Budget lock in Magdeburg: Mayor takes action

Budget lock in Magdeburg: Mayor takes action

The city of Magdeburg faces a financial challenge that has far -reaching consequences for the urban budget. Mayor Simone Borris has imposed a budget lock that comes into force from September 1st to December 31, 2024. This measure became necessary after the forecast for the annual result 2024 predicted a deficient result in the double -digit millions.

The reasons for the budget lock are diverse. A significant increase in expenses, especially in the social sector, as well as rising personnel costs and returning tax revenue have led to this situation. Borris explained that it was of the utmost importance to minimize the current shortfall in order to create the prerequisites for an approval -capable budget 2025.

Financial cuts and expenses blocking

With the entry into force of the budget lock, only necessary expenses may be made that have already been contractually determined or concern ongoing and unpleasant measures. All other expenses to which the city is not legally obliged are completely blocked. This also affects third -funded projects that do not exceed a certain grant.

The current deficit is considered alarming, which is why the city administration has already initiated measures to save money. An important step in this direction is the temporary setting of new hires and the locks that have become vacant in the administration, which should apply from October 1, 2024. Exceptions are only intended in mandatory cases.

The challenges of urban finances were already illuminated at the last city council meeting on August 15th. Borris informed the members of the council about the critical situation and the approaches offered to stabilize the finances of the state capital. A central point remains the preparation of the budget for 2025, the draft of which is currently being created by the city administration.

outlook on the 2025 budget

After the budget lock, a preliminary budget will apply in January 2025, while the final budget for 2025 will be adopted in the first quarter. The draft will be discussed in the city council's committees from November 2024 before it will be set to vote in February 2025. This shows the committed effort of the city administration to create a solid basis in order to minimize future financial risks and at the same time maintain necessary services.

Overall, the budget lock is a clear signal for the current financial situation of the city of Magdeburg and requires immediate measures to stabilize housekeeping. The situation will continue to be followed carefully to find a sustainable solution to the challenges that affect the city community.

The state capital Magdeburg is therefore faced with a critical phase that requires both planning and a strict expenditure control. Time will show how sustainable these measures are and whether the city can successfully master the financial challenges.