Budget in Esslingen: austerity measures and rising debts by 2030!

Budget in Esslingen: austerity measures and rising debts by 2030!

The city of Esslingen is facing significant financial challenges. On October 7, 2025, the city administration presented the draft for the double budget 2026/2027. The figures presented show a tense budget situation, characterized by increasing expenditure and at the same time declining tax revenue. This leads to a deficit forecast of 24.7 million euros for 2026 and 2.1 million euros for 2027, putting the city's financial stability at risk. In addition, the debt level is expected to rise from 68 million euros to almost 99 million euros by the end of 2030.

Finance Mayor Ingo Rust emphasized that Esslingen has less debt than the national average. Despite the tense situation, the draft budget envisages investments of around 100 million euros over the next two years. In order to finance this, the city plans to take out 43 million euros in the form of loans. The focus of investments is on the expansion of daycare centers and schools, the renovation of roads and bridges and the digitalization of administration. At the same time, however, around 200 jobs in the city administration are to be cut by 2030 in order to reduce expenses.

Budget freeze and savings

Mayor Matthias Klopfer imposed a budget freeze until the end of the year in order to maintain control over the financial situation. Trade tax revenue is expected to be 18 million euros lower than originally planned. In order to ease the burden on the budget, across-the-board cuts of 3% in personnel and material costs are planned for 2026, followed by 5% in 2027 and 12% from 2028. These savings particularly affect office supplies, fees and consulting costs.

The city is planning savings in material and personnel costs by 2030, with the main reasons being the falling income from trade tax and the increased personnel costs due to collective bargaining. Personnel costs currently amount to over 100 million euros per year, which accounts for the majority of the city's expenses. Savings in full-time positions should be realized through retirement and unfilled positions, without redundancies being announced for operational reasons.

Perspectives for Esslingen

The city is also focusing on increasing efficiency through digital processes that are intended to help automate and simplify administrative processes. The digitalization process could help save human resources in the long term, while at the same time the city wants to offer its services in high quality. Despite the tense situation, Esslingen remains optimistic that it will be able to meet the challenges with structural adjustments.

In summary, the draft budget for the coming years shows the balance between necessary savings and important investments. The coming months will be crucial for the city's financial future, while ongoing projects, such as the redesign of the Esslingen market square and other infrastructural measures, are to be continued. The largest part of the investment will go into land acquisition, especially into the Flandernhöhe university campus, which could benefit the city in the long-term development.

It is therefore essential to take a look at the specific investments in the budget that form the basis for positive development:

For further details on the budget situation in Esslingen you can read the reports from Esslinger newspaper and esslingen.de see.