Hospitals don’t need continued tax subsidies

In 2008, when voters in Sandoval County approved the 4.25 mill hospital tax, it was understood that it would be for not less than four years, but not more than eight years. Eight years later representatives of Presbyterian Rush Medical Center and UNM Sandoval Regional Medical Center are back asking for another nearly $110 million handout. The Sandoval County commissioners have voted to put their request on the November ballot to renew the 4.25 property tax mill levy for another eight years.

On Oct. 26, 2008, before the first vote for the 4.25 mill levy passed, it was reported in the paper, “Although both organizations say they have the money to build the hospitals, they’re asking voters to support the property tax increase, which they say will enhance the services they will be able to offer.”

I suspect it had to do with enhancing the bottom line of two large organizations. In either case, taxpayers have already paid for “enhanced services.”

Apparently they had the money and the desire to expand into an area with a need and a strong, rapidly increasing customer base with prospects of continuing growth, and little competition. With the business environment that exists in this area and a proper business plan the marketplace should support two well-managed hospitals. Therefore their success need not depend on taxpayer dollars.

It’s hard to justify continuing subsidies for these two large institutions when many public responsibilities — road repairs, water line replacement, staffing first responders and etc. have seriously been underfunded for years.

We property owners have long been bombarded with requests to increase the mill levy and, probably due to low voter turnout, seldom has a request been rejected. How much this has increased property taxes varies in different parts of the county. In southeast Rio Rancho, where my wife and I own our home, in 1999 the tax levy on property was 28.086 mills; in 2015 it was 38.335 mills. Over 41 percent of that outrageous increase was due to the hospital tax.

In 1999 for every $100,000 assessed property value the tax was about $936; in 2015 it was about $1278. Over the same period, with rate increases and property value appreciation, taxes rose by 70 percent while the Consumer Price Index increased by 42 percent.

For many of us who are retired all or part of our annual cost of living is based on the CPI. This discrepancy between the increase in property taxes and income can be problematic for those with little or no discretionary money to spend.

This runaway taxation is a burden for the taxpayers, especially those with low to modest incomes and small businesses. To provide needed tax relief the mill levy must be reduced. A no vote on the renewal of the unwarranted hospital tax would be a good start.