Lower Austria quadruples funding for municipal cooperation

Lower Austria will raise annual funding for cooperation between municipalities from 5 million euros to 20 million euros, ORF reported.

The state government approved the increase at its meeting on Tuesday. The money will be provided as grants to support municipalities working together to reduce costs as they face strained finances.

The amount each municipality receives will depend on the tasks it transfers to a municipal association and its population. Supported projects include cooperation on bookkeeping, collecting waste and water fees, and employing official experts.

State Governor Johanna Mikl-Leitner said cooperation could help municipalities pool resources, save money and serve residents more efficiently. The state government said the aim was to use public funds more effectively and cut costs.

A proposed amendment to the Municipal Associations Act is also due to be discussed in the state parliament on Thursday. It would make cooperation easier and reduce bureaucratic hurdles, including by allowing municipalities to add tasks to an existing association without approval from every member municipality. Resolutions by the municipalities concerned and the association’s assembly, followed by approval from the state government, would be sufficient.