Diepholz district is in financial crisis – investments are urgently needed!

Diepholz district is in financial crisis – investments are urgently needed!

There are important decisions to be made in the Diepholz district. The financial situation is tense, and the 2024 annual financial statements show a significant loss of 17.76 million euros. Despite these negative figures, which result from a mismatch between income of 462.1 million euros and expenses of 479.88 million euros, there are glimmers of hope. As the District newspaper reports, treasurer Christian Gießelmann emphasizes that the district's long-term financial performance is “still” present despite the current challenges.

The investment requirement for the future is enormous. Projects such as the expansion of the broadband network, the construction of a central clinic and the maintenance of the district roads require a total of around 34.8 million euros. But the options here are very limited. At the end of 2024, the cash balance is expected to fall to just 3.8 million euros, which will further restrict financial leeway.

Budget 2025 under pressure

Spending for 2025 also shows a worrying trend. The budget contains planned additional expenditure of around 160,000 euros compared to the original plan, as stated Weser courier reported. A negative result of around 18.2 million euros is expected in the overall plan. Ordinary income will be around 474 million euros, while expenses are expected to be around 492 million euros.

In addition, the district plans to create 21.47 new jobs, which will entail additional costs of 610,000 euros. Given the looming deficits, credit authorization must be considered from 2025 to cover current expenses, which could further aggravate the financial situation.

Lower Saxony supports the municipalities

At this critical moment, the support of the state of Lower Saxony is proving to be important. The state government plans to distribute over 61 billion euros to the municipalities over the next four years, including around 15 billion euros in the coming year alone. Prime Minister Olaf Lies underlines the importance of these funds to address the needs of citizens and strengthen municipal infrastructure according to the country's information.

This is particularly critical because the Diepholz district currently has debts of around 1.5 million euros. A balanced budget appears to be a distant prospect in the near future as financial demands continue to increase and revenues do not grow at the same rate. The district has an exciting year ahead that will require intensive discussions and decisions about how to deal with these challenges.