The Deutscher Städtetag warns that these financial limitations may lead to the elimination of voluntary services, such as cultural and sports funding, which are vital for community engagement. This situation poses a risk to local democracy, particularly as affluent regions like Bavaria and Baden-Württemberg are also affected. Economic expert Schildmann highlights that demographic changes will further challenge future budgets, necessitating a return to economic growth and prioritization of expenditures. The cumulative tax revenue losses for federal, state, and municipal governments are projected to reach €87.5 billion by 2030.