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City of Offenbach

Offenbach supports Mansoori's proposal for the distribution of funds

06.08.2025

Offenbach am Main joins other major cities in Hesse in calling for a fair distribution of the money to the municipalities when it comes to the question of how the federal government's special fund should be distributed. "We have seen this for years: The federal and state governments decide on new tasks and the municipalities then have to pay for them somehow. This financial burden is becoming a problem for more and more cities - including Offenbach, of course, for a long time now," says Lord Mayor Dr. Felix Schwenke. "We are working hard to renovate schools and daycare centers as a key priority of our work. They are the main investments in the budget. However, the promotion of culture and associations and support for voluntary work are not something we can cut back on at will, as these are the things that ensure social cohesion in our city. Over the years, our financial leeway has become increasingly limited. The fact that there is a great ray of hope for the end of the decade in Offenbach is something we have worked for ourselves. We expect the federal and state governments to leave us our ability to act for our citizens and not take it away." Mayor Schwenke and City Treasurer Martin Wilhelm therefore expressly support the proposal by Hessian Minister of Economics Kaweh Mansoori to make 77 percent of the special funds for infrastructure that Hesse receives from the federal government available directly to the municipalities and districts. In total, the federal government intends to pay out 100 billion euros to the federal states and local authorities.

The calculation fits - three quarters of investments in the future are implemented locally, i.e. by us municipalities for our citizens. That is why the funds from the federal government must also reach us directly

City Treasurer Martin Wilhelm

Despite the tight budget situation, Offenbach continues to invest with visible results. For example, 75.3 million euros were invested in education in the 2024 financial year. Since 2007, 80 percent of Offenbach's children have attended new or completely renovated daycare centers. And of the approximately 18,700 pupils, 50 percent are already learning in modernized school buildings. "These achievements are indispensable for the quality of life in our city and for the future of our children. But also cleanliness, safety, affordable housing, more green space in the city center, a good bus service and enough other things: everything that makes up the quality of life in a city, the city must also be able to pay for," says Mayor Schwenke.

City Treasurer Martin Wilhelm also sees a need for action with regard to the city's finances and welcomes Mansoori's initiative: "Thanks to the austerity measures we have taken and the high reserves we still have, we are currently able to bridge the financially difficult situation in Offenbach. However, the opportunities to save money are finite, we have new and expensive compulsory tasks from the federal and state governments for all-day care and the reserves are expected to be used up by 2029." By then at the latest, higher revenues will be needed, for example through taxes or the municipal financial equalization scheme, which at least partially refinances the city's statutory tasks. "This growing underfunding, which is affecting more and more local authorities and was confirmed again just last week by the Bertelsmann Foundation, presents us with enormous challenges and, in the end, it is the citizens who suffer. The unfair distribution of money holds great political and social explosive power. What we need is not additional tasks, but more money and a fair distribution of the burden. Minister Mansoori's proposal is therefore a welcome step towards more justice in our country," emphasized Wilhelm.

Mayor Schwenke concludes: "It is also to be welcomed that the federal and state governments agreed shortly before the summer break that the federal government would pay the costs of its tax policy measures to revitalize the economy and economic situation in Germany itself. Unfortunately, it has been a very long time since this was the case. Here, however, Federal Finance Minister Lars Klingbeil has come to his senses and that is a good thing."

This is because the local authorities bear the main burden and are therefore entitled to the majority of the funds. When the federal government cuts taxes, it cuts its own and not ours. In the end, this is good and right for all political levels: the money is needed where people live: in their municipalities.

Lord Mayor Dr. Felix Schwenke

Explanations and notes