Second budget freeze imposed in Jena

Savings of 10 million euros

Due to the dramatic financial situation caused by the coronavirus crisis, Lord Mayor Dr. Thomas Nitzsche has imposed a further budget freeze for 2020. The aim is to save 5.5 million euros. Together with the 4.5 million euros already blocked in January, a total of 10 million euros is to be saved in 2020.

In contrast, the total budget deficit expected this year due to coronavirus is around EUR 50 million. "We are forced to act because the pandemic is throwing our entire financial planning out of kilter," says the mayor, explaining the lockdown. "However, it is impossible to save an amount of 50 million euros. We are making a contribution of 20% under pain, the remaining 80% can only be covered by the state and federal government through a rescue package for local authorities."

Voluntary services also affected

Personnel costs of 700,000 euros are to be cut due to a hiring freeze, material costs of 838,000 euros, maintenance costs of 1.8 million euros at the KIJ and KSJ municipal companies, costs of 1.5 million euros in the social and youth sector due to corona-related closures and short-time work, and 680,000 euros in the area of voluntary services.

All areas of voluntary services are affected, such as the city administration's bonus fund, the city council's expense allowances, town twinning, sports promotion and also parts of the subsidies for local transport tickets. From 01.07.2020, only school tickets will be subsidized as part of the JENABONUS, and the 30% subsidy for school tickets to the so-called "elective school" will no longer apply to families with one or two children from the 2020/21 school year. The subsidies of 50% and 70% for families with three and more than three children respectively will remain in place.

"If the state of Thuringia does not provide extensive financial support for the towns and municipalities, things could possibly get much worse," fears Head of Finance Benjamin Koppe. If a budget protection concept becomes necessary for 2021, questions will arise about deep cuts in all service areas. "We can only overcome the economic and financial consequences of the coronavirus crisis with the principles of 'early response', 'consistent risk minimization' and 'transparency', which were also successful in containing the virus itself in our city. If the entire city society and local politics stand together, we will overcome the challenges," said the head of department.