Financial Matters - Authorities affirm the budget of Mansfeld-Südharz district.
The State Administration Office has given its approval to the Mansfeld-Südharz district's budget for 2024. However, this decision comes with a mandate - by the time they draft their 2025 budget, a consolidation plan must be in place. This is part of an effort to prevent any additional debt build-up or budget shortfalls, as announced by the State Administration Office on a recent Friday. "We're focused on preserving performance, as that's the only way we can make future investments," remarked Thomas Pleye, the President of the State Administration Office.
Financial difficulties within the Mansfeld-Südharz district worsened considerably due to some unfavorable court decisions. Consequently, the district's contributions have been reduced significantly, making it difficult for nearly three-quarters of its municipalities to cover their expenses entirely. The district's total debt was estimated at 157 million euros towards the end of 2023. André Schröder, the District Administrator, has revealed that, in the upcoming year, new loans will have to be borrowed. "This is unlike anything we've seen before," he said.
The gravity of the situation prompted authorities to avoid any extreme measures. Nevertheless, they intend to move ahead with multiple planned investments, including broadband expansion, the refurbishment of district roads, and the creation of regional healthcare facilities in both Hettstedt and Sangerhausen.
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The consolidation plan for the Mansfeld-Südharz district's budget in 2025 is a requirement from the State Administration Office of Saxony-Anhalt. Household finances in many municipalities of the district have been impacted due to reduced contributions from the district, resulting in budget challenges. The State Administration Office and the district's President, Thomas Pleye, emphasize the importance of maintaining performance to ensure future investments.
