Finances 127 million for financially weaker Schwyz municipalities and districts

The financially weaker municipalities and districts in the canton of Schwyz will benefit from a total of CHF 127 million in 2025 as part of the intra-cantonal financial equalization scheme. Due to the reformed law, this is around a third more than in previous years.

The financially strong municipalities and districts will pay CHF 67.5 million of the CHF 127 million, with the remainder being paid by the canton, as detailed in a press release issued by the State Chancellery on Thursday.

The contribution guarantees and obligations are based on the reformed law for the first time. The financial equalization was restructured from the ground up and now includes resource equalization, burden sharing and structural contributions.

As part of the horizontal equalization of resources, the five financially strong municipalities of Wollerau, Freienbach, Feusisberg, Altendorf and Lachen as well as the district of Höfe support the financially weak districts and municipalities with CHF 67.5 million, according to the statement.

The previous equalization of tax capacity was financed exclusively from contributions from the financially strong districts and municipalities as well as from shares of property gains tax revenue. According to the press release, these tax revenues from property gains will now remain entirely with the canton.

In return, the canton will make additional contributions of CHF 36.2 million to the districts and municipalities as part of the vertical equalization of resources. The resource equalization of CHF 103.7 million in total serves to ensure that the individual districts and municipalities have sufficient financial capacity and mitigates the differences in tax capacity.

Municipalities with above-average financial challenges due to their geographical and social structure are supported with a total of CHF 20 million as part of the equalization of burdens. The municipalities of Lauerz, Steinerberg, Morschach, Illgau and Riemenstalden will receive additional structural contributions of CHF 3.3 million. The equalization of burdens and the structural contributions are financed exclusively by the canton.