Maverick County Hospital District Board Majority seeks tax increase for 2014-2015 fiscal year budget
By: Jose G. Landa, Copyright 2014, Eagle Pass Business Journal, Inc.
Another Maverick County Hospital District (MCHD) budget, and another budget deficit is proposed as well as the raiding of the District’s reserves to balance the budget.
At the August 20, 2014, MCHD Board of Directors Budget Workshop and First Public Hearing on a Tax Increase meeting, Board President Juan Manuel “Chuco” Farias advised the Board that the proposed 2014-2015 Budget has a $910,520 deficit after a one cent tax increase from 7 cents per $100 valuation to 8 cents per $100 valuation, requiring again for the Board to use the local hospital district’s reserves for capital contributions to balance the budget.
Board member Joaquin L. Rodriguez motioned to approve the proposed one cent tax rate increase per $100 valuation and establishing the 2014-2015 tax rate at 8 cents per $100 valuation and Board President Farias seconded the motion. Rodriguez and Farias voted for the tax increase while Board member Ricardo E. Calderon voted against the tax increase. Calderon requested Rodriguez and Farias to look at the proposed budget and have the Board make sufficient cuts in the budget to come up with a balanced budget for the first time in the last 14 years of the District as they were not very far ($910,520) from balancing the budget. Rodriguez and Farias offered no solutions on how to balance the budget other than increasing the taxes and raiding the District’s reserves as they have always done. Calderon noted that if the MCHD Board continues to tap into the reserves, the reserves will be depleted in the future and the Hospital District will not have funds to operate or respond in the event of a public health emergency.
Absent from the August 20th MCHD Board meeting were MCHD Vice-President and Maverick County Treasurer Rito J. Valdez, III, and Secretary-Treasurer Humberto Duran. Calderon noted that Valdez and Duran are the two Board members in the Finance Committee responsible for drafting a budget together with Administration to present to the entire Board for consideration and approval and how both Board members had failed to make this important Budget Workshop and First Public Tax Increase Meeting to explain to the Board on how they arrived at the $910,520 deficit budget. Valdez did not attend to his MCHD Board duties because he was at a political campaign rally for a statewide office candidate at a local restaurant while the MCHD Board meeting was going on and it is unknown why Duran could not attend.
Board member Calderon requested a detailed, line item budget be provided to Board members instead of a cursory budget for the next Board meeting so that the Board can review the proposed budget and go through each line item to determine if any cuts can be made to it in order to balance it. Calderon noted that one program that is operating at a significant loss is the Oncology-Cancer Treatment Center due to the increase cost of medications and suggested that the District may want to consider contracting an outside Cancer Treatment Center to operate the program while saving operating and medications expenses to the District and providing lease revenues for use of the District’s office/clinical space. This proposal would continue offering Cancer Treatment to Maverick County patients while reducing approximately $500,000 or more from the budget. Board President Farias and Rodriguez were not receptive to Calderon’s suggestion, but did not offer any suggestions of their own to balance the budget.
Calderon also suggested cutting out the payment of “Christmas Bonuses” to employees because not all will receive it and may cause internal and legal problems for the District. Board member Rodriguez stated he favors paying “Christmas Bonuses” to employees. The proposed “Christmas Bonus” Program will cost Maverick County taxpayers almost $20,000. MCHD Administration proposed eliminating the “Christmas Bonus” program but Board members Farias and Rodriguez favor it. The MCHD is a public governmental entity, not a private, for profit entity, already provides good compensation, health and dental insurance and retirement benefits to employees, and has a proposed budget deficit of $910,520 for 2014-2015.
Calderon also suggested hiring professional health care consultants to conduct a review of the MCHD programs and advise the Board on what the District is doing right, wrong, and make recommendations on what it needs to do to balance the budget without raiding the reserves and increasing taxes. Again, Farias and Rodriguez rejected Calderon’s suggestion without offering any suggestions themselves except to raise taxes and raid the reserves. Farias and Rodriguez are not receptive to having outside professionals review and evaluate the operations of the MCHD as is customary with many other local governmental entities.
Calderon also suggested hiring specialized legal counsel and financial consultants to review the MCHD’s 2000 agreement with Universal Health Systems, the parent company of Fort Duncan Regional Medical Center, to evaluate the District’s obligations and responsibilities concerning this agreement and make recommendations to the Board. Calderon noted this may save money to the District and taxpayers. Again, Farias and Rodriguez declined Calderon’s suggestion without offering any themselves.
Calderon noted that the Ryan White HIV Program requires that the MCHD advance $416,542 of its own monies and then request reimbursement from Bexar County, but the MCHD Board has failed to formally approve and renew the Ryan White HIV Program while Bexar County Commissioners Court has already approved the renewal of the program with MCHD. Calderon stated he supports the Ryan White HIV Program but simply asks the MCHD Board to formally approve it instead of relying upon a legal opinion stating that the District’s Chief Executive Officer has the authority to do so. Calderon’s point is how can the MCHD Board approve the expenditure of $416,542 of Maverick County taxpayers monies in the budget on a program or policy not formally adopted or renewed by the Board at one of its meetings. If the Bexar County Commissioners have to annually approve the program with MCHD, the reimbursement of these monies, and execution of four written contracts between the two entities, then how is it that the MCHD Board does not have to formally approve or renew these four written contracts between the two entities. Just imagine the School Superintendent or City Manager spending $412,542 of taxpayers monies without the School Board or City Council’s formal approval.
Calderon advised Farias and Rodriguez that the Board is responsible for approving the budget and adopting the tax rate, not Administration. The MCHD Board is ultimately responsible for approving the budget and must answer to Maverick County taxpayers. Calderon noted that the “buck stops with the Board of Directors” in approving and owning up to the budget, not anyone else.
Contradictory to his re-election registration statements on how he wanted to protect the District’s reserves, Board member Rodriguez did not offer any suggestions on how to protect the reserves except to raise taxes and withdraw capital contributions from the reserves to balance the $910,520 deficit.
MCHD Board President Farias stated that he does not want to cut any services or programs offered by the District, but did not offer any suggestions on how to balance the budget except to raise the taxes and dip into the reserves, again. Board President Farias stated that as a result of only two candidates registering for the two Board seats up for election on November 4, 2014, the MCHD will be saving up to $16,000 in election costs.
The MCHD scheduled another Budget Workshop and Second Public Tax Increase Hearing for Monday, August 25th, at 12 Noon in the Second Floor Conference Room of its offices located at 3406 Bob Rogers Drive in Eagle Pass, Texas. The MCHD Budget Workshop, Public Hearing, and meeting are opened to all Maverick County taxpayers and are allowed to make public statements regarding the proposed tax increase, budget, financial affairs, operations, programs, and services of the hospital district. Maverick County taxpayers are invited to attend the Monday, August 25th, MCHD Budget Workshop and Second Tax Increase Public Hearing and Meeting.
