Potsdam on the abyss: 285 million euros in budget deficit by 2028!

Potsdam on the abyss: 285 million euros in budget deficit by 2028!

The city of Potsdam faces major financial challenges that will play an important role in the coming years. Mayor Mike Schubert and treasurer Burkhard Exner recently informed the parliamentary group leader and city council about the current budget planning until 2028. This presentation took place in the Committee on Finance and Economy and highlighted the concerns of the city.

A central topic of the meeting was the expected overall deficit, which amounts to 285 million euros. The two managers warned of an alarming development in the municipal households, which not only affects Potsdam, but also represents a nationwide problem. External factors such as inflation, rising wages and inflation of construction and services contribute to the deficit, which endangers the city's ability to act. "We live from our reserves that will soon be exhausted," explains treasurer Exner.

financial effects and challenges

The forecast annual shortfalls, which also result in higher financial equalizers from the country, vary from 63 to 87 million euros a year to 2028. The year 2025 is expected to end with a short amount of 69.5 million euros, followed by 87.2 million euros in 2026.

"If we find no ways to significantly reduce the expenditure, we ultimately destroy our solvency," Exner continues. Currently, the liquidity of 266 million euros has dropped to 183 million euros, which puts the city into a precarious situation.

The city administration has already taken measures to reduce expenses. However, it is clear that this alone will not be enough to bring about a turn. The dependence on reserves that were originally intended for important investments could have fatal consequences.

goals for the future

In order to improve the financial situation sustainably, those responsible have defined clear goals. The budget equalization is to be achieved by 2028 so that the city can preserve its guarantee ability to secure municipal companies. In addition, measures are planned to ensure the long -term investment ability of the city and maintain the existing tasks in the computerly area.

• Securing the urban infrastructure and the support of transformation processes such as the energy and traffic transition.
• Structured workshops for budget constellation are scheduled for November 30 and December 14, 2024.

"Potsdam is a city worth living, and that should remain so in the future," emphasizes Burkhard Exner. The focus is on sustainable and balanced budget planning that takes into account strategic priorities. The city administration plans to involve the citizens and city council in the decision -making process and to provide transparent information about the challenges and planned measures.

For more information about the budget and the financial strategies of the city of Potsdam, interested citizens can have a detailed report on cityreport.pnr24-online.de view.