2023-11-30 16:07:06
Vienna. Fiscal equalization has been successfully negotiated, according to Prime Minister Karl Nehammer’s statement after the Council of Ministers on Wednesday. The ÖVP leader emphasized the Future Fund as well as the health reform. This funding also includes expansion of child care. This opens up more funding opportunities for the federal states. Nehammer announced that an investment worth 4.5 billion euros will be made. „Mayors need a clear commitment when investing in child care. “We wanted to make this transparent together with the federal states so that parents can plan correctly.” said.
It was also announced that the federal government will provide additional funds for child care beyond the fiscal equalization period until 2030. It was noted that an amount of 500 million was allocated annually from the Future Fund, that this amount was secured in value and would increase with increasing inflation. In addition, another 200 million per year are reportedly leaving the kindergarten billion (by 2027).
It is envisaged that a total of 4.5 billion resources will be transferred to the system. Federal Chancellor Karl Nehammer (ÖVP) stressed in the press foyer after the Council of Ministers that “mayors need a clear commitment that if they invest in childcare, the money will be there”. Families Minister Susanne Raab (ÖVP) added that she does not want a woman to be unable to do a job due to lack of childcare. Vice-Chancellor Werner Kogler (Greens) also said he expects a better work-life balance and sees positive effects on the labor market.
Distribution of funds is based on population size
The Future Fund, considered part of fiscal equalization, allocates 500 million annually for early childhood education. By the end of the fiscal equalization period – that is, 2027 inclusive – each state is expected to either reach a 38% childcare rate for under-threes (taking into account childminders) or increase its rate by at least one percentage point each year.
The raison d’être of the second alternative is based on the expectation that it would be unrealistic for some states, especially those with great catch-up needs, to reach the 38 percent quota in the next five years. It is stated that other states, such as Vienna and Burgenland, can use the funds as they wish since they have already met the quota. Raab described the fact that the funds could be used not only for expansion but also for ongoing operations as a “game changer”.
The distribution of funds is mainly based on population size. For example, out of 500 million, 108 million goes to Vienna and 16.6 million goes to Burgenland. Half of the funds go directly to municipalities. As well as increasing the number of places for under-threes, investments will also be made to improve the quality of places and make them compatible with a full-time job.
A new childcare monitor will be released for the first time in March. The purpose of the report, broken down by region, is to better identify progress and current deficiencies and to ensure that resources are used in line with demand. The report will then be published each year in the autumn, based on the latest data from the Austrian Statistical Institute, which also runs the project. The information will be publicly accessible via an interactive map. (yenivatan.at)
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