Leipzig's daycare future in danger: basic agreement terminated!

Leipzig's daycare future in danger: basic agreement terminated!

On June 30, 2023, the Leipzig city administration announced the basic agreement on the operation of daycare centers and child day care with independent providers as of December 31, 2025. This decision is part of a necessary budget consolidation, which is due to new savings requirements from the state management. The termination was discussed at a special meeting of the Youth Welfare Committee (JHA) after the deadline for termination expired on June 30th. This short-term decision was critically discussed in public.

The city of Leipzig plans to negotiate new agreements with independent providers under broad austerity dictates. The Association of Central Associations in Leipzig (AGW) in particular expressed considerable concerns about this measure. She criticizes the fact that a negotiating group has been in place for 1.5 years to revise the daycare basic agreements, whose efforts are being undermined by the termination. AGW points out that the termination damaged the trust between the negotiating partners because the existing agreement was not adhered to.

Financial challenges in the daycare landscape

There are currently around 4,000 unoccupied daycare places in Leipzig, with 2,000 considered unnecessary. This situation has been exacerbated by the closure of 18 daycare centers. In addition, providers report that there is often a lack of money for urgent renovation measures. The financing structure of the daycare centers is largely based on state funds, while the municipal share is now to be reduced. This reduction could further jeopardize the financial stability of the institutions.

The city is planning to switch from flat-rate cost billing to peak cost billing. This approach should lead to a cost reduction of 1.5 million euros per year. The parental contributions for crèche and kindergarten places, which are determined differently from region to region, are also a critical point. These contributions should not exceed more than 15 to 30 percent of the community's average personnel and material costs, which could certainly pose a challenge given the new financial conditions in Leipzig.

Political reactions and outlook

City councilor Juliane Nagel (Die Linke) emphasized the urgency of ensuring care for all children in Leipzig and redesigning daycare financing. The Office for Youth and Family emphasized that the termination was the result of a lack of agreement with the providers and new requirements from the state directorate. These developments contribute to a serious situation in the Leipzig daycare landscape.

The acting head of the office, Mr. Kamphausen, said that the termination was unavoidable in order to ensure that the city had a budget situation that could be approved. The city of Leipzig calls on the Free State of Saxony to contribute appropriately to the additional municipal expenses. It remains to be seen whether negotiations with the independent providers will lead to a stable and fair solution.