Landrat Calls for Shift in Funding of Social Costs - CDU’s Will Demands Social Welfare Reform to Ease Local Budget Crises
Thomas Will, the district administrator of Groß-Gerau and the proposed Chancellor candidate of the CDU, has penned an open letter to Chancellor Friedrich Merz and Finance Minister Lars Klingbeil. In it, he urges a reform of social welfare funding, warning of unsustainable budgetary strains on local governments. The letter echoes the concerns of district administrators nationwide.
Will argues that the principle of 'who orders must pay' should be reinstated to restore fiscal responsibility and local self-governance. He points to the surging cost of social transfer payments as the primary driver of budgetary imbalances in county finances. In Groß-Gerau County alone, social transfer payments surged by over €28 million between 2023 and 2024, while revenue from fiscal equalization grants fell by €2.6 million in the same period.
Will warns that this budgetary strain may result in higher local taxes, ultimately placing a heavier burden on residents. Chancellor Merz has pledged support for municipalities, acknowledging that they face severe pressures from rising costs in various social welfare areas. Indeed, monthly care expenses for those classified under Care Level 4 often exceed €5,700, forcing individuals and their families to rely on social assistance. Merz conceded that local governments face an unsustainable burden but emphasized the need to manage social welfare funds more responsibly.
Will's appeal supports the earlier letter sent by the mayors of Germany’s state capitals, calling for an overhaul of social welfare funding. With the cost of social transfer payments continuing to rise, local governments face a challenging fiscal landscape. The reinstatement of the 'who orders must pay' principle could help alleviate these pressures, ensuring sustainable local finances and fairer taxation for residents.
