Urgent: Financielle Assessment of Charente-Maritime Department Reveals Worrisome Fiscal Health
In breaking news from the summer session of the departmental council held in La Rochelle on Monday, June 16, the 2024 financial assessment of the Charente-Maritime department paints a troubling picture. The administrative account closed with a deficit of 59.5 million euros, marking a slight decline compared to the previous year. According to Sylvie Marcilly, the majority president and leader of the right and center-right, this neutral financial figure hides a deeper, more concerning reality.
Scissor Effect: Revenue Down, Expenses Up
Sylvie Marcilly alerted the council, saying, “Less revenue and more expenses: we are confronted with a fiscal scissor effect. Some departments can no longer achieve any net savings.’’ The primary concern is the significant drop in transfer rights, which fell by 17.80% last year, returning to 2018 levels. This drastic decrease is putting a considerable strain on the overall revenue, which saw a decline of 1.42%. Simultaneously, solidarity spending surged by 3.3%, contributing to a total rise of 2.1% in operating expenses.
Net Savings Plummet
As a result, the department’s net savings plunged by 41%, dropping to 39.6 million euros. Sylvie Marcilly highlighted that this represents a 53% decrease compared to the average of French departments. Net savings are crucial as they determine the department’s ability to self-finance investments and financial maneuverability.
The Lean Diet Ahead
The financial outlook for 2024 is particularly lean. Investment levels have fallen to 133 million euros, a dip synonymous with pre-pandemic levels in 2018, after peaking at 207 million euros in 2023. Debt, however, has soared to 398 million euros, nearing the threshold that the departmental majority had promised not to exceed. Catherine Desprez, the first vice-president in charge of finance, reassures that the debt remains “healthy,” with a repayment period of 5.2 years compared to the national average of 6.7 years.
Commitments Remain, Criticism Arises
For Sylvie Marcilly, this lean period does not mean commitments won’t be upheld. Key projects like dike maintenance, fire and rescue center construction, and energy renovations for colleges will remain prioritized. However, the opposition group “at the heart of solidarity” (left) expresses strong disapproval, led by Brigitte Desveaux (Lagord), who criticizes the abrupt braking on investment and planned subsidies to associations.
“The transfer rights are now at their pre-COVID level; we just need to learn to live with what we have, but it’s not time to panic,” Desveaux stated. She insists that the department should maintain an annual investment level of around 200 million euros and has voiced concerns over rising financial costs over the past two years.
Future Implications
The FY 2024 financial decisions by Charente-Maritime have far-reaching implications for both local infrastructure and social support systems. As the department navigates through these fiscal challenges, MAP challenges to maintain the balance between prudent spending and sustaining the quality of public services. Detailed financial planning and transparency will be keystones in rebuilding fiscal resilience.
Visit archyde.com for the latest updates on fiscal policies and their impact on local governance. Stay informed, engage in community forums, and be a part of the conversation shaping Charente-Maritime’s future.
