UMC adopts 2015 budget, tax rate

The University Medical Center hospital board adopted its budget and tax rate for the coming fiscal year Tuesday afternoon.

In a unanimous vote, the hospital board adopted the $527 million budget and the tax rate of slightly more than 22 cents per $100 home valuation.

“we’re taking the effective tax rate, which is great for the taxpayer,” said James Valenti, the president and CEO of UMC.

If your property value has increased from last year, however, so will your tax contribution to UMC.

CEO Jim Valenti briefly outlined what is in the budget for ABC-7.

“There’s a lot of improvements in the budget, with regards to renovations to the hospital, renovations to the clinics, adding clinics, adding clinical programs, adding doctors, adding nurses,” he said. “But it also entails budget tightening. And cost and expense reductions. But that’s just good management.”

Valenti said many of the reductions are due to UMC’s commitment to its neighbor, El Paso Children’s Hospital, and the hospital’s inability to pay the $70 million of debt owed to UMC.

“We knew going in that the budget was going to be a tough year because of the Children’s inability to pay. That’s the major reason,” said Valenti. “We knew we had to do belt tightening. We knew we had to reduce expenses and overhead.”

That amount of debt has been disputed by Children’s officials.

But Valenti said UMC continues to believe in the children’s hospital and its mission.

The hospital’s budget and tax rate will be presented to the county commissioners court for final approval on Monday.