The financial crisis facing municipalities in North Rhine‑Westphalia has worsened dramatically over the past year. According to the latest cash‑flow statistics, the budget deficits of local governments rose to €9.4 billion last year, said Marc Herter, mayor of Hamms and chair of the Städtetag NRW (SPD), to the WAZ in its Monday edition. “That’s 37.5 % more than in 2024. It’s really a case of five after twelve” he remarked.
Herter described the local budgets as “in free fall” and urged the state government to provide immediate relief by raising the municipal support rate in the Municipal Financing Act to 28 %. “With this measure, the state – which has consistently run surpluses in recent years – could hand over an additional €3.6 billion to the municipalities, thereby making a fair contribution to the burden of local responsibilities” he said.
The cities are asking the federal government for an annual emergency aid package of €30 billion, roughly matching the combined deficit of all cities, towns, and districts. This aid would be financed by shifting a larger portion of the VAT revenue to the municipalities. “Municipal budgets in NRW are especially strained by the many tasks that the federal and state governments assign to them without providing adequate financing” Herter criticized.