Proposals have already been put forth by the Commission.
In many German cities and municipalities, a pressing issue has arisen: the staff shortage in the communal cash office. This is largely due to the position being less attractive, requiring specific bookkeeping qualities that are not always found among the current workforce.
The municipal codes and constitutions require the appointment of a cash office manager, a role that is crucial for ensuring timely payments, including social benefits. However, cash law is rarely taught in the training of administrative newcomers, resulting in a lack of qualified cash personnel.
Municipalities must remain competitive for basic mandatory tasks to be staffed. The remuneration structure for the cash office manager position is unattractive, making the search for a new cash office manager a long-term challenge in some places. Salary groups 5 or 6, traditionally associated with this role, are no longer attractive to qualified applicants from the private sector.
Not everyone is comfortable handling cash, and dealing with citizens is a necessary skill for cash office personnel. Professionally and appropriately managing "angry calls" regarding allegedly unjustified reminders is a key responsibility. Flexible working time models, home office, or an adjustable-height desk are no longer special incentives but rather standard requirements for attracting talent.
The North-South divide in Germany's municipalities is evident. While cities like Munich, known for its wealth, are facing financial distress, others such as Kiel, Rostock, Baden-Baden, and even North Rhine-Westphalia are grappling with severe financial problems. The year 2024 marked the highest municipal deficit since reunification, with many imposing budget freezes in 2025.
Measures being discussed or implemented to improve the situation include large-scale budget cuts, targeted savings programs, and significant investment funds. The federal special fund of 100 billion euros for infrastructure and climate neutrality projects is intended to shore up municipal finances and infrastructure. Simplifying bureaucratic hurdles for accessing these funds is also being considered.
In an effort to address the cash management issue, KOMMUNAL will host a special webinar on the topic on 29.09.2025. Registration information can be found on their website. Inter-municipal cooperation in the field of bookkeeping and cash management may be necessary in the long term. Proper bookkeeping is crucial for correct daily and annual closing in the cash office.
Despite a decrease in cash transactions, cash remains present in municipalities, often preferred by payers. This underscores the importance of addressing the staff shortage and ensuring the smooth operation of the communal cash office. The future of Germany's municipalities depends on it.
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