Financial crisis in Stormarn: 45 million euro deficit threatens the budget!

Financial crisis in Stormarn: 45 million euro deficit threatens the budget!

There's a lot of buzzing going on in Stormarn! The district is confronted with a dramatic financial situation, which not only upsets politicians, but also worries citizens. A budget deficit of around 28 million euros is currently expected for 2023, while a skyrocketing deficit of around 45 million euros is already forecast for 2026 LN Online reported. It should not be forgotten that the district is currently debt-free, but the reserves could quickly be used up.

The financial difficulties are partly due to increasing social spending, which amounts to over 500 million euros in the budget. A key component of these expenses is integration assistance for people with disabilities. Added to this are the growing personnel costs and the increased energy costs in local public transport, which also contribute to the high burden on the coffers. In view of these challenges, the political groups have taken the decision not to create new positions in the district administration, after 30 to 40 new positions have been created annually in recent years. This was necessary in order to cope with new tasks that the federal and state governments were passing on to the district.

Continued spending increases

In 2024, Stormarn is planning a budget that includes over 500 million euros, and the deficit is also expected. The district administrator, Henning Görtz, emphasizes that the financial effects of the new naturalization law passed in Berlin will lead to a further increase in expenses. This circumstance clearly shows the growing financial burden on municipalities, according to SHZ also have to live with the challenges of a financing deficit.

The current situation in Stormarn reflects a larger phenomenon that is occurring throughout Germany. Loud Destatis In 2024, the municipal core and extra budgets showed a financing deficit of 24.8 billion euros - the highest since German unification in 1990. The municipalities saw an increase in expenditure of 8.8%, while tax revenue only grew by 1.5% and therefore cannot come close to keeping up with expenditure.

Preparing for the future

The debate about cost-cutting measures is gaining momentum. The district's voluntary services are being discussed, and possible savings in local public transport, road and cycle path construction and sibling discounts in daycare centers are on the agenda. The political group is concerned and agrees that cuts are necessary in order to maintain room for maneuver for the future. The increase in the district levy from 2027 is not far off and will result in higher payments from the Stormarn municipalities.

The remaining months and years will show how well the district is dealing with the financial situation, especially whether the administration is able to show a good hand in implementing the necessary savings measures. The citizens of Stormarn are looking forward to the developments, because there is a lot to be said about the future of the district.