10/29/2024
Facts About the Ector County Hospital District Tax Hike Ballot Referendum
FACT #1:
One of the items on the Ector County ballot is a proposal from the Medical Center Hospital (MCH)/Ector County Hospital District (ECHD):
“The imposition of annual taxes by the district for hospital purposes at a rate not to exceed 75 cents on the $100 valuation of all taxable property in the district.”
FACT #2:
The proposed maximum rate of 75 cents is five times the current MCH tax cap of 15 cents, set by the Texas Legislature.
Everything else surrounding this proposal amounts to, at this time, a mix of promises and problems.
PROBLEM #1:
To enact this massive increase in MCH’s property tax cap, not only must voters approve it, but the Texas Legislature will also need to pass supporting legislation.
PROBLEM #2:
If the Legislature removes the cap, MCH can continue raising taxes up to the new 75-cent maximum. Currently, no safeguards exist to prevent the board from opting out of taking over Fire/EMS services, despite present assurances. We all know the value of a politician's promise.
PROBLEM #3:
Even if voters approve the MCH proposition and the Legislature raises the cap, Ector County voters would still need to approve MCH’s first significant tax increase since it would exceed the 8% voter-approval rate. In reality, MCH would need to nearly double its tax rate to make this proposal viable.
PROBLEM #4:
No requirement currently exists for the City to reduce its tax rate as MCH’s rate rises. This isn’t just a problem—it’s a fact.
PROBLEM #5:
This proposal would only apply to Ector County residents, leaving out the growing population of Odessans in Midland County. When asked how Midland County Odessans will be charged, the answer has been, “we’re not sure, but we’ll figure it out.” This could simply swap the current issue of limited reimbursement for West Odessa Fire/EMS runs with a potentially larger problem of no reimbursement for Midland County/Odessa services.
OPINION:
Voters should reject this half-baked plan, which would undoubtedly raise taxes and shift financial control of Odessa Fire Rescue from the City to the Hospital Board. That’s a fact.