States demand share of pensioners’ health contributions

Austria’s state governments want a share of increased health insurance contributions paid by pensioners, saying the funds have not received any of the revenue so far. ORF reported that Vorarlberg Governor Markus Wallner made the demand at a state finance officials’ conference in Bregenz on Friday.

Wallner said the increased contributions were expected to generate about 2.69 billion euros through 2030, but none had gone to the states’ health funds. He said the issue had been raised with the federal government several times and still needed to be resolved.

States seek clarity on funding

The states also want the flow of funds clarified before responsibilities are redistributed between the federal, state and municipal governments as part of a reform partnership. Wallner, Vienna Deputy Mayor Barbara Novak and Tyrol Governor Anton Mattle said the Finance Ministry should begin negotiations.

They pointed to plans for common standards in early childhood education and a proposal for education directorates to take responsibility for all staff at compulsory schools. Progress had been made on early childhood education, they said, but its funding still needed work.

Wallner called for discussions with the federal government on existing and additional funding “on an equal footing”. He said a reform of school staffing, estimated at 700 million euros, would also be relevant to the next fiscal equalisation agreement and that its funding must be settled before new laws take effect.

Novak described the Finance Ministry and state finance officials’ lack of involvement in the reform partnership as a flaw that should be corrected quickly. She said their expertise was urgently needed as initial policy decisions took shape, and identified health care as one of the biggest remaining challenges.

Mattle said changes to early childhood education should be matched by an automatic adjustment to federal funding when they have financial consequences. He also criticised what the states called the “rocket-and-feather effect” at petrol stations: rising crude oil prices are passed on quickly, while falling prices are reflected more slowly. The states urged the federal government to address the issue.