On Friday October 25, the Departmental Council of Lot-et-Garonne took an unprecedented decision during an equally exceptional session: to reduce its annual budget by €10M during the financial year. This rare choice, which concerns a total budget of around 500 million euros, was imposed by a marked drop in revenue, in particular that of transfer taxes for valuable consideration (DMTO). DMTO revenues, dependent on the real estate market, fell by 34.5% in the first quarter of 2024 and 24.4% in the second compared to the previous year. “It’s quite unusual to lower your budget during the year. Generally, it is rather budget increases that are voted on”notes Sophie Borderie, president of the Departmental Council of Lot-et-Garonne.
A historic decision
These reductions are likely to be amplified in 2025, with a financial context that remains tense. Indeed, the removal of the Department's fiscal autonomy, including the loss of the departmental share of the property tax on built properties, strongly limits the room for maneuver. “Our main resources, such as DMTO or the VAT fraction, are extremely volatile. For DMTOs alone, we have already lost €14M between 2022 and 2023,” deplores Sophie Borderie. For her, the observation is clear: the State deprives departments of budgetary management tools, plunging them into an untenable situation.
The law that threatens local investments
The future looks even bleaker with the 2025 finance bill, which could impose a 12% reduction in the Department's budget. If the text is adopted as is, Lot-et-Garonne will have to find €60M in savings, including €16M immediately. “This is unheard of”alarms Nicolas Lacombe, vice-president of the departmental council, believing that the requested load is unbearable. The situation is becoming critical for elected officials who fear that the budget cannot be balanced, a legal obligation for all communities.
The weight of these savings could particularly be felt in the sector of investment and aid to associations. The construction industry, which largely depends on public projects, is concerned about the impacts of this reduction in spending. “For every million invested, around ten direct jobs and around twenty indirect jobs are at stake,” underlines Sophie Borderie. Other sectors are also likely to suffer, notably EHPADs, associations, municipalities, but also the world of culture, sport and medico-social.
While the social budget, largely irreducible, represents nearly 280 million euros, Lot-et-Garonne's room for maneuver seems narrow, if not non-existent. Sophie Borderie warns that beyond the efforts already made to reduce expenditure, it is impossible to release an additional €16 million without seriously compromising the services provided to the population. The president calls for citizen mobilization, insisting: “This government will have to be held accountable. »
