Municipalities receive less money, but the same responsibilities. ‘This borders on maladministration’

Administrators of Drenthe municipalities are looking at 2026 with great concern. The central government is making major cuts to the municipal fund, the bag of money with which a large part of the municipal budget must be covered.

He is under no illusions, municipal budgets are not sexy and will not be anytime soon. Nevertheless, alderman of finance Hans de Graaf (CU) from Tynaarlo sounds the alarm. Out of worry and frustration. “It is made impossible for us to govern properly.”

Everyone in minus

In 2026, there will be significant cuts in the municipal fund, a subsidy from the government. Many municipalities in the Netherlands are largely dependent on that money to be able to do their work. Exactly how much will be cut is not yet clear, but estimates range from 2 to 4 billion euros. De Graaf predicts that all municipalities will feel this out of a total amount of 35 billion. “A balanced budget without tightening our belts is impossible. That borders on mismanagement.”

This cutback is a sensitive issue, even in a wealthy municipality like Tynaarlo. In addition to the dip in the municipal fund, the millions have also been redistributed among municipalities since 2023. Those who have relatively few residents on social assistance benefits, for example, receive less money. In total, the municipality of Tynaarlo is contributing 7.5 million euros. That seems manageable on a budget of 100 million euros, but more than 75 percent of that goes to fixed costs, says De Graaf. “That means that of the 25 million euros that we can spend freely, 17.5 million now remains. I can’t manage with that, I don’t want to kill the well-being of our residents.”

‘More tasks, more snaps’

Because that would be necessary to write black figures in the coming years as well. There are municipalities that want to return tasks to the national government, such as the Emmer mayor Eric van Oosterhout recently told DVHN . “’More tasks, more snaps’ they say, but that is tough language,” says De Graaf. “If someone in your municipality is desperate for youth care, then you don’t leave them out in the cold because of something abstract like the municipal fund. Then you help them, even if you can’t actually afford it. That limits how hard municipalities can play the game, you are held hostage by the money.”

De Graaf is a member of the financial committee of the Association of Dutch Municipalities (VNG), which tries to get the sharpest edges of government policy through intensive consultation. For the time being, all Drenthe municipalities have decided to aim for a shortage in 2026. “We are sending a clear signal. In Tynaarlo we can limit the deficit because we have reserves, but that is not a solution for the long term. You have to pay the rent on your house with your salary, not with Aunt Bettie’s inheritance.”

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