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, county commissioners voted to lower the tax rate for Tarrant County’s public hospital, marking the third consecutive year the rate has been decreased. The new tax rate ceiling has been set at 16.5 cents per $100 of assessed property value, down from the previous rate of 18.25 cents. This decision, passed by a 3-2 vote along party lines, saw Democratic commissioners voting against the motion.
The final vote for the tax rate is scheduled to take place on September 16, 2025. The county’s public hospital, known as John Peter Smith (JPS), primarily serves uninsured patients and is currently involved in a significant construction project worth $2.5 billion, which includes a psychiatric emergency center, a new hospital, and a neighborhood clinic.
Funding for this ambitious construction project will come mainly from savings accumulated over the years, alongside $800 million sourced from bond proceeds that were approved by voters back in 2018. The project aims to enhance facilities and expand services provided by JPS, which has a history of being an essential healthcare resource for the community.
There has been notable discussion among the commissioners regarding the hospital’s budget and its pattern of underbudgeting revenues in previous years. Ongoing concerns about fiscal responsibility were highlighted in light of the hospital’s anticipated operating margin of 2.9% for the upcoming fiscal year, which would translate into approximately $151 million in expected revenue.
For the last six years, JPS has consistently underbudgeted its revenues, raising concerns particularly from the county judge. The judge has indicated that the setting of the tax rate is linked to the profits retained by the hospital district, which would be crucial for future capital projects.
Interestingly, the budget created for the hospital reflects a tax rate that is below the no-new-revenue rate but still above the newly established ceiling. To promote transparency and collaborative governance, one commissioner recommended more in-depth conversations between county commissioners and the hospital board regarding future budgets and tax rates.
There were also apprehensions expressed regarding the future impacts of the tax rate reductions. Concerns raised suggested that lowering the tax rate consecutively for three years may lead to a potential decline in services offered to constituents, emphasizing the delicate balance between taxation and service provision.
The Chief Financial Officer of the hospital indicated that enhanced clarity on federal developments might provide better insights into future financial outcomes for the hospital. She noted that in a worst-case scenario, continuing to lower the tax rate may not be sustainable and could necessitate future tax increases.
The Tarrant County commissioners have taken significant steps regarding tax management for JPS, which could shape the future of healthcare services in the community. As the final vote approaches, the balance between fiscal prudence and service delivery remains a focal point for all stakeholders involved.
The new tax rate ceiling is set at 16.5 cents per $100 of assessed valuation.
The tax rate has been lowered for three consecutive years.
A $2.5 billion construction project is underway, which includes a psychiatric emergency center, a neighborhood clinic, and a new hospital.
The construction is funded through accumulated savings and $800 million from bond proceeds approved by voters in 2018.
The hospital anticipates an operating margin of 2.9%, equating to approximately $151 million in revenue.
| Feature | Details |
|---|---|
| New Tax Rate | 16.5 cents per $100 of assessed valuation |
| Previous Tax Rate | 18.25 cents |
| Years of Reduction | Three consecutive years |
| Construction Budget | $2.5 billion |
| Funding Sources | Savings & $800 million from bond proceeds |
| Expected Revenue | $151 million for fiscal year 2026 |
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