Mayor Nino Haase: “From the municipality’s perspective, the outcome is a major disappointment and completely inadequate. While it was reaffirmed that the federal government will bear a greater share of the costs it itself generates through its responsibilities in the future, However, the agreement that has now been reached falls well short of expectations.”

Finance Director Daniel Köbler: “It is certainly an important signal that the federal government is recognizing the principle of ‘who commissions, pays’ for the first time. The major problem, however, is that this is not to apply retroactively and that in the future only 80 percent of the costs borne by municipalities will be reimbursed.” Currently, there are no new laws placing an additional burden on the administration. Unfortunately, the burden imposed by old laws—whose costs continue to rise—remains entirely in place.

Jana Schmöller, Head of Social Affairs: “We expect the federal and state governments to live up to their responsibilities. This must also apply retroactively: Whoever commissions services must also pay for them. Municipalities must not be left to shoulder the costs of tasks that benefit society as a whole. A strong social budget is the foundation for social cohesion in our municipalities. Supporting people strengthens social harmony and creates opportunities.”

Finance Commissioner Köbler does not see the federal-state agreement as providing significant relief for the city’s budget: “The City of Mainz’s deficit will continue to run in the hundreds of millions. The urgently needed strengthening of municipal budgets has yet to materialize. The federal and state governments have disappointed the expectations of local governments and postponed the pressing problem of cities’ record deficits indefinitely.”

Cities, in particular, continue to face significant financial challenges, which are exacerbated by rising expenditures on mandated responsibilities.

Mayor Haase: “Local governments need reliable and adequate funding so that they can fulfill their statutory duties while also investing in the future of our cities. We are now counting on the announcement by Minister President Gordon Schnieder to present a package of measures for local governments in Rhineland-Palatinate after the summer break. But more is needed: As a city, for example, we have already outlined significant savings for next year through our consolidation plan in the areas of materials and personnel. State and federal authorities must now finally face these sometimes difficult discussions and a critical review of their responsibilities.”