Yvelines are experiencing “the Hiroshima and Nagasaki of public finances”

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The financial situation of the Department of Yvelines is worsening at the end of the year. The fall in transfer taxes (€250 million) and the drop in revenue linked to VAT compensation (€19 million) “potentially place Yvelines in negative savings».

The departmental council meetingon November 22, 2024, was confronted with what we must call the reality principle. In the absence of Éric Dumoulin, who became senator after the promotion of Sophie Primas in the Barnier government, it is the mayor of Port-Marly, Cédric Pemba-Marine, who now sits in the Department.

The finance committee is chaired by Olivier Lebrun and Pierre Fond is the delegation for all financial matters.

“A manifest error of the State”

In a report as clear as it is concise, the new chairman of the finance committee listed the bad news . “We are reducing our gross savings by €17 million,” began Olivier Lebrun. The reason? The VAT compensation (€19 million) is not there. This drop in VAT revenue is due to a manifest error by the State in its forecasts. »

The error in the State's forecasts is costly to the departmental council, which did not need this. Thus, DMTOs (transfer rights for consideration), which represent the taxes that local authorities and the State impose on the sale of real estate, will experience an unprecedented fall in 2024.

Transfer duties: we go from €465 million to €250 million

The amount of so-called DMTO revenue was €463 million in 2022 on the same trends as in 2021 (€465 million). This year, they would bring in (only) €250 million! With a decrease of €3 million at the end of the year. THE forecast revenue would increase to €1.206 billion from €1.3 billion.

“The drop in these revenues is offset by a certain number of measures put in place before the summer and by new revenues as well as technical measures justified,” explained Olivier Lebrun.

Constrained spending increases

At the same time, ASE (child welfare), MNA (unaccompanied minors) and RSA constrained expenses are increasing, not to mention the +€6 million in additional expenses (college and transport) and the + 1 M€ transferred to the Yvelines firefighters (SDIS78) for the efforts carried out during the Paris 2024 Olympic Games.

In total, Yvelines shows + €8 million in additional spending, or €1.226 billion compared to 1.218 billionlast year. “We have managed to contain the decline in revenue and the increase in expenditure with staff savings, €35 million in 2023 and €30 million committed in 2024. That’s more than €60 million in two years,” insists the president of the finance committee.

Gross savings rise to €94 million!

The consequence is clear: the gross savings of the Department of Yvelines have melted like snow in the sun. While it reached €295 million two years ago, it increased to 94 M€ fin 2024 ! That’s €200 million less.

Worse. Net savings reached €34 million this year compared to €263 million in 2021.

“The fall is dizzying. Gross savings divided by three in three years. But we managed to get our heads above water. »

For Pierre Bédier, the president of the departmental council, it will be necessary “spend less”. He adds: “€34 million in net savings doesn’t exist. We can be at €0 tomorrow. The effort asked of us today by the government [qui est à mettre en parallèle avec la loi de finances 2025]we don't know what it will ultimately be [au 31 décembre 2024]. It could be almost €50 million. We are potentially in negative savings. »

On November 22, no one mentioned the possible motion of censure which could overthrow the Barnier government.

Pierre Bédier further explains: “ With negative savings banks no longer lend. If they no longer lend, we can no longer raise debt. We are in a perilous situation. »

27 legitimate grant application files

At the Yvelines departmental council, it is rumored that of the 450 communities and intercommunities requested in France by the government, none are as in difficultythan the Departments, whose revenue depends on the DMTO and expenditure on the amount of social benefits. “It’s Hiroshima and Nagasaki of public finances,” summarized Pierre Bédier.

Today, all mayors are asking the Yvelines departmental council for grants .

“There are 27 legitimate grant applications being processed by the Department's services, but we do not have this money and we are not sure that we will be able to borrow. »

“Finding Good Fortune”

“Mayors can hire creditsthat we can no longer commit. On the files, we will give work authorizations and we will not close the files until we have found good fortune,” indicated the president of Yvelines.

For Pierre Fond, “the effort already made by the departmental administration is obvious”. “We must pursue it,” he adds. We are in a situation of government instability. We don't even know if we will have a government at the end of the year. It's necessary look for savings . In the medium term, it will be necessary to say that not everything is financeable. »

The government helps the Departments

According to the latest information, the discussionswithin the government could lead the State to redistribute, in the form of compensation, a sum estimated, on average, between €45 and €50 million.

The government could accept a increase of 0.5 point in DMTO . Without knowing whether the increase in the tax levied on the sale of each home (notary fees) would have an impact on the real estate market.

This would mean€25 million for Yvelines for a full year, but compensation could start mid-year, i.e. only €12.50 million in compensation.

Senator Éric Dumoulin could file an amenmentto return the date to 1^is avril.

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