Hohen Neuendorf: Financial Policy in Focus – School Sponsorship and Loan Acquisition

Financial Policy in Hohen Neuendorf: School Sponsorship and Loan Decisions

The financial policy of a city is often a complex balance between investment needs, financial sustainability, and the well-being of its citizens. In February 2026, two key issues were at the forefront in Hohen Neuendorf: the continuation of the municipal sponsorship of the Dr. Hugo Rosenthal Secondary School and the acquisition of a subsidized loan. Both decisions highlight how sensitive financial planning is in local government and what long-term consequences it can have.

School Sponsorship: A Question of Control and Investment

The Dr. Hugo Rosenthal Secondary School is a key institution in Hohen Neuendorf. With a current student body of 175 (down from 216 in 2019) and the option of an academic high school diploma, it plays an important role in the district's educational network. In February 2026, the Finance Committee clearly decided (10 yes votes, 0 no, 0 abstentions) to continue the municipal sponsorship of the school.

The decision was not trivial. In 2025, the school recorded a deficit of about 500,000 euros, and a balance of minus 400,000 euros is expected for 2026. The costs for renovations (ceilings, industrial buildings) amount to around 10 million euros. In addition, personnel costs increased from 32,776 euros (2022) to 237,640 euros (2023), mainly due to internal performance charges.

Despite these figures, the council members voted in favor of continuation – not least because the city would still retain influence over closure decisions. A change of sponsorship to the district would have meant 430,000 euros less in revenue, but also lower expenses. Nevertheless, the opinion prevailed that investments in education are also financially sensible, especially when they contribute to the school's continued existence.

Loan Acquisition: Liquidity Security through Subsidized Funds

In addition to the school issue, the acquisition of a subsidized loan of 7.5 million euros was also in focus. The loan from the Brandenburg State Investment Bank (ILB) is part of the municipal investment program 2025–2029 and is financed at an interest rate of 1 % over 10 years. Quarterly repayment and interest payment are planned.

The loan is urgently needed to finance investment projects such as the renovation of the Ahorngrund Primary School (14–18 million euros) or the upgrading of the primary school in Borgsdorf. In addition, it is intended to secure the city's liquidity in order to implement decisions quickly.

The vote in the Finance Committee was not unanimous (8 yes, 2 no, 1 abstention), showing that political differences also exist with regard to favorable interest rate loans. Supporters argued that the interest subsidy from the state of Brandenburg (a total of about 385,000 euros) is a sensible form of support, especially in a time when municipalities urgently need investments.

Financial Implications: Transparent Planning as the Key

The financial implications of the decisions made are already reflected in the 2026 budget plans. While the continuation of the school sponsorship has no balance sheet effects, a result of minus 382,800 euros is recorded for the secondary school. The loan, on the other hand, brings liquidity (7.5 million euros deposit), but also increasing interest and repayment burdens from 2027.

The city of Hohen Neuendorf emphasizes that it strives for transparency in budget planning – especially in the presentation of the costs of the secondary school. Critics such as Marco Zimmermann pointed out discrepancies, for example, the mention of a "profit" of 200,000 euros in the budget plan, although the overall result is negative. Mayor Steffen Apelt corrected this and explained the comprehensibility of the figures.

Outlook: Stability in the Tension Between Investment and Budget Discipline

The decisions of the Finance Committee in February 2026 show how sensitive the financial policy of a city is. The continuation of the school sponsorship is a clear signal to secure educational standards, while the loan lays the financial foundation for investments in infrastructure.

In the long term, it will depend on whether the financial resources are used sensibly and whether the city can maintain budget discipline. With a bank balance of 4.56 million euros and a savings account of 2.3 million euros, Hohen Neuendorf has some room for maneuver, but investments of 10 million euros for schools and 7.5 million euros for loan acquisitions require careful planning.