Beckum presents a balanced budget

The 2026 Budget Regulations can therefore now be published. This means that necessary investments, for example, can now be made. However, the financial situation of towns and local authorities in North Rhine-Westphalia is generally extremely strained, according to the relevant press release from the Warendorf district.

However, the district went on to say that even the town of Beckum – which, thanks to its many successful businesses, enjoys comparatively high trade tax revenues – finds itself in a challenging financial situation due to additional responsibilities transferred to local authorities by the federal and state governments, coupled with rising expenditure. Although a notionally balanced budget could once again be presented for 2026, this would require the planned annual deficit of 5.6 million euros to be offset by funds drawn from the equalisation reserve.

As the medium-term financial plan up to 2029 also anticipates negative annual results each year, the remaining equalisation reserve is expected to be exhausted as early as 2027. “In addition, the city is planning for an overall reduction in expenditure in each of the coming years (2026: 1.4 million euros; 2027–2029: €500,000 each), which will need to be achieved over the course of the year,” the document continues.

“This budgetary situation shows just how much even economically strong towns such as Beckum are suffering from massive structural underfunding, which is increasingly limiting their ability to act,” noted District Administrator Dr Olaf Gericke as he handed over the budget authorisation to Mayor Michael Gerdhenrich. “In particular, the continuously rising social security payments, which have been decided upon in Berlin and Düsseldorf, are placing a considerable strain on local authority budgets. We urgently need sustainable funding for local authorities from the federal and state governments that is commensurate with their responsibilities. Austerity measures by local authorities alone cannot be enough to balance the books in this situation,” Dr Gericke continued.

Mayor Michael Gerdhenrich: “Our aim remains to safeguard the financial stability of the town of Beckum, whilst at the same time not losing sight of important investments for Beckum’s future. We must not make cutbacks in the wrong areas and, in particular, we should continue to invest reliably in our schools.”

The District Director and Treasurer, Dr Stefan Funke, regards the high levels of planned borrowing (2027: 26 million euros; 2028: 42 million euros; 2029: 25 million euros) as a burden on the future budgets of the town of Beckum. However, there are no legal concerns whatsoever regarding the draft budget.

“If local authorities are to be able to take a greater role in shaping the future and invest in it again, they need lasting and significant relief from social security expenditure, as well as a higher share of tax revenue that is commensurate with the local government responsibilities delegated to them by the federal and state governments,” argues Dr Stefan Funke.