In times of tight budgets, local authorities need to rely on a fair and legally robust fiscal equalisation system. FiFo Köln, in cooperation with Professor Thomas Döring (sofia Darmstadt), has evaluated vertical and horizontal equalisation in the state of Brandenburg. Among the many findings of the study, one empirical observation stands out: The traditional 'Einwohnerveredelung' approach, in which fiscal needs increase solely according to city size – a Prussian invention –, is no longer a viable solution for Brandenburg. An evidence-based fiscal equalisation system that directly addresses municipal tasks does this crucial job drastically better. The study is now available as FiFo Report 39.