District Faces Severe Financial Crisis, Debt to Double by 2028
The district is facing a significant financial challenge, with a projected deficit of 13.7 million euros for the remaining two weeks of the current budget year. The situation is expected to worsen in the coming years, with debt set to almost double by the end of 2028.
The district's investment program for 2025 includes payments of 70.6 million euros, which will contribute to an increase in debt. To address this, the district plans to gradually increase the district surcharge by one point each year, reaching 58 percent by 2028. However, even with this increase, the debt is projected to exceed the 300 million euro mark by the end of 2028.
The budget for 2025 was passed with a deficit of 28 million euros and a new debt of 39 million euros. While the surplus reserve of 49.7 million euros could balance the budget, it will be a tight squeeze. The district council approved the budget with a broad majority, four abstentions, and one negative vote. Despite an increase in the district surcharge, the 2025 result budget still has a gap of 28.25 million euros. The budget includes a detailed 630-page numerical work, as described by Landrat Jens Grote.
The district is also increasing its subsidy for daycare centers by 6.4 million euros, bringing the total to 20.5 million euros by 2028. This increase is primarily funded and managed by the county authority (Landkreis Heidekreis) as part of its education strategies and master plans, such as the Masterplan Bildung adopted by the county council (Kreistag) in 2023.
The district's financial situation is precarious, with a projected deficit and significant debt increase in the coming years. While measures are being taken to address this, such as increasing the district surcharge and boosting daycare center subsidies, the district faces a challenging road ahead to balance its budget.
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