Tight budget situation throughout Germany - City of Offenbach also cuts jobs

Offenbach City Council is currently working on the budget for the coming year. According to an initial assessment by City Treasurer Martin Wilhelm, the budget situation for 2025 is significantly worse in Offenbach than it was at the same time last year: "As always at this point in time, the calculation of the financial resources that the city receives via the so-called municipal financial equalization (KFA) is not yet available. We are therefore not yet able to provide any concrete figures on the amount of the foreseeable shortfalls. However, in the social, youth and school sectors, for example, the specialist departments are reporting considerable additional requirements compared to what was known when the last budget was adopted. In some cases, these are in the double-digit million range. In addition, additional requirements in the youth sector worth millions have already been announced for the current financial year. This is compounded by the fact that the trade taxes planned in the 2024 budget, which were deliberately set well below the good annual result for 2023, are still unlikely to be achieved. The general economic crisis is also making itself felt in Offenbach."

In view of this numerically first, but in the combination of all individual points extremely clear assessment of the 2025 budget, the municipal council decided today, Wednesday, on a so-called "refill ban" for all positions.

Lord Mayor Dr. Felix Schwenke emphasizes: "People are hearing almost daily in the news from the federal and state governments that the financial situation for budgets is currently very difficult. This is no different in Offenbach. The people of Offenbach can therefore rightly expect us to react to this and immediately try to spend less money - also and above all on ourselves as a city. However, everything in life always has a consequence. More gaps in our staffing levels will initially save taxpayers' money - but in some places it will also mean that the administration will be less efficient for the population."

With the "refilling ban", the city administration stipulates that vacant positions will not be refilled until three months after a person leaves. In the meantime, work is left undone or has to be done by colleagues, which is often not possible. It has also been decided that potential promotions for civil servants will be postponed for three months. The magistrate's decision is expected to reduce municipal expenditure by 2.6 million euros over a period of 12 months. The ban on reappointments will initially apply indefinitely. In addition, the city will not advertise the positions created in 2023 and 2024 but not yet filled until 2025. City Treasurer Wilhelm looks ahead: "We immediately started to identify potential savings at various points. We as the city council are aware of the implications of the decision for personnel. However, we must exploit all possible savings potential step by step. This is the only realistic way to achieve an approvable budget for 2025. The current situation requires enormous budgetary discipline."

For each budget plan, the specialist departments announce the financial requirements for the coming year. The treasury department checks all budget applications. At the beginning of the summer, all options are explored in order to adjust the notified requirements so that a balanced budget can be submitted for approval by the supervisory authorities for a resolution in parliament. This is the only way to ensure that the city can fulfill all its tasks for its citizens. All specialist departments have already cut project funding in discussions with the treasury. The city group is also currently looking intensively for ways to make savings. Unlike in previous years, these joint efforts by the specialist departments have not yet been sufficient.