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Streamlined Financing and Less Administration for Local Authorities in NRW, Focusing on Increased Funds and Enhanced Accountability

Funding programs can bear benefits, but they also carry potential drawbacks for the Taxpayers' Association Nordrhein-Westfalen e.V.

,   and  Administrator
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Enhanced Budget and Decreased Red Tape for Local Authorities in NRW: Fewer Financial Allocations...
Enhanced Budget and Decreased Red Tape for Local Authorities in NRW: Fewer Financial Allocations and Less Bureaucratic Oversight Leads to Increased Financial Control and Accountability at the Local Level

Streamlined Financing and Less Administration for Local Authorities in NRW, Focusing on Increased Funds and Enhanced Accountability

Simplifying Funding for a More Efficient NRW

A Charette

  • Paper - 165 kB: 20250617_Position_Paper_BdSt NRW.pdf

Streamlining funding mechanisms can be advantageous, but they come with an accompaniment of effort, bureaucracy, and consequent costs borne by both the state and the municipalities applying for these grants. The Association of Taxpayers NRW advocates for a considerable reduction in funding programs. In their place, they suggest an increased allocation of funds to municipalities via the communal financial equalization, in a lump sum.

Reducing Funding Programs - Empowering Taxpayers

Excessive bureaucracy and costs associated with funding practices

The Association of Taxpayers North Rhine-Westphalia (BdSt NRW) expressed their approval of the state government's and FDP faction's intentions to scrutinize the high number of funding programs during a parliamentary hearing on June 16, 2025. According to Rik Steinheuer, chairman of BdSt NRW, "The direction is on the money - now the state must show courage and strike a substantial number of programs. The administrative hurdles that arise due to funding practices are overwhelming for many municipalities and are simply too expensive for taxpayers" [Steinheuer].

Each funding program requires effort and resources: submitting applications, meeting deadlines, providing proof of use, verifying funding conditions, and more. This necessitates specialized staff in both the state and regional governments as well as municipal administrations. "We're spending taxpayers' money to help municipalities procure more taxpayers' money. That's not efficient," Steinheuer critiques [Steinheuer].

BdSt NRW's Demands

To achieve their goals while simultaneously aiding taxpayers, BdSt NRW urges the following measures during the state parliament hearing in North Rhine-Westphalia:

  • Focusing on a select few funding programs and canceling a significant portion of the state programs
  • Dispensing lump-sum funds to municipalities through the communal financial equalization
  • Simplifying and digitizing the funding bureaucracy extensively

BdSt NRW's Appeal

Whenever possible, the state should utilize insights from the expert hearing to navigate the labyrinth of funding programs. A targeted, simplified, and transparent funding practice alleviates municipalities, saves taxpayers' money, and provides more scope for investments.

Düsseldorf, June 24, 2025

[Steinheuer]: Funding practice causes high administrative costs and thus personnel and bureaucratic costs - Association of Taxpayers North Rhine-Westphalia (BdSt NRW) statement, June 16, 2025

North Rhine-Westphalia (NRW) offers a variety of funding programs aimed at fostering sustainable technologies, regional economic growth, and innovation including:

  • Geothermal Heating Incentives: NRW has enhanced state financial support for geothermal heat pump installations to encourage sustainable heating solutions. New buildings qualify for €35 per meter drilled (previously €5), while existing buildings receive €50 per meter (previously €10), offering support to residents, companies, and municipalities [1].
  • Regional Economic Development Grants (RWP): NRW invests in the Regional Economic Development Program, with the joint task "Improvement of Regional Economic Structure" (GRW) offering support through investment grants. For instance, OLEDWorks GmbH received around €4 million (10% of its investment) to expand OLED production in Aachen, bolstering innovation and local job creation [4][5].
  • Academic Fellowships: The Academy of International Affairs NRW (AIA NRW) offers scholarships supporting international academic exchange and research [2].

As for the Association of Taxpayers NRW, data available shows their focus on advocating for reduced public expenditure and lighter tax burdens, but specific actions or statements regarding funding programs or efforts to streamline these with taxpayers in mind are not detailed in the available data.

In brief:

  • NRW offers an assortment of funding programs focused on sustainable energy, economic development, and international academic activity.
  • The stance of the Association of Taxpayers NRW on reducing funding programs to alleviate taxpayer burden is not documented in the recently reviewed data, leaving their position or actions unclear.
  1. The Association of Taxpayers NRW advocates for a reduction in funding programs, which could potentially impact various state-sponsored initiatives like the Geothermal Heating Incentives, Regional Economic Development Grants (RWP), and Academic Fellowships, as part of their efforts to lighten tax burdens.
  2. In their vision for a more efficient North Rhine-Westphalia (NRW), the Association of Taxpayers NRW proposes an increase in the allocation of funds to municipalities via the communal financial equalization, suggesting that this could be a more effective approach for business and finance-related matters compared to the multitude of existing funding programs.

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