Bavaria: Municipal financial equalization increases to 11.3 billion

Munich (dpa / lby) - The state government will increase the financial equalization for Bavaria's municipalities next year to 11.3 billion euros. That is 765 million euros more than this year, an increase of 7.2 percent, as Finance Minister Albert Füracker (CSU) said on Saturday after the annual round of negotiations with the municipal umbrella organizations. That is a new record level. "The Free State of Bavaria remains a safe anchor for the Bavarian municipalities." City Council President Markus Pannermayr (CSU) described the result as a "workable compromise". The municipalities had demanded more, driven by concerns about deficits and exploding costs in local public transport, hospitals, public utilities and refugee accommodation.