Departmental spending weighed down by salary increases

The years follow each other and are not alike for the departments. In 2021, the exercise had been “atypical”, according to the National Observatory of Social Expenditure (Odas), with a historically low increase (+0.4%) in net expenditure. Last year, it increased by 2.7%, to 41.5 billion euros, less than inflation, according to a study published on Tuesday by Odas. As financial istance from the State increased at the same rate, the net charge of the departments increased by 860 million euros, to 32.6 billion.

But the movements were very contrasted. With the improvement in the job market, the net expenditure linked to the r income of active solidarity (RSA) fell by 500 million euros (-4.3%, to 10.6 billion). Conversely, other expenses swelled by 1.6 billion euros, including 1.1 billion for personnel expenses alone.

Wage increases

“Major phenomenon”, according to Claudine Padieu, the scientific director of Odas: personnel costs increased by 6.1%, to 4.19 billion euros. For 20 years, the increase has been around 2 to 3% per year, with a few exceptions.

This surge is due to multiple salary increase measures resulting from the Ségur de la santé and the revaluation of 3.5% on 1er July 2022 of the index point, which serves as the basis for calculating the remuneration of civil servants. In addition, there are measures concerning home help services.

Another item up sharply, child protection (+6.9%, to 8.9 billion), under the effect of salary increases for staff in establishments and services as well as family istants. The number of children cared for has changed little (+1.4%, or 2,700 more). In another major area of ​​departmental intervention, net expenditure in favor of people with disabilities increased by 5.4%, to 8.7 billion, with expenditure on disability compensation benefits up by 11, 8%.

For 2023, the expenditure of the departments is still expected to be under pressure. “In a full year, there will be an even greater increase in personnel costs than in 2022”, anticipates Claudine Padieu. “With regard to departmental staff, if 2023 will be the first full-year exercise for a large part of the salary increases linked to Ségur, it is possible that new enlargements will be decided in the medico-social sector during the year” , also slips the study.

The evolution of the RSA, which represents a quarter of the net expenditure, will obviously be scrutinized closely. “Remains to be hoped that the implementation of the reform of unemployment compensation does not lead to a transfer of charge to the RSA”, underlines Odas.

While the slowdown in the real estate market leads for almost all departments to lower income from transfer duties for consideration (more commonly known as “notary fees”), “2023 could be marked by the start of significant financial tensions for certain departments”, warned Sébastien Villeret, head of financial studies at La Banque Postale.