Hagen: Budget Consolidation 2026/2027 – Between Deficits, Workforce Development, and Debt Relief

Budget Planning 2026/2027 – A Step Toward Security

In April 2026, the city of Hagen unanimously approved the draft budget for the years 2026/2027. The Council is expected to ratify it on May 21, 2026. The Budget Security Concept (HSK) aims for a balanced budget by 2034 and provides for annual consolidation volumes between 19.97 million € and 20.81 million €.

The total expenditures for 2026 amount to 394.88 million €. Personnel expenditures account for almost a quarter of the budget and are therefore one of the largest cost factors. The planned budget figures for 2027 to 2030 show a continuous increase, driven by rising costs for personnel, transfer payments, and goods and services.

Old Debt Relief – Hope for Financial Relief

A central element of the budget planning is the planned old debt relief under the ASEG NRW program in the amount of nearly 543 million €. This relief could alleviate the city's financial situation in the long term. However, the budget deficit will remain in the coming years. A deficit of 53.14 million € is planned for 2026 and 85.40 million € for 2027.

Hagen has been in debt since 2013, and a balanced budget is planned for 2034. Consolidation measures include cost savings in youth and integration support. In addition, the increase in personnel costs due to wage increases, inflation, and pandemic-related expenses will continue to put pressure on the budget.

Workforce Development – Between Shortages and Consolidation

Workforce development in Hagen is another key issue. The personnel strength increased by more than 517 full-time equivalents (VZÄ) from 2016 to 2025. At the same time, vacant positions remain a problem: as of the reporting date, 42 VZÄ were unstaffed, and by December 31, 2025, even 78.31 VZÄ. The biggest shortages are in the areas of youth and social services, urban development, construction and sports, as well as integration and housing security.

In 2025, 237 new employees were hired, including 55 in the youth and social services sector. At the same time, the number of temporary employees has decreased. Vocational training policy is being strengthened: 98 new training positions were started, and the number of training positions increased by 16%.

However, the development of personnel costs is critical. Personnel expenditures increased from 116.9 million € in 2016 to 228.49 million € in 2026. This development reflects the strained financial situation and makes careful consolidation necessary.

The Challenges of the Future

The budget situation in Hagen remains challenging. The city is dependent on sustainable consolidation to achieve long-term financial stability. At the same time, social responsibilities, security, and education policy must remain guaranteed. The planned old debt relief offers hope, but consolidation will remain necessary in the coming years.

In summary: The budget planning for 2026/2027 is a step in the right direction, yet financial consolidation and personnel planning remain central challenges for the city of Hagen.