Waldeck-Frankenberg district: 20 million euro deficit threatens in 2026!

Waldeck-Frankenberg district: 20 million euro deficit threatens in 2026!

In the Waldeck-Frankenberg district, the budget for the coming year is under a powerful shadow. The administration expects a deficit of almost 20 million euros for 2026. District Administrator Jürgen van der Horst recently explained the strained financial situation in the district council and in a conversation with the HNA. Revenues cannot cover expenses, and the situation is further exacerbated by the stagnating German economy, which has been stalling since 2019/2020.

A sad record is emerging: in 2024, German municipalities had a negative financing balance of around 24 billion euros. For 2025, experts predict a further overall deficit of around 35 billion euros. This is leading to an acute liquidity crisis as many municipalities have already used up their reserves. Investments in infrastructure have fallen by around 25 percent. This is alarming!

Budget planning and infrastructure investments

The Waldeck-Frankenberg district plans to use around 46.2 million euros for infrastructure projects in 2026. Roads, schools and the urgent renovation of the district center in Korbach are particularly on the agenda. In order to reduce the net new debt somewhat, the administration is hoping to raise around 3.4 million euros from a special fund. Over a period of twelve years, a total of over 40 million euros will flow from this special fund into the district budget.

Despite the tight budget situation, the district is also thinking about employees: personnel costs amount to 71.8 million euros, and careful cost control is being worked on. Loans amounting to 39 million euros are required for the necessary infrastructure investments, but hope for an improvement in the financial policy situation remains.

Research and need for reform

The hospital industry remains a major problem child, accounting for around two thirds of the deficit at around 13.5 million euros. A merger of the clinics is planned to reduce losses. These and other factors are forcing the district administrator to urgently call for reforms at the federal level that are intended to help municipalities, especially with social spending and the distribution of tax resources.

Considerable increases in spending on youth welfare and refugee aid are putting additional pressure on the already heavily burdened budget. The results budget expects income of 376.1 million euros, while the planned expenditure is 395.6 million euros, resulting in a deficit of 19.5 million euros. Many people in the district council and in the administration agree: There is an urgent need for a rethink here.

In these economically challenging times, it is important that those responsible develop a clear plan to stabilize the budget in the long term. It remains to be seen what steps will be taken to defuse the critical financial situation in the district.