Karlsruhe redistributes financing: the city decides to loosen budget restrictions towards culture sectors
Ready to dive into the financial whirlwind of Katharina Peifer's city in 2025? Buckle up, 'cause we're about to get real here!
Back in February, the city spoke up loud and clear during a presser, emphasizing the need for a budget freeze for the current year. Just a few short weeks later, the city council rubber-stamped the city administration's implementation proposal. Their goal? To save approximately 35 million euros in equalization payments to municipal companies. The remaining 15 million euros was earmarked for targeted savings in individual departments.
By May, their planned budget deficit had ballooned by 2.7 million euros. Adjusting their strategy, the city now aims to save 36.3 million euros at municipal participation companies, while amping up their goal for the remaining 15 million to 15.3 million.
Staffing costs in the crosshairs of savings measures
The city wants to make some major moves on the personnel front, aiming to slash over 2.2 million euros. Their playbook includes filling vacant positions less frequently, scrubbing training and educational opportunities, and streamlining work processes. But here's the kicker – the bulk of savings, around 14.3 million euros, is set to come from reduced expenditure. And who's gonna feel the squeeze? Cultural and social services, of course!
Canceling sibling fee exemption in daycare centers
In a move that's likely to be met with tuneful protests, the city won't be implementing the fee exemption for siblings in daycare centers as originally planned in 2025.
Scattered funding for cultural institutions
As for cultural offers, the city has decided to tighten its purse strings, cutting subsidies by a skinny 1.3 percent. This affects both project-related funding and the budgets of its own institutions like the Cultural Office, City Library, Municipal Gallery, City Archive, and Historical Museums.
Cuts in cultural project funding and association subsidies
Cultural project funding is set to take a big hit, with a 15 percent reduction on the cards, as well as a complete freeze on association subsidies in 2025 – except for 450 euros that have already been doled out due to a previous resolution.
Midwives and early support services cut by half
In the social arena, families can expect cuts in support offers. The budget for welcome talks by midwives is slashed by 50 percent, as is the budget for the early support (project "Midwives in family centers").
Seasonal reduction of baths for cost savings
To trim personnel costs, the city plans to reduce the opening times of outdoor and indoor swimming pools in 2025.
Less expenditure for road construction and maintenance
The city's also got infrastructure in its sights, holding off on plans to mark bike lanes in Hoffstraße and Gartenstraße, delaying the expansion of the moat, and opting for less frequent street greening maintenance to save a pretty penny.
- In an effort to save money and reduce expenditure, the city is aiming to implement significant changes in the financial aspects of both business and municipal operations, with savings measures targeting staffing costs, cultural and social services, and infrastructure projects.
- As part of the cost-saving measures in 2025, the city is considering reducing expenditure on cultural project funding and association subsidies by 15%, canceling the fee exemption for siblings in daycare centers, and cutting subsidies for cultural institutions by 1.3%.
