Dresden - Latest News Updates - Saxony's Finance Watchdog Slams High Staff-Related Costs
Recently, the Saxon Audit Office heavily criticized the excessive personnel costs in the state administration. In 2022, which is the reporting period for the current annual report, personnel costs within the core budget would've amounted to an astonishing 5.2 billion euros, stated office head Jens Michel during a press conference in Dresden. He went on to say, "This is a new peak." Collectively, these expenditures make up nearly 40% of the state budget. Michel also warned us to prepare for more record-breaking spending on personnel costs year after year since wages are also climbing along with employee numbers. "Countermeasures are at a standstill," he added.
State Minister President Michael Kretschmer (CDU) had hinted that more than the existing 96,000 positions might not be necessary. The idea sprang from the demands made by individual ministries, adding up to roughly 6,000 more spots. Kretschmer's former predecessor, Stanislaw Tillich (CDU), aimed to decrease the number of state employees to approximately 70,000 by 2020, falling in line with the level of the West German federal states. Unfortunately, these plans never saw the light of day, and Tillich resigned in 2017. The ministries defend their increased staff requirements by hinting at additional responsibilities they now face.
Audit Director Isolde Haag emphasized the need for reevaluating tasks and implementing limits on personnel. She stated, "The only way to manage personnel expenses is by managing the number of positions. That's the tool." She proposed adopting an "activity-based personnel requirement calculation" as a starting point to achieve this goal.
Although many people seem tired of hearing about this issue, Michel indicated the possibility of becoming desensitized to discussions on debt and new debt. The Free State of Saxony is quickly descending into a structural financial imbalance. Nevertheless, he continued by saying they do not plan on implementing a complete rejection of financial policy, as the current situation is difficult. The economy in Saxony seems to function well financially on a daily basis, but a structural issue exists.
In the first part of their annual report, auditors also pointed out ways to save in certain areas. They recommended consolidating programs and standardizing funding. With regards to feeding prisoners in Saxon prisons, they promoted clearer distinctions between roles and a higher level of oversight, like a two-person approval process, to prevent potential corruption. The auditors suggest separating the responsibilities of ordering goods and signing invoices, stressing that these two roles should not be intertwined. Per prisoner and day, Saxony spends around 3.50 euros on food, resulting in an annual budget of roughly 4 million euros for roughly 3,300 inmates.
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Michael Kretschmer, the state minister president of Saxony from the CDU party, suggested that more than the current 96,000 positions in the state administration might not be necessary. The Court of Auditors, led by Audit Director Isolde Haag, proposed adopting an "activity-based personnel requirement calculation" to manage personnel expenses and limit positions. Authorities in Saxony have been criticized for high staff-related costs by the Saxon Audit Office, particularly the 5.2 billion euros spent in 2022, which makes up nearly 40% of the state budget. Former state minister president Stanislaw Tillich (CDU) had aimed to decrease the number of state employees to approximately 70,000 by 2020 but never managed to implement these plans.
