Lower trade tax and higher expenditure on integration assistance

The German economy is shrinking. At the same time, inflation remains high. The increased costs, which many people are feeling in their everyday lives, are also having an impact on the city. Higher expenditure for integration assistance in the youth and family sector as well as significantly less income from trade tax make a supplementary budget necessary for the current 2024 financial year. "I intend to introduce the supplementary budget in the fall," announces City Treasurer Martin Wilhelm.

As in many other municipalities, expenditure on assistance for families, their children and young adults has been rising for some time. This is legally regulated support from the Youth Welfare Office for families who are legally entitled to such support if necessary. Conversely, it is in the interest of the youth welfare office that the existing services are also used in the best interests of the child. The support is aimed at families, children, adolescents and young adults and ranges from counseling services in the event of separation and divorce to taking children into care if remaining in the family would endanger the child's welfare.

Expenditure on integration assistance for children and young people who need support with school attendance (learning support at school) has risen particularly sharply. Currently, the average expenditure for integration assistance for mentally disabled children and young people (Section 35a SGB VIII) is around one million euros per month, with school support accounting for the largest share of this assistance. Overall, additional costs of five million euros are expected for 2024. At the end of July, the amount spent on this service in 2023 as a whole had already been exceeded. At over 150 cases per year, the number of children taken into care is also above average - still an effect of the pandemic. As a rule, these families in particular require intensive support over many years. Children and young people often have to be cared for outside the family in homes or foster families on a long-term basis. In addition, the Hessian Youth Welfare Commission has decided to increase wages by almost 11% at the end of 2023 - and therefore after the budget for 2024 has been drawn up. This increase will affect all assistance in the area of personnel costs and therefore also the budget. Overall, the Youth Welfare Office anticipates an additional requirement of 12 million euros for the area of "educational assistance" this year, which will be included in the supplementary budget.

"At the same time, income from trade tax is also not developing as planned. The stumbling economy in Germany is also having an impact on Offenbach. Higher costs on the one hand and less income on the other cannot be cushioned in the short term by cost-cutting measures alone," explains City Treasurer Wilhelm. "We need a city council resolution for the additional expenditure and are therefore taking the supplementary budget route so that the city can continue to meet its legal obligations. In the process, we will also reduce the 90 million euros from trade tax to 85 million euros."

The aim is to have the supplementary budget adopted by the city councillors in October. The budget for 2025 can then probably no longer be adopted in December, but will have to be postponed to January 2025. The following is already foreseeable: "The known case numbers and cost increases this year will continue next year. The city's finances will become increasingly tight. We will therefore have to make further savings so that we can draw up an approvable budget for 2025 and beyond."