Rhineland-Palatinate has new rules for financial equalization
Created: 11/24/2022, 3:45 p.m
Group leader of the SPD in the state parliament of Rhineland-Palatinate Sabine Bätzing-Lichtenthäler speaks during a meeting.
© Sebastian Gollnow/dpa/archive image
Two years after the constitutional judges in Rhineland-Palatinate rejected municipal financial equalization, the state parliament passed a new set of rules.
The majority of the governing parties SPD, Greens and FDP voted in favor of the new State Financial Equalization Act (LFAG) on Thursday after a second consultation and rejected an amendment by the CDU.
Mainz - The three opposition parties rejected the law.
The deputy CDU parliamentary group leader Gordon Schnieder accused the government of "deceiving, camouflage, tricks".
The losers of the reform are the local communities.
"Many municipalities will still not be able to present a balanced budget, or will no longer be able to do so in the medium term." Schnieder also criticized the demanded increase in the assessment rates for property and trade tax set by the municipalities.
So far, low assessment rates have been an important competitive factor for many municipalities.
"This advantage must not be squandered."
On the other hand, SPD faction leader Sabine Bätzing-Lichtenthäler spoke of a historic achievement.
"There has never been such a huge leap in the history of this country," she said of the increase in the available balancing mass by 357 million to 3.843 billion euros.
Interior Minister Michael Ebling, who only took over the post from his predecessor Roger Lewentz (both SPD) in October, said he had the very smallest share in the draft law.
The reorganization gives the municipalities planning security, makes them future-proof and, last but not least, creates legal certainty.
The amendment became necessary because the Rhineland-Palatinate Constitutional Court declared the previous system of municipal financial equalization to be unconstitutional in December 2020 and demanded "needs-based financial equalization".
dpa
