Tarrant County, September 4, 2025
News Summary
Tarrant County commissioners have voted to lower the tax rate for the county’s public hospital for the third year in a row, setting the new ceiling at 16.5 cents per $100 of property value. This reduction is part of ongoing discussions regarding the hospital’s budget and financial management. The public hospital, known as John Peter Smith, is also facilitating a $2.5 billion construction project aimed at enhancing community healthcare services. The final vote for this tax rate will occur soon, highlighting the balance between fiscal responsibility and service provision.
Tarrant County Commissioners Lower Public Hospital Tax Rate for Third Year; Final Vote Set for Sept. 16, 2025
What happened: County commissioners voted on September 3, 2025 to set a new tax rate ceiling for the county public hospital district at 16.5 cents per $100 of assessed valuation, down from 18.25 cents. The measure passed on a 3-2 party-line vote. A final vote to adopt the tax rate is scheduled for September 16, 2025.
Why this matters now
The tax rate supports the county’s public hospital, which provides care mainly for uninsured patients and is in the middle of a large building program. The hospital is running a $2.5 billion construction project that includes a psychiatric emergency center, a neighborhood clinic, and a new hospital building. Funding for that work comes mainly from funds the hospital saved over time and from $800 million in bond proceeds approved by voters in 2018.
Budget and revenue concerns
Commissioners spent significant time debating the hospital’s budget before setting the tax ceiling. Officials raised concern that the hospital has underbudgeted its revenues for six straight years. Hospital budget documents show an anticipated operating margin of 2.9% for fiscal year 2026, with $151 million referenced in those financial plans. County leadership said that choosing a tax rate affects how much money the hospital district keeps for future capital needs.
The budget approved by the hospital was built using a tax rate below the no-new-revenue rate but still sat above the new ceiling that commissioners set. One county commissioner urged more detailed discussions between the commission and the hospital board about how future budgets and tax rates will be set, citing the need for clearer long-term planning.
Voices and worries
Some elected officials warned that lowering the tax rate three years in a row may have consequences for services residents rely on. Hospital financial staff said they are watching federal policy moves that could affect income and that the hospital’s ability to absorb another tax cut without raising taxes later is limited in a worst-case scenario.
How the construction is paid for
The county’s plan to pay for the current construction relies mainly on previously set-aside savings and on the voter-approved bond proceeds from 2018. That mix aims to limit the need for new tax revenue while still funding major capital work that officials argue is needed to serve high-need populations, including those without insurance.
Next steps
Commissioners will hold a final vote on the tax rate on September 16, 2025. If the ceiling remains unchanged, the hospital district and commissioners will need to finalize the budget and confirm how ongoing construction and operations will be balanced with limited future tax capacity. Officials indicated further meetings and discussions are likely as they work to align budget forecasts, federal policy updates, and capital plans.
Context
The county public hospital serves a large number of uninsured patients and has been expanding services and facilities. Its multibillion-dollar project is intended to increase capacity for psychiatric emergencies, expand neighborhood-level care, and replace or add hospital infrastructure. At the same time, recurring gaps between expected and budgeted revenues have become a central point in the debate over tax policy and service levels.
FAQ
What tax change did commissioners approve?
Commissioners set a tax rate ceiling of 16.5 cents per $100 of assessed value, down from 18.25 cents. A final vote to adopt the rate is scheduled for September 16, 2025.
Who does the hospital serve?
The public hospital primarily serves uninsured and underinsured patients in the county and provides safety-net services.
How is the construction project being financed?
Construction is being paid mostly from the hospital’s accumulated savings and from $800 million in bond proceeds that voters approved in 2018.
Will lowering the tax rate affect hospital services?
Officials worry ongoing tax cuts could limit funds available for services or capital needs. Hospital financial staff say further cuts could be unsustainable without future tax increases in some scenarios.
Why did commissioners debate the budget?
There was concern the hospital has repeatedly underbudgeted revenues for several years, leading commissioners to press for clearer financial planning and coordination between the hospital board and county leaders.
Key facts at a glance
| Item | Detail |
|---|---|
| New tax rate ceiling | 16.5 cents per $100 of assessed valuation |
| Previous rate | 18.25 cents |
| Vote | 3-2, party-line; final vote on Sept. 16, 2025 |
| Hospital project size | $2.5 billion construction program |
| Major project elements | Psychiatric emergency center, neighborhood clinic, new hospital |
| Primary funding sources | Saved funds and $800 million in 2018 bond proceeds |
| Fiscal outlook note | Operating margin expected at 2.9% for FY2026; $151 million cited in budget documents |
| Key concern | Hospital has underbudgeted revenues for six years |
Deeper Dive: News & Info About This Topic
Additional Resources
- Star-Telegram Article 1
- Wikipedia: Taxation in the United States
- Dallas Express Article
- Google Search: Tarrant County Hospital tax rate
- NBC DFW Article
- Encyclopedia Britannica: Public Health
- Business Wire Article
- Google News: Tarrant County hospital project
- Star-Telegram Article 2
