Maverick County Hospital District Board fails to adopt 2015-2016 Budget

By: Jose G. Landa, Eagle Pass Business Journal, Inc., Copyright 2015

The Maverick County Hospital District (“MCHD”) Board of Directors failed to adopt the District’s Operating and Capital Budget for Fiscal Year 2015-2016 before the end of their 2014-2015 fiscal year at their regular meeting held on Tuesday, August 25, 2015, postponing the adoption of their 2015-2016 budget until a future meeting to be held on Tuesday, September 1, 2015.

The Maverick County Hospital District’s fiscal year is from September 1 through August 31.  The MCHD Board’s postponement of adopting its new 2015-2016 fiscal year until September 1, 2015 means that the Hospital District failed to adopt its new budget prior to the start of the new 2015-2016 fiscal year.  The local Hospital District is starting its new fiscal year without an approved operating budget, setting a new precedent.

Board member and acting Chairman Juan Manuel Farias questioned legal counsel Joshua Nieto of Brin & Brin if the MCHD was in violation of any state statute or law which required it to adopt a budget before the start of the new fiscal year, which Nieto replied that he did not know the answer and would have to research it and get back to the Board.

Under Agenda Item No. VIII calling for discussion with possible action to adopt the Maverick County Hospital District Strategic Plan and the Operating and Capital Budget FYE September 1, 2015-August 31, 2016, MCHD Chief Executive Officer Terri Contreras-Patlan presented the Board a revised proposed Budget for $7,847,397 with a deficit of $691,409 pursuant to the Board’s previous request to decrease the budget by three percent.  The revised proposed budget for 2015-2016 increased by $113,000 from the last proposed budget presented due to the Board’s approval of hiring special counsel to review the District’s contract with Universal Health, Fort Duncan Regional Medical Center’s parent company, a new marketing plan, and other fees.

Board Secretary and Treasurer Humberto Duran raised a question on why Administration had not presented a five percent decrease budget as he had requested.  Contreras-Patlan replied that a five percent decrease budget had not been presented because it would require a reduction of existing services and personnel and she thought the Board did not want to reduce existing services.  After further discussion, Board Secretary-Treasurer Humberto Duran motioned to postpone the adoption of the proposed 2015-2016 fiscal year budget until the Board’s next meeting on Tuesday, September 1, 2015.  Board member Dr. Ronald Hixson seconded the motion.  During discussion, Board member Ricardo E. Calderon recommended the Board not to postpone the decision but rather to come back to it later in the meeting after finishing the remaining agenda.  The MCHD Board approved to postpone the adoption of the proposed 2015-2016 fiscal year budget on a split 3 to 1 vote with Duran, Hixson, and Farias in favor of postponement while Calderon against.

The MCHD Board commences a new fiscal year 2015-2016 without an adopted budget.  The proposed 2015-2016 budget currently has a $691,409 deficit which will require the Board to further reduce expenses or raise property taxes or use monies from its reserve fund to balance the deficit as it has for many years.

The MCHD Board will meet again on September 1, 2015 to tackle the possible adoption of a new 2015-2016 fiscal year adoption.