Land and City Linz: closely related, but not always friendly

Land and City Linz: closely related, but not always friendly

LINZ "Threat of exit" from the theater contract: There are many other financial agreements.

Hospitals, cultural institutions, transport: reciprocal obligations exist between the Land Oberösterreich and the city of Linz. Image: KUK

The announcement of Linz Mayor Klaus Luger (SP) to withdraw from the theater contract with the State of Upper Austria has also added to the state's relations with the state capital. For decades, mutual ties have been called into question: an opinion "could blow everything up," suggested the governor Thomas Stelzer (VP) in a first reaction.

Senior politicians say that the city-city relationship can not be a "one-way street". The country is already working on a comprehensive study of mutual financial relations. Because they are numerous: detailed financial arrangements to subsidies. An overview of the most important links:

culture: According to the proposed theater contract, the city will donate around € 14 million each year to the Theater und Orchester GmbH (TOG: Landes- und Musiktheater, Bruckner Orchester). The municipality LIVA (Linz Event GmbH with Brucknerhaus, Tips Arena, Stadium, Posthof) is funded by the state with about seven million euros. With 1.2 million euros, the state supports the ACS (see also page 15).

infrastructure: Major transport projects, whether in public or public transport, are inconceivable without the participation of the city and the countryside. Although Westring is built by Asfinag, 10% of the costs are borne by the state and 5% by the city of Linz. The construction of the A7 Halbach Dornach is also cost-shared: with around € 16 million, the city pays a third, the rest of the land and Asfinag.

The new construction of the railway bridge is also co-financed: contractually, a cost sharing at 40:60 has been agreed between the State and the city for an amount of about 57 million euros.

The second Linzer railway axis, whose cost is estimated at around 300 million euros, is a nonfinanzierbar without participation. There is no agreement, but a basic agreement of 2015, according to which the country would pay 55, the city 45%. This key should also apply to costly general planning of around € 30 million. For the extension of the tramway to Traun, the state pays Linz AG a kilometric share for the operation.

In the TV show OÖN of yesterday, this topic was also treated:

Hospitals and Faculty of Medicine: The health and hospital sector shows in particular how inter-related and interdependent financial relations between cities and countryside are. At the Kepler University Hospital (KUK), which is to be introduced under the auspices of the new "Austrian High Society of Health Holding GmbH", as well as the Gespag State Hospital (according to the OÖN), the city of Linz holds 25.1%. This gives the city an annual financial commitment of around eight million euros, calculates Luger. An exit from the city is discussed, but Luger pointed out that the city was contractually bound in 2023. And this is linked to another agreement: from the beginning until 2020, the period of elimination progressively was extended in 2016, in return for the agreement on the financing of the Danube Bridge.

The city of Linz contributes to the costs of building the faculty of medicine promised by the federal state (222 million euros until the final construction) as part of the five percent share of municipalities according to their size.

The persistent financial dispute: The break-up of differences is also a controversial dispute over the last year about "internal financial equalization". Luger regularly accuses the country that payments to the country of 125 million euros, including 55 million hospital fees, have almost doubled since 2004.

The vice president of the country is still angry: the country invests intensely in Linz and pays for its activities in the city a "considerable municipal tax".

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