Budget crisis looming: District administrator announces strict austerity measures!

Budget crisis looming: District administrator announces strict austerity measures!

There is currently a mood of alarm in Dahme-Spreewald. The current district administrator Sven Herzberger, independent, is confronted with a serious financial situation. On the occasion of a specialist day on budget security, he announced necessary savings and made it clear that the district had lived beyond its means. Ex-district administrator Stephan Loge (SPD) warned of a massive mountain of debt more than two years ago. Now things could get tight because the forecasts for the coming years are worrying.

A deficit of 42.6 million euros is expected for 2023 and 59 million euros for 2024. The total deficit adds up to over 100 million euros. Herzberger emphasizes the urgency of a budget security concept in order to restore the district's financial stability. “We have to review all of the district’s expenses,” he says, and goes on to explain that approval of the concept by the state can take up to six months. This time could be crucial for the municipality, as hardly any money can be spent during this time - except for legally or contractually binding projects.

Budget security concept on the agenda

A budget security concept, which has been anchored in German municipal regulations since 1987, is seen here as the key to salvation. The goal is clear: a comprehensive restructuring of municipal budgets, which should be achieved within a period of up to ten years. Such a concept must show how the deficit should be reduced and how future deficits can be avoided. An important point here is the need to describe measures to reduce expenditure and increase revenue. The concept must be approved by the state and it must never come at the expense of the future by using up reserves.

There is currently a risk that the reserves of 98.2 million euros will be used up by 2026 if action is not taken quickly. This could mean that voluntary functions of the district are in jeopardy. However, Herzberger assures that there will be no layoffs. Instead, other measures such as the cancellation of the 15-minute paid breakfast break for employees and a long-term reduction in the number of employees in the district administration are on the agenda. New hires and replacements for vacant positions are no longer a given.

Political commitment and regional responsibility

The discussions about financial challenges also influence municipal structures. At the last meeting of the working group on the budget, which met on October 7th, representatives of the cities, municipalities, district council groups and the staff council were present. In this context, former district administrator Loge also expressed his disappointment with the municipalities that did not use the low district levy to build schools. Social responsibility rests heavily on the shoulders of those responsible, as spending on youth and social services is chronically underfunded.

District Administrator Herzberger has pleaded for the region to be strengthened economically. In order to achieve this, approvals should be processed more quickly. But he remains realistic and does not expect much support from the state or federal government. In this challenging situation it is clear that all players are required to set the course for a solid financial future.