2027/2028 dual budget: Greens seek room for manoeuvre in the ‘absolutely exceptional budget’

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Here we go. At the last council meeting, Torsten Bonew, the councillor responsible for finance, presented the draft for the 2027/2028 biennial budget. The City Council intends to approve it in December so that the budget debate does not fall in the middle of the 2027 mayoral election campaign. That is why this week also marked the deadline for political groups to submit their amendments to the budget. They, in turn, face the impossible task of squaring the circle. For the city of Leipzig is facing immense financial challenges. The draft 2027/2028 two-year budget tabled by the administration reveals a dramatic budgetary situation.

With a structural deficit of around 150 million euros per year and an acute need for consolidation, the figures can only be approved through a special decree from the Free State of Saxony. Without this special decree, virtually no local authority in Saxony would have its budget approved.

The reason for this is social expenditure spiralling out of control, which is mandated by federal legislation but has not been adequately funded by the federal government for years. Added to this is an extremely tight framework for investment. Leipzig must make savings at every level.

Against this backdrop, the Bündnis 90/Die Grünen parliamentary group presented its package of amendments to the press on Thursday, 24 September. The amendments are characterised by a significantly lower volume compared with previous years.

But one thing is important, emphasised parliamentary group leader Kristina Weyh: all the proposed amendments put forward by the parliamentary group are backed by proposals for additional revenue and will not result in any additional debt.

Where else can Leipzig’s revenue be increased?

But this is where things get interesting. Because if the majority on the city council does not approve the proposals for offsetting funding, there will be no scope for the group’s own investment proposals either.

In order to fully finance the projects proposed by the Greens for the budget, the parliamentary group is proposing a number of adjustments to local taxes that are already quite familiar. For instance, additional revenue increases are to be implemented through the accommodation tax, the entertainment tax and the expansion of parking management.

The proposed revenue increases amount to a total of around 12.6 million euros over the next two years and will serve as a source of funding for the Greens’ spending proposals.

A motion regarding the accommodation tax had already been tabled at the council meeting on 3 September, though it was, of course, rejected by the council majority at the time. As a budget motion, it could now help to bolster the city’s revenue.

The Greens also intend to support the proposal, reintroduced by Torsten Bonew, the Councillor for Finance, to increase parental contributions to childcare centres. Although the council majority has already rejected this twice, in view of the precarious budgetary situation, such a rejection can no longer really be justified.

Further cuts will take their toll

It is on this issue, at the very latest, that the committee meetings on the two-year budget will become contentious. This is because political groups such as the CDU assume that the budget – which is already completely overburdened by statutory obligations – can somehow still be balanced through even more drastic rounds of cuts.

There is a real possibility that a further 500 posts will be cut, on top of the 500 already approved for deletion within the city administration. According to the Greens’ parliamentary group leader, Dr Tobias Peter, this would ultimately take its toll. It has long been apparent, however, that in key areas – take the processing of housing benefit claims, for instance – staff numbers are already too low.

Pewter emphasises that any discussion of staff cuts can only take place once the city has presented its structural analysis of the administration.

For the Greens, at any rate, one thing is clear, says Kristina Weyh: consolidation must not be achieved purely through cuts, for example to infrastructure and social services, but must also focus more closely on the city’s revenue side.

The danger of irreparable cutbacks

“The fact that the city leadership has budgeted for necessary increases – including raising nursery fees to the statutory minimum level, second-home tax and dog licence fees, as well as our key demands from the last budget regarding the introduction of property tax C and resident parking – protects Leipzig from irreparable cutbacks in key public services,” explains Sylvia Herbst-Weckel, the spokesperson for finance in the Green Party parliamentary group.

“These decisions alone will increase the city’s revenue by almost 18 million euros over the next two years and will set the course for improved financial resources for the city in the coming financial years. In our view, anyone who rejects these increases across the board is acting irresponsibly and has a duty to specify exactly where cuts should be made in city life instead.”

This is a clear message to the parliamentary groups that persistently vote against the increases specifically proposed by the administration.

For the problem is not that Leipzig is ‘living beyond its means’, as conservative political groups are only too keen to claim. The financial difficulties are caused by federal legislation which has transferred more and more responsibilities to local authorities without providing compensation for the associated financial costs.

From child welfare support to care support, these place an ever-increasing financial burden on the city’s budget.

The federal and state governments must finally take action

The Green Party parliamentary group therefore highlights the urgent need for adequate funding from the federal and state governments. “Chronic underfunding of investments, the loss of assets through the sale of municipal property, and the depletion of capital are not sustainable in the long term,” they state, highlighting the fundamental problem that is currently driving all local authorities in Saxony to the brink of insolvency.

In a parallel motion to be tabled during the budget deliberations, the Green Party parliamentary group therefore calls for the Free State of Saxony to consistently adhere to the principle of shared responsibility: “Whoever delegates tasks must also ensure that they are adequately funded.”

“The 2027/2028 two-year budget is an absolutely exceptional budget, which requires painful cutbacks and responsible negotiations across all parliamentary groups,” emphasise Kristina Weyh, Dr Tobias Peter and Sylvia Herbst-Weckel.

“We are facing this reality with resolve, a sense of proportion and concrete solutions that will increase our revenue and set targeted priorities, so that Leipzig remains capable of acting and social cohesion and environmental projects are safeguarded.”

Where the Greens are calling for more investment

The Greens stress that, even in this precarious financial situation, Leipzig must not stop investing in key policy areas. They are therefore calling for additional investment in areas such as climate change adaptation (1.8 million euros per year), building maintenance (250,000 euros per year), municipal housing support (700,000 euros per year) and improving the quality of life in public spaces (500,000 euros per year), thereby calling for concrete investment in the future of our city.

To strengthen social cohesion, they wish to allocate additional funds for neighbourhood care arrangements (a total of 1.2 million euros over the next two years), the early years education strategy (budget-neutral, funded from the revenue generated by higher nursery fees), open school playgrounds and sports facilities (€150,000 per year), for democracy education in schools (€100,000 per year), strengthening the structures for democracy education (€150,000 per year) and support for civic and voluntary engagement in environmental matters (€800,000 per year).

“We are tackling the climate crisis with concrete action,” emphasises Kristina Weyh. “We are ensuring adaptation to climate change, promoting environmental projects, strengthening green infrastructure and safeguarding the preservation of large trees. At the same time, we are ensuring the long-term viability of democracy education and the prevention of anti-Semitism and racism, so that schools can continue to access important external educational and prevention programmes free of charge.”

To promote digitalisation and efficiency within the city administration, the Greens are calling for a significant increase in the digitalisation budget (€1 million per year) and the expansion of the open-data portal (€20,000 per year). For it is only when the administration is fully digitised that staff posts can actually be saved.

“We are ensuring reliable funding for priority childcare centres, opening up school playgrounds and sports facilities for free social and exercise activities in the neighbourhood, and supporting community-based care structures so that people can live in the comfort of their own homes for longer,” said Sylvia Herbst-Weckel, explaining the proposed additional expenditure.

“At the same time, we are making targeted investments in the future of our city administration: through the systematic expansion of digitalisation, AI and automation, we are creating modern processes and long-term financial relief.”

All amendments tabled by the political groups will now be referred to the city council’s committees and the extended finance committee. The 2027/2028 two-year budget is then due to be put to a vote in the city council in December.