There are some prominent names on the list of the signing mayors: Georg Dornauer from Sellrain, Michael Ritsch from Bregenz or Elisabeth Blanik from Lienz. Together with a number of other social democratic mayors, they are sounding the alarm: the Corona crisis is driving cities and communities into a “financial disaster”.
The budgets for the year 2021 are currently being drawn up in all municipalities, and the local chief is getting a nasty surprise. Falling local taxes and revenue shares on the part of the federal government are causing local finances to collapse more than expected. It is becoming more and more clear that the communities and cities are sliding into a financial disaster due to the Corona crisis. The mayor: “The federal government is asked to respond to the plight of the communities with real help.”
Bad surprise when preparing the budget
The revenue shortfalls are “much more drastic than expected”. Mayors from all over Austria appeal to the federal government: “If the federal government does not finally act now, services that our citizens are used to from their municipalities are in danger. Large investments in order to fulfill our task as a supporter of the regional economy and thus as a job engine in the region is out of the question at the moment. “
Aid package does “not even cover half”
The federal government’s “aid package” is increasingly proving to be a “sham” and does not even cover half of the revenue shortfall. New investments, which would also be important for the further development of the infrastructure – for example the renovation of the roads, the sewer system, energy-saving measures – are hardly to be thought of because of the precarious financial situation of the municipalities and cities.
Government must “open eyes”
“The government must finally open its eyes and recognize the exceptional situation in which the municipalities and cities and thus all of our citizens find themselves. The community services for our citizens are in massive danger. Rising unemployment due to less investment by the municipalities is inevitable, ”explain the red city and municipal leaders.
2020 and 2021 will each be missing two billion
In 2020 alone, the municipalities across Austria will be missing a total of two billion euros. In the coming year, depending on how things continue with the current lockdown, it will also be around two billion euros.