As part of the monitoring of tax income and the budget development forecast during the year, some significant additional expenses became apparent that were not yet apparent at the time of planning. In principle, it can be stated that the strict planning based on the accounting results was correct and that the set framework can largely be adhered to.

However, unforeseeable repayments of trade tax and enormous increases in social security costs have led to significant shortfalls in coverage, which cannot be compensated for in any other way due to the strict planning.

Salzgitter is primarily affected by a considerable shortfall in general cover funds, particularly in trade tax income, which remains significantly below the target values (€ -15.2 million) due to repayments and shortfalls. Other taxes and similar income, such as property tax and the municipal share of income tax, also fell short of expectations by a further € 9.4 million. At the same time, social charges in the areas of social welfare and senior citizens as well as children, youth and family increased by around € 15 million. Furthermore, an additional € 9.9 million in pension provisions must be formed due to the NVK's half-yearly assessment.

This cannot be compensated for by the increasing state funds from the financial equalization of € 9.8 million or the already announced needs-based allocation by the state of € 7.5 million, which is included in the supplement.

Salzgitter's Lord Mayor Frank Klingebiel, also in his role as Vice President of the Lower Saxony Association of Cities and Towns, has long pointed out the permanent structural underfunding of the city and many other municipalities. For example, every kindergarten that is opened as a result of the legal entitlement to a daycare place set by the federal government means that the city of Salzgitter is left with an average of around 70% of the new operating costs, i.e. currently a total of around €46.03 million per year. This structural problem was already reflected in the previously planned deficit, but is now being exacerbated by the worsening economic and social situation.

Due to the growing payment deficit, the maximum amounts for liquidity loans must also be adjusted to € 350,000 thousand in 2025 and € 400,000 thousand in 2026 (Section 4 of the Articles of Association) in order to remain solvent. In addition, the base amount for the liquidity loans must also be adjusted accordingly. In order to secure the liquidity loan portfolio, a term of up to 10 years can be concluded for 50% of the base amount on the basis of the MI's credit decree if the shortfall is not expected in the planned period. This enables the City of Salzgitter to lock in currently favorable interest rates for up to 10 years in the liquidity area. The base amount is therefore set at € 270,000 thousand.

In addition, the materiality limit for supplementary budgets is to be adjusted in proportion to the budget volume (Section 6 No. 1 of the statutes). In a municipal comparison, 3% of ordinary expenditure appears to be proportionate, i.e. approx. € 15.8 million for 2025 and approx. € 15.4 million for 2026. The percentage and no longer an absolute amount is anchored in the articles of association. This approach has already been agreed and is supported by the approval authority.

The 2025/2026 double budget was planned close to the average actual values of previous years. In addition, consolidation measures were agreed and implemented. Further consolidation is neither realistic nor feasible under the aforementioned conditions. Therefore, only the changes described are included in the planning and the statutory amounts are adjusted in order to remain solvent. No additional consolidation measures will be adopted.

Following the approval of the municipal supervisory authority on 10.02.2026, the 1st supplementary budget 2025/2026 will be published in the Amtsblatt on 04.03.2025 and will then be on public display from 05.03.2026 to 13.03.2026. The budget thus becomes effective on 14.03.2026.