Gov signs hospital tax bill

Majority to fund Holy Cross capital improvements, 1/4 to finance UNM-Taos nursing program

Just a few days before an April 7 deadline, Gov. Michelle Lujan Grisham signed legislation on Tuesday (April 4) that paves the way for Taos County to reimpose a 0.5 cent gross receipts tax increment dedicated to capital improvement projects at Holy Cross Medical Center.

Senate Bill 205, sponsored by District 6 N.M. Sen. Bobby Gonzales and District 42 state Rep. Kristina Ortez, also directs a quarter percent of the GRT increment revenue to the UNM-Taos Nursing Program.

“That is great news,” Gonzales said. “I mean, there for a while it was getting close to the deadline, and you never know till the very end.”

The legislation authorizes the renewal of a county-wide halfcent gross receipts tax increment — which expired in December — and redirects it from Taos County schools to the hospital and the university’s nursing program.

The half-cent increment has been approved three times by Taos County voters over the past 30 years. The $2-3 million that the tax brings in each year would largely go to Holy Cross Medical Center, but Senate Bill 205, titled “County Hospital Gross Receipts Tax,” also allocates 25 percent of the GRT revenue to UNM–Taos’ Nursing Program.

In a statement, Mary Gutierrez, UNM–Taos chancellor, said the newly-signed law cements a partnership between the university and Holy Cross Medical Center.

“SB 205 helps ensure the financial security of our local hospital, and ensures that Holy Cross and UNM–Taos can be effective partners in service to Northern New Mexico for years to come,” Gutierrez said. “A well-resourced hospital is a crucial partner to a viable nurse education program. Our students learn in this hospital as they complete their clinical requirements, and the hospital staff serves in the clinical function as instructors, mentors and professional colleagues for our students. Nurses employed at the local hospital often serve as instructors in our program.

“Many of our students hope to be employed by the local hospital so that they can serve in the place they call home,” she added. “With one of the nation’s highest firsttime pass rates on the national nursing exam, UNM–Taos nursing faculty and staff are preparing excellent nurses who want to serve in their community upon graduation.

Over the next 10 years, the tax, which Taos County voters must also approve, would help pay for medical equipment, building improvements and other projects.

“It’s very positive for Taos, especially what we’ve experienced the last few years with COVID, and the cost of living and inflation; our hospital is very important,” Gonzales said. “This definitely will enhance the capital part, which is what the gross receipts can be used for.”

James Kiser, CEO of Holy Cross Medical Center, said in a statement that redirecting the 0.5 cent GRT increment back to the hospital “would better ensure its long-term survival,” and noted that “rural hospitals across New Mexico — and across the country — are struggling to be there for their community.”

“Without a means of long-term financial support, many rural hospitals will be forced to close,” Kiser said. “Over 160 rural hospitals have closed in the last 10 years, and evidence shows that when the rural hospital goes down, the rural community goes down. Hospitals are really in the business of not only providing preventive healthcare but, more so, sick and rescue care.

“Our $30 million annual payroll also provides livelihoods for our over 500 employees’ families,” Kiser added. “Those dollars help support infrastructure for the town and county of Taos, as well as help support our area’s businesses.”

In the coming months, the Taos County Commission will consider a resolution to hold an election regarding the tax. A request for approval from Taos County voters will almost certainly appear on the Nov. 7 statewide local election ballot.

“The commission has to adopt a resolution to get it on the ballot for the election,” said District 1 Commissioner Bob Romero, who was a vocal supporter of SB 205.

“It was not an easy piece of legislation to get through because it was unique to Taos County and it doesn’t affect any other hospitals,” Romero said. “But it was put in place to help build the hospital here.

“The county owns the hospital, so the county has an interest in making sure it’s maintained and in making sure it has the revenue to make improvements and maintain the building,” Romero added. “Now that the governor has signed it, it’s in our court.”

Romero noted that the reason the tax increment was no longer able to be directed to education has to do with a historic legal settlement regarding equity in New Mexico schools.

The landmark Yazzie/Martinez v. New Mexico decision found that a lack of school funding and resources in impoverished school districts is not an excuse for inequality in education. The court ordered all public schools to offer students equal learning opportunities regardless of race, language, income level or disability.

“And it really isn’t an increase since it is reauthorizing a tax we’ve had for 30 years,” Gonzales noted. “And at the same time, this will enhance the nursing program at UNM–Taos, right here. I think it’s a win-win for the community.”

Gutierrez said voters will have a chance to support healthcare equity in North-Central New Mexico if the question is placed on the Nov. 7 ballot.

“Health equity in rural New Mexico depends on our support of our local resources like Holy Cross and UNM–Taos,” she said. “I am grateful that Sen. Gonzales and Rep. Ortez successfully brought the bill through the session and that the governor has provided her support as well. It is now in each of our hands to bring this across the finish line.”