GALVESTON — This week’s city council agenda does not include a resolution of support for a proposed countywide hospital district, something many people expected as debate about the district heats up.
But council members said the resolution’s absence should not be misconstrued as opposition to the taxing district, which is a prerequisite for release of $350 million to the University of Texas Medical Branch to build a hospital tower and make other improvements.
Both Mayor Lyda Ann Thomas and Councilwoman Elizabeth Beeton had asked the city staff to prepare a resolution for today’s meeting.
They agreed to postpone the vote for two more weeks to give county commissioners a chance to decide how to fund the state’s health care mandate.
The issue might become moot because county commissioners appear to be leaning toward raising the existing property tax rate to avoid a referendum on the district.
State legislators made the extra medical branch money contingent on the county funding secondary and tertiary care for all residents at 100 percent of the federal poverty level.
The county currently funds specialty and hospital care for all residents at 50 percent of the federal poverty level.
During a meeting last week of officials from all Galveston County cities, Thomas asked County Judge Jim Yarbrough when it would be appropriate for cities to pass resolutions showing their support for the measure.
Yarbrough asked her to wait until commissioners decide which plan is best, she said.
“I am honoring his request,” she said. “The reason it’s not on Thursday’s agenda is because it seems good to wait to pass something that reflects the funding mechanism of the district.”
Yarbrough has advocated for a hospital district, which would have to be approved by voters in November.
But County Commissioner Pat Doyle suggested last week commissioners consider raising the tax rate instead, which would not require a popular vote.
The hospital district would add between 6 and 8 cents to every tax bill in the county, raising between $12 million and $15 million in revenue.
Doyle proposed allowing voters to consider giving commissioners permission to raise the county tax rate instead, which would have less effect on taxes for senior and disabled residents, whose taxes are frozen.
Beeton favors the tax rate increase but said she would support whatever decision commissioners made.
“Whatever they decide to do, I hope the city will support it to get (the medical branch) fully funded and keep jobs here,” she said.
Commissioners must call the election by the end of this month.
