Implementing equitable fiscal restraint during the monetary crisis
Mannheim, a city in Germany, is projected to face a liquidity shortfall of around 603 million euros by the end of 2028. To address this financial crisis, the city administration has presented a budget consolidation program called the Mannheim Future Budget (MZH).
The MZH aims to save around 228 million euros by the end of 2028 through various measures. One such measure is the waiving of trade fair appearances and adjusting marketing efforts, expected to achieve savings.
The city's personnel costs are expected to be reduced by preventing an increase in staff and improving processes. External service contracts for landline telephony will be reduced and switched to "Voice-over-IP", saving around 415,000 euros annually.
The smallest school in Mannheim, the Special Pedagogical Education and Counseling Center (SBBZ) Albrecht-Dürer, will be closed, resulting in savings of around 30 million euros in the education, youth, and health sectors.
Each department in Mannheim is required to sustainably save three percent of its annual expenditures or increase its revenues starting in 2026. Department IV will focus on improved service for citizens and sustainable urban development through further digitization, efficient processes, and continuous citizen orientation, leading to savings through better use of municipal buildings and less space needed for municipal employees.
The municipal enterprise Stadtraumservice must submit a balanced economic plan for 2026 to prevent the existing deficit from growing further, leading to performance reductions in all areas of the municipal enterprise. The search results do not provide the name of the person expected by the municipal enterprise Stadtraumservice to submit a balanced economic plan for 2026.
City parks will continue to serve as places of relaxation, encounter, and nature experience, but cuts in the service range and offers will be necessary. This includes converting the planting, increasing entrance fees, or introducing closing times.
The environmental award will now be awarded every two years, and all fees of the department of climate, nature, and environment will be reviewed and adjusted by January 1, 2026. The 2024 increase of the climate fund from 2.7 million to 5.5 million euros will be partially reversed, affecting the promotion of private photovoltaic systems.
The state government of Karlsruhe has approved a budget for 2025/26 and a financial plan until 2028 on the condition that Mannheim presents a concept to improve its liquidity by around 125 million euros by 2028. The city will continue to provide reliable and high-quality educational and care services, with additional spending of over 17.5 million euros for kindergartens enabling the launch of up to 1,000 newly created kindergarten and nursery places.
The fees of the traffic authority will be recalculated, generating around 330,000 euros per year from 2026. At the fire brigade, fees for services outside of emergency deployments will be adjusted, generating around 870,000 euros more annually from 2026.
The cost coverage rate for care and catering fees will be gradually increased and aligned with the level of free non-profit providers. The voluntary fee reduction in the kindergarten area, currently amounting to 105 euros, will be abolished, saving approximately 3 million euros per year.
The municipal cultural houses are making adjustments to admission prices, opening hours, and the number of special exhibitions to contribute to budget consolidation. The short-distance ticket subsidized with municipal funds for up to four stops in public transport will no longer be available in the future.
The German Association of Cities has labeled the current financial situation as the "greatest municipal financial crisis since the founding of the Federal Republic." The city council will review the MZH and the city's financial plan in October due to the significant deterioration of the current budget and the one-time financial need for the start of the Heidelberg-Mannheim university hospital network.
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