Tax Rate for Tarrant County Public Hospital Reduced

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 Public Hospital Tax Rate Reduced for Third Year in a Row

Tarrant County commissioners have lowered the public hospital’s tax rate for the third consecutive year, as announced on September 3, 2025. The new tax rate ceiling is set at 16.5 cents per $100 of assessed valuation, down from the previous rate of 18.25 cents. This change was determined during a vote that passed with a 3-2 majority along party lines, with the Democratic commissioners expressing disapproval.

A final vote to confirm the tax rate is scheduled for September 16, 2025. The adjustments come as John Peter Smith (JPS), the county’s public hospital, continues its focus on providing services primarily for uninsured patients. The hospital is currently engaged in a remarkable $2.5 billion construction project, which encompasses a psychiatric emergency center, a neighborhood clinic, and a new hospital.

This extensive construction initiative will largely be funded by savings accumulated over the years along with $800 million sourced from bond proceeds approved by voters in 2018. The financial planning behind this ambitious project was a focal point of discussion among commissioners prior to the vote.

There are concerns regarding the hospital’s budget management, specifically its history of underbudgeting annual revenues. Over the last six years, the hospital has consistently been short on its revenue estimates, which has raised significant worries among commission members. The anticipated operating margin for fiscal year 2026 is projected at 2.9%, translating to around $151 million in revenue.

Given these financial implications, County Judge Tim O’Hare emphasized the importance of managing the tax rate in relation to how much profit the hospital district retains for future capital initiatives. The hospital’s budget designed for the upcoming period reflects a tax rate that is below the no-new-revenue rate but still above the ceiling recently approved.

In a bid to improve future planning, Republican Commissioner Manny Ramirez encouraged more in-depth conversations between the commissioners and the hospital board about upcoming budgets and potential tax rates. However, Democrat Alisa Simmons voiced her concerns that continuously lowering the tax rate for three years could lead to diminished services for constituents.

Hospital Chief Financial Officer Kim Hodgkinson is currently awaiting federal developments that may better clarify the hospital’s future financial situation. She indicated that further decreases in the tax rate could prove unsustainable and might necessitate future tax increases if economic conditions do not improve.

This recent development marks a critical moment for both county officials and medical administrators as they strive to balance the financial integrity of the Tarrant County public hospital with the need to provide essential services to the community.

FAQ

Key Features

Feature	Details
New Tax Rate	16.5 cents per $100 of assessed valuation
Previous Tax Rate	18.25 cents
Construction Project Cost	$2.5 billion
Projected Operating Margin for FY 2026	2.9%
Scheduled Final Vote on Tax Rate	September 16, 2025

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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