Keynesian approach. He wants additional investments in public transport projects that have been on the table for a long time, such as the 47 and 48 trolleybus routes, the 13 and 14 bus routes to the south of Linz, or the 150 Pöstlingberg bus route alternative to the car and thus relieve them of the high fuel prices,” says Hajart, using an old adage: “The state must invest anti-cyclically to the economy.”
Source: Nachrichten
