Dispute Over Vienna District Budgets: Criticism of Planned Cuts by City Government

Following the round table on the local tax, districts are now also mobilizing: The head of the Inner City, Markus Figl (ÖVP), is calling for negotiations on the budget, as the city hall has announced plans to freeze funds for the districts. The measure is part of the package to consolidate the city's finances. Figl - who is also the designated state party leader of the ÖVP - warns of negative impacts if the district budgets do not increase.
A savings package is currently being put together in Vienna. Important key points have already been announced. However, it has been shown that not everything is set in stone with the planned increase in the local tax. After criticism from industry representatives and the Chamber of Commerce, the measure was weakened. Figl is now also hoping for this.
People's Party and Greens criticize lack of discussions
He complained to the APA that not only the budget for 2026 is affected. In another letter from Finance City Councilor Barbara Novak (SPÖ), it was noted that there will also be no more money in 2027, he reported. Discussions on this have not taken place. The People's Party was presented with a fait accompli. Green district leaders have also already complained about this approach. In contrast, understanding was expressed by SPÖ district leaders.
Figl warned in any case that there will be impacts on the daily lives of residents. For example, the renovation of sidewalks and streets could proceed more slowly. Furthermore, delays in the maintenance of green spaces and playgrounds are expected. Funding for clubs, events, or festivals could also be cut. Investments in schools could also be postponed, he predicted.
Doubts about the effectiveness of the measure
Figl further pointed out that the budgets for 2026 have already been prepared. It is generally doubted that the measure will have the desired effect. According to calculations by the People's Party, the expenditures for the districts this year account for only 1.4 percent of the entire city budget.
"The districts should not be made to pay just because the SPÖ-NEOS city government cannot manage economically. It is precisely the districts that are present in everyday life for the people of Vienna and ensure direct contact with the people through their proximity to citizens," Figl stated. He called for "immediate" negotiations with the districts. As a long-term measure, he suggested, among other things, establishing a district financial equalization.
SPÖ detects "attempt to distract" by the ÖVP
The city district chief assured that he did not want to save on expenses related to children or schools. At the same time, however, he again called for a change to what he considers the "unfair system" of Vienna's minimum income. The city has already announced cuts for families in this area. However, the ÖVP misses a tiered approach to child benefits.
The SPÖ reaffirmed in a response that they are committed to the consolidation path - and held the ÖVP accountable. The black-green federal government has simply "let the inflation pass through," they complained. Austria's inflation is twice as high as the EU average. Blaming the city for this is a transparent attempt to distract. The reallocation of budgets is necessary to implement important projects, the SPÖ club assured.
(APA/Red)
This article has been automatically translated, read the original article here.