As of: March 7, 2024, 2:13 p.m
By: Sabine Fleischer
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With a volume of 272 million euros, the district is facing financial challenges: levy increase to 55 percent, looming debts of over 100 million euros and austerity constraints characterize the draft budget for 2024. © Monika Skolimowska/dpa/archive image
High expenses, possibly less income, investment stops and debts at record levels - this week the draft budget for 2024 with a total volume of 272 million euros was presented to the district and finance committee.
District - The municipalities should now pay a 55 percent levy if the district council approves on March 22nd.
The committees recommend this - despite some dissenting voices - also in the hope that some things may turn out better than expected.
For district administrator Andrea Jochner-Weiß it was a 10-year anniversary, for district treasurer Norbert Merk it was a dozen or so: both have now presented the district budget ten and twelve times respectively.
It became clear last year that this would not be easy when the district councilors rejected an adjustment to the key figures on which budget planning is based (we reported).
As a result, both spoke of a “herculean task sewn on edge” (Jochner-Weiß) and “no alternative planning in view of an otherwise impending hospital insolvency” (Merk).
Weilheim-Schongau district: District budget 2024 - record debts and investment stop despite higher levies
The general conditions are anything but rosy: hospital support, high inflation and energy prices, increase in credit costs, possible decline in business and property tax income, more personnel costs due to wage increases in the public sector, hardly any own funds for investments and high expenses due to migration/social assistance and additional requirements in mobility (MVV membership) and climate protection.
Therefore, the 2024 budget is essentially characterized by: increasing the district levy from 54 to 55 percent in order to be eligible for approval - a debt level that will break the 100 million euro mark at the end of 2024 (comparison 2023: 78 million euros) - no significant free Financial margin if a problem arises - an enormous investment backlog in terms of building renovation, climate protection, road maintenance, sports facilities and education - high expenses for hospitals and asylum/social services.
The financial requirements for the hospital GmbH are and will remain a heavy burden in the coming years.
In 2024, 27 million euros are earmarked for this, and in the following years around 14 to 15 million euros annually plus additional investment costs for the Weilheim location and liquidity protection.
“The draft budget exudes a hospital from every pore,” said District Councilor Falk Sluyterman (SPD), stating the “strangling effect” on the district’s finances.
Nevertheless, he voted for it.
Weilheim-Schongau district: District budget 2024 - record debts and investment stop despite higher levies
According to the district treasurer's office, the 2024 budget would not be feasible without an increase in the district levy to 55 percent.
Merk rejected the idea that this would place an undue burden on the communities.
The financial strength of the individual municipalities was looked at very closely in cooperation with the mayors.
“Not a single person would end up in economic difficulties as a result of this increase.”
However, some district councilors doubted whether an increase in the levy of “just” one percentage point would be enough.
“55 percent are not honest,” explained district councilor Manuela Vanni (Independent).
You can't stop everything and stop spending money on schools, buildings and education.
Franz Seidel (BfL) also commented in this direction: “We cannot transfer these financial problems to the communities and burden the next generation with our investment backlog.” Both rejected the draft budget.
Investment stop
Merk further emphasized that there was no further savings potential apart from the 15.5 million planned savings.
“The schools only have 50 to 60 percent of their previous funds available, and spending on our district roads has been reduced.
Only what is already in the pipeline will be addressed.” By 2027, around 40 million euros will be spent on upcoming construction projects (e.g. Gymnasium Weilheim gymnasium, Peißenberg secondary school extension), further construction work amounting to 30 million will be postponed to 2028.
“We would actually have to invest ten million euros a year in our construction infrastructure,” says Merk.
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Due to the high expenditure, 23.5 million net new debts are also planned for 2024.
This means that the debt level jumps to 101 million euros at the end of the year, which corresponds to a per capita debt of 731 euros (comparison 2023: 562 euros).
Unfortunately, it is not the case that taking out a loan would leave a little more money for the free financial margin.
Merk compared this reserve to “a shot glass for a swimming pool.”
There is also little scope for voluntary services such as school social work or cultural support.
Higher waste fees
The extent to which the district citizens will feel the effects of the precarious budget situation will become clear over the course of the year.
The district treasurer has already announced that they will have to pay more money for waste disposal on January 1, 2025.
“Approximately 30 to 50 percent more waste fees are expected from 2025 due to high personnel and disposal costs,” explained Merk.
The exact calculation will be made in the fall.
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