Budget lock in Kamenz: Millions of hole stops big projects!

Budget lock in Kamenz: Millions of hole stops big projects!

Kamenz, Deutschland - An exciting, albeit worrying development, has arisen in the city of Kamenz. The city council decided on Wednesday to impose a budget lock. This decision was communicated by Mayor Roland Danz in a meeting and is due to a dramatic decline in trade tax revenue. The effects are profound and affect numerous planned projects.

The budget lock means that the city is no longer able to use already approved commitment authorizations or to carry out planned expenses. This throws a shadow on large investment projects such as the replacement building of the fire department in Wiesa and the construction of a new Kunterbunt daycare center in Kamenz-Ost, which are now on the brink. It is also critical that around 330,000 euros are frozen for personnel costs. As a result, jobs are neither newly filled nor replaced and temporary positions are not extended.

financial situation and effects

A huge hole is gaping to the city treasury - the amount of almost twelve million euros must not be underestimated. Despite this worrying situation, Mayor Danz has given the all -clear: Despite the budget lock, the solvency of the city of Kamenz is not at risk. At the instruction of Danz, the city will aim to prepare or continue projects with a high funding rate. This includes, for example, the conversion of the Lessing Museum and the construction of a combined ad. These projects should make the city more future -proof and attractive.

After the summer break, the city council has promised an interim report on the effect of the budget lock. The situation is challenging for the city administration, but not insurmountable. The effects of such household barriers are not new: they are widespread in public households. Section 3 (1) of the HGRG indicates that the approved budget can authorize expenditure and obligations, while § 25 HGRG provides that the approval for the performance of expenses or to obtain obligations is necessary if the financial situation requires it. Household blocks usually aim to achieve a budget equalization and react to endangered budget compensation through additional expenditure or less income, as well as in the explanations about household barriers [wikipedia.de].

a look into the past

In the history of public finances, household barriers are not uncommon. Their application can be traced back to various examples from the past: for example, there was a similar financial restriction in the 1950s at the University of Cologne. In North Rhine-Westphalia or Schleswig-Holstein, too, the most recently struggling measures. The reasons are often similar: additional expenses or less income that makes the necessary savings inevitable, as can be seen from the article by MDR [mdr.de].

It remains to be seen whether the city of Kamenz can be steered in the right direction by this budget lock in the right direction. The coming months will provide information about whether the planned measures can stabilize the financial situation and whether the population can understand the current difficulties.