Budget worries in districts and municipalities
Budget worries are not just a concern for federal politicians at the moment. Many treasurers in the districts and municipalities of Mecklenburg-Vorpommern are also worried about the future, according to a survey conducted by the German Press Agency. Rising personnel, construction and energy costs, for example, are causing them problems. "The costs are running away from us," Thomas Deiters from the MV Association of Towns and Municipalities told dpa. At the same time, the economy is slowing down, which is becoming clear in the construction sector, for example. More people are in need of state support, not least for increased housing costs.
The state capital Schwerin and previously the district of Vorpommern-Greifswald had recently imposed budget freezes. The district of Vorpommern-Rügen does not want to rule out such a step for the coming year. It even says that it sees "the fulfillment of public services at risk in the future due to the financial situation". In particular, reference is made to cost increases in the social sector.
Youth and social services particularly expensive
In neighboring Vorpommern-Greifswald, youth and social services will account for almost 80 percent of all expenditure in the coming year. There are many recipients of assistance in the region, it said. At the same time, there is a gap in covering these costs.
In Northwest Mecklenburg, these areas account for two thirds of the budget. "Increases in costs and case numbers are noticeable here." The general price trend, but also increased salaries in the facilities, are therefore having an impact. The district of Mecklenburgische Seenplatte expressed a similar view. As elsewhere, the budgetary situation is currently rather tense or in deficit.
The district of Rostock is also talking about cost increases in these areas. Services transferred from the federal and state governments are sometimes delayed or not sufficiently financially compensated and sometimes have to be claimed first. The situation is also no better for many municipalities from which the districts receive money via the district levy. "We are currently assuming that this budget crisis will manifest itself in the coming years." This is not a good framework for the challenges of our time, such as digital change and the ecological transformation of local transport.
Shortfalls and reaching into the piggy bank
The Ludwigslust-Parchim district wants to accept budget deficits in 2024 and 2025 in order to avoid asking municipalities to pay more. These are to be balanced out again from 2026 in times of a recovering economy.
According to current plans, Rostock, the largest city in MV, will only be able to balance the upcoming double budget thanks to reserves from previous years. In the Hanseatic city, the social and youth sector accounts for almost half of expenditure. The city's own contribution will increase by millions.
Expensive climate targets
The city of Greifswald recently made further cuts to its budget planning, for example in the areas of youth and social affairs and culture. The aim is to achieve a balanced budget in 2024. The situation is difficult, but manageable. The city of Wismar considers borrowing to be unavoidable in the future. A major challenge is the implementation of the climate targets. Technical and financial support is needed here. Stralsund also points to the federal regulations on municipal heat planning as a factor for imminent additional expenditure. At the same time, federal subsidies are in danger of being withdrawn.
According to Deiters, the amounts paid by local authorities to districts have more than doubled over the past ten years. Even if districts do not increase the percentage share of the district levy in their budget, the amounts have simply risen due to the overall increase in expenditure.
The financial strain on municipalities in Mecklenburg-Vorpommern extends to household expenses, as more people require state support due to increased housing costs. In some districts, the social and youth sectors, which can be considered as household-related services, account for a significant portion of the budget, leading to budgetary challenges. For instance, in Vorpommern-Greifswald, youth and social services will account for almost 80% of expenditure in the coming year.
Source: www.dpa.com
