YOUR FORUM FOR PLAY, SPORTS UND LEISURE AREAS
Playground@Landscape: According to forecasts, tax revenue will decrease. Have you got back-up funds in your city treasury?
Manfred Busch: Of course. But if the revenue decreases again dramatically for a second time then it will be catastrophic and will put us in excessive debt. However, we will finance the important local authority duties and responsibilities and, of course, also pay our employees their salaries.
Playground@Landscape: If you look at the results of the tax prognosis for Bochum: What losses in revenue do you estimate?
Manfred Busch: Compared to the household planning at the start of 2009, we now have to expect a deficit of around 40 million EUR for 2010 and around minus 70 million EUR for 2011. Also, the acceleration of growth ordinance contributes towards that, costing us up to 13 million EUR per year.
Playground@Landscape: Is the municipal financial crisis growing more acute merely because of lacking tax revenue?
Manfred Busch: There is a list of other factors. If the social situation gets worse, if the unemployment rate goes up, as expected, then we, as local authorities, will feel it because we will be obligated to help towards the cost of accommodation and heating. In addition, the Federation has also massively reduced its contribution towards these benefits and services. The negotiations with Verdi are soon to begin; the subsequent remuneration increases for civil servants lead to adjustments in pension reserves, which could quickly lead to a double-digit million euro sum.
Playground@Landscape: What kind of effects do the new financial gaps have?
Manfred Busch: The lower revenue forces us to reduce expenditure and to exhaust our own possibilities for revenue. The council has already decided on concrete consolidation activities to the tune of over 100 million EUR, which is about 17 percent of all urban subsidy requirements.
Playground@Landscape: Will citizens notice it? Will libraries and swimming baths close?
Manfred Busch: We will have to restrict our public services, e.g. with the preservation and care of green areas, with opening times, with cleaning etc., in addition, reducing funding for public facilities and also clearly raising business and property taxes as well as different fees and charges.
Playground@Landscape: One and a half years ago, the Nokia factory in Bochum closed, the Opel factory is on the verge of closing. Has Bochum been hit particularly hard?
Manfred Busch: Bochum is not just about Nokia, Opel and Thyssen-Krupp. Bochum is a university location; a massive structural change has taken place. Finally, the city is to become the domicile for the new Health Campus NRW. We don’t have to wear sackcloth and ashes! In addition: The majority of companies are not automatically redeemers of tax revenue. Even if, in individual cases, this is subject to fiscal secrets.
Playground@Landscape: So when will you be able to count more money again?
Manfred Busch: For this year, I have given up hope. For next year, in 2011, I would be happy if the economy clearly improved and unemployment decreased and tax revenue increased correspondingly.
The interviewed was conducted by Thomas R. Müller (Playground@Landscape)
