The district of Starnberg is considered the epitome of prosperity, but its financial situation tells a different story. Rising debt, increasing expenditures, and limited revenues are putting the district under increasing pressure. Debt is approaching €100 million, could double in the short term, and could even reach €280 million in the long term. Despite high purchasing power, many top earners, and a high quality of life, the district of Starnberg lacks financial flexibility because structural problems in its municipal financing system are becoming increasingly apparent.
Starnberg District Under Constant Financial Stress
District Administrator Stefan Frey is speaking unusually openly about the situation, as the dynamics are causing concern even among experienced district councilors. Several elected officials view the development as critical; one CSU councilor even spoke of a “turning point.” This assessment points to a growing budget crisis that cannot be solved through short-term savings. The Starnberg district is taking on tasks that should actually be more heavily borne by the federal or state governments, which is placing a permanent strain on municipal finances.
A key cost driver is the municipal hospital network. The locations in Starnberg, Herrsching, Seefeld, and neighboring Penzberg ensure high-quality medical care but regularly incur deficits. The district covers more than 35 million euros annually. Frey points out that around 30,000 people are treated as inpatients each year. “If these hospitals were to close, these patients would have to travel to Munich,” he explains, emphasizing that even large hospitals could hardly handle this volume.
Public Transportation and Infrastructure as a Cost Factor
In addition to medical care, public transportation places a significant burden on the district budget. Around 14.6 million euros are budgeted for the bus network next year. In more prosperous times, the service was deliberately expanded because mobility was considered a key factor in the district’s attractiveness. Today, the district operates 41 bus routes, and there is also an express connection to Geltendorf.
Frey defends these investments but emphasizes the change in strategy. Efficiency is now the focus because empty buses are no longer financially viable. The focus is shifting from expansion to consolidation, a politically sensitive issue, but one considered necessary. This development demonstrates how closely infrastructure and debt levels are intertwined.
Educational Investments Between Aspiration and Reality
Spending continues to rise in the school sector as well. The construction of a new high school in Herrsching and the renovation of the Tutzing high school are tying up considerable funds. At the same time, the planned construction of a new vocational high school is becoming increasingly unlikely, even though demand is rising.
Frey states this with unusual clarity. “We will no longer build the vocational high school in its current form,” he says, referring to temporary solutions that could become permanent. More than 400 students are currently learning in several buildings on the edge of an industrial park. Nevertheless, the district administrator emphasizes the quality of the school, demonstrating that budget cuts do not automatically mean a decline in quality.
Why Wealth Hardly Strengthens Municipal Finances
Many observers wonder why a region with so many top earners is experiencing financial difficulties. Statistically, there are 24 income millionaires per 10,000 inhabitants in the Starnberg district. Nevertheless, municipal finances hardly benefit from this because income tax is capped, and it is primarily the trade tax that determines available resources.
Municipalities with many successful companies are therefore in a better position than purely residential areas. Added to this is a complex system of apportionment, in which municipalities transfer more than half of their revenue to the district, while the district passes on almost a third to the regional level. Then the fiscal equalization system comes into play, further restricting the scope for action. Frey therefore speaks of a structural problem that will persist without reforms.
Interest Burden, Warnings, and Political Explosives
The growing debt is generating additional costs, as interest payments alone will exceed ten million euros in the next four years. District Treasurer Stefan Pilgram speaks of a worst-case scenario but sees little relief in sight. He warns that the municipal financing system is reaching its limits.
Special payments from the Free State of Bavaria recently provided temporary relief, but these were one-off measures. With upcoming elections in mind, this support is being interpreted politically. One thing is clear: without structural changes, the Starnberg district faces a permanently strained budget situation, despite its prosperity, lake views, and high incomes.