Financial disagreement concerning census budget: Ministry upholds financial regulation - Financial disagreement in census proceedings: Ministry remains firm on regulation
** updated Zensus Financing Disputed: Magdeburg Finance Ministry Rejects Shift from Population Statistics**
The Magdeburg Finance Ministry has rejected proposals to change the funding of municipalities, arguing that the latest population statistics from the Statistical State Office remain the most reliable data to use. The rejection comes amidst a debate fueled by concerns that Zensus data may lead to revenue losses for some municipalities.
The dispute was discussed last week in Halberstadt, a district within Harz, where representatives from several municipalities met to deliberate the potential impact of Zensus on municipal finances. The meeting resulted in a proposal to alter the calculation of financial allocations to municipalities and use data from registration offices instead.
The financial equalization, a significant source of income for many municipalities, is based on the population determined by Zensus. If population declines, municipal funds decreases correlated.
The meeting's participants stated that around two-thirds of municipalities in the state could suffer severe losses due to Zensus, leading to potential revenue losses of over two million euros in some cases, such as Halberstadt. Halberstadt's mayor, Daniel Szarata, described the losses as unacceptable, given the greater accuracy of the registration numbers in contrast to the Zensus estimate.
Despite these concerns, the Magdeburg Finance Ministry maintains that there is currently no justification to alter the existing distribution mechanism. The ministry spokeswoman explained that no alternative data basis had been requested by the municipal associations. Although Rhineland-Palatinate uses the respective municipal registration offices for the distribution of allocations, this practice remains an exception.
It is worth noting that, in general, funding for local governments across Germany relies heavily on population statistics, with the Zensus providing the most comprehensive and updated population data. However, ongoing debates question the accuracy and timeliness of Zensus data compared to continuous municipal registration data, which may reflect real-time population changes more accurately.
Nonetheless, no formal proposals for a shift from Zensus-based to municipal registration-based allocations have been presented specifically for Magdeburg as of yet. Yet, discussions surrounding such a change continue in local government circles. A shift would require substantial legislative action and could significantly impact municipal finances.
In the ongoing discussions about the impact of Zensus on municipal finances, a proposal has been made to modify the distribution mechanism of financial allocations to municipalities, focusing on the use of data from registration offices instead of Zensus. This shift, if implemented, could potentially lead to changes in the community policy, offering vocational training programs as a viable means to bolster local businesses and make up for potential revenue losses due to changes in population statistics.
