Cantonal Council SG City of St. Gallen temporarily receives higher equalization payments

The city of St. Gallen will receive higher compensation for special burdens from the canton for four years. This was approved by a narrow majority in the cantonal council on Tuesday. The additional CHF 3.7 million per year is linked to various conditions.

The effectiveness of financial equalization is reviewed every four years in the canton of St. Gallen. The issue of the system is also discussed: St. Gallen is an exceptional case with its completely vertical equalization. With the exception of Appenzell Innerrhoden, all other cantons rely on co-financing by financially strong municipalities.

The majority of the Council believes that this should not change. The main topic of discussion on Tuesday was the City of St. Gallen's demand for higher special burden sharing. According to a recent study, it has around CHF 12 million in uncovered central burdens.

The government proposed a four-year increase of CHF 3.7 million in each case. The condition is that the burden-sharing between the city and canton for cultural institutions is reviewed and cooperation between the cantonal and city police is expanded.

No further payments

The SVP wanted to cancel the additional 3.7 million for the capital. This was the only way to "bring the city's left-wing spending policy down to earth", said SVP parliamentary group leader Sascha Schmid. The other parliamentary group countered that this was a compromise.

The deletion proposal was rejected by 57 votes to 52 with six abstentions. However, the Council majority then passed a mandate with further conditions for the payments by 68 votes to 46. Among other things, there must be no further increase in the special burden equalization in the coming years.

It must also be examined whether the city's center services could be billed to non-cantonal municipalities or other cantons in the future.

SDA