There is widespread consensus amongst academics and practitioners: local governments do matter. They deliver a variety of essential public services for their inhabitants. Their political systems are closest to citizens. At no other level of the political-administrative system, political processes are so approachable and ostensive, the barriers of an immediate participation of citizens so low. No other political level does offer comparable options of getting directly involved with politics and thereby influencing and shaping someone’s own real life-world context straightforwardly and effectively according to own preferences. Moreover, municipalities function as schools of democracy and build a framework for identity and social cohesion. Those functions are valuable for the state itself. Consequently, there is no lack of commitments by state officials in strengthening local government. At the core of local governments’ ability to fulfil the abovementioned functions is local public finance. It is the cornerstone of any workable local government. Without a sound financial footing, municipal governments are not able to meet the requirements requested by their citizens and the state in general.[…]