Hochtaunuskreis Faces Notable Budget Challenges (2025-2029) - Summary
The Hochtaunuskreis is facing a worsening financial situation over the next several years (2025-2029). Here’s a breakdown of the key points:
Financial Overview:
* Deficits: A deficit of 11.3 million euros is expected for 2025, increasing to 33.8 million euros for 2028/29. 2024 saw a loss of 16.6 million euros.
* Reserves: current reserves are just sufficient to cover the 2026/27 budget.
* Debt: Debt is projected to be 651 million euros at the end of 2025, decreasing slightly to 640 million euros by 2027. However, this debt is largely tied to investments, notably the school construction program, and the district is not considered over-indebted.
* Revenue vs. Expenditure: Tax revenue is increasing, but expenditure is growing at a faster rate.
* Federal funding: A one-time injection of 4.6 million euros from the federal government provides limited relief.
Key Spending Areas:
* School Construction: The district is committed to its 1.6 billion euro school construction program, with 162 million euros planned for investment in 2026/27. The expansion of the Gluckenstein comprehensive school (75.6 million euros) is a major project, partially funded by the anticipated 35 million euro sale of the old clinic site.
* Social Sector: The social sector is a major cost driver, with a projected requirement of 94 million euros by 2029. Demand for social services and youth welfare has increased significantly (67% and 68% respectively as 2018) and continues to rise. Increased funding is needed for social work in schools due to the “all-day pact.”
* Infrastructure: Investment in district roads and cycle paths will continue, including renovations of the Hunoldstal through-road (1.25 million euros in 2026) and Wehrheim (1.45 million euros in 2027/28), and a cycle path between Steinbach and Kronberg (4 million euros).
Proposed Solutions & Measures:
* cuts & Austerity: Significant cuts are necessary to avoid new debt.
* Negotiations with State: The district will negotiate with the state to reinstate the Hessenkasse (5.8 million euros per year).
* Tax Levy Increase: An increase in the district and school levy from 56.11 to 57.11 points is planned.
* Focus on Compulsory Tasks: The district will prioritize mandatory services and eliminate voluntary programs.
* Hiring Freeze: The ban on filling vacancies will be expanded.
* New Revenue Streams: The district will explore new sources of income.
In essence, the Hochtaunuskreis is facing a challenging financial future requiring challenging decisions and a focus on fiscal duty.
