Instead of champagne, the people of Offenbach now only have still water again.
That is annoying when unexpected business tax revenues in the millions immediately lead to significantly fewer subsidies being transferred from the state from now on.
In addition, the windfall came as a complete surprise: namely in the form of back payments that go back to changes in European tax law.
It's not a good way to plan.
Much has been said about adequate funding for municipalities by the federal and state levels. Some things have gotten better. But a multicultural city like Offenbach, with an unemployment rate of around ten percent, still has a lot more to do with the social burdens than many a neat residential community in the Frankfurt suburbs. Something is obviously going wrong in the state of Hesse when the city seriously thinks about foregoing minor repairs in day-care centers in order to be able to present a budget that can be approved to the regional council.
On the other hand, it is good news that the supervisory authority is already being discussed about what a medium-term financial plan should look like. In the long run, however, the state will not be able to avoid making further efforts to give cities like Offenbach greater financial leeway again.
The settlement of attractive companies is also helpful in order to generate higher tax revenues as a municipality. As the example of Samson AG shows, which wants to build a state-of-the-art factory on the innovation campus on the Main, it takes time for such a development to have a positive effect on the city's coffers. At the moment, with all the announced savings considerations, there seems to be only one recommended solution to make money quickly. At least for the next three to five years, consideration should be given to raising the property tax B, which is already high, to almost 1,000 points. This is not a good prospect for homeowners and tenants, but it would be the most solidary of all solutions to close the budget gaps.