Are the municipalities threatened by the Corona crisis so high that they can no longer pay their bills? The mayors fear this and demand discounts from the district. The new district council will have to consider which projects it will cancel or at least postpone.
District - The mayors in the district, whether in office from May or no longer, fear massive financial consequences from the Corona crisis. Since many companies pay less or no more trade tax or this is deferred, the municipalities lack the financial basis. Gilching's mayor Manfred Walter warns: "Under no circumstances should a situation arise that municipalities have to take out loans to finance the payment of the district levy." That is why the municipalities are asking the new district administrator Stefan Frey to find a solution. This could endanger or at least delay major projects.
Trade tax threatens to collapse
The municipalities are financed primarily through trade tax - in 2018 that was around 120 million euros in the district. The share of income tax is more than 110 million euros. The municipalities have to hand over part of their income to the district through the so-called district levy. The district needs this money to perform its tasks such as the district office, schools, health care systems and others and also has to pay a contribution to the district. According to the budget, the total volume of the district levy for 2020 is 116.3 million euros. If the municipalities break away from the tax revenue, they may no longer be able to service the levy - or no longer pay their staff.
Deferrals also for circular apportionment?
“The federal government and the Free State urge us to generously grant applications for interest-free deferrals of trade tax payments. We have already received the first applications for this. We can only do this if we are granted interest-free deferrals for the district levy at the same time, ”explains Manfred Walter. It is currently not yet possible to say with any certainty how severe deferrals and the like will be, explains Starnberg Mayor Eva John. It probably doesn't expect this until the end of May. Walter continued: "The loss of trade tax and income tax will certainly be felt massively this year and in the two years that follow." There are only two options for the Gilching town hall chief: either the district levy is adjusted or the Free State sets up a rescue package also on the municipalities on how he did it for the economy.
Mayor spokesman Rupert Monn (Berg) also believes the actual impact cannot yet be estimated, but expects supplementary budgets to be corrected in all municipalities. The mayors - he will no longer be one of them in May - will certainly push for a solution with the new district administrator. "A lot has to be put to the test," says Monn, without mentioning projects.
School building on the brink
However, some are obvious: Herrsching High School and Starnberg Technical College (FOS). Healthcare cuts are unlikely to be politically plausible given the Corona crisis. In terms of planning, the FOS is not as far as the Herrsching high school. However, such shifts have a serious disadvantage: the domestic economy then has fewer orders. In previous economic stimulus programs, money was pumped into these areas.
At Mayor Karl Roth, all the mayors have already brought up this topic, also because of short-time work (reduces income tax) or other tax losses. Everyone is afraid that they will no longer be able to pay the district levy, which is about "large amounts". Roth regrets that no one has heard of a government bailout. He has already had a first savings program. Roth is also cautious about concrete projects: the new district council must determine and determine what the district can still afford. It is also about "the big chunks".
