Budget lock in Magdeburg: Mayor warns of deficit

Budget lock in Magdeburg: Mayor warns of deficit

The city of Magdeburg is faced with financial challenges that Mayor Simone Borris (independent) have prompted to impose a budget lock. These measures were announced on Friday and have applied since September 1st to the end of the year. The reason for this drastic decision is a current forecast that predicts a deficit in the household in the double -digit million range by the end of 2024. This difficult situation is increased primarily by increasing social expenditure, higher personnel costs and falling tax revenue.

In her explanations, Borris emphasized the need to intervene in the existing housekeeping. "The current forecast for the budget result at the end of the year requires intervention in our current housekeeping," said the Mayor. Their goal is to minimize the budget deficit and to create a solid basis for creating an approved budget for 2025.

rules of the budget lock

But how does a budget lock actually work? In this special case, this means that only mandatory expenses are allowed. This includes contractually mandatory, ongoing and unexpected measures, while all other voluntary expenditure is stopped for the time being. In addition, from October 1, a temporary stop for vacancies will be implemented for vacancies in the administration, whereby necessary exceptions are taken into account.

Borris made it clear that there are no drastic cuts in swimming pools or cultural institutions. Rather, she wants to thoroughly examine the current expenses. It must be weighed whether certain investments, such as the Gieseler Hall or the lodge house, are actually immediately necessary. "You could also have the courage to put something in private hands," she noticed, in order to make it clear that urban institutions do not always have to remain in local responsibility.

long -term challenges

Another important concern of Borris is the increasing burden on the municipalities through new tasks, which are often transmitted without the necessary financial means. "We are obliged from the state or federal government to implement a law for which we have to set up tens of personnel positions from one day to the next. This situation would make it more and more difficult for the municipalities to fulfill their duties. "That has to stop. If we have to take on services, the money must also follow one to one."

The budget for 2025 will be discussed in the city council's committees from November. Magdeburg will have to work with a preliminary budget at the beginning of the year, since the final approval of the budget can only take place in the first quarter of 2025.

It is not the first time that the city administration in Magdeburg is confronted with a budget lock; Borris had already taken similar measures last year. These developments throw a light on the ongoing financial difficulties with which many cities in Germany are fighting. The pressure caused by increasing social expenditure and falling income could have long -term effects on urban services.