Tarrant commissioners direct JPS to lower tax rate amid concerns over .5B bond projects

Tarrant commissioners direct JPS to lower tax rate amid concerns over $1.5B bond projects

JPS Health Network is the taxpayer-supported hospital district of Tarrant County. The hospital district provides various health care needs to residents. John Peter Smith Hospital, which is the network’s flagship location, is at 1500 S. Main St. in Fort Worth. (David Moreno | Fort Worth Report)
” data-medium-file=”https://fortworthreport.org/wp-content/uploads/2024/08/DSC09300-2-scaled.jpg?fit=300%2C200&ssl=1″ data-large-file=”https://fortworthreport.org/wp-content/uploads/2024/08/DSC09300-2-scaled.jpg?fit=780%2C520&ssl=1″ tabindex=”0″ role=”button”>JPS Health Network could lower its tax rate for a second consecutive year, after Tarrant County commissioners proposed a new rate for the 2025 fiscal year. Commissioners voted 3-2 to set the JPS tax rate at $0.1875, which is less than the hospital district’s 2024 fiscal year rate of $0.1945. Commissioners Roy Charles Brooks and Alisa Simmons, both Democrats, voted against the proposal, stating it is not fiscally responsible to cut the hospital district’s tax rate. JPS is Tarrant County’s taxpayer-supported hospital district that provides various health care needs to the public. In the 2024 fiscal year, JPS operated with a $1.54 billion budget with 35% of its funding sourced through tax revenue.During the Aug. 20 meeting, Brooks, who primarily represents southwest Tarrant County, said it is “premature at best” to propose a new tax rate because the Commissioners Court has not officially received a presentation from JPS on its 2025 fiscal year budget. Tarrant County commissioners can approve a tax rate without requiring it to pass through the JPS board of managers, which oversees the hospital district. JPS board members will approve the hospital district’s budget during their upcoming monthly meeting 1 p.m. Aug. 22 at John Peter Smith Hospital. The 11-member board governs the hospital district, serves without pay and is appointed by the Commissioners Court. “To lock (JPS) into a tax rate that does not consider what their budget priorities are is putting the cart before the horse,” Brooks said.Tarrant County Commissioner Roy Charles Brooks listens to public comments during a County Commissioners Court meeting at the G.K. Maenius Administration Building July 2, 2024. (Alberto Silva Fernandez | Fort Worth Report)Simmons, who represents southeastern Tarrant County, echoed Brooks’ words. “We just got emailed a presentation last night. I’m being asked to vote on a tax rate, and I haven’t seen a budget yet,” she said. “I can’t support cutting their tax rate in the first place when we told taxpayers we were going to build certain things, and those things aren’t built.” Simmons was referring to the hospital system’s master facility plan, which is supported by an $800 million bond package voters approved in 2018. The plan details new facilities, including a medical home, psychiatric emergency center, medical outpatient building, pavilion expansion and a new hospital.Hospital leaders estimate the bond projects will total over $1.5 billion because of cost increases, inflation and construction delays. Because of financial changes and reprioritization, JPS has removed three medical homes that were included in the original proposal from its master facility plan. The only medical home currently in the plan is set to open in southwest Fort Worth later this year.This will be the first JPS master facility plan project to be completed since the bond’s passage. “What happened to the medical home that’s supposed to be in Precinct 2? Is that ever going to be built? Was it taken off the table?” Simmons asked at the Aug. 20 meeting. “I can guarantee you that my mayors and city managers would like to see a Precinct 2 medical home. I can’t support (a lower tax rate) at this time.”Precinct 2 Commissioner Alisa Simmons speaks during a County Commissioners Court meeting at the G.K. Maenius Administration Building June 4, 2024. (Alberto Silva Fernandez | Fort Worth Report) County Judge Tim O’Hare and Precinct 4 Commissioner Manny Ramirez, both Republicans, said they’ve both spoken with JPS president and CEO, Dr. Karen Duncan, about the impact a reduced tax rate would have on bond projects. Duncan assured them she was comfortable with the rate, O’Hare and Ramirez said. “(Duncan) told me this is the rate they’re projecting to put the budget together on,” Ramirez said. “We’ve been asking JPS to put a comprehensive plan together to show us exactly how they’re going to execute on these projects, and they’re working full steam ahead.”Precinct 3 Commissioner Gary Fickes, also a Republican, was the only commissioner to not comment on the proposed tax rate.Precinct 4 Commissioner Manny Ramirez listens to speakers during a Commissioners Court meeting at the G.K. Maenius Administration Building July 2, 2024. (Alberto Silva Fernandez | Fort Worth Report)Duncan was not in attendance at the Aug. 20 meeting, but a JPS spokesperson told the Report that once the tax rate is set, JPS staff will present a budget based on the county-approved rate for approval. The spokesperson did not answer specific questions about whether the reduced tax rate would affect JPS’ fiscal year 2025 budget or any construction projects currently in development. “Tarrant County commissioners, (hospital district) board members and JPS staff are in ongoing communication with each other throughout the budgeting process,” the JPS spokesperson said in a statement. In September 2023, Tarrant commissioners voted 4-1 to lower the tax rate to $0.1945 for fiscal year 2024 — the first time in five years the Tarrant County Hospital District lowered its tax rate. JPS previously lowered its rate from $0.227 in 2017 to $0.224 in 2018.Simmons was the sole vote against lowering the tax rate last year. “JPS has large and ongoing construction projects in a high interest rate environment with escalating costs,” Simmons previously said. “Some of this court will cut and cut and cut until JPS is strained to provide the absolutely crucial health care services to this community.”The Commissioners Court will determine the proposed tax rate for fiscal year 2025 and take final action on the Tarrant County Hospital District’s tax rate Sept. 17. David Moreno is the health reporter for the Fort Worth Report. His position is supported by a grant from Texas Health Resources. Contact him at david.moreno@fortworthreport.org or @davidmreports.At the Fort Worth Report, news decisions are made independently of our board members and financial supporters. Read more about our editorial independence policy here.

See also  What progress has Crowley ISD made on its 2023 bond? Here’s the latest
Sponsored

Sponsored

Comments (0)

Leave a Reply

Your email address will not be published. Required fields are marked *