Waco Health District develops grant elimination transition plan amid funding challenges

The McLennan County Commissioners' Court convened on July 12, 2025, to discuss critical budgetary matters concerning the health district's operations and funding sources. The meeting focused on the implications of potential federal funding cuts and the health district's strategies for managing its budget in light of these challenges.

The health district's annual operating budget exceeds $10 million, primarily supported by grant funding. However, officials expressed concern over stagnant grant amounts over the past decade, which have not kept pace with rising operational costs. As a result, the district is developing a grant elimination transition plan to identify services that may be impacted by funding cuts and to strategize on how to absorb or transition these critical services with existing resources.

During the meeting, it was noted that if grant funding is reduced, the district anticipates potential staff losses, as there are currently no plans to transition grant-funded staff to general funding. The health district's proposed budget for fiscal year 2026 is still in development, with preliminary figures indicating that non-grant expenses could total over $6.4 million. After accounting for service revenues, the net funding requirement would be approximately $5.5 million, translating to about $20.67 per resident based on the latest census data.

The meeting also highlighted the importance of support from various departments, including finance and human resources, to maintain the health district's operations amid complex funding structures. The breakdown of non-grant funding sources revealed that the city of Waco contributes nearly 60% of the funding, with additional revenues from service charges and contributions from other member cities and the county.

In conclusion, the Commissioners' Court emphasized the need for ongoing monitoring of federal funding decisions and the importance of strategic planning to ensure the health district can continue to provide essential services to the community. Further discussions and adjustments to the budget are expected as the fiscal year progresses.