Florida Funding For Safety-Net Hospitals Could Be Affected By Proposed Property Tax Cuts

Main Category: Public Health
Also Included In: Health Insurance / Medical Insurance
Article Date: 08 Jan 2008 - 9:00 PDT

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Proposed cuts to Florida property taxes could reduce funding for safety-net hospitals in fiscal year 2009, the Tampa Tribune reports. The "low-income pool" of local and state tax dollars, which receives federal matching funds to reimburse hospitals that provide care to low-income and uninsured residents not covered by Medicaid, is mostly funded by ad valorem property tax revenue. Gov. Charlie Crist (R) and state lawmakers have proposed cutting those taxes this year.

According to the Tribune, the pool and related programs in FY 2009 will require an additional $98.1 million from local sources to cover the projected costs of charity care. If the taxes do not provide adequate revenue, state officials will have to decide whether to fill the gap with state funding. Florida faces an estimated $2.5 billion budget shortfall in FY 2008 and FY 2009.

State House Healthcare Council Chair Aaron Bean (R) said that he cannot promise that his committee will not cut services in light of the shortfall, adding that lawmakers could trim the FY 2008 budget at the beginning of the spring legislative session before making cuts to the FY 2009 budget. According to Gary Carnes, CEO of All Children's Hospital, lawmakers also have proposed reducing Medicaid reimbursements by up to 8%, which could increase hospitals' reliance this year on the low-income pool and related programs.

According to the Tribune, the pool relies heavily on "donor counties," which pay more than their proportionate share into the program. State Sen. Nan Rich (R) said, "The property tax amendment disproportionately affects our most populous communities," adding, "When we cut back now on ad valorem taxes, we run the risk of them not being able to provide the full amount they have been contributing. They won't have it to give, and that will affect the entire state" (Dolinski, Tampa Tribune, 1/3).

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