District Approves 2025 Budget With Deficit and Debt Increase
The district has passed its 2025 budget with a significant deficit and increased debt. The budget, approved by a broad majority of the district council, includes a rise in the Kreisumlage rate and an increase in the subsidy for daycare centers. The debt level is expected to reach 169.3 million euros by the end of 2024.
The 2025 budget was approved with a deficit of 28 million euros and a new debt of 39 million euros. This increase in debt is partly due to the rise in the Kreisumlage rate from 49% to 55%. The budget also includes a planned shortfall of 11 million euros to cover the structural underfunding of hospitals, which will be supported by a transformation fund established under the hospital reform.
The district expects to increase the subsidy for daycare centers by 6.4 million euros, from 14.1 million to 20.5 million euros. The budget's commitment authorizations are set at 21 million euros. The investment program foresees payments of 70.6 million euros in 2025, with debt projected to exceed 300 million euros by 2028.
The 2025 budget, while balancing the books using the surplus reserve of 49.7 million euros, reflects the district's commitment to supporting daycare centers and addressing hospital underfunding. Despite the increased debt, the district council voted for the budget with a broad majority, indicating a consensus on the necessary financial measures.
