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.
What happened now: County commissioners approved a tax rate ceiling of 16.5 cents per $100 of assessed valuation for the county public hospital district on September 3, 2025. The action marks the third consecutive year the tax rate ceiling has been lowered, down from the previous ceiling of 18.25 cents. The measure passed on a 3-2 vote split along party lines. A final vote to set the tax rate will take place on September 16, 2025.
The tax ceiling directly affects how much money the public hospital district keeps for operations and future building projects. The county’s public hospital, known as JPS, serves mostly uninsured patients and is in the middle of a major building program. Lowering the tax ceiling three years in a row raises questions about long-term funding for both everyday services and the new facilities under construction.
JPS is carrying out a $2.5 billion construction project that includes a new hospital building, a psychiatric emergency center, and a neighborhood clinic. The project is being paid for mainly with accumulated savings and $800 million in bond proceeds voters approved in 2018. Commissioners discussed how the tax rate interacts with the hospital’s capital plan and the amount of profit the district retains for future projects.
County leaders debated the hospital’s budget history during the meeting. JPS has underbudgeted its annual revenues for the past six years, a pattern that concerned some members of the commission. For fiscal year 2026, the hospital projects an operating margin of 2.9% with expected revenue reported at $151 million. The budget presented uses a tax rate below the no-new-revenue rate but still above the newly set ceiling.
The vote was split 3-2, with commissioners voting along party lines and Democratic commissioners opposing the ceiling cut. One commissioner urged deeper talks between the commissioners and the hospital board about future budgets and tax choices. Another commissioner raised concerns that cutting the tax rate for a third year in a row could affect services delivered to county residents.
The hospital’s chief financial officer said federal policy changes remain a key unknown and the hospital is waiting for those developments before making firmer financial projections. Hospital leadership warned that in a worst-case scenario, further reductions in the tax rate would not be sustainable without needing to raise taxes later to keep services and construction plans on track.
The commissioners will hold a final vote on the tax rate on September 16, 2025. That vote will determine the tax rate the hospital district can use for planning and will clarify how much revenue the district expects to retain for operating needs and future capital work. Officials emphasized continued discussion with the hospital board will be important to align budget assumptions, capital spending and tax policy during the construction program.
They approved a tax rate ceiling of 16.5 cents per $100 of assessed value for the county public hospital district. This is a ceiling set ahead of a final vote scheduled for September 16, 2025.
The vote passed 3-2 along party lines, with Democratic commissioners voting against the reduction.
The hospital is undertaking a $2.5 billion project that includes a new hospital, a psychiatric emergency center, and a neighborhood clinic.
Most of the project is paid for by savings built up over time and $800 million in bond proceeds that voters approved in 2018.
Yes. The hospital has underbudgeted revenues for six years, and leaders say federal policy shifts could affect future finances. Officials warn that further tax cuts may be unsustainable without future tax increases if revenue assumptions prove wrong.
The final vote on the tax rate is set for September 16, 2025.
Feature | Detail |
---|---|
Tax rate ceiling approved | 16.5 cents per $100 of assessed valuation |
Previous ceiling | 18.25 cents per $100 |
Vote | 3-2, party-line |
Final vote date | September 16, 2025 |
Hospital construction | $2.5 billion project: new hospital, psychiatric emergency center, neighborhood clinic |
Construction funding | Accumulated savings and $800 million in bond proceeds (2018) |
Projected operating margin (FY2026) | 2.9% with $151 million in projected revenue |
Budget concern | Hospital has underbudgeted revenues for six years |
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