Budget reductions proposed by Brandenburg are being scrapped.
Let's break down Brandenburg's budget jousting
By Michael Sauerbier
In a surprising turn of events, Brandenburg's Finance Minister Robert Crumbach (62, BSW) proposed a tough-as-nails budget for cities and municipalities. The plan involved significant cuts, but guess who's laughing now? Not the cities, that's for sure!
A victorious smile spread across the faces of town halls when they heard the relief. Jubilant cheers echoed among the cities and municipalities association. According to CEO Jens Graf (62), "We've pulled off our main objective—Brandenburg's municipalities won't face a financial apocalypse, no city will need to rethink its budget." This triumph came after intense negotiations with the SPD and BSW parliamentary factions.
Here's the skinny: By the end of 2026, town treasurers will collect an extra 300 million euros from the "Family Performance Equalization." Initially, Crumbach had plans to ditch it altogether. Moreover, communities get to hang onto and gradually pay back 95 million euros in overpaid housing benefits. On top of that, there are millions reserved for childcare facilities, teaching staff, and decrepit bridges.
Protests galore pushed the government to make amends. Everywhere, mayors alerted Minister President Woidke about the disastrous effects of the draft budget. Important projects would have gone bankrupt, investments would have been halting, services would have been slashed—from construction projects to sports facilities and cultural institutions.
Crumbach aims to cover the cancellation of cuts with extra loans and tax revenue. Some of it will also come out of the municipalities' pockets: they'll get 77 million euros less support from the state in the future. For Crumbach, "it's a fair compromise."
New Interior Minister René Wilke (40, independent) approves of the pact. Last week, he was still the penniless mayor of Frankfurt (Oder) and involved in these negotiations. In an interview for B.Z., Wilke hinted at a prosperous conclusion after his change of office: "A state can't function without healthy municipalities implementing the government's projects."
Despite the win, Graf issues a warning: "The agreement will be pointless if the state parliamentarians don't pass the budget in June." In parliament, the SPD and BSW only have a two-vote majority. BSW rebel Sven Hornauf is already threatening a "no."
- The relief among cities and municipalities is palpable, as they are able to avoid a financial apocalypse, thanks to an extra 300 million euros they will collect from the "Family Performance Equalization" by the end of 2026, which initially was under threat due to the Finance Minister's plans.
- Personal-finance and budgeting matters have been a significant point of discussion in Brandenburg, with mayors voicing concerns about the disastrous effects of the draft budget, and town halls praising the final agreement as a fair compromise.
- Politics played a crucial role in this turn of events, as the Finance Minister, Interior Minister, and parliamentary factions negotiated the budget, which includes funding for childcare facilities, teaching staff, and decrepit bridges, amidst protests and threats of a "no" vote in the state parliament in June.
