District budget in the crisis: alarming deficit of 17.7 million euros
District budget in the crisis: alarming deficit of 17.7 million euros
The financial situation of the district of Cochem-Zell has deteriorated dramatically. The current district budget shows a significantly higher deficit for 2024 than initially expected. According to a report by the Rhein-Zeitung , the annual deficit is estimated at around 17.7 million euros Could reach million euros. This alarming development indicates a worrying trend that could continue to increase in the coming years.
As part of the local financial planning, the district council is obliged to submit a half -year report on the status of the budgetation at the latest two months after the end of the year. This review will be of particular interest in view of the financial situation for 2024.
causes of the financial crisis
In addition, the costs for circles 2024 have increased by over 110 million euros. This development is partly due to the increasing structural burdens from the field of social and youth welfare, which have increased by more than 100 million euros. Expenditures for mobility, such as school transport and local public transport, have also been almost quinted since 2017 and now amount to over 250 million euros. At the same time, the key allocations from the municipal financial equalization in 2024 decrease by more than 50 million euros.
future prospects and claims
The financial challenges have consequences for the planning of the circles. Many counties plan to accept new cash loans of almost 190 million euros in order to cope with the financial bottlenecks. In addition, the partnership for debt disposal of the municipalities (PEK-RP) could be endangered in three years if no adequate help are provided.
The district council therefore calls for support for financially needy circles, an increase in the country's services to circles, cities and municipalities as well as a review of the specified standards. The late approval of the households, as it took place in 2023, must also be avoided in order not to further endanger the financial stability of the municipalities.
In addition, the presidents of the local umbrella organizations comment on the financial situation on the forecast data. They emphasize the permanent imbalance of local finances and criticize the expansion of municipal tasks by the federal government and countries without adequate financing. This problem means that municipalities can only manage defects to a greater extent and that new investments are hardly possible. This also applies to necessary investments in climate protection and the turnover of traffic, which cannot be realized from 2025 due to the expected decline in local investments. According to DStGB , the municipal investment deficit is already 186 billion euros and continues growth.
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