Urging State Government for Cost Control: Bavarian Supreme Audit Office (ORH) Seeks Proactive Measures
- State reducing expenses on its public assets
Let the saving spree begin! The Bavarian Supreme Audit Office (ORH), with its no-nonsense approach, is pushing the state government to take action and implement proper, cross-departmental cost control for state-owned properties. The recent proposal to the Landtag suggests a thorough examination of the effort and potential savings that could come from a switch in management. The ORH's proposal challenges the Ministry of Construction's claim that individual departments should manage costs. With management and maintenance costs budgeted at €1.3 billion each for 2024/2025, the ORH proposes that a 10% reduction in costs through functioning cost control and benchmarking could translate to a whopping €130 million in annual savings.
Green Party Raises Eyebrows
Claudia Köhler, the Green party's budget spokesperson, has criticized the state government for lacking a concrete concept to address this issue. Markus Söder, Minister President (CSU), has expressed verbal concerns but has yet to propose tangible solutions, as no significant progress has been made since announcing cost control systems for each ministry back in June 2024.
ORH: No Substitute for Comprehensive Information
Last year, the ORH critically pointed out the lack of a cross-departmental cost control in its annual report. The Ministry of Construction claimed that costs in the Free State are controlled via budget funds and that there is a uniform overview of the costs of property management within the budget settlement. However, the ORH counters that budget funds are no substitute for thorough, informative data on the economic use of funds. Moreover, cost control is a task that requires a collaborative, cross-departmental effort.
- Cross-departmental cost control
- Cost savings
- State government
- Munich
- Saving potential
- Property
- Bavarian Supreme Audit Office
- Toriving the state government towards substantial savings, the Bavarian Supreme Audit Office (ORH) calls for a comprehensive, cross-departmental cost control strategy, emphasizing the immense saving potential of €130 million annually through proper management and benchmarking.
- In light of the ORH's suggestion for a unified cost control and the ongoing criticism from parties like the Green Party, the state government, particularly Minister President Markus Söder, must provide tangible solutions and concrete steps to tackle this issue effectively in Munich, ensuring that the vast potential for savings in the management of state-owned properties is realized.
