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🇩🇪 Germany /Economy & Trade

Magdeburg must keep cutting costs and sharply raise daycare fees

From Die Zeit · () German

Translated from German and summarized by DistantNews. Read the original for the full story.

At a glance

Newswire From a news agency New plan
  • Magdeburg's administration has proposed raising daycare fees by 44% in 2027, followed by further increases in 2028 and 2029.
  • The city also plans higher parking charges and enforcement, while leaving some grants for clubs and cultural activities unchanged or higher.
  • The draft 2027 budget remains €47 million short, and the city council is scheduled to vote on the consolidation plan in November.

Magdeburg residents are set to feel the pressure of a municipal budget crisis, with daycare fees at the center of a new round of unpopular savings measures.

A consolidation plan prepared by the city administration proposes a 44% increase in daycare contributions in 2027. Fees would rise by another 15.3% in 2028 and 13.3% in 2029. Magdeburg expects the changes to generate additional revenue in the low single-digit millions of euros.

We can no longer avoid adjusting our previously very low fees.

· Simone BorrisThe mayor explained why Magdeburg proposed steep daycare-fee increases.

The plan also calls for higher parking fees in the city center, more checks on parked vehicles and increased speed enforcement. Other measures have already taken effect, including higher admission prices at cultural institutions, a lodging tax and adjusted property-tax rates. Dog tax has also increased.

Mayor Simone Borris, an independent, said the city had reached the limit of its financial capacity. She cited steadily rising social spending, sharply higher construction costs, heavy interest burdens, high personnel costs and what she called an unfair distribution of funds by the federal and state governments.

We have long since reached the limit of our financial capacity.

· Simone BorrisBorris described the city's financial position while presenting the consolidation plan.

The administration itself is expected to deliver the largest savings. For more than two years, vacant posts have been filled only restrictively, leaving almost 500 positions unoccupied and saving about €15 million a year. The city aims to save nearly €200 million by 2034.

The draft 2027 budget projects revenue of about €1.022 billion against spending of roughly €1.069 billion, leaving a €47 million gap. New borrowing would total around €122 million, while investment spending is planned at almost €180 million. The city council is due to decide on the consolidation plan on November 5 and the 2027 budget on December 7. Despite the cuts, subsidies for clubs and cultural life are expected to remain stable or increase.

Despite the difficult budget situation, the city administration is sending another signal for quality of life in Magdeburg.

· Magdeburg city administrationThe administration justified maintaining or increasing support for clubs and cultural activities.
About this summary

Originally published by Die Zeit in German. Translated, summarized, and contextualized automatically by DistantNews, with a note on how the source frames the story. Not individually reviewed before publishing. How this works.

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