Maverick County Hospital District sustains budget deficits annually
By: Jose G. Landa
An Exclusive Eagle Pass Business Journal News Story/Copyright 2013
The Maverick County Hospital District is well on its way to suffering another fiscal year with a budget deficit and/or sustaining operating losses in its 2012-2013 fiscal year just like it did during its 2011-2012, 2010-2011, and 2009-2010 fiscal years, according to financial reports provided at its Wednesday, April 24, 2013 Board of Directors meeting and its 2011 and 2010 annual financial reports posted on its website. To offset the significant annual budget deficits and/or losses, the Maverick County Hospital District Board and Administration have conveniently tapped to its reserve funds to balance the huge annual budget deficits/losses.
Newly elected Maverick County Hospital District Board member Ricardo E. Calderon has been a strong advocate for balancing the budget and stop the annual fiscal budget deficits and/or losses and stop raiding the Hospital District’s reserves to offset and balance the significant financial operating deficits and/or losses of the Hospital District. At the April 24th Maverick County Hospital District Board meeting, Calderon stated that “another month, another loss” after hearing the March of 2013 Statement of Revenues and Expenditures Report from the Hospital District’s Chief Financial Officer and Chief Executive Officer. Calderon suggested to the Hospital District’s Board members that the Maverick County Hospital District should impose a moratorium on all major expenses and programs for the remainder of the 2012-2013 fiscal year until the Board and the Administration tackle the serious budget issues and the District’s Strategic Committee has had an opportunity to review the financial budget situation and make recommendations.
According to the financial report presented by the Hospital District’s Chief Financial Officer Terry Contreras and Chief Executive Officer Elcira Bares to the Board members at the April 24th meeting, “the District has a projected loss in the month of March of $403,187 and a projected loss of $543,330 to date.” The Hospital District’s fiscal year runs from September 1, 2012 to August 31, 2013. According to Contreras, the Hospital District is projected to sustain a budget deficit and/or loss between $1million to $1.6 million during this fiscal year ending August 31st. Any such budget deficits and/or losses will be offset from the District’s Reserve Funds which currently are approximately $21 Million. In response to a question asked by Board member Calderon, Contreras stated that the Hospital District’s Reserve Funds have gone down from a once high $28 million to its current $21 million.
According to the 2011-2012 Financial Report, the Maverick County Hospital District lost approximately $600,000 during the past fiscal year, that is, its operating expenses were greater than its operating revenues.
According to the 2010-2011 Financial Report, the Maverick County Hospital District lost $1,658,000.
According to the 2009-2010 Financial Report, the Maverick County Hospital District lost $1,792,000.
Maverick County Hospital District Chief Executive Officer Elcira Bares pointed out that the operating losses are diminishing and the operating revenues are steadily increasing. Bares hopes that the Hospital District’s operating revenues continue to increase in the future to stop the annual operating losses.
Board member Joaquin L. Rodriguez stated that he and the Board are concerned about the annual operating losses and are working with Administration to address the serious financial situation.
Board member Calderon pointed out that the Maverick County Hospital District belonged to the taxpayers and citizens of Maverick County and the Board members owe a duty to them to operate the District on a balanced budget. Calderon added that if the Hospital District continued sustaining annual operating losses, the District’s Reserve Funds will be depleted in the near future.
Board Chairman Juan Manuel “Chuco” Farias stated to Board member Calderon that he was appointing him to the Strategic Committee in lieu of Board member Rito Valdez, III to try to find solutions to the budget situation and questioned Calderon if he was prepared to recommend a tax increase and a reduction of Hospital District programs. Chairman Farias stated that if he (Calderon) was willing to recommend a tax increase and a reduction in program services, he (Farias) would second his motion. Chairman Farias has been on the Maverick County Hospital District Board of Directors for the past nine years while Calderon is the newest elected Board member serving six months of his publicly elected four year term.
Board Vice-President Rito Valdez, III and Board member Humberto Duran did not say much except follow the discussion
Board member Joaquin L. Rodriguez and Administration pointed out that the Hospital District investments in the Reserve Fund are receiving low interest rates between 0.60% and 1.0%, the District has increased new programs such as the Physician Specialty Clinic Oncology Center, Breast and Cervical Cancer Screening Program, the Ryan White Program for HIV-AIDS patients, and the population growth in the community as having contributed to the annual operating losses.
Board Chairman Farias has appointed Board members Rodriguez and Calderon to the Strategic Committee, which will hold its first meeting this Thursday, May 2nd, at 12:00 Noon at the Offices of the Maverick County Hospital District, located at 3406 Bob Rogers Drive, in Eagle Pass. The purpose of the Strategic Committee is to review the Maverick County Hospital District’s fiscal budget and propose recommendations for the following year’s fiscal budget of 2012-2013 to the entire Board of Directors for their review and possible action.
