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.
Tarrant County commissioners have approved a reduction in the public hospital tax rate for the third consecutive year during a meeting held on September 3, 2025. The tax rate ceiling has been set at 16.5 cents per $100 of assessed valuation, marking a decrease from the previous rate of 18.25 cents.
The decision, which passed by a vote of 3-2 along party lines, reflected the differing views of the county’s commissioners. Democratic commissioners expressed opposition to the tax rate decrease, while their Republican counterparts advocated for it.
A final vote to formally adopt the new tax rate is scheduled for September 16, 2025. This move is significant as it will impact funding for the John Peter Smith (JPS) hospital, the county’s public healthcare provider that primarily serves the uninsured population in the area.
Currently, the JPS hospital is in the midst of a substantial $2.5 billion construction project. This ambitious development plan includes the establishment of a psychiatric emergency center, a neighborhood clinic, and the construction of a new hospital. The funding for these projects is primarily sourced from savings accumulated over the years and $800 million in bond proceeds that were approved by voters back in 2018.
The discussions leading up to the tax rate decision highlighted ongoing concerns about the hospital’s budget and its history of underbudgeting revenues. Over the past six years, the hospital has consistently miscalculated its annual revenues, which raises questions about financial sustainability. The hospital is projecting an operating margin of 2.9% for fiscal year 2026, translating to an estimated $151 million in revenue.
The hospital’s budget has been designed around a tax rate that is below the no-new-revenue rate but above the newly set ceiling. This has resulted in concerns regarding how much of a financial cushion the hospital district maintains for future capital projects. The county judge has emphasized the importance of retaining a profit margin to assist in financing these future needs.
There has been a call for further discussions between the commissioners and the hospital board, especially regarding future budgets and tax rates. Some members have cautioned that consistently lowering the tax rate could lead to challenges in maintaining essential services for the community.
The Chief Financial Officer of the JPS hospital has indicated that the financial outlook is uncertain and contingent on forthcoming federal developments which could better clarify future hospital finances. In a pessimistic scenario, further reductions in the tax rate may not be sustainable, potentially necessitating future tax increases to balance the budget.
The ongoing conversation regarding the tax rate reflects a complex intersection of healthcare funding, political considerations, and community needs. As Tarrant County approaches its final decision on the tax rate, stakeholders remain engaged in dialogue about the implications of these financial choices on local healthcare services.
The new tax rate ceiling has been set at 16.5 cents per $100 of assessed valuation.
JPS hospital is undergoing a $2.5 billion construction project that includes a psychiatric emergency center, a neighborhood clinic, and a new hospital.
There are concerns that lowering the tax rate could impact the services provided to the community and financial sustainability given the hospital’s history of underbudgeting revenues.
| Feature | Detail |
|---|---|
| New Tax Rate | 16.5 cents per $100 of assessed valuation |
| Previous Tax Rate | 18.25 cents per $100 of assessed valuation |
| Construction Project Budget | $2.5 billion |
| Project Funding | $800 million from bond proceeds and accumulated savings |
| Projected Operating Margin | 2.9% |
| Estimated Revenue for FY 2026 | $151 million |
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