Hohenlohekreis Slashes Forchtenberg’s 2026 Budget Loans

Officials in the Hohenlohekreis district have raised concerns about the 2026 municipal budget of Forchtenberg, citing financial inconsistencies and calling for a significant reduction in planned borrowing.

The district administration (Landratsamt) objected to Forchtenberg’s budget proposal, specifically targeting the scale of intended credit financing as part of its review process. This intervention follows the presentation of the town’s financial plan, which revealed a deficit exceeding three million euros and proposed new borrowing of two million euros to cover the shortfall.

According to Forchtenberg’s treasurer, Kerstin Riek, the municipality is operating under stage three of six in the state-mandated budget balancing system, requiring the use of reserve funds to offset the deficit. Mayor Michael Foss acknowledged that while several projects had been deferred, the structural imbalance between revenues and obligations remains substantial.

The town anticipates collecting approximately 4.9 million euros in trade tax revenue for 2026, below the average of the previous five years and lower than the 2024 figure. Combined with property tax, this yields about 5.7 million euros in direct municipal income, which falls short of the estimated 7.3 million euros required for intergovernmental levies and financial equalization payments, creating a recurring gap of roughly 1.7 million euros.

Personnel costs continue to represent the largest expenditure, amounting to nearly 5.3 million euros, further straining the budget. Despite efforts to limit spending, the administration confirmed that the planned two-million-euro credit line would now be subject to revision following the district’s objections.

The situation in Forchtenberg reflects broader fiscal pressures across the Hohenlohekreis region, where a separate report indicates the district’s own deficit has risen to over 14 million euros for the upcoming year. District officials have emphasized that while austerity measures affecting operational spending are under consideration, investment in major infrastructure projects — such as the new district administration building and the hospital reconstruction in Öhringen — will proceed as planned.

Construction of the first section of the new district headquarters in Künzelsau is scheduled to begin in 2026, with completion targeted for 2029. The project carries a cost ceiling of 70 million euros, financed equally through district equity and external borrowing. Meanwhile, the new hospital in Öhringen, budgeted at 48.5 million euros, is set to open in January 2026, with operations launching in March, despite earlier delays attributed to challenges with the general contractor.

Forchtenberg’s revised financial approach will need to align with both state oversight requirements and the district’s fiscal expectations, particularly as the town prepares for the next cycle of funding applications under the regional rural development program, which recently allocated over 1.3 million euros to support local projects across ten municipalities in the Hohenlohekreis.