Overview
- Hesse’s three top municipal associations rejected the finance ministry’s description of an “agreement” on the KFA, saying key reform goals are not met.
- The overhaul bill is slated to be introduced in the Landtag next week, with changes planned to take effect on 1 January 2026.
- The ministry forecasts KFA allocations of about €7.4 billion in 2026 and €7.5 billion in 2027, which it labels a record level.
- Association leaders point to chronic underfunding, a 2024 record municipal deficit, and unresolved disputes over fixed-amount payments as central concerns.
- The ministry says the bill includes only consensus items and cites work on a “Zukunftspakt” to ease burdens, while the Greens accuse the government of misleading the public about any deal.