Municipal finance - how to get out of misery?
From 396 municipalities in NRW are already to get 137 no longer in a position to approve a financial assurance concept, meaning they can no way to show how they will show in a period of 4 years that a balanced budget. 35 municipalities in NRW are already in debt, ie they will one Nothaushalt. Only 8 municipalities in NRW can provide even a balanced budget (revenues equal to expenses).
already the previous government in NRW had invited two professors, guidance and Junker Henry, to show ways out of this never before seen so much financial crisis. In the State in Dusseldorf and the interior minister and local hunters now waiting for the arrival of the opinion. Even before its publication but the four ways out of financial crisis are known, will propose that the report:
a) The federal government must be based on social spending
part b) the country has its municipal finance rearrange
c) there must be a financial balance between the local authorities give
d) the municipalities must provide debt relief concepts
yesterday said Minister hunters at local political forum of the NRW Bank in D'dorf how his house, the most important steps presented to the redesign of municipal finance:
e), the country has already 300 million € for distressed municipalities willing and wants to put in a "pact strengthen city finances," another 3000 - to 400 million available . Make They should not be poured on the troubled cities and municipalities, but rather requires that the participating municipalities to participate actively with a consolidation plan.
f) no other state has such a strict time regime for the restoration of a balanced budget in a community, as only other state in general, Saxony-Anhalt, a time limit and control calls for financial recovery within nine years. NRW will have available the same result but in four (!) Years. Thus, most municipalities eligible for approval without financial backup policy to cope - even Geilenkirchen can not lift in four years. This is why Hunter, Minister with the approval of the municipal associations and the mayor in NRW for one to tip such period regulation. The municipalities would then have to prove their municipal supervision as they come together in a defined time limit again to balance the budget.
Another proposal came yesterday by Herman Horn, Mayor of Kamen: The country should but all costs are not part of "Cash Flow" of an urban household, remove from the calculation of debt. Most municipalities namely groan under depreciation for property on which they could not separate at all, such as roads. If these write-downs not included would, would, some authorities off the hook and could be eligible for approval to submit a financial security concept. Other participants in the discussion yesterday, but saw it as a return to old cameralistics and saw the benefits of double-entry bookkeeping in danger.
But if local authorities as Geilenkirchen have badly shattered decades reasonable and then through a system change (from the cameralistics to double-entry) are forced to an opening balance sheet, which it refers immediately to secure the budget, then one can understand that Hermann Horn yesterday got a lot of sympathy points. For
Geilenkirchen could be a significant advantage in it when the four-year rule is abolished. With a longer Deadline for achieving a balanced budget could (run out of depreciation periods) the city by gradually eliminating the write-downs nose financially get back above water.
why the eunuch, and I hope that the modifications to the Municipal Code NRW (§ 76) is implemented as quickly as possible.
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