Double budget 2026/27: Introduction

Lord Mayor Dr. Frank Nopper continues: "This controlled slowdown is - for reasons of intergenerational fairness - linked to the short and medium-term goal of keeping new debt as low as possible. It is linked to the medium-term goal of achieving annual surpluses again by the 2031 financial year. In other words: The 2026/2027 dual budget is an austerity budget, but it is an austerity budget with moderation and moderation."

The supplementary budget for 2025 still had a volume of EUR 5.87 billion. For 2026, the draft budget provides for a volume of EUR 5.26 billion, while the figure for 2027 is EUR 5.38 billion.

Despite the already planned improvements from the budget protection concept of around EUR 300 million and around EUR 330 million respectively, the current draft budget for 2026/2027 still shows worryingly high deficits: EUR -487.2 million for 2026 and EUR -303.8 million for 2027. Against this backdrop, the consultations on the double budget will be particularly difficult. In the past two years, it was still possible to offset deficits with surpluses from annual financial statements, but such free funds are no longer available.

Finance Mayor Thomas Fuhrmann makes it clear: "Even if the state capital of Stuttgart is currently still debt-free in its core budget, it can no longer rest on its laurels. In order for the plan for the next double budget to be submitted to the regional council for approval, the deficits for the next two years must not increase. In future, it will no longer be possible to make up any shortfalls in the budget with liquid funds, as the calculated free liquidity of the state capital Stuttgart will be below zero at the end of 2025. It is therefore imperative that the municipal council approves further improvements in earnings during the budget consultations."

According to current planning, the ordinary results in the budgets for the coming years are as follows

In order for the draft budget to be approved, improvements in earnings of at least EUR 300 million for 2026 and EUR 330 million for 2027 are absolutely essential in the next two years. These are already included in the draft budget, but most of them still need to be backed up with specific measures.

Finance Mayor Fuhrmann explains: "The 2026 and 2027 budgets are structurally underfunded, as no sufficient cash surpluses can be generated to finance the new investments. The follow-up costs from projects, measures and job increases that have already been decided will also burden future budgets, which will further limit the financial scope of the state capital. As it will not be possible to generate sufficient funds in the income budgets to finance the necessary new investments, borrowing totaling EUR 2.4 billion has been budgeted to balance the financial budgets in the years 2026 to 2030. In order to prevent this billion-euro debt as far as possible, we must take countermeasures with the highest priority."

Against the backdrop of the dramatic financial situation of local authorities throughout Germany, the state capital Stuttgart commissioned an  expert report in the summer to clarify the extent to which local authorities are entitled to financial compensation if they have to implement federal or state requirements. According to the report, local aut expert report in the summer to clarify the extent to which local authorities are entitled to financial compensation if they have to implement federal or state requirements. According to the report, local authorities must implement such requirements and, if necessary, postpone their own tasks, which may affect or violate the core of local self-government.

In view of the extremely tight budget situation, not all projects already approved by the municipal council can be implemented. In future, priority will be given to replacement and maintenance investments.

Mayor Nopper says: "In this difficult and tense situation, we should and must concentrate on the essentials. On maintaining, renovating and modernizing our municipal infrastructure and thus our schools, daycare centers, bridges, roads, paths and streets. On maintaining and improving the functionality of the administration, especially the functionality of the citizen-oriented areas of the administration. On the implementation of projects that have already been started, because stopping projects that have already been started would be associated with considerable economic disadvantages."

As the federal and state governments are increasingly transferring new tasks to local authorities, often without sufficient funding, the scope for action is becoming narrower. As a result of this development, the state capital Stuttgart is also increasingly bound by statutory obligations, while voluntary services in areas such as culture, sport and social affairs can only be continued to a limited extent. The German Association of Cities and Local Authority Associations warn that local authorities have their backs to the wall if new obligations are not accompanied by financial resources. In order to secure its own ability to act, the state capital Stuttgart is relying on cross-departmental cooperation, prioritization and consistent budgetary discipline. In the future, Stuttgart will push even harder for reliable co-financing of new tasks vis-à-vis the state and federal government in connection with connectivity.

The speeches for the general debate of the parliamentary groups on Thursday, November 6, from 3 p.m., and the opening speeches for the final third reading on Friday, December 19, from 8.30 a.m., in the main meeting room of Stuttgart City Hall will also be broadcast via livestream.

The double budget will be adopted on the evening of December 19 and published promptly on stuttgart.de.