The Department of Hérault, like many others in France, is facing a deep budgetary crisis. A series of arbitrations was made by Kléber Mesquida which aims to drastically reduce aid to municipalities and multiple investment expenses of the community. Explanations.
We learned this week that the Department was suspending its participatory budget for associations, but this measure is only a small part of the savings that you have decided to make.
When we launched the participatory budget we did not have the visibility that we have now. We are therefore going to suspend it as we are going to stop partnership operations. If we can resume these projects at the end of 2025, we will keep the same projects to validate them. But today we are more than in the fog, we are underwater.
Why did the community get to this point?
First of all, it should be noted that 29 or 30 departments are in very critical situations. The association of departments estimates that 85 departments will be in the same situation at the end of 2025. This is general, it is not attributable to poor management, we did not do anything. Our taxation has been replaced by a share of national VAT. Every year we are dependent on growth. Between the notification at the start of the year and that at the end of the year, revenues from the State fell by €31.20 million. Then, there are added charges that we assume but attributable to the State. For example, we have six social workers in police stations and gendarmes to support women victims of violence. In social services we are obliged to recruit, so we are going to put these six agents back into our services. When we assess and shelter unaccompanied minors, €1.50 million is not reimbursed to us. The State has also decided to pay the Ségur bonus to retirement homes, representing €4.50 million in additional charges. Then we have expenditure decided by the State without compensation: the revaluation of the RSA, the increase in the minimum wage. It is justified, we do not question them but it is not compensated. Overall, what the State has put in place without compensation is around €24.10 million. In total with the €31.20 million it’s €55 million.
At the same time, the Department still has to deal with the reduction in transfer taxes?
It is an economic fact. Everyone knows that the real estate market has collapsed. The loss of revenue from DMTOs is €52 million in 2024. We are at €236 million compared to 288 in 2023. We are therefore at minus €107 million on the 2024 budget.
What savings measures do you intend to take?
Of course I will explain to the municipalities and associations that we cannot borrow to subsidize them. So we are going to stop aid to municipalities. All inclusive, it’s around forty million euros.
A complete shutdown?
Almost. The only exception is when aid has been voted by the State or the Region and the municipalities are waiting for the Department to launch the project, then we will come. I don't want us to be responsible for canceling construction sites. In 2021 we borrowed to subsidize the municipalities but we do it once not twice and we were not in the same financial situation. If we remove the reserves of €26 million from DMTO that we injected in 2024, we would have ended the year in deficit. For 2025, with the repayment of the loan we will attack the year with a deficit of €61.70 million without having done anything.
The new Montpellier-Perpignan line is no
What clear cuts are planned?
In broad terms, there is the new Montpellier-Perpignan line. That’s €3 million per year. The State tells communities to move forward… I say no. In the road component of the State-Region plan contract, we are unable to make our contribution, particularly for the Lunel diversion. This is also the case for the Rhône to Sète canal. For the roads, we will only maintain absolute security operations. The carpet layer renewal program will wait if the road is in good condition. Regarding the Full Employment law, the services tell me that it is complicated to quantify the additional costs generated for support. We don't have the encryption so we stop. For the accommodation of women victims of domestic violence which is a State responsibility, it is an expenditure of €1.20 million, we will also stop. Let the state rent the hotel rooms.
With all these savings will you be able to maintain a balanced budget in 2025?
No, because just with the repayment of the capital of the loans we would be required to borrow. So it's a fictitious equilibrium. And in 2025, we must add the investments which were the subject of a public market. For the Link for example. If I denounce the market – this is unthinkable – the company could ask me for compensation, that is its right, so we will continue. At the Juvignac and Maraussan colleges, we will supply them but with loans. The amount of loans that we will display will be frightening. On the work in colleges, extensions, waterproofing of courses, we will not be able to do. But as far as safety is concerned, we will do it. You should know that the IT maintenance of colleges, which was covered by the State, costs us around €17 million. By accumulating load transfers, it ends up being unbearable.
In 2025 the Department of Hérault should escape the savings effort requested by the government from communities. Do you have confirmation of this?
We have no official confirmation but this shows that the finances of the departments concerned are really in difficulty. But the VAT compensation fund for our investments will drop by two points. This is an impact of €3 million. In 2025, when I have added up expenses and revenues, I do not know how I will complete my operating budget with the mechanical increase in compulsory expenses, social assistance for children, APA , the disability benefit, the RSA, is €800 million excluding personnel costs. I am at an absolute impasse.
Do subjects like water and land irrigation remain your priorities?
We will continue to help with research, drilling, renovation of pipes, sanitation. But multipurpose rooms, skate parks, tennis courts we would say no.
Do you envisage consequences for the community's workforce?
We have missions to take on. On the other hand, I asked the services to rationalize as much as possible if someone goes on sick leave. We are going to pool. We will be very vigilant about replacements and retirements.
Did you think you would find yourself in this situation so quickly?
I have been at the Department for thirty years, I have never experienced this, it is an obsession, it constantly gnaws at me. What we did in Bayssan, in the departmental areas we could no longer do it today.
