Construction underway at Tarrant County Public Hospital for expanded services.
Tarrant County, September 4, 2025
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.
On September 3, 2025, the Tarrant County commissioners made the decision to lower the public hospital’s tax rate for the third consecutive year. The tax rate ceiling is now set at 16.5 cents per $100 of assessed valuation, down from the previous rate of 18.25 cents. This change comes as part of ongoing efforts to manage the county’s budget and support the local healthcare system.
The decision was passed with a tight vote of 3-2 along party lines, with Democratic commissioners opposing the reduction. A crucial final vote on the proposed tax rate will take place on September 16, 2025, determining the future financial landscape of the public hospital system.
The county’s public hospital, known as John Peter Smith (JPS), chiefly caters to uninsured patients. Currently, JPS is immersed in an extensive $2.5 billion construction project that aims to enhance medical services throughout the area. This substantial project includes the establishment of a psychiatric emergency center, a neighborhood clinic, and a brand-new hospital building.
Most financing for the project comes from savings accrued over the years, alongside $800 million from bond proceeds that voters approved back in 2018.
Before approving the tax rate ceiling, commissioners engaged in extensive discussions regarding the hospital’s budget and its tendency to underbudget annual revenues. JPS is poised to achieve an operating margin of 2.9% for the fiscal year 2026, equating to approximately $151 million in revenue. However, concerns persist, as the hospital has historically underbudgeted its revenues for the past six years, raising alarms among some county officials.
The County Judge expressed that the determination of a tax rate is closely tied to how much surplus the hospital district retains for future capital projects. The current budget was configured with a tax rate below the no-new-revenue rate but still above the newly established ceiling, emphasizing the challenging balancing act the commission faces.
As the discussion progressed, Republican Commissioner Manny Ramirez suggested that deeper dialogues between the commissioners and the hospital board are necessary, particularly concerning future budgets and tax rates. Democrat Alisa Simmons voiced concerns over the three consecutive years of tax rate reductions and the potential impacts on services available to county residents.
The hospital’s Chief Financial Officer noted that she is currently awaiting developments from federal sources to offer a clearer forecast of future financial outcomes for the hospital. In a less favorable scenario, she warned that further decreases in the tax rate could jeopardize sustainability, necessitating potential tax increases in the future to support the hospital.
The Tarrant County commissioners will face crucial choices in upcoming votes that will impact not only the hospital’s budget but also the broader healthcare services available to residents. As changes in tax rates take place, the focus remains on ensuring that quality healthcare remains accessible, especially for the uninsured population relying on JPS.
The tax rate ceiling has been set at 16.5 cents per $100 of assessed valuation.
The final vote is scheduled for September 16, 2025.
The construction is primarily financed through accumulated savings and $800 million from bond proceeds approved by voters in 2018.
The project includes a psychiatric emergency center, a neighborhood clinic, and a new hospital.
The hospital has a history of underbudgeting its annual revenues, which has raised concerns among county officials regarding sustainability and service delivery.
| Feature | Details |
|---|---|
| New Tax Rate | 16.5 cents per $100 of assessed valuation |
| Previous Tax Rate | 18.25 cents per $100 of assessed valuation |
| Vote Outcome | Passed 3-2 along party lines |
| Next Vote Date | September 16, 2025 |
| Construction Project Cost | $2.5 billion |
| Funding Sources | Savings and $800 million from bond proceeds |
| Anticipated Operating Margin | 2.9% for fiscal year 2026 |
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