Maverick County Hospital District Board faces budget deficit again
By: Jose G. Landa, Copyright 2014, Eagle Pass Business Journal, Inc.
The Maverick County Hospital District (MCHD) Board of Directors faced their 14th consecutive budget deficit during the 2014-2015 Budget Workshop and Tax Increase Public Hearing held on Monday, August 25, 2014, at the District’s Second Floor Conference Room amidst the Board’s lack of acceptance of responsibility for the current and past budget deficits
At the August 25th Budget Workshop and Tax Increase Public Hearing, MCHD Chief Financial Officer Nestor Bonilla presented the Board with the proposed 2014-2015 MCHD Fiscal Year Budget developed by the Board’s Finance Committee and Administration reflecting a deficit of $786,099.
MCHD Board member Ricardo E. Calderon made a motion for the Board to review the proposed 2014-2015 Budget line item by line item so that the Board could cut and reduce the budget into a balanced budget. Board Secretary-Treasurer Humberto Duran seconded the motion. During discussion, Calderon noted that the Board has never been so close to balancing its budget than this year and the Board’s line item review would assist the Board to balance the budget. Calderon is an advocate for a balanced budget and against the use of the District’s reserve funds as capital contributions for balancing the deficit budgets. As a matter of fact, Calderon voted against the 2013-2014 Budget last year because it had a $2.6 Million deficit and utilized the District’s reserves to balance the deficit budget while his fellow Board members Farias, Valdez, Duran, and Rodriguez approved it on a split 4-1 vote.
Incredibly, the MCHD Board majority of President Juan Manuel “Chuco” Farias, Vice-President and Maverick County Treasurer Rito J. Valdez, III, and Board member Joaquin L. Rodriguez voted against Calderon’s motion for the Board to review the proposed 2014-2015 Budget line item by line item, while Calderon and Duran voted in favor of a line item review.
Instead, the MCHD Board majority of Farias, Valdez, Rodriguez, and Duran voted to defer to the Administration to review the proposed 2014-2015 Budget line item with a three to four percent reduction on all line items and present it to the Board for their review and proposed approval at another Budget Workshop and Special Board meeting to be held on Friday, August 29, 2014, at 5 P.M. at the District’s Second Floor Conference Room with Calderon voting against stating that the Board is responsible for the annual budget and should review it line item to balance it before approving it. A three to four percent reduction of the proposed $8,306,367 Budget will only yield a $299,191.01 (3%) to $332,254.68 (4% ) reduction, leaving a $486,907.99 to $453,844.32 deficit budget for 2014-2015–falling short of balancing it.
During discussion, Board Secretary-Treasurer Duran stated that “drastic measures” needed to be taken to balance the budget, comparing one’s own personal home budget where one has to cut back on expenses to make ends meet at home. Duran initially proposed a three to five percent reduction of all line items but later retracted to a three to four percent reduction. Board member Rodriguez recognized that fellow Board member Calderon is correct that the MCHD Board is required to approve a balanced budget just as the State of Texas is required. Rodriguez, however, blamed past Boards and Administrations for creating these budget deficits during the past 14 years and not presenting him with a balanced budget during his almost four years on the Board–denying responsibility. Rodriguez stated that it was impossible to try to balance the budget in one year when the deficit was created 14 years ago–“it’s like Shazam, cut everything to balance the budget in one year.” Board President Farias concurred that Calderon was correct that the MCHD Board is responsible for balancing the budget, but Farias declined to have the Board review the proposed budget line item, preferring to delegate that responsibility to Administration. Board Vice-President Valdez agreed that the budget needed to be balanced but had no suggestions on how to do it. Valdez concurred with Duran’s idea that the budget be reduced three to four percent per line item by the Administration. Calderon stated that “in the end, it is not management’s responsibility to balance the budget, but rather the Board has that responsibility and to approve the District’s budget annually.” It is quite apparent that the Board majority seeks to have Administration take the responsibility for whatever budget it ultimately approves instead of the Board.
The MCHD Board majority is looking to increasing the District’s ad valorem property taxes from its current seven cents per $100 valuation to anywhere from eight to eleven cents per $100 valuation, costing taxpayers more money. It appears that the MCHD Board majority will have to raise taxes and/or tap into the District’s reserves to balance the budget for fiscal year 2014-2015.
The public is invited to attend the MCHD Budget Workshop, Public Hearing to Increase Taxes, and Special Board Meeting on Friday, August 29th, at 5 P.M. at the District’s Second Floor Conference Room located at 3406 Bob Rogers Drive in Eagle Pass.
