Wolfsburg's Financial Policy in March 2026: SAP Modernization, Start-up Support, and Budget Closures

Wolfsburg's Financial Policy in March 2026: SAP Modernization, Start-up Support, and Budget Closures

In March 2026, Wolfsburg had several central decisions on the agenda in the field of Finance and Budget. The city not only closed the fiscal year 2024, but also made strategic investment decisions aimed at strengthening digital infrastructure and fostering innovation. These measures reflect a broad range of challenges, from the financing of education to the digitalization of administration and the co-funding of cultural and social projects.

The Overall Closure 2024: Balance Sheet and Outlook

On 12 March 2026, the Committee for Finance, Controlling, and Budget Consolidation passed the decision on the overall closure 2024. The closure documents the city's financial starting position and serves as the basis for medium-term financial planning. In this context, instructions were also given for the shareholder meetings of important city-owned companies such as the Wolfsburger Beschäftigungs gGmbH (WBG), n@work Service GmbH, and Stadtwerke Wolfsburg Holding GmbH.

The 2024 balance sheet showed that the city recorded significantly higher expenses in several areas—particularly in education and culture. For example, the costs of the city's after-school support program increased by 42% compared to 2020. This trend is set to continue in the coming years, with a growing financial demand expected to rise to approximately €10.35 million by 2029. The city of Wolfsburg funds this area to 85%, while the federal government and the state of Lower Saxony cover the remainder.

SAP Modernization: Investment in the Digital Future

Another focus was the decision on the successor system for the SAP R/3 ERP system. The current system, which has been in use in the city administration for many years, is approaching the end of its support period. Wolfsburg therefore plans to switch to SAP S/4HANA using a municipal bpc template and to introduce SAP SuccessFactors for human resource management.

The costs for this transition are estimated at just under €4 million, with ongoing costs of about €1.5 million per year. At the same time, planners expect savings: €850,000 in one-time costs and €1.36 million in annual savings through increased efficiency. Compared to other cities like Munich or Leipzig, Wolfsburg is relatively cost-effective with this budget.

The decision is not only a technical one, but also a strategic one. The city wants to establish a system that can adapt to future requirements while remaining economically sound. A requirement catalog with 186 features was created to ensure the new system covers all necessary functions—from financial administration through human resource management to strategic processes.

Start-up Support: Investment in Innovation and Economic Power

In March 2026, the city of Wolfsburg also set a clear course for start-up support. A decision on own capital was made to enable the provision of unplanned expenditures in accordance with § 117 NKomVG. The goal is to strengthen the local start-up center and thus ensure the region's economic strength in the long term.

This measure is part of a larger strategy to support young companies and innovation projects. It aligns with the overarching goal of positioning Wolfsburg as a Smart City and innovation hub. The decision marks another step toward a more open, dynamic economic policy that supports not only traditional industry sectors, but also new business models.

Budget Planning and Investment Promotion: Taking Control of the Future

In addition to SAP and start-up topics, Municipal Investment Promotion (KIP III) was also a focus. The city applied for an investment grant for the procurement of an Albano system and a starting facility along with timing equipment. These investments are part of the efforts to keep the city's infrastructure modern and to introduce new technologies into the public space.

Together with the acceptance of donations and sponsorship contributions from 2026, the financial frameworks for the coming years were also reviewed. The city plans to continue co-funding projects such as the after-school support program and the Theater der Stadt Wolfsburg GmbH, even though the financial burden will continue to increase in the coming years.

Outlook: Wolfsburg's Financial Policy in Transition

The decisions made in March 2026 reflect a clear trend: the city of Wolfsburg is investing in digitalization, innovation, and social security. At the same time, it will face rising costs in education, culture, and infrastructure in the coming years. Medium-term financial planning will therefore be crucial to maintaining the balance between investments and financial stability.

The SAP modernization is a milestone for the city's digital future. The start-up support shows that Wolfsburg is ready to support new economic models. And the overall closure of 2024 as well as the investment planning for the coming years show that the city is using its financial resources carefully and with a future-oriented approach.

Wolfsburg is therefore moving along a path that is based not only on financial stability, but also on innovation and sustainability.