The budget situation in Bielefeld is escalating: City Treasurer Rainer Kaschel plans to disclose the financial status on April 21, while a massive tax shortfall of up to €100 million is already anticipated. The weak economy is squeezing revenues from business taxes. Furthermore, the situation on the energy market is dampening hopes for a rapid recovery. Instead of the planned €340 million, significantly lower revenues are now looming, following an initial adjustment at the end of 2025. The consequences will affect the entire city: A budget freeze is looming, and at the same time, cuts to culture, sports, and social services are threatened, along with lower standards for new school buildings and a severe austerity program for personnel. (nw: 12.04.26)
Business tax shortfall impacts city’s core finances
Business tax revenues are declining significantly more than expected, while the economic downturn continues. The city had already lowered its forecast for 2025 at the end of that year, but the situation now appears to be worsening. As a result, the pressure on the administration is increasing with each new cash balance report.
Kaschel hasn’t yet released any new figures, but he isn’t dismissing the warnings either. His concise assessment is: “Bad.” He also points out that the figures are currently changing daily.
Extensive cuts in services and staffing
The city will therefore have to make cuts primarily in areas where it isn’t obligated to spend. This would affect culture, social services, and sports, while cuts to new school facilities are also looming. For many residents, this would have direct consequences in their daily lives.
The pressure is also mounting on staffing. Around 80 additional positions are reportedly being requested for the upcoming budget, while only about half would be refinanced by the federal or state government. Kaschel makes it clear: “Things can’t continue at the current level.”
Budget freeze likely – planning in jeopardy
Bielefeld is spending almost two billion euros this year, while 124 million euros must come from the city’s reserve fund. High deficits were already factored in, but now a further deterioration is looming. Therefore, it is becoming increasingly difficult to stabilize the financial situation on its own.
The budget for the coming year will likely not be presented to the council at the beginning of September as planned. The next tax revenue forecast in May is also unlikely to provide much relief. A budget freeze is therefore considered probable, meaning that initially only the most essential expenditures would be made.
Political goal slips out of reach
The CDU and SPD were determined to prevent a budget stabilization plan, as this would allow the district government to impose strict austerity measures. However, this goal is now in jeopardy, while the city’s financial leeway continues to shrink. Whether such intervention can still be avoided remains to be seen.