Household crisis in the district: 45 million euros deficit beat waves!

Household crisis in the district: 45 million euros deficit beat waves!

The district of Hersfeld-Rotenburg faces massive financial challenges, which are reflected in an intolerable budget deficit of over 45 million euros. The current budget situation is so serious that the Kassel regional council questions the approval of the budget for 2025. District Administrator Torsten Warnecke (SPD) was communicated in an official letter. In order to achieve a budget compensation, the district's bodies must be active and significantly reduce the deficit, such as HNA reported.

The current budget situation becomes even more precarious, since the existing reserves of around 10.9 million euros are not sufficient to cover the deficit. The district's equity is already used up, which further restricts the financial scope. In addition, the budget for the ongoing operation of the district group expects expenses of around 40 million euros, which only tightens the situation. The approval of a budget is not possible without taking these financial burdens into account, emphasizes President Mark Weinmeister (CDU).

measures and challenges

Reform measures to improve the budgetary situation is necessary, and a planned increase in the overall lifting estate in the district and school levy by 3.6 percent does not ensure a sustainable positive development. In addition, the planned increase in the job plan could make the approval procedure more difficult by almost 30 to a total of 805 jobs, provided that these new bodies are not financed by appropriate funding. This is particularly critical, since the district was only approved in 2024 under the edition of a revised household.

Without an approved household, the district office is currently acting with a provisional housekeeping. This means that only urgently needed projects and ongoing costs can be covered. Every new investment requires a preliminary permit, and grants are severely restricted without approved budget. The municipal budget is usually largely dependent on the decision by the responsible councils, as it is emphasized in the explanation on Kommunalbrevier

The context of municipal finances

The situation in the Hersfeld-Rotenburg district is not an isolated case, but reflects a more comprehensive problem in municipal financial policy. Experts, including the presidents of the municipal umbrella organizations, warn against permanent imbalance of local finances. They call for a larger proportion of community taxes and an improvement in the financing of tasks issued by the federal and state governments. The record deficits of the municipalities mean that new investments are increasingly not to be feasible, and the necessary funds for climate protection projects and the turnaround are at risk, such as DStGB reported.