Debt stop through cost-cutting measures: Mecklenburg-Western Pomerania aims to reduce space

After Corona, the savings fox arrives: The pandemic and crises such as the Russian war of aggression have cost Mecklenburg-Western Pomerania staggering amounts of money. Therefore, the ministries are now supposed to find ways to cut the state’s expenses by a total of 150 million euros. One possibility: Reduction of space in authorities.

The Situation: Financial planning in Mecklenburg-Western Pomerania for 2023

The Finance Minister of Mecklenburg-Western Pomerania, Heiko Geue (SPD), speaks plainly: Mecklenburg-Western Pomerania must save. The reasons for this are not only the high expenditures in recent years but also the budget plan for 2022/2023, which foresees costs totaling more than 10 billion euros, partly financed from the Corona special fund MV-Schutzfonds. Geue has outlined additional financial commitments for the state, including:

• Expansion of broadband connections
• Introduction of a fee-free holiday daycare
• Establishment of a statewide system for demand-responsive buses
• Integration support
• Safeguarding against rising energy prices for businesses

Mecklenburg-Western Pomerania plans to start repaying the Corona loans from 2025. This means that with a repayment period of 20 years, the state must repay 142.5 million euros annually to offset the loan amount of 2.85 billion euros from 2020.

The approach: 30 % reduction in space

New debts are not an alternative, emphasizes Geue. Indeed, the state must already rely on reserves. However, the finance minister did not disclose the amount of funds available.

Therefore, savings are essential to gain measurable financial advantages. The spatial potentials of the state government form an initial starting point: By 2026, the premises of authorities are to be reduced by 30 % – with the goal of saving rental costs. Mecklenburg-Western Pomerania is aligning itself with the strategies of Schleswig-Holstein and Hamburg. A smart idea because through compressed spatial concepts, Mecklenburg-Western Pomerania could not only reduce costs but also improve its emissions balance.

The solution: Technical support for smart space allocation

To support states like Mecklenburg-Western Pomerania in their savings plans, tools like the ReCoTech software exist: Using algorithms, smart area planning calculates the optimal office space in a smaller area – even with a constant number of employees. Digital workplace booking complements this data with occupancy analyses, forming the basis for space-changing decisions. With monitoring functions and smart extensions such as sensor technology, ReCoTech is a reliable partner when it comes to new spatial structures in authorities.